IndexIQ’s Patti on Alternative ETFs

IndexIQ CEO Adam Patti joined ETF Trends Publisher Tom Lydon at the ETF.com Inside ETFs conference in Hollywood, Fla. to discuss the firm’s lineup of alternative ETFs as well as IndexIQ’s partnership with New York Life that comes with that firm’s acquisition of Index IQ.

“We’ve had a historic run in equities, a historic run in fixed income. We’ve got the specter of rising rates and investors really need to get hedged,” said Patti.

The IndexIQ Hedge Multi-Strategy ETF (NYSEArca: QAI), the largest hedge fund strategy ETF, tries to reflect the risk-adjusted return characteristics of hedge funds through various hedge fund investment styles, such as long/short equity, global macro, market neutral, event driven, fixed-income arbitrage and emerging markets.

The Index IQ Merger Arbitrage ETF (NYSEArca: MNA) employs a type of alternative, “directional hedge fund strategy” clled merger arbitrage. Specifically, the funds capture the spread or difference between a stock’s trading price before a deal is announced and its eventual takeover price.

In December, New York Life said its New York Life Investment Management (NYLIM) will acquire exchange traded funds provider IndexIQ. IndexIQ will be integrated into NYLIM and marketed through New York Life’s MainStay Investments platform.

Watch the video below to see the full interview.

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