IndexIQ CEO Adam Patti joined ETF Trends Publisher Tom Lydon at the Morningstar Investment Conference in Chicago to discuss IndexIQ’s growth and the firm’s mission of bringing institutional-quality alternative investments to advisors and investors.

“Liquid alternatives have finally become a much more important part of retail and advisors’ portfolios,” said Patti. “Fortunately for us, we have five-, six-, seven-year track records and lived through some of the biggest drawdowns. Our products are tested.”

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.

Patti also noted that, on the equity side, there has been increased interest in the Index IQ Merger Arbitrage ETF (NYSEArca: MNA).

MNA has a six-year track record and merger arbitrage allows advisors to reduce volatility while maintain long equity exposure, said Patti.

Watch the video below to see the full interview.

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