Investors should be aware that the ETF does not solely invest in fixed-income assets. QAI’s current holdings also include a spattering of currencies, emerging market small-caps, developed EAFE small-caps, real estate investment trusts and some U.S. stocks.
Potential investors should be aware that these types of alternative investments are not meant as growth strategies to generate outsized returns in their portfolios. In reality, these strategies are doing exactly what they were made for, diminishing volatility. Consequently, in bullish market conditions, the strategies may underperform, but if the markets turn, this type of alternative strategy can shine. [Hedge Market Risks with Alternative Investments, ETFs]
IQ Hedge Multi-Strategy ETF