The IQ Hedge Long/Short Tracker ETF (NYSEArca: QLS), which is designed to mirror hedge funds’ long/short strategies, returned 0.56% last month.
The IQ Hedge Macro Tracker ETF (NYSEArca: MCRO) tries to replicate the risk-adjusted return characteristics of a global macro strategy that takes long and short positions on various assets based on the overall economic and political views of a number of countries or their macroeconomic principles.
The IQ Hedge Market Neutral Tracker ETF (NYSEArca: QMN) tries to give consistent returns in any market with low volatility.
The IQ Hedge Event-Driven Tracker ETF (NYSEArca: QED) is also designed to mirror hedge funds’ event-driven strategies.
The IQ Merger Arbitrage ETF (NYSEArca: MNA) employ a type of alternative, “directional hedge fund strategy” called merger arbitrage where the fund tries to capture the spread or difference between a stock’s trading price before a deal is announced and its eventual takeover price.
Bruno also highlighted rising risks in the fixed-income market. IndexIQ is one of the few that offers several smart beta fixed-income strategies, or bond ETFs that do not follow the traditional market cap-weighting scheme, including the IQ Enhanced Core Bond U.S. ETF (NYSE Arca: AGGE) and IQ Enhanced Core Plus Bond U.S. ETF (NYSE Arca: AGGP), and the IQ S&P High Yield Low Volatility Bond ETF (HYLV), the first high yield low volatility fixed income ETF. These smart beta bond ETF strategies could help investors gain exposure to higher quality, high-yield debt as a way to improve returns while diminishing risk.
Financial advisors who are interested in learning more about the market conditions and risks can watch the webcast here on demand.