Advisors looking for lower-cost, innovative hedge fund strategies in a unique investment model can now do so thanks to a new partnership between IndexIQ and Nasdaq Dorsey Wright.
The companies have come together to offer the IQ Alternative Allocation Model, the first liquid alternative model on Nasdaq Dorsey Wright’s platform.
Sal Bruno, IndexIQ Chief Investment Officer, told ETF Trends this partnership brings together two established category leaders: IndexIQ in liquid alternatives and Nasdaq Dorsey Wright in providing model solutions to advisors.
“As we’ve seen over the course of the past 12 months, volatility remains a very real concern, and a thoughtful, well-constructed absolute return model like this one can play an important role for any advisor looking to keep their clients well-diversified and well-prepared for what may come,” Bruno said.
IndexIQ Chief Operating Officer Jon Zimmerman said they are delighted to partner with Nasdaq Dorsey Wright to leverage their unparalleled methodology alongside their established expertise in liquid alternative ETFs.
The IQ Alternative Allocation Model is designed to provide advisors with an absolute return strategy built around IndexIQ’s industry-leading suite of liquid alternative ETFs. The model will rebalance monthly and will be comprised of two equal weights from the IndexIQ suite, including:
|
Fund Name |
Ticker Symbol |
|
IQ Merger Arbitrage ETF |
MNA |
|
IQ Hedge Long/Short ETF |
QLS |
|
IQ Hedge Event-Driven Tracker ETF |
QED |
|
IQ Hedge Market Neutral Tracker ETF |
QMN |
|
IQ Hedge Macro Tracker ETF |
MCRO |
|
IQ Real Return ETF |
CPI |
Additionally, IndexIQ recently reduced the net expense ratios on four of the funds included in the model—QLS, QED, MCRO and QMN—by 35 bps each via a management fee waiver.
|
Ticker |
Gross Expense Ratio |
Current Net Expense Ratio |
|
QLS |
1.02% |
0.67% |
|
QED |
1.13% |
0.78% |
|
MCRO |
1.04% |
0.69% |
|
QMN |
1.02% |
0.67% |
Jay Gragnani, Head of Research and Client Engagement with Nasdaq Dorsey Wright, said its work with IndexIQ gives investors access to a uniquely designed liquid alternative ETF model as they look to build diversified investment portfolios.
“IndexIQ’s suite of liquid alternatives ETFs offers advisors access to nontraditional and differentiated strategies, which can be especially valuable for advisors in today’s market,” said Gragnani.
The IQ Alternative Allocation Model will be available to financial advisors and registered investment advisors who subscribe to Nasdaq Dorsey Wright’s platform and will not assess an overlay fee.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
