At Exchange 2023, IndexIQ’s CIO Sal Bruno spoke with NYSE’s Judy Shaw about “helping clients build better diversified portfolios” with alternatives ETFs.
See more: “IndexIQ Launches Active CBRE Real Assets ETF”
Coming out of 2022, bonds failed to provide the diversification needed to offset the equity market drawdown. So, Bruno recommended some alternatives ETFs “that actually would have helped buffer some of that downside in 2022.”
The first was the IQ Hedge Multi-Strategy Tracker ETF (QAI), the firm’s hedge fund replication ETF. Bruno said QAI “tries to give the investor a return experience that looks and feels like a hedge fund without directly investing in hedge funds.”
“It actually did a fairly decent job outperforming the 60-40 portfolio pretty significantly,” Bruno added.
The other ETF Bruno mentioned was the IQ Merger Arbitrage ETF (MNA). MNA invests in global companies that have announced their involvement in mergers, acquisitions, or other buyout-related transactions.
Bruno said that while MNA was “actually sort of flatish” in 2022, the average 60-40 portfolio “was down about 14%.” So, the fund was “providing tremendous diversification” that helped “buffer some of that downside.”
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