Advisors often ask how to pick the best liquid alts strategy to diversify their clients’ portfolios. This is a fair, if not critical, question as alternatives strategies span a wide range of investment objectives and are often suited for specific market conditions. Also, some alts strategies may be more appropriate for either the equity or fixed income sleeves of a portfolio.
In the upcoming webcast, Optimizing the 60/40 Portfolio Through Varying Market Conditions with Liquid Alts, Salvatore Bruno, Chief Investment Officer and Managing Director, IndexIQ; Kelly Ye, Director of Research, IndexIQ; and Dan Petersen, Director, Product Management, IndexIQ, will look to solutions to consider in an environment characterized by volatile equity markets and low but rising interest rates.
ETF investors who are interested in alternative strategies can look to a number of options. For example, the IQ Hedge Multi-Strategy ETF (NYSEArca: QAI) provides a diversified mix of alternative strategies, including multiple hedge fund investment styles such as long/short equity, global macro, market neutral, event-driven, fixed income arbitrage, and emerging markets.
The IQ Hedge Long/Short Tracker ETF (NYSEArca: QLS) is designed to mirror hedge funds’ long/short strategies.
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 designed to mirror hedge funds’ event-driven strategies.
Lastly, the IQ Merger Arbitrage ETF (NYSEArca: MNA) employs a type of alternative, “directional hedge fund strategy” called merger arbitrage where the fund tries to capture the spread between a stock’s trading price before a deal is announced and its eventual takeover price.
Financial advisors who are interested in learning more about liquid alts can register for the Thursday, April 22 webcast here.