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First Global Macro Hedge Fund ETF (MCRO), Offering Low Volatility And Low Correlation Global Macro Investing For All Investors, Celebrates Three-Year Anniversary

Stocks in this article: CNDA CPI CROP EMER GRES IOIL IQHIX IQHOX KROO MCRO MNA QAI ROOF SKOR

The first Exchange-Traded Fund (ETF) designed to offer investors low cost, liquid and transparent access to the risk and return benefits of Global Macro hedge fund investment strategies marked its third anniversary on June 9, it was announced today by the fund’s sponsor, IndexIQ. Launched during a period of high market volatility, the IQ Hedge Macro Tracker ETF (MCRO) has exhibited strong returns since inception with low volatility as compared to the hedge fund industry benchmarks.

“The last three years have been a roller coaster ride for the markets,” said Adam Patti, chief executive officer at IndexIQ. “While we could not have fully anticipated this when we launched MCRO, the fund was designed as a low volatility vehicle that would provide downside mitigation while allowing an investor to maintain exposure to the global equity markets. We have been pleased to see that it has performed as intended over this period.”

MCRO seeks to replicate, before fees and expenses, the returns of the IQ Hedge Macro Index, which has nearly five years of live history. Global Macro hedge fund strategies generally span the globe in search of investment opportunities, employing a top-down approach to identifying market inefficiencies and dislocations, and typically invest in a range of instruments and asset classes including stocks, bonds, commodities, and currencies.

“As they seek to balance risk and return, investors and their financial advisors continue to express great enthusiasm for ETFs like MCRO that provide low cost, transparent access to the alternative investment asset class,” Patti said. “We look forward to continuing to pioneer in the area of alternative investments.”

MCRO has performed as follows:

  As of May 31, 2012       As of March 31, 2012      
1 Month   3 Month   YTD   1 Year   35 Months  

Since Fund Inception*

 

Since Index Inception*

      1 Year  

Since Fund Inception*

 

Since Index Inception*

    Inception Date
IQ Hedge Macro Tracker ETF (MCRO)                           6/9/2009
Share Price -2.09% -3.82% 1.60% -3.70% 3.09% 3.08% N/A -0.14% 4.08% N/A
NAV -2.20% -3.79% 1.48% -3.80% 3.29% 3.07% N/A -0.32% 4.07% N/A
Standard Deviation N/A   3.95%   8.55%   10.33%   7.93%   7.86%   N/A       10.46%   8.06%   N/A      
IQ Hedge Macro Index (IQHGMAT) -2.11% -3.55% 1.88% -3.19% 3.44% 3.63% 4.23% 0.26% 4.61% 5.04% 9/15/2008
Standard Deviation N/A   3.93%   8.55%   10.49%   8.03%   7.95%   9.95%       10.66%   8.17%   10.09%      
HFRI Fund of Funds Index -1.98% -2.19% 1.05% -5.68% 2.25% N/A N/A -3.40% N/A N/A
Standard Deviation N/A   3.78%   5.27%   5.31%   4.71%   N/A   N/A       5.35%   N/A   N/A      
MSCI World Index -8.52 -8.32 1.07 -10.48 10.02% 9.19 1.57 1.14 13.76 4.57
Standard Deviation N/A   17.84%   19.37%   19.83%   17.90%   17.66%   22.35%       18.55%   17.43%   22.33%      
 
*Performance greater than 1 year is annualized

Standard deviation shows how much variation or dispersion exists from the average. Performance greater than 1 year is annualized. Performance data shown represents past performance and is not a guarantee of future results. Investment return and value of the Funds’ shares will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Fund returns reflect dividends and capital gains distributions. Fund performance current to the most recent month-end is available by calling 1-888-934-0777 or by visiting www.IndexIQ.com .

IndexIQ utilizes a proprietary rules-based methodology to construct the IQ Hedge Macro Index. While the index is built using data on hedge fund strategy returns, the IQ Hedge Macro Strategy Tracker ETF does not invest directly in hedge funds. Rather, it seeks to replicate the returns and common risk factors of hedge fund investing strategies, using existing Exchange-Traded Funds as the building blocks of the portfolio.

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