One of the Exchange-Traded Funds (ETFs) in IndexIQ’s industry-leading hedge fund replication product family, the IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), is today celebrating its fifth anniversary, the firm has announced. MCRO was the first ETF to provide exposure to the risk-adjusted characteristics of the universe of hedge funds pursuing a macro strategy.
“We designed MCRO to be a low volatility vehicle offering investors downside mitigation during market declines while also allowing them to remain exposed to global equities,” said Adam Patti, chief executive officer at IndexIQ. “It’s a strategy that we thought was highly relevant when we introduced the fund and that is even more relevant today, with markets setting new highs. We’re very pleased to be marking MCRO’s fifth anniversary.”
MCRO seeks to replicate, before fees and expenses, the performance of the IQ Hedge Macro Index, part of the firm’s innovative IQ Hedge family of investable benchmark hedge fund replication and alternative beta indexes. The index, which now has close to six years of live track record, attempts to replicate the risk-adjusted return characteristics of the universe of hedge funds pursuing a global macro strategy, which can often include international and Emerging Markets components, exposures which the index includes.
“The liquid alternatives product category continues to build momentum among investors of all types, including institutions, advisors and the retail community, and we’re very proud to have been in the space from the start,” added Patti. “Our family of hedge fund replication products has grown over the past several years to include a mutual fund, separate accounts and managed ETF portfolios in addition to our standalone ETF offerings, and we look forward to continuing to bring innovative solutions to market.”In addition to MCRO, IndexIQ has a number of other offerings focused on the liquid alternatives space, including IQ Alpha Hedge Strategy Fund (IQHIX – Institutional Share Class; IQHOX – Investor Share Class), the first open-end, no-load hedge fund replication mutual fund; IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), the first and largest hedge fund-style ETF, which recently passed the $750 million assets under management mark; IQ Hedge Market Neutral Tracker ETF (NYSE Arca: QMN), the first market neutral hedge fund style ETF; and IQ Merger Arbitrage ETF (NYSE Arca: MNA), the first merger arbitrage ETF. In addition to the products referenced above, other IndexIQ funds include:
- IQ Real Return ETF (NYSE Arca: CPI), the first US-listed “real return” ETF, which seeks to generate a real return above the rate of inflation as measured by changes in the Consumer Price Index;
- IQ US Real Estate Small Cap ETF (NYSE Arca: ROOF), the first US Real Estate Small Cap ETF;
- IQ Global Resources ETF (NYSE Arca: GRES), the broadest commodity equity ETF in the market;
- IQ Global Agribusiness Small Cap ETF (NYSE Arca: CROP), the first agribusiness small-cap ETF;
- IQ Global Oil Small Cap ETF (NYSE Arca: IOIL), the first small-cap global oil equity ETF;
- IQ Canada Small Cap ETF (NYSE Arca: CNDA), the only ETF to target the small-cap segment of the resource-rich Canadian marketplace; and
- IQ Australia Small Cap ETF (NYSE Arca: KROO), the only ETF to focus on the small-cap spectrum of the Australian marketplace, another resource-driven economy where pure play exposure to factors “on the ground” can be an important component of an investment strategy.