IQ Hedge Multi-Strategy Tracker ETF overview
The IQ Hedge Multi-Strategy Tracker ETF (QAI), also known as the S&P 500 Index (SPY) of the hedge-fund market, has around $950 million in assets under management. So far in 2014, the QAI has attracted more than $300 million in new investments, comprising almost a third of its assets, according to S&P Capital IQ.
QAI: Top Holdings
QAI: Investment Strategy
The QAI attempts to replicate the risk-adjusted return characteristics of hedge funds using various hedge fund investment styles, including:
- Long/short equity
- Global macro
- Market neutral
- Fixed income arbitrage
- Emerging markets
QAI: Expenses and Returns
The QAI’s 0.91% expense ratio is modest compared with fees that a typical hedge fund charges. In recent months, the firm has invested heavily in sales and marketing to heighten its awareness among ETF investors.
QAI has returned 3.18% to its investors as of December 8, 2014, a notch above its five-year average returns of 3.12%. Since inception, the fund has returned about 4.45% in average annual returns to its investors.
The next part of this series analyzes how IndexIQ fits into New York Life Insurance Co.’s growth plans, as well as the benefits the life insurer seeks to get from it.