IndexIQ Launches New Hedge Fund Replication SMAs

By
ETF.com Staff
December 04, 2008
Share:

IndexIQ has introduced three new index-based separately managed account products.

 

Asset manager IndexIQ, which specializes in trying to replicate expensive hedge fund strategies using low-cost indexing techniques, has turned its attention on high net worth investors and the separately managed accounts.

The company has introduced three new index-based separately managed account products: two replicate hedge funds-of-funds, and a third SMA that is an ETF-of-ETFs covering commodities.

IndexIQ already offers an alternative alpha mutual fund and has plans to license its strategies to the exchange-traded funds world as well. The IndexIQ SMAs have investment minimums of $1 million apiece.

The IQ Alternative Beta Portfolio uses multiple hedge fund investing styles including long/short equity, global macro, market-neutral, event-driven, fixed-income arbitrage and emerging markets to replicate broad-based hedge fund indexes including the CS/Tremont Blue Chip Index and the HFRX Global Hedge Fund Index.

The IQ Inverse Alternative Beta Portfolio seeks to replicate the inverse risk-adjusted returns characteristics of that same collective hedge fund universe, hedging against the performance of the CS/Tremont Blue Chip Index and the HFRX Global Hedge Fund Index.

The IQ Commodity Rotation Portfolio seeks to achieve long-term capital appreciation by rotating exposure to various commodities. Exposures are determined using a rules-based price momentum methodology that rotates through seven commodity exchange-traded funds.

The SMAs will be primarily distributed through Charles Schwab & Co.

 

ETF DAILY DATA

Van Eck's chip ETF 'SMH' doubled its assets on Tuesday, March 31, as total U.S.-listed ETF assets ended the day at almost $2.1 trillion.

'VDE' paced Vanguard's issuer-leading inflows on Tuesday, March 31, as total U.S.-listed ETF assets ended the day at nearly $2.1 trillion.

ETF.COM ANALYST BLOGS

By Dave Nadig

How Ric Edelman is reinventing the ‘new economy’ investing paradigm.

By Olivier Ludwig

What’s cooler than an ETF with a ticker like ‘HACK’? The way investors are using it.

By Olivier Ludwig

Yes, 2015 is shaping up to be the ‘year of currency hedging,’ but that’s not necessarily a good thing.

By Elisabeth Kashner

ETF.com steps in to referee a catfight that has erupted in the world of robo advisors.