IndexIQ Preps For 130/30 ETF

By
Matt Hougan
November 11, 2009
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IndexIQ, an upstart ETF provider best known for its hedge fund replication products, has filed a 40-APP application with the Securities and Exchange Commission that would clear the way for it to launch a number of novel ETFs, including a 130/30 product. 

130/30 funds follow a popular hedge funds strategy that pairs a 130 percent long position in favored securities with a 30 percent short position in unfavored securities. The resulting portfolio is 100 percent net long, but amplifies the returns on a portfolio manager’s favorite choices.

40-APP filings are an initial step in the ETF registration process that takes place prior to the writing of a prospectus, and do not mean that funds are due to launch soon.

ProShares already offers an index-based 130/30 product, the ProShares Credit Suisse 130/30 ETF (NYSEArca: CSM), which has $29.5 million in assets.

The IndexIQ 40-APP filing, which also covers two additional classes of ETFs, is available here.

 

ETF DAILY DATA

The consumer discretionary fund 'XLY' garnered a $1 billion-plus blast of creation on Tuesday, March 3. Still, a falling market offset net inflows and pulled total U.S.-listed ETF assets down to $2.092 trillion.

'VCR,' the consumer discretionary fund, paced Vanguard's issuer-leading inflows on Tuesday, March 3, as total U.S.-listed ETF assets ended the day at $2.092 trillion.

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