IndexIQ Preps For 130/30 ETF

By
November 11, 2009
Share:

Related ETFs

Ticker Fund name
CSMProShares Large Cap Core Plus
Related ETF Lists
Large Cap ETFs

 

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.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

Financial fund 'XLF' led inflows on Thursday, July 2, as net inflows helped lift total U.S.-listed ETF assets to $2.124 trillion.

'XLF,' 'SPY' and 'XLE' paced SSgA's issuer-leading inflows on Thursday, July 2, as total U.S.-listed ETF assets rose to $2.124 trillion.

ETF.COM ANALYST BLOGS

By Drew Voros

Why is putting a client’s interest first not the industry standard?

By Matt Hougan

Contrarian plays, bad investing and authenticity in social media dominated the day.

By Dave Nadig

While they bring added risk, they can bring added returns.

By Olly Ludwig

The ETF world is a hotbed of interesting new ideas, as this week’s launches make clear.

ETF INDUSTRY PERSPECTIVE

By Invesco PowerShares

Smart beta appears to be poised for further growth.

By Dorsey Wright & Associates LLC

So many sectors, how do you choose? A quick guide from Dorsey Wright.

By Nasdaq Global Indexes

Bond exposure or bond performance? Only defined maturity indexes provide the latter.