Sometimes the hype is real.
With the S&P 500 topping 2,000, it’s worth understanding how you ended up in the wrong large-cap ETF.
ProShares looks to raise the profile of its 130-30 ETF, ‘CSM.’
Just days after the stock market hit its March 2009 bottom, IndexIQ, a tiny index provider, launched its first exchange-traded fund, the IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI). As far as attracting investors, the timing proved inauspicious. Most investors were shellshocked after witnessing the stock market plummet more than 50 percent in 18 months. However, inside the ETF industry, the fund’s hedge fund replication strategy drew much interest. In April, the ETF won Most Innovative ETF and its eponymous index won Most Innovative Index at the 9th Annual Closed-End Funds & Global ETFs Forum, the first time a single firm won awards in both categories.
In the last month, I’ve written about two long/short quant products, which I think may be about to experience some unusual volatility in this quarter’s market environment. Using any dips in these products as potential buying opportunities will make for a strategic long-term bet.
Is CSM really sluggish out of the gate? Looking beneath the hood reveals some interesting notes about how it’s trying to gain some alpha.
If markets are really heading into the sweet spot for 130/30 funds, which ETP is right for you?