Trailblazer in Fast-Growing Liquid Alts Space Continues to Offer
Investors a Core Alternatives Holding
NEW YORK--(BUSINESS WIRE)--
The mutual fund that helped launch the liquid alternatives product
category, IndexIQ's IQ Alpha Hedge Strategy Fund (IQHIX - Institutional
Class; IQHOX - Investor Class), is today celebrating its sixth
anniversary, according to the fund's sponsor, IndexIQ. The Fund was the
first no-load, open-end hedge fund replication mutual fund and was a
trailblazer for what has become one of the fastest-growing product
categories on the investment landscape, the liquid alternatives space.
"The launch of the IQ Alpha Hedge Strategy Fund was a key moment for us
in the development and evolution of our firm, as well as for what was
then the nascent ‘liquid alternatives' product category," said Adam
Patti, chief executive officer at IndexIQ. "In the ensuing six years,
financial advisors, retail investors, and institutions have all come to
embrace liquid alternatives, and the diversification, liquidity, and
other desirable characteristics that these products can add to an
Designed as a core holding for investors, the IQ Alpha Hedge Strategy
Fund provides broad market exposure and is designed to solve for the
structural limitations inherent in traditional hedge funds, such as
their high cost, illiquidity and lack of transparency.
The Fund is designed to synthesize the risk and return profiles of a
broad range of hedge fund investing strategies, seeking to deliver hedge
fund-like performance in a low cost, transparent, and highly liquid
investment vehicle. It follows a rules-based investment process that
selects components from a wide array of exchange-traded funds that cover
commodities, currencies, stocks, bonds and real estate.
A leader in liquid alternative ETFs by assets, IndexIQ has since further
expanded its offerings in the space, bringing out the IQ Hedge
Multi-Strategy Tracker ETF (NYSE Arca:QAI), the first liquid
alternatives ETF, in 2009.
Its family of liquid alternative ETFs also includes IQ Hedge Market
Neutral Tracker (NYSE Arca:QMN), designed to provide Market Neutral
hedge fund exposure; IQ Hedge Macro Tracker ETF(NYSE Arca:
MCRO), the first Global Macro/Emerging Markets hedge fund
replication ETF; IQ Merger Arbitrage ETF (NYSE Arca:MNA), the
first merger arbitrage ETF; IQ Real Return ETF (NYSE Arca:CPI),
the first US-listed "real return" ETF, which seeks to generate a real
return above the rate of inflation as measured by changes in the
Consumer Price Index; and IQ Global Resources ETF (NYSE Arca:GRES),
the first hedged global natural resources ETF and the broadest commodity
equity ETF on the market.
Other ETF offerings from IndexIQ include:
- IQ US Real Estate Small Cap ETF (NYSE Arca:ROOF), the first US
Real Estate Small Cap ETF;
- IQ Global Agribusiness Small Cap ETF (NYSE Arca:CROP), the
first agribusiness small cap ETF;
- IQ Global Oil Small Cap ETF (NYSE Arca:IOIL), the first global
oil small cap ETF;
- IQ Canada Small Cap ETF (NYSE Arca:CNDA), the first Canada
small cap ETF; and,
- IQ Australia Small Cap ETF (NYSE Arca:KROO), the first
Australia small cap ETF.
IndexIQ is a leading issuer of liquid alternative investments focused on
absolute return, real asset and international strategies. IndexIQ
solutions are offered as ETFs, Mutual Funds, Separate Accounts and Model
Portfolios. IndexIQ's philosophy is to democratize investment management
by making innovative alternative investment strategies available to
investors in low cost, liquid and transparent products.* IndexIQ
strategies are marketed through the company's proprietary investment
products and select partnerships with leading global financial
institutions. Additional information about the company and its products
can be found at www.IndexIQ.com.
*IndexIQ's ETF holdings are available daily on IndexIQ's
website. Brokerage commissions apply to ETFs. ETFs are liquid in that
they are exchange-traded.
The IQ Alpha Hedge Strategy Fund seeks to achieve investment results
that correspond to the total return, before fees and expenses, of the IQ
Alpha Hedge Strategy Index. The objective of the Index is to provide
superior returns and lower volatility relative to the S&P 500 Index. The
Index also seeks to provide correlation that is similar to the
correlation between hedge funds generally and the S&P 500 Index.
Mutual fund investing involves risk, including the possible loss of
principal. There is no guarantee that the Fund will meet its objective.
The Fund is not suitable for all investors due to its use of leverage,
short selling, and derivatives, or for other reasons. Funds that use
leverage to seek to increase return are subject to greater risk in
adverse market conditions. There are particular risks associated with
funds that employ short sales, such as the fact that the potential loss
from a short position theoretically is unlimited. The Fund's use of
derivatives, such as swap agreements, may expose the Fund to additional
risks that it would not be subject to if it invested directly in the
securities underlying those derivatives. The Fund's investment
performance, because it is a fund of funds, depends on the investment
performance of the underlying ETFs in which it invests. There is no
guarantee that the Fund itself, or each of the ETFs in the Fund's
portfolio, will perform exactly as its underlying index. An investor in
the Fund will bear the operating expenses of the underlying ETFs in
which the Fund invests. The Fund is non-diversified and may be
susceptible to greater losses if a single portfolio investment declines
than would a diversified mutual fund. The IQ Alpha Hedge Strategy Fund
is not intended to provide a complete investment program and should be
considered a speculative investment.
Investors are reminded that ETF and all investing involves risk,
including possible loss of principal. Consider the Funds' investment
objectives, risks, charges and expenses carefully before investing. A
prospectus with this and other information about the Funds may be
obtained by visiting www.indexiq.com
or by calling (888) 934-0777. Read the prospectus carefully before
IndexIQ ETFs and mutual funds are distributed by ALPS Distributors, Inc.
(ALPS), which is not affiliated with IndexIQ. Adam Patti is a registered
representative of ALPS.