IQ Hedge Market Neutral Tracker (QMN) Named "Most Innovative ETF" at the 9thAnnual Global ETF Awards
First Exchange-Traded Fund to Provide Market Neutral Exposure; QMN is an Absolute Return, Low Volatility Investment Solution
RYE BROOK, N.Y.--(BUSINESS WIRE)-- The IQ Hedge Market Neutral Tracker ETF (NYSE Arca: QMN) was named the "Most Innovative ETF" at the 9th Annual Global ETF Awards on April 18th, it was announced today by the fund's sponsor, IndexIQ, a leading developer of index-based alternative investment solutions.
QMN, the first ETF designed to provide exposure to the performance characteristics of market neutral hedge funds, was cited for its innovation. Winners were determined through a worldwide voting effort that included representation from financial advisors, institutional investors and fund sponsors.
"QMN is designed to address in part what has been a major issue for investors - managing risk and volatility, while maintaining exposure to the market," said Adam Patti, chief executive officer at IndexIQ. "Given the significant run-up in equity prices, the increasing market volatility, and the potential for rising interest rates, QMN's value proposition as an absolute return vehicle and as a fixed income alternative is compelling. QMN's index track record, which dates back nearly 5 years, has shown the value of this strategy throughout some of the most difficult market conditions in history. We are pleased to receive this recognition for QMN, the latest addition to our industry-leading family of liquid alternative ETFs."
QMN seeks to track, before fees and expenses, the performance of the IQ Hedge Market Neutral Index. The Index, with an inception date of September 2008, seeks to provide performance similar to the universe of market neutral hedge funds, with low correlation to the equity markets, intra-day liquidity, portfolio transparency, and no manager specific risk. Market Neutral hedge funds typically invest in both long and short positions in asset classes while minimizing exposure to systematic risk. These strategies seek to have a zero "beta" (or "market") exposure to one or more systematic risk factors including the overall market (as represented by the S&P 500 Index), economic sectors or industries, market cap, region and country. Market neutral strategies that effectively neutralize the market exposure are not impacted by directional moves in the market.
Patti noted that for some investors, QMN may serve as a low volatility alternative for at least a part of their exposure to the bond market. "For some time now, there has been concern among fixed income investors that bond prices may be close to or at their peak for this cycle," said Patti. "QMN provides an opportunity to generate income while maintaining an overall neutral market exposure."
As with all IndexIQ alternative ETFs, QMN does not invest in hedge funds and the Index does not include hedge funds as components; the portfolio is constructed using Exchange-Traded Funds.
Over the past four years, IndexIQ has pioneered the liquid alternatives market, introducing a series of first of their kind hedge fund replication ETFs, including: IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), which has gathered more than $397 million in assets as of May 10, 2013, more than any other liquid alternative ETF; 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; and IQ Global Resources ETF (NYSE Arca: GRES), the first hedged global natural resources ETF.
The IQ Hedge Indexes, which underlie IndexIQ's family of liquid alternative ETFs, are used as the basis for investment products worldwide, and as benchmarks for advisors to determine how well actively managed hedge funds and alternative mutual funds are performing. The indexes underlie a variety of investment products, including ETFs, mutual funds, separately managed accounts, model portfolios, and institutional accounts.
In addition to the alternative products mentioned above, other IndexIQ funds include:
IQ Alpha Hedge Strategy Fund (IQHIX - Institutional Share Class; IQHOX - Investor Share Class), the first open-end, no-load hedge fund replication mutual fund;
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;
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.
About the Global ETF Awards
The Global ETF Awards® provides an opportunity for industry professionals worldwide to be recognized for their contributions to the growth of the ETF marketplace. Winners are selected by votes cast by ETF industry entities worldwide, with an additional series of awards determined by analysis of statistical data.
IndexIQ is a leading issuer of index-based liquid alternative solutions 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.
Index performance does not reflect charges and expenses associated with the Funds or brokerage commissions associated with buying and selling ETF shares. One cannot invest directly in an index.
The IQ Alpha Hedge Strategy Fund (IQ Fund), the IQ Hedge Multi-Strategy Tracker ETF (IQ Multi-Strategy ETF), and the IQ Macro Tracker ETF (IQ Macro ETF) are not hedge funds and do not invest in hedge funds. The IQ Alpha Hedge Strategy Fund is a registered open-end mutual fund that invests in exchange-traded funds (ETFs) and similar securities in an attempt to replicate the performance characteristics of certain hedge fund investing styles, but with less cost, more liquidity, and greater portfolio transparency than traditional hedge funds. There can be no assurance that the Funds' investment strategies will be successful. The investment performance of the IQ Multi-Strategy ETF, the IQ Macro ETF and the IQ Real Return ETF (collectively, the IQ ETFs), because they are funds of funds, depends on the investment performance of the underlying ETFs in which they invest. There is no guarantee that the IQ ETFs themselves, or each of the underlying ETFs in the Funds' portfolios, will perform exactly as its underlying index. The IQ ETFs are non-diversified and susceptible to greater losses if a single portfolio investment declines than would a diversified mutual fund. The IQ ETFs' underlying ETFs invest in: foreign securities, which subject them to risk of loss not typically associated with domestic markets, such as currency fluctuations and political uncertainty; commodities markets, which subject them to greater volatility than investments in traditional securities, such as stocks and bonds; and fixed income securities, which subject them to credit risk; the possibility that the issuer of a security will be unable to make interest payments and/or repay the principal on its debt; and interest rate risk; changes in the value of a fixed-income security resulting from changes in interest rates. Leverage, including borrowing, will cause some of the IQ ETF's underlying ETFs to be more volatile than if the underlying ETFs had not been leveraged.
Investors are reminded that 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 visitingwww.indexiq.comor by calling (888) 934-0777. Read the prospectus carefully before investing.
IndexIQ ETFs and mutual funds are distributed by ALPS Distributors, Inc., which is not affiliated with IndexIQ. IndexIQ distributes the SMAs and models.
Mike MacMillan/Chris Sullivan
KEYWORDS: United States North America New York
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