1. Guide To ETF Providers: Introduction
  2. Guide To ETF Providers: Direxion
  3. Guide To ETF Providers: EG Shares
  4. Guide To ETF Providers: ETF Securities
  5. Guide To ETF Providers: Guggenheim
  6. Guide To ETF Providers: IndexIQ
  7. Guide To ETF Providers: Invesco PowerShares
  8. Guide To ETF Providers: iShares
  9. Guide To ETF Providers: ProShares
  10. Guide To ETF Providers: State Street Global Advisors
  11. Guide To ETF Providers: Van Eck
  12. Guide To ETF Providers: Vanguard
  13. Guide To ETF Providers: WisdomTree
  14. Guide To ETF Providers: Conclusion

IndexIQ is an asset management firm founded in 2006. It offers both mutual funds and ETFs. IndexIQ was the first to offer hedge fund replication ETFs that cover popular ledge fund investment styles. For example, the IQ Hedge Multi-Strategy Tracker ETF (ARCA:QAI) attempts to replicate the risk-adjusted return characteristics of hedge funds using a variety of hedge fund investment styles such as long/short equity, global macro, market neutral, event-driven, fixed-income arbitrage and emerging markets.

In addition to hedge fund replication, IndexIQ offers a variety of Index constructions including alternatively weighted indexes, tactical rotation indexes and intangible asset value index strategies.

IndexIQ defines itself and is guided by its Rules-Based Alpha philosophy, which integrates traditional index investing with the alpha potential sought by active managers. The philosophy is based on three principles:

  • Democratizing alternatives – providing investors access to alternative investment products that are typically reserved for institutional and ultra-high net worth individuals;

  • Alpha/Beta separation – offering investors access to alpha and beta sources typically reserved for institutional investors and

  • Third-generation indexing – the combination of rules-based construction, low cost and tax efficiency of traditional index investing with the alpha potential that active managers seek.
IndexIQ is headquartered in Rye Brook, NY, and currently has 11 U.S. listed ETFs. ETF expense ratios range between 0.48 and 0.75%, with an average expense ratio of 0.71%.

IndexIQ\'s top five largest funds by AUM.
Figure 5: IndexIQ\'s top five largest funds by AUM. Information current as of Feb. 8, 2013.

Guide To ETF Providers: Invesco PowerShares

Related Articles
  1. Investing

    QAI vs. MNA: Comparing Alternative ETFs

    Discover the performance and risk characteristics of two alternative investment ETFs, the IQ Hedge Multi-Strategy Tracker ETF and the IQ Merger Arbitrage ETF.
  2. Financial Advisor

    How to Access Hedge Fund Strategies via ETFs (QAI)

    ETFs that track hedge funds haven’t been performing that well as a group, though they are still outperforming individual hedge funds. Here are a few options.
  3. Investing

    Can ETFs Outperform Hedge Funds?

    Long ETFs may be key to an evolving strategy that aims to supplant the hedge fund juggernaut.
  4. Investing

    Are ETFs Going to Replace Hedge Funds?

    Examine whether ETFs can take significant market shares from hedge funds. Hedge funds have seen their heyday, but ETFs are just getting started.
  5. Investing

    Strategy Based ETFs to Consider in 2015

    Let ETF managers do the work for you. These ETFs replicate investment strategies, indexes and funds attempting to outperform performance benchmarks.
  6. Financial Advisor

    Are Hedge Fund ETFs Suitable for Your Portfolio?

    Are hedge fund ETFs right for you? Here's what investors need to consider.
  7. Investing

    ETF Defenses For The Fiscal Cliff And Beyond

    Adam Patti is the Chief Executive Officer and Founder of IndexIQ, a New York-based ETF issuer behind several of the most innovative ETF products to hit the market in recent years.He recently ...
  8. Investing

    Hedge Funds Go Retail

    Find out how average investors are breaking into what was once reserved for the ultra rich.
  9. Investing

    Hedging With ETFs: A Cost-Effective Alternative

    The benefits of ETFs for hedging are clear and investors of all sizes are taking notice.
  10. Investing

    6 Reasons Hedge Funds Underperform

    Understand the hedge fund industry and why it has grown exponentially since 1995. Learn about the top six reasons why the industry underperforms.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center