News Column

IndexIQ’s IQ Hedge Macro Tracker ETF (MCRO) Marks Its Fifth Anniversary

June 9, 2014

Fund has built significant track record replicating the return characteristics of hedge funds pursuing global macro strategies

RYE BROOK, N.Y.--(BUSINESS WIRE)-- One of the Exchange-Traded Funds (ETFs) in IndexIQ’s industry-leading hedge fund replication product family, the IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), is today celebrating its fifth anniversary, the firm has announced. MCRO was the first ETF to provide exposure to the risk-adjusted characteristics of the universe of hedge funds pursuing a macro strategy.

“We designed MCRO to be a low volatility vehicle offering investors downside mitigation during market declines while also allowing them to remain exposed to global equities,” said Adam Patti, chief executive officer at IndexIQ. “It’s a strategy that we thought was highly relevant when we introduced the fund and that is even more relevant today, with markets setting new highs. We’re very pleased to be marking MCRO’s fifth anniversary.”

MCRO seeks to replicate, before fees and expenses, the performance of the IQ Hedge Macro Index, part of the firm’s innovative IQ Hedge family of investable benchmark hedge fund replication and alternative beta indexes. The index, which now has close to six years of live track record, attempts to replicate the risk-adjusted return characteristics of the universe of hedge funds pursuing a global macro strategy, which can often include international and Emerging Markets components, exposures which the index includes.

“The liquid alternatives product category continues to build momentum among investors of all types, including institutions, advisors and the retail community, and we’re very proud to have been in the space from the start,” added Patti. “Our family of hedge fund replication products has grown over the past several years to include a mutual fund, separate accounts and managed ETF portfolios in addition to our standalone ETF offerings, and we look forward to continuing to bring innovative solutions to market.”

In addition to MCRO, IndexIQ has a number of other offerings focused on the liquid alternatives space, including 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 Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), the first and largest hedge fund-style ETF, which recently passed the $750 million assets under management mark;IQ Hedge Market Neutral Tracker ETF (NYSE Arca: QMN), the first market neutral hedge fund style ETF; and IQ Merger Arbitrage ETF (NYSE Arca: MNA), the first merger arbitrage ETF.

In addition to the products referenced above, other IndexIQ funds include:

  • 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 Resources ETF (NYSE Arca: GRES), the broadest commodity equity ETF in the market;
  • 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 small-cap global oil equity ETF;
  • IQ Canada Small Cap ETF (NYSE Arca: CNDA), the only ETF to target the small-cap segment of the resource-rich Canadian marketplace; and
  • IQ Australia Small Cap ETF (NYSE Arca: KROO), the only ETF to focus on the small-cap spectrum of the Australian marketplace, another resource-driven economy where pure play exposure to factors “on the ground” can be an important component of an investment strategy.

    About IndexIQ

    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.

    MCRO’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 any of the ETFs in the Fund's portfolio, will perform exactly as its underlying index. The Fund’s 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 Fund’s underlying ETFs to be more volatile than if the underlying ETFs had not been leveraged. Investing in foreign markets subjects the Fund to risks not typically associated with domestic markets. Loss may result because of less foreign government regulation, less public information and less economic, political and social stability. Loss may also result from the imposition of exchange controls, confiscations and other government restrictions. Foreign risks will normally be greater when the Fund invests in emerging markets.

    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 visiting www.indexiq.com or by calling (888) 934-0777. Read the prospectus carefully before investing.

    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.

    IDX001502.060715




    MacMillan Communications

    Mike MacMillan/Chris Sullivan

    212-473-4442

    chris@macmillancom.com

    Source: IndexIQ


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