MNA is designed to provide exposure to accelerating global M&A
activity; ETF was the first merger arbitrage ETF in the market
MNA has more than four years of live performance, having launched on
MNA was designed to provide capital appreciation by investing in global companies for which there has been a public announcement of a takeover by an acquirer, a strategy generally known as “merger arbitrage.” This strategy generally seeks to take advantage of the price differential, where it exists, between the current trading price of a stock and the price of that stock at the time the deal is completed.
|M&A Deals Added to MNA ETF|
|Bally Technologies, Inc.||Scientific Games Corp.||Consumer Cyclicals|
|El Paso Pipeline Partners, L.P.||Kinder Morgan, Inc.||Utilities|
|InterMune, Inc.||Roche Holding AG||Health Care|
|International Rectifier Corporation||Infineon Technologies AG||Technology|
|Kinder Morgan Energy Partners, L.P.||Kinder Morgan, Inc.||Utilities|
|Kinder Morgan Management, LLC||Kinder Morgan, Inc.||Utilities|
|OmniVision Technologies, Inc.||Omnivision Technologies, Inc.||Capital Goods|
|Swiss National Insurance Company Ltd||Helvetia Holding AG||Financials|
|Tim Hortons Inc.||Burger King Worldwide, Inc.||Consumer Staples|
|TUI Travel PLC||TUI AG||Consumer Cyclicals|
|M&A Deals Removed from MNA ETF|
|Mallinckrodt Plc||Health Care||Completed|
|Kentz Corporation Limited||Capital Goods||Completed|
|Hillshire Brands Company||Tyson Foods, Inc.||Consumer Staples||Completed|
|Susser Holdings Corporation||Energy Transfer Partners LP||Consumer Staples||Completed|
|Corio N.V.||Klepierre SA||Financials||Min Wt|
|Orbital Sciences Corporation||Alliant Techsystems, Inc.||Capital Goods||Min Wt|
|Time Warner Inc.||21st Century Fox, Inc.||Consumer Staples||Cancelled|
|TriQuint Semiconductor, Inc.||RF Micro Devices, Inc.||Technology||Max Age|
“Historically, investors have not had broad access to capitalize on mergers and acquisitions activity in an ETF,” said
Merger Arbitrage funds typically have the potential to benefit from buying target companies below the target price. The “spread” in price, the difference between the target price and market price, can be quite lucrative for investors, especially if there are competitive bids for a company. Given today’s relatively low corporate valuations and the significant amount of cash on corporate balance sheets, industry experts forecast a rapid increase in M&A activity.
The IQ Merger Arbitrage ETF seeks to track, before fees and expenses, the performance of the IQ Merger Arbitrage Index. The Index seeks to achieve capital appreciation by investing in global companies for which there has been a public announcement of a takeover by an acquirer. This approach is based on a passive strategy of owning certain announced takeover targets with the goal of generating returns that are representative of global merger arbitrage activity. The Index also includes short exposure to global equities as a partial equity market hedge.
*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.
Certain of the proposed takeover transactions in which MNA invests may be renegotiated, terminated or involve a longer time frame than originally contemplated, which may negatively impact MNA’s returns. MNA’s investment strategy may result in high portfolio turnover, which, in turn, may result in increased transaction costs to MNA and lower total returns. MNA is susceptible to foreign securities risk –since the Fund invests in foreign markets, it will be subject to risk of loss not typically associated with domestic markets, including currency transaction risk. Diversification does not eliminate the risk of experiencing investment losses. Stock prices of mid and small capitalization companies may be more volatile than those of larger companies.
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