IQ HEDGE (QAI) - First U.S. listed hedge fund replication ETF

IndexIQ Launches First U.S. Listed Hedge Fund Replication Exchange-Traded Fund

NEW YORK--(BUSINESS WIRE)--The first-ever U.S.-listed hedge fund replication Exchange-Traded Fund (ETF) has been introduced by alternative investment ETF pioneer IndexIQ, it was announced today (Wednesday March 25, 2009, 2:01 pm EDT).

The IQ® Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI) seeks to replicate, before fees and expenses, the returns of the IQ® Hedge Multi-Strategy Index. The Index is designed to capture the risk-adjusted return characteristics of the collective hedge fund universe using multiple hedge fund investment styles, including long/short equity, global macro, market neutral, event-driven, fixed income arbitrage, and emerging markets.

The ETF-based approach to hedge fund replication offers a number of advantages to investors, including intra-day liquidity, portfolio transparency, lower fees than the typical hedge fund, the elimination of manager-specific risk, and real-time pricing. The IQ® Hedge Multi-Strategy Tracker ETF uses a wide variety of liquid ETFs currently in the market to build the underlying portfolio and does not invest in hedge funds.

“The IQ® Hedge Multi-Strategy Tracker ETF brings together two of the most significant developments in the investment business over the last several years – the growing importance of alternative investments and the convenience, low cost, liquidity and transparency of ETFs,” said Adam Patti, chief executive officer at IndexIQ.

http://finance.yahoo.com/news/IndexIQ-Launches-First-US-bw-14743895.html