One ETF shop is seeking to get ahead by emulating another popular fund type. Which funds? Hedge funds, of course The IQ Hedge Market Neutral Tracker ETF will replicate a hedge fund strategy, according to a report by Seeking Alpha. Analysts have been trying to achieve "factor replication," the story claims. It is the first ETF to use a market-neutral strategy through copying market-neutral hedge funds.

Adam Patti, IndexIQ [profile] CEO, was excited by the fund:

"Market Neutral is one of the largest hedge fund investment styles, both in terms of the number of funds and in the amount of assets being put to work. After incubating the index underlying QMN for four years, we felt it was an excellent time to roll out this strategy, particularly given the volatility and uncertainty inherent in today's market environment."

The QMN is the newest in its category. Existing offerings are Hedge Multi-Strategy Tracker ETF and Hedge Macro Tracker.  

Edited by: HFD


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