IndexIQ Cuts Fees On Multi-Strategy Hedge Fund ETF

Oct 23 2017 | 5:04pm ET

Hedge fund replication strategy provider IndexIQ has waived a portion of management fees on its $1 billion IQ Hedge Multi-Strategy Tracker ETF effective November 1, echoing the pressure on fees prevalent in the traditional alternative investment industry.

When launched in 2009, the exchange-traded fund was the first to replicate a multi-strategy hedge fund approach in a liquid alternative instrument, the company said in a statement. Traded under the symbol QAI, it is now the largest ETF in the multi-alternative category by asset size and pioneered the idea of delivering hedge fund exposure with the liquidity, transparency, tax efficiency and low costs inherent in the ETF structure. 

After the waiver and including acquired fund fees, the total expense ratio for QAI will be 76 basis points, the company said. 

IndexIQ is also home to the IQ Hedge family of investable hedge fund replicated indexes. The Rye, NY-based company was bought by the asset management arm of insurance company New York Life in December 2014 and issues liquid alternative products such as indexes, ETFs, mutual funds, SMAs and model portfolios. 

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