Are Hedge Fund ETF’s Worth A Look? (QAI, MCRO)

September 14, 2009 1:13pm ETF BASIC NEWS

hedge-fund“Within the past several months 2 new ETFs have emerged that try and replicate general Hedge Fund performance. For both ETFs, IQ Hedge Multi Strategy (NYSE: (QAI)) and IQ Hedge Macro Tracker (NYSE: (MCRO)) this performance is based on the IQ Hedge


 Multi-Strategy Index,”  Eric Mancini Reports From Benzinga.

“(QAI) and the newer (MCRO) don’t directly invest in hedge funds. Instead, they invest in other investments like bond ETFs, equities, currency ETFs, commodities, etc. that try to replicate hedge fund performance. Their track record is too short to establish if they are truly useful diversifiers or to calculate what their tracking error is. Over the next 1-2 years, once both ETFs have been exposed to a more diversified market environment, investors will know what use these new Hedge like ETFs will have,”  Mancini Reports.

Full Story:  HERE

The investment (MCRO) seeks investment results that correspond generally to the price and yield performance of the IQ Hedge Macro Index. The fund invests at least 80% of assets in its underlying index components. The underlying index components provide exposure to broad asset classes that include but are not limited to U.S. and international equities, U.S. and international government fixed-income securities, U.S. corporate credit and high yield bonds, currencies, real estate, and commodities. It may invest up to 20% of net assets in investments not included in the index.

Chart for IQ Hedge Macro Tracker ETF (MCRO)

The investment (QAI) seeks investment results that correspond generally to the price and yield performance of the IQ Hedge Multi-Strategy Index. The fund invests at least 80% of assets in its underlying index components. The underlying index components provide exposure to broad asset classes that include but are not limited to U.S. and international equities, U.S. and international government fixed-income securities, U.S. corporate credit and high yield bonds, currencies, real estate, and commodities. It may invest up to 20% of net assets in investments not included in its Underlying Index.

Chart for IQ Hedge Multi-Strategy Tracker ETF (QAI)

TOP 10 HOLDINGS (QAI) ( 89.56% OF TOTAL ASSETS)  
 
Company Symbol % Assets
iShares Barclays 1-3 Year Treasury Bond N/A 18.39
iShares Barclays Aggregate Bond N/A 24.19
iShares Barclays Short Treasury Bond N/A 3.92
iShares iBoxx $ High Yield Corporate Bd N/A 7.09
iShares MSCI Emerging Markets Index N/A 10.72
PowerShares DB G10 Currency Harvest N/A 8.06
SPDR Barclays Capital 1-3 Month T-Bill N/A 2.36
SPDR Barclays Capital High Yield Bond N/A 3.24
Vanguard Short-Term Bond ETF N/A 3.13
Vanguard Total Bond Market ETF N/A 8.46

 

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