These Hedge Fund ETFs Make Investing Like The Pro’s Easy

Share This Article
February 12, 2010 2:52pm ETF BASIC NEWS NYSE:MCRO

hedge-fundHedge funds and other speculative operators are often chastised as being preoccupied with the fast buck, oblivious to long term wealth creation. In a recent speech, President Obama


 commented how “far too many financial firms have put taxpayer money at risk by operating hedge funds and private equity funds and making riskier investments to reap a quick reward.” We can only wish that more financial firms would have invested in hedge funds. Examine the data and you’ll find that much of the funds’ recent success comes from avoiding the dramatic downturns in 2000 and 2008. That’s a pattern commensurate with less risk taking, not more. Shorter-term results are also impressive. The supposedly “risky” hedge funds have, on average, gained in value since the credit crisis began unfolding at the start of 2007, a claim U.S. stocks can’t make even after a 50%+ rally off March’s low,” Jonathan Hoenig Reports From SmartMoney.

Hoenig continues to say, “Normally, successful returns would prompt accolades and praise. Yet innumerable legislators have called for (even) greater control and scrutiny of funds, already subject to regulations levied on no other industry. As it is, hedge funds are prohibited from advertising or publicly soliciting business in any way. With few exceptions, they are limited to a maximum of 99 customers and can only accept investments from “accredited” investors with a liquid net worth greater than $1 million dollars. Is any other business subject to such draconian bullying? The upshot? Our paternalistic government has succeeded in preventing the vast majority of citizens from investing in the one asset class that’s made real money over the last generation.”

“In an effort to bypass the regulation, a number of products have been introduced that attempt to either replicate or reproduce hedge fund returns in a mutual fund or ETF. Launched in 2009, the IndexIQ Hedge Fund ETF (QAI) doesn’t actually invest in hedge funds, but analyzes the holdings of major funds and builds a long/short portfolio using ETFs thought to mimic that performance. Similarly, IQ Hedge Macro Tracker ETF (MCRO) uses ETFs to mimic the return characteristics of hedge funds pursuing a macro strategy based on trending global themes,” Hoenig Reports.

See The Full Story: HERE

Here is a closer look at the IndexIQ Hedge Fund ETF (QAI) and the 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 the investments included in its Underlying index, which includes underlying funds. 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.

TOP 10 HOLDINGS ( 105.69% OF TOTAL ASSETS)  
 
Company Symbol % Assets
iShares Barclays 1-3 Year Treasury Bond N/A 16.31
iShares Barclays Short Treasury Bond N/A 3.58
iShares iBoxx $ High Yield Corporate Bd N/A 5.39
iShares iBoxx $ Invest Grade Corp Bond N/A 21.64
iShares MSCI Emerging Markets Index N/A 17.62
PowerShares DB G10 Currency Harvest N/A 10.09
Russell 2000 Mini Mar10 N/A 11.85
SPDR Barclays Capital High Yield Bond N/A 3.81
Vanguard Emerging Markets Stock ETF N/A 8.19
Vanguard Short-Term Bond ETF N/A 7.21

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.

TOP 10 HOLDINGS ( 121.85% OF TOTAL ASSETS)  
 
Company Symbol % Assets
iShares Barclays 1-3 Year Treasury Bond N/A 19.22
iShares Barclays Short Treasury Bond N/A 4.2
iShares iBoxx $ Invest Grade Corp Bond N/A 16.56
iShares MSCI Emerging Markets Index N/A 29.65
PowerShares DB Commodity Index Tracking N/A 4.88
PowerShares DB G10 Currency Harvest N/A 5.26
Russell 2000 Mini Mar10 N/A 14.77
SPDR Barclays Capital Intl Treasury Bond N/A 5.04
Vanguard Emerging Markets Stock ETF N/A 13.78
Vanguard Short-Term Bond ETF N/A 8.49

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

 

Get 10 Trading Lessons FREE Click Here

GET A FREE TREND ANALYSIS FOR ANY ETF HERE!

 


5 WINNING Stock Chart Patterns

Read Next



Free Investing Ideas Newsletter!

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

Most Popular



9 'MUST OWN' Growth Stocks for 2021

Explore More from ETFDailyNews.com

Free Investment Newsletter

Join over 70,000 investors who get the latest insights and top rated picks from our free investment newsletter.

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories