First ETF To Mimic Hedge Funds Set To Launch - News In Focus:
"The first exchange-traded fund designed to replicate hedge fund strategies is set to launch on Wednesday.
After receiving a final green light from the Securities and Exchange Commission at midday, the IQ Hedge Multi-Strategy Tracker ETF (NYSE: QAI) should start trading by day's end, according to IndexIQ Advisors LLC.
If it's able to truly mimic popular fund-of-hedge funds, the new ETF could provide the first real challenge to a fee structure critics characterize as highly exorbitant."
And note the last sentence. Gee, markets do work. If hedge fund fees are too high, competition comes into the arena.
Oh and how will it work?
"The benchmark for QAI resembles a fund-of-funds portfolio since it includes six different types of hedge fund strategies. The idea is to capture the entire hedging universe rather than singling out one or two strategies. The ETF includes hedging strategies covering long-short; global macro; market neutral; event driven; fixed-income arbitrage and emerging markets."