The IQ Hedge Macro Tracker ETF, a global allocation index exchange-traded fund, marked its one-year anniversary on 9 June.
The fund seeks to replicate, before fees and expenses, the returns of the IQ Hedge Macro Index.
IndexIQ launched the fund as a vehicle for investors seeking to help reduce the volatility of their portfolios by hedging their equity exposure, while simultaneously participating in upside potential.
As a hedged strategy, it has the ability to generate positive returns while the equity markets are negative.
“MCRO was designed as a global equity hedge that seeks to dampen portfolio volatility by providing exposure to stocks, bonds, commodities, currencies, real estate and cash,” says Adam Patti, IndexIQ’s chief executive officer. “MCRO incorporates a dynamic, rules-based asset allocation process that seeks to adjust the risk profile to help reduce downside exposure and provide for upside participation. We are very pleased with MCRO’s returns since its inception in 2009, and the returns throughout its existence – a highly volatile period for global markets – illustrate the power and utility of the MCRO strategy.”
Returns for the one-year period and since inception period are 4.64 per cent and 4.50 per cent, respectively.