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Adam Patti, CEO of IndexIQ

Envestnet adds IndexIQ’s IQ Global Alternatives ETF model portfolio to liquid alternatives program


Envestnet has added IndexIQ’s IQ Global Alternatives ETF Portfolio for inclusion in its Liquid Alternatives Program. The Program is designed to help advisors identify high-performing liquid alternative strategies, including exchange-traded funds (ETFs), while providing guidance in utilising these portfolios.

The Program is a direct response to the growing demand for accessible alternative strategies, as advisors seek vehicles for improving portfolio diversification, reducing volatility and enhancing absolute performance in all market environments. Unlike actual hedge funds, the Liquid Alternatives Program offers investors lower investment minimums and better liquidity; they can buy or sell the strategies on the open market at any time. Advisors can deploy Envestnet’s Liquid Alternatives Program on the company’s SMA and UMA platforms.

“We are thrilled with Envestnet’s selection of IndexIQ’s IQ Global Alternatives ETF Model Portfolio,” says Adam Patti (pictured), IndexIQ’s CEO. “IndexIQ is built upon the fundamental value proposition of providing financial advisors and investors with a transparent, liquid, low cost set of alternative investment products and, particularly within the context of today’s very uncertain economic and market conditions, that value proposition is resonating.”

Sean Mullen, Vice President and Director of Advisory Services at Envestnet, says: “Envestnet understands that advisors face a constantly changing marketplace and evolving investor needs. By expanding our roster of leading investment managers, such as IndexIQ, we strive to empower advisors to meet the requirements of today’s modern portfolio.”

The IQ Global Alternatives ETF Portfolio is a comprehensive investment strategy designed to achieve portfolio diversification, capital growth and low volatility.The Model includes exposures to multiple hedge fund-like investing styles and aims to limit volatility to 6-8% through exposures to a broad range of asset classes, including domestic, international and emerging market equities, bonds, commodities, currencies and real estate, as well as exposure to volatility. Historically, the model provides a low correlation to equity markets, with a beta to equities of approximately zero.

The IndexIQ strategies are constructed using a proprietary, rules-based methodology developed by IndexIQ and invest in liquid, exchange-traded products. The benefits of this approach include transparency, liquidity, significantly lower costs compared to traditional alternative investment options, and the avoidance of manager and style-specific risk.

“Our strategic partnership with Envestnet represents an important combination of IndexIQ’s alternative investment expertise with Envestnet’s extensive platform capabilities,” says Patti. “As IndexIQ’s strategies are designed to help advisors adjust alternative investment portfolios with speed and accuracy in response to unexpected market events, we are excited to offer them through Envestnet’s robust platform.”

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