The first Exchange-Traded Fund (ETF) designed to offer investors low cost, liquid and transparent access to the risk and return benefits of Global Macro hedge fund investment strategies passed its third anniversary on 9 June.
Launched by IndexIQ during a period of high market volatility, the IQ Hedge Macro Tracker ETF (MCRO) has exhibited strong returns since inception with low volatility as compared to the hedge fund industry benchmarks.
"The last three years have been a roller coaster ride for the markets," says Adam Patti (pictured), chief executive officer at IndexIQ. "While we could not have fully anticipated this when we launched MCRO, the fund was designed as a low volatility vehicle that would provide downside mitigation while allowing an investor to maintain exposure to the global equity markets. We have been pleased to see that it has performed as intended over this period."
MCRO seeks to replicate, before fees and expenses, the returns of the IQ Hedge Macro Index, which has nearly five years of live history. Global Macro hedge fund strategies generally span the globe in search of investment opportunities, employing a top-down approach to identifying market inefficiencies and dislocations, and typically invest in a range of instruments and asset classes including stocks, bonds, commodities, and currencies.
"As they seek to balance risk and return, investors and their financial advisors continue to express great enthusiasm for ETFs like MCRO that provide low cost, transparent access to the alternative investment asset class," Patti says. "We look forward to continuing to pioneer in the area of alternative investments."