IndexIQ, a developer of liquid alternative investment solutions, has announced an estimate of zero capital gains distributions for all funds for 2012.
IndexIQ funds include the following:
Mutual funds
IQHIX IQ Alpha Hedge Strategy Fund (Institutional Share Class)
IQHOX IQ Alpha Hedge Strategy Fund (Investor Share Class)
Exchange-traded funds
QAI IQ Hedge Multi-Strategy Tracker ETF
QMN IQ Hedge Market Neutral Tracker ETF
MCRO IQ Hedge Macro Tracker ETF
CPI IQ Real Return ETF
GRES IQ Global Resources ETF
MNA IQ Merger Arbitrage ETF
CNDA IQ Canada Small Cap ETF
KROO IQ Australia Small Cap ETF
CROP IQ Global Agribusiness Small Cap ETF
IOIL IQ Global Crude Oil Small Cap ETF
ROOF IQ U.S. Real Estate Small Cap ETF
IndexIQ believes that the tax advantages of ETFs are especially pronounced in its hedge fund replication products.
“One of the unique advantages of the ETF structure over a typical hedge fund is that it helps minimise the tax burden on investors through the ETF creation and redemption process,” says Adam Patti, chief executive officer of IndexIQ. “Hedge funds can be highly tax inefficient, and they often employ strategies that generate significant short-term capital gains. This tax burden can dramatically reduce real returns, something investors should keep in mind as they determine the most efficient way to build portfolios and allocate assets.”
