IndexIQ, a developer of liquid alternative investment solutions, has announced an estimate of zero capital gains distributions for all of its exchange-traded funds (ETFs) for 2013.
The IQ Hedge Multi-Strategy Tracker ETF and IQ Hedge Macro Tracker ETF have had zero capital gain distributions for all five calendar years of their existence.
IndexIQ ETFs include the following:
IQ Hedge Multi-Strategy Tracker ETF (QAI)
IQ Hedge Market Neutral Tracker ETF (QMN)
IQ Hedge Macro Tracker ETF (MCRO)
IQ Real Return ETF (CPI)
IQ Global Resources ETF (GRES)
IQ Merger Arbitrage ETF (MNA)
IQ Canada Small Cap ETF (CNDA)
IQ Australia Small Cap ETF (KROO)
IQ Global Agribusiness Small Cap ETF (CROP)
IQ Global Oil Small Cap ETF (IOIL)
IQ US Real Estate Small Cap ETF (IOIL)
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.”
