IndexIQ is waiving a portion of the management fee for its USD1 billion IQ Hedge Multi-Strategy Tracker ETF (QAI) to reduce the fee by 29 per cent to 53 basis points, a 22-basis point reduction. Including acquired fund fees, the total expense ratio for QAI after the fee waiver will now be 76 basis points. This change is effective November 1, 2017.
QAI, which launched in 2009 as the first hedge fund replication ETF, is the largest ETF in the multi-alternative category by asset size. The firm writes that with its unique approach of delivering investors hedge fund exposure with the liquidity, transparency, tax efficiency and low costs inherent in the ETF structure, QAI and subsequent offerings from IndexIQ helped pioneer the multi-alternative ETF category.
“Lowering the fees on this flagship ETF will allow more investors to benefit from exposure to hedge fund performance, and the diversification it provides within a well-constructed portfolio,” says Salvatore Bruno CIO of IndexIQ.
“With a live track record stretching back more than eight years, QAI has performed exactly as planned while supporting the launch of other successful liquid alternative funds like our merger arbitrage ETF, MNA. We remain focused on delivering cost-effective, innovative ETF approaches that help advisors and investors achieve their financial goals.”