IndexIQ has introduced an ETF that replicates the risk and return characteristics of global macro and emerging markets hedge funds.
The IQ Hedge Macro Tracker ETF (MCRO) tracks the IQ Hedge Macro Index, combining both Global Macro and Emerging Markets strategies.
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.
Emerging Markets strategies generally attempt to identify investment opportunities in the more rapidly growing emerging market countries, including the BRIC nations of Brazil, Russia,
India and China.
By combining the two strategies in a single ETF, IndexIQ seeks to provide broad asset class exposure with an emphasis of emerging markets, while reducing the overall
volatility of the portfolio.