ETF News Archive

IndexIQ Launches Fund of Funds ETF

Index IQ has launched the IQ Hedge Multi-Strategy Tracker ETF (QAI) which uses a multi-strategy approach to invest in ETFs.

The fund tracks an index that is designed to capture risk-adjusted return characteristics of the collective hedge fund universe.

Investment styles include long/short equity global macro, market neutral, event-driven, fixed income arbitrage and emerging markets.

The ETF offers better liquidity and transparency and lower fees than the typical hedge fund.

The fund's expense ratio will be 0.75%.

Self-Directed Investors Lead ETF Adoption

A new study finds that investors who manage their own portfolios are embracing ETFs at a faster pace than advised-investors.

Cambridge-based Cogent Research conducted a national study of 4,000 affluent Americans that tested their interest, usage and commitment to ETFs.

The study found that, while equal proportions of self-directed and advised investors use ETFs, self-directed investors allocate 20% more of their portfolio to ETFs (i.e., 17% average allocation to ETFs among self-directed vs.

ETF Assets Decline 9% in February

ETF Assets declined 9.1% or $45 billion for the month of Februrary according to the Snapshot report from State Street Global Advisors.

Equity assets declined the most as the S&P 500 fell 10.7% and the MSCI EAFE fell 10.2% for the month.

The declines in equities were partially offset by gains in commodities.  Gold lead the way, climbing to $952 an ounce, up 3.5% on the month.  As a result, SPDR Gold Shares (GLD) grew by $6 billion in February.

Northern Trust exited the ETF management business, closing 17 funds with a total of $29 million of assets.  4 new ETFs were launched in February including the SPDR Barclays Capital Intermediate Term Credit Bond ETF (ITR).

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Long Term Credit Bond ETF Launches

State Street Global Advisors recently introduced a new long bond ETF.  The SPDR Barclays Capital Long Term Credit Bond ETF (LWC) tracks an index of long term (10+ years) investment grade bonds.

The Index includes investment grade corporate and non-corporate credit bonds that are dollar denominated and have a remaining maturity of greater than or equal to 10 years.

As of December 31, 2008, the Index included 965 issues with an average dollar-weighted maturity of 24.39 years.

Top holdings include Appalachian Power, British Telecom and Pacific Gas & Electric.

See the ETF Directory for a complete listing of State Street ETFs.