IndexIQ, the New York-based developer of alternative indexes and exchange-traded funds, has taken the first step towards launching a 130/30 ETF, filing a 40-APP application with the SEC earlier this week. IndexIQ currently maintains the IQ 130/30 Index, a rules-based benchmark that employs fundamental factors to select U.S. stocks with a long exposure of 130% and short exposure of 30%. According to the company’s Web site, the index uses “a purely quantitative, multi-factor model that leverages the alpha generated by a customized quantitative model combined with the controlled use of short positions to enhance the risk-adjusted returns of the portfolio.” [click to continue…]
Having been given the option, the vast majority of investors in storied hedge fund Cerberus Capital Management have opted to liquidate their holdings, rather than roll over their investments to a new Cerberus fund. The development is a blow to fund manager Stephen Feinberg, and on a higher level, to the hedge fund industry as [...]
ProShares, known for introducing leveraged ETFs and inverse leveraged ETFs to the market in 2006, has introduced another unique style of fund, launching the ProShares Credit Suisse 130/30 ETF (CSM). CSM, which began trading on the NYSE Arca Exchange on Tuesday, is the first ETF on the market to follow a 130/30 strategy. The ETF seeks to track the Credit [...]
Over the last two years, equity markets have cratered, volatility has skyrocketed, and retirement portfolios have been crushed under the weight of a global recession and seemingly unending uncertainty. But over this period, the ETF industry has enjoyed astonishing success, attracting billions of dollars away from traditional mutual funds and redefining the business of long-term [...]
As the ETF industry expanded over the last several years, the market quickly became saturated with funds tracking traditional equity, fixed income, and commodity benchmarks. Once the major indexes had been covered (and in many cases recovered), ETF issuers began getting more creative, launching funds in unique niches of the market, hoping to establish themselves as [...]
Claymore Advisors, sponsor of 35 passively-managed ETFs, has filed for exemptive relief with the SEC to launch three actively-managed ETFs, the latest indication that these “hybrid” funds could fuel the next wave of the ETF industry boom. The three proposed funds are:
