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…]
When analyzing the of the ETF industry, most investors highlight the cheap, liquid exposure to traditional asset classes as the main reason for the popularity of the exchange-traded structure. While ETFs have indeed provided a low-cost alternative to the traditional asset classes, they have also made it easier than ever to achieve exposure to “exotic” [...]
Direxion, best known as the leading provider of 3x leveraged and inverse leveraged ETFs, is apparently planning to diversify its product line a bit. The Newton, Massachusetts-based ETF provider has amended a previous filing with the SEC, requesting regulatory approval to launch a 130/30 ETF. Leveraged ETFs have come under fire lately, and while there [...]
