The IQ Hedge Multi-Strategy Tracker ETF (QAI), the first liquid alternative exchange-traded fund (ETF), has topped USD1 billion in assets. 

QAI, which marked its five year anniversary in March, is the largest fund in its category and anchors IndexIQ’s growing family of liquid alternative solutions that includes ETFs, mutual funds, separate accounts and model portfolios.

“This is a significant milestone for QAI, and a testament to the increased recognition of the role liquid alternatives can play in an investor’s portfolio,” says Adam Patti, chief executive officer at IndexIQ. “QAI is now widely considered the ‘S&P 500 of the hedge fund market.’ We look forward to continuing to bring this message to the market in the New Year. QAI offers investors a way to carve off exposure to their traditional fixed income investments, yet be in a product that is designed to potentially experience price appreciation in a rising rate environment.” 

QAI, which was the first and remains the largest liquid alternative ETF, grew its assets by approximately 57% in 2014.

QAI seeks to track, before fees and expenses, the performance of the IQ Hedge Multi-Strategy Index. The Index, part of a family of investable benchmark hedge fund replication indexes that have been calculating live since 2007, attempts to replicate the risk-adjusted return characteristics of hedge funds using various hedge fund investment styles, including long/short equity, global macro, market neutral, event-driven, fixed income arbitrage and emerging markets.