IndexIQ’s hedge indexes’ results for August 2017 revealed the top performing index as the IQ Hedge Multi-Strategy Index, up 0.67 per cent in the month, followed by the IQ Hedge Long/Short Index, which returned 0.56 per cent in the period.
August saw the first decline in an index in several months, with the IQ Merger Arbitrage Index falling -0.78 per cent. The IQ Merger Arbitrage Index, which underlies the ETF MNA, a five-star Morningstar rated fund, recently passed the USD250 million asset mark.
“August saw the Dow cross 22,000 for the first time, driven by strong earnings, low interest rates, and the hope that Washington might finally move forward on tax reform,” says Salvatore Bruno (pictured), IndexIQ’s Chief Investment Officer.
“Working against this advance has been the geopolitical situation, as tension with Korea ratcheted up. This, in turn, resulted in higher levels of volatility, something we expect to continue as we move into September which is often a challenging month for the markets.”