Exchange Traded Funds are continuing to evolve and individual investors are reaping the benefits. Investment options that were previously reserved for only the most wealthy, sophisticated, institutional investors are now being made available to all investors through ETFs. As we like to say at The ETF Store, with their combination of lower costs and access to an enormous range of investments and investment strategies, ETFs have democratized investing. On our most recent radio broadcast, IndexIQ CEO Adam Patti joined us to discuss their lineup of liquid alternative ETFs which have helped bring some of these institutional caliber strategies to the broader investment marketplace. IndexIQ offers several hedge fund style ETFs in addition to some interesting commodity and small cap equity ETFs. Adam explained where these alternative ETFs might fit in your investment portfolio and he also offered some thoughts on where additional innovation in the ETF industry may come from.
In our market update, we explained how even though the stock market has felt more like a roller coaster ride than a place to invest money over the past month, investors must be careful not to overreact to the wild swings. While volatility has certainly picked up, the fact remains that the Dow Jones Industrial Average is essentially flat since the Fed first hinted at tapering bond purchases back on May 22nd. Unfortunately, the financial media might have you believe that the market is down significantly over this period of time. The lesson for investors is that you need to ensure you have a well thought out, disciplined investment plan in place and not make rash moves based on news headlines or day-to-day price swings. In our weekly ETF Spotlight segment, given our focus on IndexIQ ETFs, we examined a hedge fund style ETF that is the largest of its kind (IQ Hedge Multi-Strategy Tracker ETF – Ticker QAI). This particular ETF offers investors exposure to several hedge fund strategies in an attempt to generate returns regardless of market conditions. Learn more about QAI by visiting www.etfbuzz.com.