Liquid Alternative ETFs Are Ideally Suited For The Coronavirus Sell-Off

With both equity markets and fixed income going pretty much straight up for more than a decade, investors had reached a state of complacency by the time coronavirus hit. Liquid alternatives offer investors a third leg of diversification, helping to stabilize portfolio performance by tamping down overall volatility. IndexIQ has been at the forefront of rolling out liquid alts ETFs for more than a decade, with a range of strategies of interest to investors in the current environment. Its Managing Director and CIO, Sal Bruno, joins Let's Talk ETFs to explain why every portfolio needs some baseline exposure to liquid alts - and how IndexIQ's different ETFs achieve their objectives.Show Notes3:00 - Where does IndexIQ's focus on placing hedge fund style strategies into ETF wrappers come from?6:30 - The term "alternatives" means different things to different people. How does IndexIQ define it?9:30 - What are "liquid" alternatives?13:45 - Why should every properly diversified portfolio have some evergreen allocation to alternatives?16:30 - What percent of a typical portfolio should be in liquid alternatives?Strategy objectives of key IndexIQ ETFs21:00 - IQ Hedge Event-Driven Tracker Merger ETF (QED)23:00 - IQ Hedge Macro Tracker ETF? (MCRO)26:00 - IQ Hedge Long/Short Tracker ETF (QLS)?28:00 - How do you select the underlying ETFs that make up these funds?31:45 - Why are 50% currency-hedged equity ETFs a better mousetrap? (HFXI), (HFXE), (HFXJ)  36:30 - How is IndexIQ's approach to ESG unique? (IQSU), (IQSI) Learn more about your ad choices. Visit megaphone.fm/adchoices