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The Markets December 4, 2006
New Families of Indices Launched for Institutional Investors
IndexIQ has launched a series of new families of indices for institutional and high net worth investors.
Reported by Rebecca Moore
According to a press release, the IndexIQ products employ quantitative measures and multiple screens based on the firm’s research and methodologies to capture the value of core corporate and market attributes that frequently are undervalued in equity analysis. The indices are designed to combine the risk-adjusted performance characteristics of the best active managers with the traditional benefits of passive indexing, including rules-based methodologies, low turnover, diversification, liquidity, tax efficiency and low portfolio management costs.
IndexIQ’s families of indices are designed with methodologies incorporating a full range of investment strategies. IndexIQ’s products are rigorously back-tested over a 15-year timeframe and have demonstrated both consistently higher returns and, in many cases, lower volatility and other favorable characteristics relative to traditional indexes such as the S&P 500 and the Russell 3000, according to the press release. Among the statistics measured and tracked over multiple years are Alpha, Sharpe Ratio, R-Squared, Beta and Volatility.“There is substantial and growing interest on the part of institutions and high net worth investors in new ways of indexing as a high value investment strategy,” said Adam Patti, Chief Executive Officer of IndexIQ, in the release. “These products are increasingly recognized as offering many of the benefits of traditional, passive indexes, such as low turnover and tax efficiency, with the greater potential for outperforming the broader market on a risk-adjusted basis.”
More information can be found at www.indexiq.com.