IndexIQ releases merger arbitrage fund

The IQ ARB Merger Arbitrage ETF tracks an index investing in global companies that have had a public announcement of a takeover by an acquirer, a strategy which is generally referred to as merger arbitrage. The strategy is designed to exploit the price differential between the current trading price of a stock and the price at the time the deal is completed. It achieves this by owning certain announced takeover targets, to gain returns that are representative of global merger arbitrage activity. The index includes short exposure to global equities as a partial hedge. The issuer says...