WSJ – A new exchange-traded fund promises to mimic hedge-fund strategies in an easily traded and lower-fee vehicle, but investors may want to see how this second-generation ETF fares in the real world before rushing in.
IQ ARB Merger Arbitrage ETF (MNA), which listed on the NYSE Arca earlier this month, is one in a growing field of ETFs that blur the lines between active and passive management. It follows a rules-based index that approximates a merger-arbitrage strategy employed by some hedge funds and mutual funds.
