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Adam Patti

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  • 5 Scary Facts About ETFs [View article]
    Vincent thank you for writing your article. This type of information is crucial for investors to understand what they may or may not be buying. I would like to draw attention to our Merger Arb ETF (Ticker MNA). You mention that there are only 5 long holdings. Not sure where you found that info but there are over 30 long holdings in the portfolio. The full list is available on our website and updated daily.

    As you probably know, Merger activity is a very attractive segment for investors. There are multiple billions of dollars invested in these strategies in the mutual fund space, and much more in the hedge fund space. MNA provides this exposure far more inexpensively then the mutual funds available in the market and provides some tax benefits due to the ETF structure. So i think the answer to the question "who needs it" would be that investors seeking exposure to global merger and acquisition activity may be interested in a less expensive and more tax efficient option. Liquidity, transparency, low cost and tax efficiency are the key benefits of ETFs... MNA is a prime example of this as compared to other investing options.

    As you will see from this Barrons article from this weekend (link below)... i agree 100% with your assessment that people need to understand what they are buying...

    http://on.barrons.com/...


    Happy to discuss in greater detail... thanks again.

    Adam Patti
    CEO, IndexIQ
    Nov 15, 2011. 03:29 PM | Likes Like |Link to Comment
  • Do 'Sophisticated' Hedged ETFs Deliver? [View article]
    Mr. Gerstein,

    Thank you very much for taking a look at our ETFs. Very nice analysis. Happy to discuss some of your issues with the pattern of performance if you'd like. Two things i'd like to note for your audience.

    1) The rule-book on how these products are designed and run is on our website in the index section for the relevant product or in the education section). Full transparency... no black box (my sincere apologies if you weren't able to easily find it).

    2) In terms of performance, our mutual fund (Ticker IQHIX) a multi-strategy fund of funds replacement like QAI, and basically the mutual fund version of QAI but with a slightly longer track-record, just passed the three year mark and earned a 5-Star rating from Morningstar. It rated #2 in its category in performance over the 3 year period.

    Again happy to discuss any of your specific points... and I really do appreciate your taking the time to review our products.

    Kind regards,

    Adam Patti
    CEO, IndexIQ
    Aug 10, 2011. 05:10 PM | Likes Like |Link to Comment
  • Why REITs May Be the Best Long-Term Investment [View article]
    Just launched today:

    IQ US Real Estate Small Cap ETF (Ticker ROOF): the only way for ETF investors to access small cap REITs.

    Trades at 30 percent discount on Price/Book basis then the large cap REIT ETFs.

    Provides nearly a 5% dividend yield which is 1-2 percent higher then the large cap REIT ETFs.

    Full Disclosure: My firm issues ROOF.

    Let me know if you have any questions!

    Kind regards,

    Adam
    Jun 14, 2011. 12:52 PM | Likes Like |Link to Comment
  • Today in Commodities: OPEC Sets the Tone [View article]
    Take a look at CROP:

    CROP is the only small cap agribusiness ETF in the market. launched in March has around $60mm in AUM currently. It provides broad geographic and sector diversification. It is undervalued relative to MOO on a P/E and P/B basis... and also has a higher dividend yield.

    Small caps are interesting because they are under-represented in investor portfolios, are pure plays on their sectors and are excellent acquisition targets for the larger mega cap names. Small caps also typically outperform large caps over time... and CROP has outperformed MOO since inception... plus CROP has lower volatility.

    Full disclosure my firm issues CROP.
    Jun 9, 2011. 11:28 AM | Likes Like |Link to Comment
  • 7 ETFs to Profit From Agriculture [View article]
    Thanks Michael... great article... let me know if you need anything from IndexIQ...

    Kind regards,

    Adam
    Jun 9, 2011. 11:27 AM | 1 Like Like |Link to Comment
  • 7 ETFs to Profit From Agriculture [View article]
    Take a look at CROP:

    CROP is the only small cap agribusiness ETF in the market. launched in March has around $60mm in AUM currently. It provides broad geographic and sector diversification. It is undervalued relative to MOO on a P/E and P/B basis... and also has a higher dividend yield.

    Small caps are interesting because they are under-represented in investor portfolios, are pure plays on their sectors and are excellent acquisition targets for the larger mega cap names. Small caps also typically outperform large caps over time... and CROP has outperformed MOO since inception... plus CROP has lower volatility!

    Full disclosure my firm issues CROP.
    Jun 9, 2011. 11:02 AM | Likes Like |Link to Comment
  • Do Premiums and Discounts Matter When Looking for Single Country ETFs? [View article]
    Great article Patricia...

    Thought your readers who are interested in single country investing might be interested to learn about our family of single-country small cap ETFs. We currently have the following:

    IQ Australia Small Cap ETF (KROO)
    IQ Canada Small Cap ETF (CNDA)
    IQ South Korea Small Cap ETF (SKOR)
    IQ Taiwan Small Cap ETF (TWON)

    These ETFs are designed to cover the bottom 15% of the market capitalizations of these countries. Typically the large cap ETFs would cover the top 85% but be heavily concentrated towards a few mega-cap multinationals.

    The products can be used to complete your exposure to these countries, or as standalones. One of the interesting features of the small cap ETFs is that their sector allocations are typically very different from the large cap ETFs. In fact the sector allocations are more of what you might expect by investing in these countries. The large cap ETFs are typically concentrated in mega-cap multi nationals like Financials and other firms that don't necessarily get a majority of their revenue from their home country (like Samsung in EWY). An example of this is Canada... when you invest in Canada you are probably looking for energy and materials exposure. EWC offers you around 35-40% exposure in financials, while in contrast, CNDA provides 70% to energy and materials combined. Very different distributions.

    In any case... both products are good, just different.

    If you have any questions please let me know!

    Adam
    Apr 13, 2011. 11:47 AM | Likes Like |Link to Comment
  • Investing in South Korea Instead of Japan [View article]
    Great article... full disclosure my firm issues the following ETF:

    If you are interested in South Korea, please take a look at:

    IQ South Korea Small Cap ETF (Ticker SKOR)

    SKOR is the only ETF to provide access to the small cap segment of the South Korean economy. It covers the bottom 15% of the market capitalization (EWY covers the top 85%).

    There are a number of benefits to small caps. One specific example is that the small cap companies are often a purer play on the growth of the actual home economy versus a large cap ETF like EWY which is concentrated in mega cap multinationals like Samsung that don't necessarily get the majority of their revenue from their home economy. Samsung for instance is around 14% of EWY.

    In any case... both products are good, just cover different parts of the market cap spectrum.

    If you have any questions, please let me know!

    Kind regards,

    Adam
    Apr 7, 2011. 03:41 PM | Likes Like |Link to Comment
  • Agriculture ETFs - A Viable Option for Investors [View article]
    Full disclosure: My firm issues the following ETF

    If you are interested in agribusiness, take a look at:

    IQ Global Agribusiness Small Cap ETF (Ticker CROP)

    CROP covers the bottom 10% of the global market capitalization of the agribusiness sector. It is a nice complement to MOO as the sector allocations are generally opposite in magnitude. For instance MOO is heavy in Agribusiness Chemical companies while that is the smallest sector in CROP. CROP is heavier in farming and production stocks. There is very little overlap in the companies covered between CROP and MOO.

    The small cap segment of the market is interesting because these companies are generally under represented in investor's portfolios. Due to this we have seen that they are generally undervalued relative to the large cap names. They are also typically purer plays on their industry and are good takeover candidates for the larger global players looking to enhance their supply chains.

    Happy to discuss if anyone has any questions!

    Kind regards,

    Adam
    Apr 5, 2011. 02:24 PM | 1 Like Like |Link to Comment
  • How the Land Lies for Agriculture ETF CROP [View article]
    Thanks Kevin,

    Full Disclosure: my company is the issuer of CROP.

    I submitted a request through your website's automated system this weekend to offer my insight on two conclusions you made in your article which has been posted above.

    1) Diversification: CROP is very well diversified from a country perspective. Here is a comment posting from Morningstar on Ron Rowland's Seeking Alpha article.

    From Morningstar on the country breakdown:

    "The offering devotes only 25.28% of assets to U.S. agribusiness firms. China assumes an 18.7% weighting, Japan accounts for 15.22%, 9.49% goes to Canada, 5.58% to Australia, 5.46% to the Netherlands, 5.21% to Spain, 4.31% to Brazil, 3.78% to Indonesia, 2.25% to Singapore, 1.79% to Ireland, 1.6% to the United Kingdom, and 1.31% to Thailand."

    2) Liquidity: CROP has averaged almost 200,000 shares traded a day since its launch last tuesday. However the number is actually meaningless since as you know, the "liquidity" of an ETF has absolutely nothing to do with the daily trading volume. Rather it is a function of the liquidity of its portfolio holdings, which in the case of CROP are very liquid themselves.

    In any case, I sincerely appreciate your time in taking to write about our new product. It is neither better then MOO nor worse... it is simply a complementary product for investors interested in the Agribusiness sector.

    Here is an interesting article written by Roger Nussbaum, another widely read SeekingAlpha contributer.

    www.thestreet.com/stor...

    Happy to discuss!

    Kind regards,

    Adam
    Mar 28, 2011. 02:30 PM | 1 Like Like |Link to Comment
  • Why Chinese Yuan ETFs Could Be Ready to Pop [View article]
    Great article ... full disclosure my firm issues the ETFs i will mention below:

    If you are interested in country investing please take a look at our single country small cap ETFs noted below.

    One interesting way to play China is "indirectly" through some of their larger trading partners which provide China the goods and Services that they need to continue to grow. Some of these crucial things include Natural Resources (Australia and Canada), Information and Industrial Technologies (Taiwan and South Korea).

    IQ Taiwan Small Cap ETF (TWON)
    IQ South Korea Small Cap ETF (SKOR)
    IQ Australia Small Cap ETF (KROO)
    IQ Canada Small Cap ETF (CNDA)

    These ETFs are designed to cover the bottom 15% of the market capitalization of the their market... these are the underrepresented companies and those that the large cap ishares ETFs noted above miss. (they generally cover the top 85%)

    Some of the benefits of our small caps are as follows:

    1) The large cap ETFs are concentrated in mega-cap, multinational companies that don't necessarily get the majority of their revenue from their home country. For instance, EWY has a 14% holding in Samsung. A big Korean company for sure... but not necessarily a direct play on the strength of the Korean economy. Our small caps are less concentrated in individual companies.

    2) The large cap ETFs don't necessarily provide the sector allocation investors are looking for when investing in these countries. For instance when investors seek exposure to Canada or Australia for instance, they are probably seeking exposure to natural resources (materials, energy). However if you look at the large cap EWC and EWA, what are you actually getting in each product is 30-40% mega cap financials. While CNDA for instance provides around 50% exposure to materials and KROO provides 30-40%.

    3) Small caps in general may be a better way to gain access to the consumer of these countries... both through greater exposure to the consumer sectors in some cases, but more importantly through companies that get a larger portion of their revenue from their home country.

    4) enables investors to complete their exposure to these economies by using our products with the large caps to complement one another.

    Neither product is better or worse... they just are what they are... important to understand the differences and how they can be used together or individually.

    Happy to answer any questions! I appreciate your time and consideration...

    Adam
    Mar 8, 2011. 01:41 PM | Likes Like |Link to Comment
  • Country PEG Ratios [View article]
    Great article ... full disclosure my firm issues the ETFs i will mention below:

    If you are interested in country investing please take a look at our single country small cap ETFs noted below.

    IQ Taiwan Small Cap ETF (TWON)
    IQ South Korea Small Cap ETF (SKOR)
    IQ Australia Small Cap ETF (KROO)
    IQ Canada Small Cap ETF (CNDA)

    These ETFs are designed to cover the bottom 15% of the market capitalization of the their market... these are the underrepresented companies and those that the large cap ishares ETFs noted above miss. (they generally cover the top 85%)

    Some of the benefits of our small caps are as follows:

    1) The large cap ETFs are concentrated in mega-cap, multinational companies that don't necessarily get the majority of their revenue from their home country. For instance, EWY has a 14% holding in Samsung. A big Korean company for sure... but not necessarily a direct play on the strength of the Korean economy. Our small caps are less concentrated in individual companies.

    2) The large cap ETFs don't necessarily provide the sector allocation investors are looking for when investing in these countries. For instance when investors seek exposure to Canada or Australia for instance, they are probably seeking exposure to natural resources (materials, energy). However if you look at the large cap EWC and EWA, what are you actually getting in each product is 30-40% mega cap financials. While CNDA for instance provides around 50% exposure to materials and KROO provides 30-40%.

    3) Small caps in general may be a better way to gain access to the consumer of these countries... both through greater exposure to the consumer sectors in some cases, but more importantly through companies that get a larger portion of their revenue from their home country.

    4) enables investors to complete their exposure to these economies by using our products with the large caps to complement one another.

    Neither product is better or worse... they just are what they are... important to understand the differences and how they can be used together or individually.

    Happy to answer any questions! I appreciate your time and consideration...

    Adam
    Mar 8, 2011. 01:37 PM | Likes Like |Link to Comment
  • Taiwan ETF Could Surge as Tech Sector Opens Doors [View article]
    Great article ... full disclosure my firm issues the ETFs i will mention below:

    If you are interested in country investing please take a look at our single country small cap ETFs noted below. In particular in the case of this article TWON that covers Taiwan.

    IQ Taiwan Small Cap ETF (TWON)
    IQ South Korea Small Cap ETF (SKOR)
    IQ Australia Small Cap ETF (KROO)
    IQ Canada Small Cap ETF (CNDA)

    These ETFs are designed to cover the bottom 15% of the market capitalization of the their market... these are the underrepresented companies and those that the large cap ishares ETFs noted above miss. (they generally cover the top 85%)

    Some of the benefits of our small caps are as follows:

    1) The large cap ETFs are concentrated in mega-cap, multinational companies that don't necessarily get the majority of their revenue from their home country. For instance, EWY has a 14% holding in Samsung. A big Korean company for sure... but not necessarily a direct play on the strength of the Korean economy. Our small caps are less concentrated in individual companies.

    2) The large cap ETFs don't necessarily provide the sector allocation investors are looking for when investing in these countries. For instance when investors seek exposure to Canada or Australia for instance, they are probably seeking exposure to natural resources (materials, energy). However if you look at the large cap EWC and EWA, what are you actually getting in each product is 30-40% mega cap financials. While CNDA for instance provides around 50% exposure to materials and KROO provides 30-40%.

    3) Small caps in general may be a better way to gain access to the consumer of these countries... both through greater exposure to the consumer sectors in some cases, but more importantly through companies that get a larger portion of their revenue from their home country.

    4) enables investors to complete their exposure to these economies by using our products with the large caps to complement one another.

    Neither product is better or worse... they just are what they are... important to understand the differences and how they can be used together or individually.

    Happy to answer any questions! I appreciate your time and consideration...

    Adam
    Mar 8, 2011. 01:17 PM | Likes Like |Link to Comment
  • Oil-Rich Country ETFs: A Proxy for Rising Prices [View article]
    Great article ... full disclosure my firm issues the ETFs i will mention below:

    If you are interested in country investing please take a look at our single country small cap ETFs noted below. In particular in the case of this article CNDA that covers Canada.

    IQ Canada Small Cap ETF (CNDA)
    IQ Australia Small Cap ETF (KROO)
    IQ Taiwan Small Cap ETF (TWON)
    IQ South Korea Small Cap ETF (SKOR)

    These ETFs are designed to cover the bottom 15% of the market capitalization of the their market... these are the underrepresented companies and those that the large cap ishares ETFs noted above miss. (they generally cover the top 85%)

    Some of the benefits of our small caps are as follows:

    1) The large cap ETFs are concentrated in mega-cap, multinational companies that don't necessarily get the majority of their revenue from their home country. For instance, EWY has a 14% holding in Samsung. A big Korean company for sure... but not necessarily a direct play on the strength of the Korean economy. Our small caps are less concentrated in individual companies.

    2) The large cap ETFs don't necessarily provide the sector allocation investors are looking for when investing in these countries. For instance when investors seek exposure to Canada or Australia for instance, they are probably seeking exposure to natural resources (materials, energy). However if you look at the large cap EWC and EWA, what are you actually getting in each product is 30-40% mega cap financials. While CNDA for instance provides around 50% exposure to materials and KROO provides 30-40%.

    3) Small caps in general may be a better way to gain access to the consumer of these countries... both through greater exposure to the consumer sectors in some cases, but more importantly through companies that get a larger portion of their revenue from their home country.

    4) enables investors to complete their exposure to these economies by using our products with the large caps to complement one another.

    Neither product is better or worse... they just are what they are... important to understand the differences and how they can be used together or individually.

    Happy to answer any questions! I appreciate your time and consideration...

    Adam
    Mar 8, 2011. 01:16 PM | Likes Like |Link to Comment
  • New Kid on the Block: The Rogers Global Resources Equity Index [View article]
    Thanks... as long as GRES is available at whatever firm you use for your IRA, it is certainly eligible for inclusion.

    Tax treatment is similar to other ETFs... in-kind creation/redemption process. This is a 40 Act structure (not a commodity pool or note)... so no K1.

    Thanks... let me know if you have any other follow ups...

    Adam
    Mar 7, 2011. 10:39 AM | Likes Like |Link to Comment
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