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Current Strategies

Gain insights into how our suite of investment solutions can help provide you with strategies for today's environment.

Current
Strategies

Gain insights into how our suite of investment solutions can help provide you with strategies for today's environment.

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Preparing for
rising interest rates

When rates rise, traditional fixed-income investments decline in value. Our solutions have less sensitivity to interest rate movements than investment grade bonds, while seeking a similar volatility profile to that of a diversified bond portfolio.*

   

Managing equity
volatility

With global uncertainty likely to persist, equity market volatility could continue for some time. Our solutions may provide diversification properties to help manage equity market volatility.*

   

Managing foreign
currency exposure

Foreign currency can have a meaningful positive or negative effect on a portfolio's performance, depending on the movement of the local currency vs. the U.S. dollar. Given the unpredictability of currency movements, our 50% hedged solutions may offer a prudent approach to managing currency risk.*

IndexIQ Currency Corner

  • Federal Reserve Chair Janet Yellen to speak this Friday. Markets currently indicate a 40% probability of a June rate hike after release of the FOMC Minutes.
  • The British pound received continued bullish momentum ahead of the Brexit Vote as polls have revealed increasing support to remain in the EU.
  • While the yen has gained most among developed nation currencies in 2016, up 9.33% YTD, the continued investor concern over a falling yen reminds us of the difficulty in predicting currency movements.

Currency Movements Are Difficult to Predict1

  EUR
 
  JPY
 
  INT'L
 
5|24 -1.52%   -0.76%   1.08%
5|17 -0.52%   0.11%   0.27%
5|10 -1.08%   -2.45%   1.45%
5|03 1.76%   4.43%   -1.72%
4|26 -0.54%   -1.88%   0.64%
4|19 -0.25%   -0.62%   0.02%
4|12 0.02%   1.66%   -0.71%
4|5 0.82%   2.14%   -0.56%

Tools:

   

Generating
income
strategies

Generating income in a low interest rate environment has been challenging for investors. With rates expected to rise, there are additional concerns to consider when seeking income strategies. Our solution may provide a diversified source of income, with the potential for capital appreciation.*

   

Positioning for
commodity/oil rebound

Given the significant volatility in oil prices and natural resources, investors may want to consider positioning for a potential rebound. Commodities have historically been cyclical in nature and our solutions have the potential to provide investors with unique alpha-generating opportunities.*


*There can be no guarantee that strategies will be successful or investment objectives will be met. Diversification cannot assure a profit or protect against loss in a declining market.

Alpha - A measure of performance on a risk-adjusted basis.
Commodities - A basic good used in commerce that is interchangeable with other commodities of the same type.

1. Source: Bloomberg, 3/29/16-5/17/16. EUR/USD Spot Exchange Rate where the price of 1 EURO is in USD. The calculation is the one week percentage change in spot exchange rate where a negative value is the depreciation of the Euro. JPY/USD Spot Exchange Rate - price of 1 JPY in USD. The calculation is the one week percentage change in spot exchange rate where a negative value is the depreciation of the JPY. The U.S. Dollar Index (USDX) indicates the general international value of the USD. The USDX does this by averaging the exchange rates between the USD and major world currencies. A negative value indicates a general depreciation of the dollar.