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3 Ways to Play the M&A Wave

Complex strategies like merger arbitrage can lead to nice returns

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IQ Merger Arbitrage ETF

IndexIQ185If you want to play M&A via an exchange-traded fund, consider the IQ Merger Arbitrage ETF (MNA). MNA is based on the IQ Merger Arbitrage Index, which involves a sophisticated computer model that tracks opportunities across the world, including developed Europe and emerging Asia.

The strategy has produced solid if unspectacular results, including a 4.7% gain year-to-date. Some of MNA’s current holdings include Dell (DELL), Sprint (S) and BMC Software (BMC).

MNA is a smallish fund, boasting only $14 million in assets under management, but it’s also decently priced for what it does, charging just 0.76% in expenses.

As a note, MNA’s parent company, IndexIQ, is solely focused on providing ETF products for alternative investment categories. I recently interviewed CEO Adam Patti, who discussed how he and IndexIQ are trying to bring sophisticated strategies to the masses.

Article printed from InvestorPlace Media,

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