IndexIQ's IQ Hedge Beta Indexes were launched in March 2007 as the market's first family of hedge fund replication indexes. This suite of indexes serves as the basis for IndexIQ's other hedge fund replication indexes, which themselves underlie IndexIQ's hedge fund replication ETFs.
The IQ Hedge Global Macro Beta Index attempts to replicate the risk-adjusted return characteristics of the collective hedge funds using a global macro investment style. Global macro hedge fund managers typically employ top-down macro analysis (e.g., political trends, macro economics, etc.) to identify dislocations in equity, fixed income, currency and commodity markets that are expected to lead to large price movements.