The IndexIQ IQ ARB Merger Arbitrage ETF Makes Big Changes For January

ETF issuer and index provider IndexIQ just made some interesting updates to the holdings of its IndexIQ IQ ARB Merger Arbitrage ETF (NYSE:MNA), which include dropping LinkedIn and Virgin America, both of which have been officially acquired.

MNA is a unique fund that seeks “capital appreciation by investing in global companies for which there has been a public announcement of a takeover by an acquirer.” When M&A deals are completed, the fund needs to rebalance its holdings on a regular basis as a result. You can view a full list of the additions and subtractions to the index that MNA tracks below.

Additions to the IQ Merger Arbitrage Index

Target Acquirer Target Target Announce Added
Name Name Sector Country Date Date
Accordia Golf Co., Ltd. MBK Partners, Ltd. Consumer Discretionary Japan 11/29/2016 01/05/2017
Allied World Assurance Co. Holdings AG Fairfax Financial Holdings Ltd. Financials United States 12/18/2016 01/05/2017
CLARCOR, Inc. Parker-Hannifin Corp. Industrials United States 12/01/2016 01/05/2017
InvenSense, Inc. TDK Corp. Information Technology United States 12/21/2016 01/05/2017
Linde AG Praxair, Inc. Materials Germany 11/29/2016 01/05/2017
NeuStar, Inc. Neustar, Inc. /Private Group/ Information Technology United States 12/14/2016 01/05/2017
Stillwater Mining Co. Sibanye Gold Ltd. Materials United States 12/09/2016 01/05/2017
Vascular Solutions, Inc. Teleflex, Inc. Health Care United States 12/02/2016 01/05/2017

Deletions from the IQ Merger Arbitrage Index since last rebalance

Target Acquirer     Announce Added Deal
Name Name Sector Country Date Date Result
LinkedIn Corp. Microsoft Corp. Information Technology United States 06/13/2016 07/06/2016 Completed
SAI Global Ltd. Baring Private Equity Partners Group LLP Industrials Australia 09/26/2016 10/05/2016 Completed
China High Speed Transmission Equipment Group Co., Ltd. Fullshare Holdings Ltd. Utilities Hong Kong 09/19/2016 12/05/2016 Completed
Virgin America, Inc. Alaska Air Group, Inc. Industrials United States 04/04/2016 05/04/2016 Completed
St. Jude Medical, Inc. Abbott Laboratories Health Care United States 04/28/2016 05/04/2016 Completed
PrivateBancorp, Inc. Canadian Imperial Bank of Commerce Financials United States 06/29/2016 07/06/2016 Max Age

IndexIQ commented via press release:

“The markets started to behave more rationally in December, as the surge following the election of Donald Trump gave way to a less emotional assessment of the prospects for interest rates and the economy over the coming year,” said Salvatore Bruno, IndexIQ’s Chief Investment Officer. “The results were broadly positive for hedge funds, with most of the indexes showing strong returns for the period.”

The firm offers “investable benchmarks that replicate the performance characteristics of sophisticated hedge fund strategies,” and its products include more than just the MNA ETF. IndexIQ also counts five more indexes among its offerings, which run the gamut from multi-strategy to global macro, and even a market neutral index.

The IndexIQ IQ ARB Merger Arbitrage ETF (NYSE:MNA) was trading at $29.50 per share on Wednesday afternoon, down $0.01 (-0.03%). Year-to-date, MNA has gained 0.68%, versus a 1.28% rise in the benchmark S&P 500 index during the same period.

MNA currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #3 of 20 ETFs in the Alternative ETFs category.

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