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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