New York Life to Buy ETF Provider IndexIQ
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Consolidation in the industry for exchange-traded funds is heating up.
New York Life Insurance said Thursday that will buy IndexIQ, a niche ETF provider specializing in hedge-fund like strategies, according to a press release[1].
New York Life’s move marks the second acquisition in the ETF industry in as many months. In October, Janus Capital Group (JNS[5]) bought VelocityShares, the $2.4 billion ETF provider best known for its exchange-traded notes linked to futures on the CBOE Volatility Index.
Thursday’s announcement follows previous reports[6] that bidders including Goldman Sachs Group (GS) were in the running to buy IndexIQ. It also underscores the urgency felt by asset managers to join the fast-growing, $2 trillion ETF industry.
Terms for the deal, expected to close in the first half of next year, were not disclosed.
Corrections and Amplification:
The third paragraph of this post was corrected to clarify MainStay’s relationship with Marketfield Asset Management.