IQ ARB Merger Arbitrage ETF

MNA

Market cap $254M

Global M&A activity hits $1.29T in Q3, fueled by rate-cut hopes and record U.S. bank deals, signaling strong momentum for dealmaking.

After holding steady for much of 2025, the U.S. Federal Reserve finally instituted the first rate cut of 25 basis points, which could help jumpstart more mergers and acquisitions (M&A) activity. Likewise, this and further rate cuts could benefit exchange traded funds (ETFs) that provide exposure to M&A dealmaking.

M&A deals are booming in 2025 despite fewer transactions -- megadeals, AI bets and Fed cuts may fuel ETFs like MNA, IAI, KBWB & CHAT.

For investors seeking momentum, NYLI Merger Arbitrage ETF MNA is probably on the radar. The fund just hit a 52-week high and is up 11.56% from its 52-week low price of $30.36/share.

For investors seeking momentum, NYLI Merger Arbitrage ETF MNA is probably on the radar. The fund just hit a 52-week high and is up 9.82% from its 52-week low price of $30.36/share.

Driven by increasing global M&A deal notifications and easing financial market conditions, investing in ETFs employing a merger arbitrage strategy can be a smart play.

Deal making should rise in 2024 due to easing inflation and interest rate cuts, pent-up demand for deals, and strategic initiatives taken by companies.

After two years of subdued dealmaking, key Wall Street banks have been witnessing a resurgence in investment banking activity.

Merger arbitrage strategy ETFs like MNA were highly profitable from 2010 to 2020 due to quick government approval of mergers and high M&A deal volumes. Since 2020, the M&A fund MNA has underperformed as the Biden Administration has blocked numerous large mergers, and overall volumes have declined. In the coming months, the impact of US government politics on the alpha generation of the merger arbitrage strategy should be closely watched.

After a weak M&A year of 2023, things are looking bright for space due to chances of Fed rate cuts, higher pent-up demand and improving financial markets.