IndexIQ Files For IQ Emerging Markets Mid Cap ETF
IndexIQ has filed paperwork with the SEC for a “IQ Emerging Markets Mid Cap ETF.” The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the IQ Emerging Markets Mid Cap Index.
They did not specify a trading symbol in the initial filing.
PRINCIPAL INVESTMENT STRATEGIES
The Fund employs a “passive management” – or indexing – investment approach designed to track the performance of the Underlying Index, which was developed by Financial Development Holdco LLC (“IndexIQ”), the parent company of IndexIQ Advisors LLC, the Fund’s investment advisor (the “Advisor”). The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of the securities in the Underlying Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Underlying Index as a whole. The Fund uses American depositary receipts, European depositary receipts and Global depositary receipts when, in the discretion of the Advisor, the use of such securities is warranted for liquidity, pricing, timing or other reasons.
The Underlying Index is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the mid capitalization sector of publicly traded companies domiciled and primarily listed on an exchange in the emerging markets. The emerging markets generally include less developed markets in the Americas, Europe, Asia, and Africa/Middle East.
The components of the Underlying Index (the “Underlying Index Components”) that are eligible for inclusion in the Underlying Index include the following characteristics, measured as of each annual reconstitution date:
* Issuer domiciled in an emerging market;
* Primary stock exchange listing in an emerging market;
* Minimum average market capitalization of $500 million for the prior 90 days and as of the annual rebalance date;
* Average market capitalization in the range between the top 85 percent and top 70 percent (the “Market Cap Ceiling”) ranking of companies in the emerging markets based on market capitalization for the prior 90 days;
* Minimum average daily trading volume of at least $1 million for the prior 90 days; and
* Minimum monthly volume of 250,000 shares each month over the prior six months.
Securities of issuers with recent stock exchange listings (i.e., recent initial public offerings) may be added to the Underlying Index on an annual basis, provided that the companies meet all eligibility criteria and have been trading for more than ten trading days.
The Underlying Index Components are selected and weighted annually in connection with the reconstitution of the Underlying Index.
As of March 31, 2011, the United States (“U.S.”) dollar-denominated market capitalizations of the Underlying Index Components ranged from approximately $[_____] to approximately $[______]. For additional information about the Fund’s principal investment strategies, see “Additional Description of the Principal Strategies of the Funds.”
For the complete filing click: HERE
Related ETFs: SPDR S&P Emerging Markets Small Cap (NYSE:EWX)