IndexIQ Files For IQ Global Precious Metals Small Cap ETF
IndexIQ has filed paperwork with the SEC for a “IQ Global Precious Metals Small 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 Global Precious Metals Small 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 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 global, small capitalization sector of publicly traded companies that are engaged primarily in the gold and other precious metals mining industries (“Precious Metals Companies”).
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 quarterly rebalance date:
* Issuers that are engaged in the gold, silver and other precious metals mining industries, as determined by Standard Industrial Classification (“SIC”) code classifications;
* Minimum average market capitalization of $150 million for the prior 90 days and as of the quarterly rebalance date;
* Maximum average market capitalization equal to the bottom 10 percent ranking of companies globally based on market capitalization for the prior 90 days (the “Market Cap Ceiling”);
* 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 a quarterly basis, provided that the companies meet all eligibility criteria and have been trading for more than ten trading days. Existing Underlying Index Components whose average market capitalization falls below $100 million or increases above the level 65% higher than the Market Cap Ceiling for the 90 days prior to any rebalancing date will no longer be eligible for inclusion.
The Underlying Index Components are selected quarterly in connection with the reconstitution of the Underlying Index. Their respective weights are rebalanced quarterly in connection with the rebalance 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: ETFS Physical PM Basket Shares (NYSE:GLTR).