IndexIQ has filed paperwork with the SEC for a “IndexIQ Global Equity ETF.” This will be an actively managed ETF that will seek long-term capital appreciation by investing primarily in U.S. and international equity securities. The Global Equity ETF will seek to meet its objective by normally investing at least 80% of its total assets in equity securities, which may include Depositary Receipts (as further described below), of companies domiciled and primarily listed on a Stock Exchange or traded in global markets. The Board may change the investment objective of the Global Equity ETF without shareholder approval.
Utilizing qualitative and quantitative measures, the Adviser will select companies for the Global Equity ETF that have growth potential within their market niche. Candidates for the portfolio will be ranked based on their relative desirability using a wide range of financial criteria and will be regularly reviewed to assure that they continue to meet the ranking and desirability criteria.
The Global Equity ETF’s investments may include common stocks, ETFs, exchange-traded products not registered as investment companies under the 1940 Act (“ETPs”), preferred stocks (either convertible or non-convertible), direct equity interests in trusts, partnerships, joint ventures and other unincorporated entities or enterprises, convertible debt instruments and special classes of shares available only to foreigners in markets that restrict ownership of certain shares or classes to their own nationals or residents. Holdings may include issues denominated in currencies of foreign countries, investment companies that invest in applicable markets, and in Depositary Receipts representing foreign securities.
Depositary Receipts are typically issued by a financial institution (a “depositary”) and evidence ownership in a security or pool of securities that have been deposited with the depositary.7 A Fund will not invest in any Depositary Receipts that the Adviser deems to be illiquid or for which pricing information is not readily available.
They did not specify a trading symbol or expense ratio in the initial filing.
For the complete filing click: HERE