IndexIQ has filed paperwork with the SEC for a “IndexIQ Global Fixed Income ETF.” This will be an actively managed ETF that will seek as high a level of current income as is consistent with preservation of capital. The Global Fixed Income ETF will seek to meet its investment objective by exceeding the total return of the Barclays Capital Global Aggregate Bond Index. The Board may change the investment objective of the Global Fixed Income ETF without shareholder approval.
The Global Fixed Income ETF will normally invest at least 80% of its total assets in U.S. and international investment-grade, taxable, fixed income securities.
The Global Fixed Income ETF may invest in U.S. government securities, non-U.S. sovereign government debt, investment-grade corporate bonds, convertible bonds and structured securitized debt securities, such as mortgage pass-through securities, commercial and residential mortgage-backed securities, and asset-backed securities. As used herein, the term “U.S. government securities” includes securities issued by U.S. government-sponsored entities as well as U.S. Treasury securities. To the extent consistent with other investment limitations, the Global Fixed Income ETF or any other Fund may engage in forward commitment transactions covering debt securities. In a forward commitment transaction, the buyer and seller enter into a contract to buy and sell, respectively, specific securities for a fixed price at a future date beyond normal settlement time. The Global Fixed Income ETF also may invest in ETFs and ETPs. Holdings may include issues denominated in currencies of foreign countries. The Global Fixed Income ETF also may utilize other strategies, such as dollar rolls, currency hedges and reverse repurchase agreements. The Global Fixed Income ETF may invest up to 20% of its total assets in below-investment-grade securities.
They did not specify a trading symbol or expense ratio in the initial filing.
For the complete filing click: HERE