IndexIQ Files For IQ Global Equity ETF

IndexIQ has filed paperwork with the SEC for a “IQ Global Equity ETF.” The IQ Global Equity ETF (the “Fund”) seeks capital appreciation through purchases of global equity securities. They did not specify a trading symbol or expense ratio in the initial filing.

Investment Process

The investment process analyses fundamental data to identify undervalued companies that generate strong cash flow and have management teams that make effective use of their cash flow. The portfolio management team systematically analyzes data from balance sheets and income and cash flow statements to identify companies that most efficiently generate cash flow. Additionally, the portfolio management team analyzes the uses of cash flow to ensure that management uses cash efficiently, whether it is re-investing for future growth or returning the cash to shareholders in the most effective way.

Once companies are analyzed and ranked according to cash generation and effective cash usage, approximately the top 200 become eligible for potential inclusion in the Fund. The portfolio management team then considers price momentum (i.e., the rate of acceleration of a security’s price), valuation metrics (e.g., Price/Book or Price/Sales) and trading related data to select a group of equities from the eligible list to be included in the Fund. The equities are combined using a quantitative process that considers country and sector risk exposures as well as overall portfolio volatility.

Normally, the Fund will invest at least 40% of its assets in securities from international markets, unless market conditions are not deemed favorable by the Fund’s investment adviser, in which case the Fund may invest less than 40% of its assets in securities from international markets (but in any event not less than 30%).

For the complete filing click: HERE

Leave a Reply

Your email address will not be published. Required fields are marked *