IndexIQ Announces Updates and Enhancements to Its IQ U.S. Real Estate Small Cap ETF (“ROOF”)
ROOF will soon have a new name and will begin tracking a new underlying index;
Fund’s management fee is also being reduced
NEW YORK–(BUSINESS WIRE)–IndexIQ today announced that effective September 1, 2022, the IQ U.S. Real Estate Small Cap ETF (ticker: ROOF) will be renamed as the IQ CBRE NextGen Real Estate ETF and begin tracking the IQ CBRE NextGen Real Estate Index (the “New Underlying Index”). Notably, at the time of the Fund’s change, the management fee will decrease from 0.69% to 0.60%.
The New Underlying Index was designed in conjunction with CBRE Investment Management and seeks to provide exposure to real estate sectors and companies that are expected to benefit from large trends (“NextGen Trends”) affecting the global economy over a secular, multi-year time horizon. The New Underlying Index will primarily provide exposure to U.S. companies with a maximum allocation of 25% to non-U.S. companies. The NextGen Trends are focused on property sectors aligned with the following:
- Digital Transformation: Companies that are within the technology real estate sector owning, operating, and developing cell tower, fiber network, and data center assets which enable the growth of data and digital communications.
- eCommerce Revolution: Companies in the industrial sector owning, operating, and developing logistics facilities where products are stored and shipped to the end user and may benefit from the long-term growth of online sales.
- Generational Change: Companies within the healthcare and residential real estate sectors that provide exposure to life science facilities, skilled nursing facilities, senior living facilities, multi-family residential, single family for rent, and student housing to capitalize on demand from aging populations, increased healthcare spending and rising home ownership costs.
The Index will typically be made up of 75-150 securities of real estate issuers and will be rebalanced quarterly.
Joseph Smith, Chief Investment Officer, Listed Strategies of CBRE Investment Management said:
“This solution leverages our firm’s deep fundamental and quantitative research expertise. We are excited to be working with IndexIQ to offer investors targeted exposure to property sectors positioned to benefit from innovation and transformational change.”
Ian Forrest, Head of IndexIQ said:
“We are very excited to be making these enhancements to the ROOF ETF as part of our ongoing effort to deliver investors and advisors with the highly differentiated tools they need to build resilient portfolios. Partnerships like that which we have forged with CBRE Investment Management around this fund, those we have built around our Dual Impact suite, ESG efforts and across other parts of the IndexIQ lineup, also remain core to our efforts to innovate and help investors solve their most pressing portfolio challenges.”
For more information on the fund and on IndexIQ’s full suite of ETF offerings, as well as insights and commentary on inflation and the current market environment, please visit our website here.
About IndexIQ
IndexIQ, a New York Life Investments company, is a provider of exchange-traded funds (ETFs), with a decade of offering highly differentiated and innovative solutions to retail and institutional investors. With $5.1 billion in assets under management as of December 31, 2021, IndexIQ leverages the asset management capabilities of New York Life Investments’ multi-boutique platform into its suite of offerings which include: fixed income, equities, alternatives, ESG components and specialty asset classes. For additional information on IndexIQ, visit https://www.newyorklifeinvestments.com/etf or follow us on Twitter or LinkedIn.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $146.8 billion in assets under management* as of March 31, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people, and communities thrive. CBRE Investment Management Listed Real Assets LLC is a separately registered investment adviser within CBRE Investment Management that specializes in the management of global listed real assets solutions.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information about CBRE Investment Management, please visit www.cbreim.com
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.
Disclosures:
About Risk:
All investments are subject to risk and will fluctuate in value.
Foreign Securities Risk
Investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. These additional risks include greater market volatility, the availability of less reliable financial information, higher transactional and custody costs, taxation by foreign governments, decreased market liquidity and political instability.
Industry/Sector Concentration Risk
The Fund’s investment of a large percentage of its assets in the securities of issuers within the same industry or sector means that an adverse economic, business or political development may affect the value of the Fund’s investments more than if the Fund were more broadly diversified.
Real Estate Sector Risk
Companies in the real estate sector may be adversely affected by, among other things, general and local economic conditions, intense competition, overbuilding, supply and demand, interest rates, environmental liability, zoning laws, regulatory limitations on rents, property taxes, operating expenses and limited diversification.
Non-Diversified Risk
The Fund is classified as a “non-diversified” investment which means it may invest a larger percentage of its assets in a smaller number of issuers than a diversified fund. To the extent the Fund invests its assets in a smaller number of issuers, the Fund will be more susceptible to negative events affecting those issuers than a diversified fund.
Small- and/or Mid-Capitalization Companies Risk
Small- and mid-capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than larger, more established companies.
Consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. The prospectus and the statement of additional information include this and other relevant information about the Funds and are available by visiting IQetfs.com. Read the prospectus carefully before investing.
New York Life Investment Management LLC engages the services of federally registered advisors. CBRE Investment Management is unaffiliated with New York Life Investments.
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. IndexIQ® is the indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC and serves as the advisor to the IndexIQ ETFs. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs, and NYLIFE Distributors LLC is a distributor of the ETFs. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.
Contacts
For additional information about IndexIQ:
Allison Scott / Sara Guenoun
New York Life Investments
Allison_scott@nylim.com / sara_j_guenoun@newyorklife.com
Chris Sullivan / Julia Stoll
MacMillan Communications
chris@macmillancom.com / julia@macmillancom.com