IndexIQ’s Canada Small Cap ETF (NYSE Arca: CNDA) has surpassed the USD100 million mark in assets under management (AUM).
CNDA, which launched in March 2010, was the first, and is still the only, ETF dedicated to providing exposure to the dynamic small-cap segment of the Canadian economy, a segment that recently has experienced significant growth, spurred in large part by Canada’s vast natural resources. Canada has the second largest proven reserves of crude oil in the world, is the fourth largest exporter of crude, and also is the world’s second largest exporter of natural gas.
“Canada is very rich in natural resources and has a strong consumer base, but since it is not included in the MSCI EAFE, many investors are left dramatically underexposed to the country,” says Adam Patti (pictured), Chief Executive Officer of IndexIQ. “With CNDA, investors have a means to gain that exposure, and can do so in a way that is not overly concentrated in large multi-national corporations whose performance tends to mirror the broad international markets. CNDA provides a sector allocation tied more closely to the actual local economy (i.e. energy and materials, rather than financials), as compared to the large cap Canada counterparts.”
CNDA is part of IndexIQ’s family of single-country small-cap ETFs, including: IQ Australia Small Cap ETF (NYSE Arca: KROO), the first Australia small cap ETF; IQ South Korea Small Cap ETF (NYSE Arca: SKOR), the first South Korea small cap ETF; and IQ Taiwan Small Cap ETF (NYSE Arca: TWON), the first Taiwan small cap ETF.
Like Canada, Australia is a country with significant natural resources, while South Korea and Taiwan have burgeoning reputations for technological innovation. All three countries also rank among China’s largest and fastest-growing trading partners, all of which serves to further position IndexIQ’s family of small-cap country ETFs as a means for investors to add exposure to natural resources, each country’s respective consumer class, and to the strong growth of China through funds that are potentially less correlated to their large-cap brethren and broad international indices.
“We are very pleased to be marking this milestone for CNDA,” says Patti, “and to be meeting such an important need for advisors and investors with our family of single-country small-cap ETFs as they search for diversification and exposure to potential growth opportunities on the international landscape.”