IndexIQ has launched of the IQ 500 International ETF (IQIN) which tracks the performance, before fees and expenses, of the IQ 500 International Index.
The index, which was developed by IndexIQ has a live track record dating from 31 December 2017. All components are headquartered outside the US and are made up of common stock, not ADRs. The potential universe of constituent equities is ranked and weighted according to three fundamental factors; Sales, Market Share and Operating Margin.
Salvatore Bruno, Chief Investment Officer of IndexIQ, says: “Market cap weighted indices, although popular, are simplistic, and can deliver a significant drag on a portfolio when a fund’s constituents suffer from price deviation from their fundamental value. IQIN takes a different approach, looking at key fundamental factors and weighting the portfolio based on key metrics of relative strength and market position. The result is a solution that we believe delivers greater diversification across the international equity markets along with the potential to generate better risk-adjusted returns than traditional international investing approaches.”
Mark Lacuesta, Director of Index Strategies with IndexIQ, adds: “IQIN is an exciting addition to our international equity suite, which also includes the unique 50 per cent currency hedged ETF family we brought to market in 2015. Our well-established research shows that stock selection based on fundamentals could be an important innovation as it decouples the linkage between a stock’s price and the underlying companies’ attributes.”