IndexIQ has announced the launch of two new additions to the firm’s fast-growing line-up of ESG investment solutions: the IQ MacKay ESG High Income ETF (IQHI) and the IQ Candriam ESG U.S. Mid Cap Equity ETF (IQSM).
The IQ MacKay ESG High Income ETF (IQHI) is an actively managed ESG focused high yield strategy, benchmarked to the Bloomberg Very Liquid High Yield Index, which seeks to maximize current income. The Fund is sub-advised by the MacKay Shields’ Global Credit team, led by Eric Gold. The Team’s philosophy is rooted in the belief that strong risk-adjusted investment returns can be achieved by employing a strategy of seeking to eliminate uncompensated risk. The strategy seeks to avoid companies with elevated ESG risks while favoring companies with strong and/or improving ESG attributes.
The IQ Candriam ESG U.S. Mid Cap Equity ETF (IQSM) is a passively managed ESG focused strategy, benchmarked to the IQ Candriam ESG U.S. Mid Cap Equity Index. The index strategy, designed in collaboration between IndexIQ and Candriam, leverages Candriam’s proprietary ESG evaluation framework with a broadly diversified U.S. mid cap portfolio comprised of companies meeting ESG criteria developed by Candriam.
Kirk Lehneis, Chief Operating Officer of New York Life Investment Management (NYLIM) & President of IndexIQ ETFs, says: “The teams at MacKay Shields and Candriam are foremost in their fields and having their insights and unique approaches available to power our newest ETFs is a tremendous benefit to potential investors in these funds. IQHI is a unique solution that can help investors and advisors manage two of today’s biggest portfolio challenges: finding ways to add yield potential while also seeking to avoid potential pitfalls tied to ESG-related risks; while IQSM brings a compelling ESG-focused lens to the U.S. mid-cap category, an area of the equity market that is often underrepresented in investors’ portfolios.”
