IQHI is actively managed by MacKay Shields LLC, while IQSM is the latest collaboration between IndexIQ and Candriam, providing investors two new ESG-focused options
NEW YORK, N.Y., October 25, 2022 – IndexIQ, a leading provider of innovative multi-asset investment solutions, today announced the launch of two new additions to the firm’s fast-growing lineup 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, said:
“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.”
These new funds expand on IndexIQ’s ongoing partnerships and product team-ups with Candriam and MacKay Shields, respectively, including the IQ Candriam ESG U.S. Large Cap Equity ETF (IQSU), the IQ Candriam ESG International Equity ETF (IQSI), and IQ MacKay ESG Core Plus Bond ETF (ESGB).
IndexIQ also introduced its own thematic ESG suite of Dual Impact ETFs, which offer compelling exposures and a way for investors to give back through their investments.
For more information on the funds and on IndexIQ’s full suite of ETF offerings, please visit our website here.
About MacKay Shields
MacKay Shields LLC (together with its subsidiaries, "MacKay")*, a New York Life Investments Company, is a global asset management firm with $132 billion in assets under management as of June 30, 2022. MacKay manages fixed income and equity strategies for high-net worth individuals and institutional clients through separately managed accounts and collective investment vehicles including private funds, UCITS, ETFs, closed end funds and mutual funds. MacKay maintains offices in New York City, Princeton, Los Angeles, London and Dublin. For more information, please visit www.mackayshields.com or follow us on Twitter or LinkedIn.
*MacKay Shields is a wholly owned subsidiary of New York Life Investment Management Holdings LLC, which is wholly owned by New York Life Insurance Company.
Candriam stands for "Conviction AND Responsibility In Asset Management" and is a European multi-specialist asset manager. A pioneer and leader in sustainable investments since 1996, Candriam manages around EUR 143 billion of assets under management2 with a team of more than 600 professionals. It operates management offices in Luxembourg, Brussels, Paris, and London, and has client representatives in more than 20 countries throughout continental Europe, the United Kingdom, the United States, and the Middle East. Candriam offers investment solutions3 in several key areas: bonds, equities, absolute performance strategies, and asset allocation, with a broad and innovative range of ESG strategies covering all its asset classes.
Candriam is a New York Life Investments Company4. New York Life Investments ranks among the world's largest asset managers5. For more information see: www.candriam.com.
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.
IndexIQ, MacKay Shields, Candriam:
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All Investments are subject to risk and will fluctuate in value.
The Fund is a new fund. As a new fund, there can be no assurance that it will grow to or maintain an economically viable size, in which case it could ultimately liquidate.
Funds that invest in bonds are subject to interest-rate risk and can lose principal value when interest rates rise. Bonds are also subject to credit risk which is the possibility that the bond issuer may fail to pay interest and principal in a timely manner.
High yield securities generally offer a higher current yield than the yield available from higher grade issues, but are subject to greater market fluctuations, are less liquid and provide a greater risk of loss than investment grade securities.
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. These risks may be greater for emerging markets.
Short positions pose a risk because they lose value as a security's price increases; therefore, the loss on a short sale is theoretically unlimited.
The fund may invest in derivatives which may amplify the effects of market volatility on the Fund’s Share price.
Certain environmental, social, and governance ("ESG") criteria may be considered when evaluating an investment opportunity. This may result in the Fund having exposure to securities or sectors that are significantly different than the composition of the Fund's benchmark and performing differently than other funds and strategies in its peer group that do not take into account ESG criteria. There is no assurance that employing ESG strategies will result in more favorable investment performance.
All Investments are subject to risk and will fluctuate in value.
The Fund is a new fund. As a new fund, there can be no assurance that it will grow to or maintain an economically viable size, in which case it may experience greater tracking error to its Underlying Index or it could ultimately liquidate.
The Fund employs a “passive management” investment approach designed to track the performance of the Underlying Index. There is no guarantee that the Fund’s investment results will have a high degree of correlation to those of the Underlying Index or that the Fund will achieve its investment objective.
The Underlying Index seeks to provide exposure to the equity securities of companies meeting environmental, social and corporate governance (ESG) investing criteria and the Fund may forgo some market opportunities available to funds that do not use these criteria. The application of environmental, social and corporate governance investing may impact the Fund’s relative investment performance. There is no guarantee that the construction methodology of the Underlying Index will accurately provide exposure to issuers meeting environmental, social and corporate governance criteria. There is no assurance that employing ESG strategies will result in more favorable investment performance.
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.
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.
“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.