IndexIQ grants access to investment solutions that were once out of reach for most investors. In particular, IndexIQ was the first to offer liquid alternative ETFs, democratizing the alternatives asset class, which was an asset class that was once only available to institutional, high net worth and sophisticated investors.
Active management is the use of a human element, such as a single manager, co-managers or a team of managers, to actively manage a fund’s portfolio. Active management strategies typically have higher fees than passive management.
Beta is a measure of historical volatility relative to an appropriate index (benchmark) based on its investment objective. A beta greater than 1.00 indicates volatility greater than the benchmark's.
*Beyond Beta ETFs refer to Smart Beta strategies, which are defined as rules-based investment strategies that follow an index, but also consider alternative factors in choosing securities from the index. Smart Beta investment aims to obtain alpha, lower risk or increase diversification at a cost lower than traditional active management and marginally higher than pure index investing.
ESG Investing Style Risk: Impact investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating. There is no assurance that employing ESG strategies will result in more favorable investment performance.