Daily ETF Watch: Volatility Funds Planned
IndexIQ files for 'Target Volatility' ETFs.
IndexIQ has filed for a trio of ETFs covering the U.S. and global markets and seeking to achieve a specific level of volatility. The funds will select the largest companies from their respective markets and use an optimization process to select long, short and cash positions in the components to achieve the appropriate volatility level.
The funds and their target volatility levels are as follows:
- IQ U.S. Target Volatility ETF, 8 percent
- IQ International Target Volatility ETF, 8 percent
- IQ Emerging Markets Target Volatility ETF, 11 percent
The indexes were co-developed by IndexIQ and Cornerstone Capital Management, and the two international funds are 50 percent currency-hedged. The prospectus notes that in times of lower volatility, the ETFs will allocate less to cash and short positions.
The filing did not include tickers or expense ratios, nor did it include the listing exchange for the funds.
Contact Heather Bell at [email protected].
