IndexIQ, a Rye Brook, N.Y.-based ETF firm known for its hedge fund replication strategies, launched a small-cap exchange-traded fund today focused on
The IQ Taiwan Small Cap ETF (NYSEArca: TWON) follows three initial rollouts in late March and April, the commodities-focused IQ Australia Small Cap ETF (NYSEArca: KROO) and IQ Canada Small Cap ETF (NYSEArca: CNDA), as well as the IQ South Korea Small Cap ETF (NYSEArca: SKOR). Similar to SKOR, TWON will have a heavy focus on the computer technology and industrial sectors.
Asian economies, led by
Patti said that in January,
TWON will allocate 30 percent to technology, but it will also have about 27 percent tied to industrials, 18 percent to materials and nearly 10 percent to consumer discretionary.
According to Patti, companies included in the basket will first have to clear through IndexIQ’s liquidity screens, but overall, small-cap companies are positioned to experience
IndexIQ outlined all 13 of the small-cap ETFs it plans to offer in a filing with the Securities and Exchange Commission in March.
“The one thing that ties them all together is
The next launch will be a pair from
IndexIQ also plans to introduce four funds focused on commodity companies, including the IQ Global Agribusiness Small Cap Equity ETF (NYSEArca: CROP), the IQ Natural Gas Small Cap Equity ETF (NYSEArca: IGAS), the IQ Global Crude Oil Small Cap Equity ETF (NYSEArca: IOIL) and the IQ Global Gold Small Cap Equity ETF (NYSEArca: GLZ).
Each fund will track an underlying index of the same name and will strive for a fully replicating strategy. However, the funds might at times hold a representative sample of equities in the indexes as they seek to replicate returns. The indexes were created by IndexIQ's parent company Financial Development Holdco LLC.