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IndexIQ, a leading developer of liquid alternative investment solutions, announced that its
IQ US Real Estate Small Cap ETF (NYSE Arca: ROOF) declared a quarterly dividend of $0.5815 per share in late December. At that rate, the fund’s indicated annual yield, which is the most recent quarterly yield multiplied by four, is approximately 9.40 percent, while the yield for the trailing four quarters is 7.25 percent, and the 30-day SEC yield as of December 31, 2013 is 5.26 percent.
“Traditional fixed income investments faced an uncertain environment in 2013, driven by questions around the timing and impact of the Fed’s ‘tapering’ program,” said Adam Patti, CEO of IndexIQ. “Various ‘alternative’ asset classes, including the small cap REIT space, offered ways for investors to add exposure to attractive yields that were not highly correlated with the concerns circling the Fed’s Quantitative Easing program.”
ROOF finished the calendar year as a top-performing ETF in the real estate category. Since inception on June 14, 2011, ROOF has posted an annualized return of 14.25 percent, compared to 7.80 percent for the all-cap Dow Jones U.S. Real Estate Index. The fund is broadly diversified and includes exposure to mortgage REITs, office REITs, hotel REITs, specialized REITs, retail REITs and more. As of December 31, 2013, the performance of ROOF is as follows:
ROOF Share Price
IQ U.S. Real Estate Small Cap Index
Dow Jones U.S. Real Estate Index
*ROOF inception date is June 14, 2011.Performance greater than 1 year is annualized. The performance data quoted above represents past performance, which is not a guarantee of future results. Investment return and value of the Fund shares will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Fund returns reflect dividends and capital gains distributions. Fund performance current to the most recent month-end is available by calling 1-888-934-0777 or by visiting www.indexiq.com.ROOF’s expense ratio is 0.69%.
“We designed ROOF with an eye toward isolating the return and yield potential of the small cap REIT universe, as we believe it was an area that could serve investors well both in terms of delivering both income and return,” said Patti. “We’re very pleased with the year turned in by the fund as it continues to build a compelling long-term track record. The diversified nature of ROOF and its underlying index can help blunt the impact of a sell-off in one segment of the real estate marketplace,” continued Patti. “While small-cap REITs can also be attractive acquisition targets for larger REITs as they look to expand.”