IndexIQ, a leading developer of index-based liquid alternative investment solutions, is scheduled to ring the Opening Bell SM at The New York Stock Exchange on April 25 th, it was announced today. The event will mark the March 22 nd launch of the IQ Global Agribusiness Small Cap ETF (Ticker: CROP) on the NYSE Arca platform. “The global cupboard is not yet bare, but the competition for food resources is reaching a fever pitch as populations rise, shortages increase, and the demand for alternative fuels grows,” said Adam Patti, chief executive officer at IndexIQ. “Investors who want exposure to the fast-growing agribusiness sector have traditionally been limited to products that focus on large-cap companies. We believe that small capitalization companies are best positioned to translate global demand into significant potential growth.” CROP is the first Exchange-Traded Fund (ETF) designed to provide dedicated exposure to global small capitalization companies engaged in the fast-growing agribusiness sector, including crop production and farming, food products machinery, livestock operations, and biofuels and alternative energy. It seeks to track, before fees and expenses, the performance of the IQ Global Agribusiness Small Cap Index (Bloomberg Index Ticker IQSMCROP). CROP has come to market during a time of sustained, significant growth in global food prices. Just one month prior to the fund’s launch, food prices soared 3.9 percent, the biggest monthly increase since November 1974. Economists and other experts widely expect food prices to continue rising for the remainder of 2011, and the World Bank cites rising food prices as one of the major concerns currently facing the global economy. Small-cap agribusiness is generally under-represented in investor portfolios, are typically faster growing than their large-cap brethren and, in many cases, are undervalued relative to mega-cap multi-national companies, according to IndexIQ. “This undervaluation leaves small-cap agribusiness firms attractively positioned for growth and as possible acquisition candidates by larger players,” said Patti. “With CROP, we believe we have created an efficient vehicle for gaining global exposure to these companies and this dynamic sector.”
The IQ Agribusiness Small Cap Index is float-adjusted and market capitalization-weighted. To be included in the index, companies must have a minimum average market capitalization of $150 million for the prior 90-day period. Stocks are required to have a minimum average daily trading volume of at least $1 million for the prior 90 days, and a minimum monthly volume of 250,000 shares for the prior six months. The Index’s components and their respective weights are rebalanced quarterly.In addition to CROP, IndexIQ has a robust suite of commodities and natural resources ETFs including:
- IQ Global Resources ETF (NYSE Arca: GRES), the first hedged Global Natural Resources ETF;
- IQ Canada Small Cap ETF (NYSE Arca: CNDA), the first Canada small cap ETF;
- IQ Australia Small Cap ETF (NYSE Arca: KROO), the first Australia small cap ETF;
- IQ Alpha Hedge Strategy Fund (IQHIX – Institutional Share Class; IQHOX – Investor Share Class), the first open-end, no-load Hedge Fund Replication mutual fund;
- IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), the first US-listed Hedge Fund Replication Exchange-Traded Fund;
- IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), the first Global Macro/Emerging Markets Hedge Fund Replication ETF;
- IQ Merger Arbitrage ETF (NYSE Arca: MNA), the first Merger Arbitrage ETF;
- IQ Real Return ETF (NYSE Arca: CPI), the first US-listed “Real Return” ETF, which seeks to generate a real return above the rate of inflation as measured by changes in the Consumer Price Index;
- IQ South Korea Small Cap ETF (NYSE Arca: SKOR), the first South Korea small cap ETF;
- IQ Taiwan Small Cap ETF (NYSE Arca: TWON), the first Taiwan small cap ETF.
About IndexIQBased in Rye Brook, New York, IndexIQ is a leading developer of index-based liquid alternative investment solutions that combine the benefits of traditional index investing with the risk-adjusted return potential sought by the best active managers. The company’s philosophy is to democratize investment management by making innovative alternative investment strategies available to investors in low cost, liquid and transparent products. IndexIQ strategies are marketed through the company’s proprietary investment products and select partnerships with leading global financial institutions. Additional information about the company and its products can be found at www.IndexIQ.com. *Ordinary brokerage commissions apply. IndexIQ’s ETF holdings are available daily on IndexIQ’s website. ETFs are liquid in that they are exchange-traded. As CROP’s investments are concentrated in the Agribusiness sector, adverse weather conditions, economic forces and government policy and regulation could adversely affect CROP’s portfolio companies and, thus, CROP’s financial situation and performance. CROP is susceptible to foreign securities risk. Since CROP invests in foreign markets, it will be subject to risk of loss not typically associated with domestic markets. CROP is concentrated in small capitalization companies, whose stock prices generally are more volatile than those of larger companies and also are more vulnerable than those of large capitalization companies to adverse business and economic developments. Both CROP’s ability to track its Index and fund returns in general may be adversely impacted by changes in currency exchange rates. The ETF is new and has limited operating history. The fund is not suitable for all investors. Investors in the fund should be willing to accept a high degree of volatility in the price of its shares and the possibility of significant losses. An investment in the fund involves a substantial degree of risk and the fund does not represent a complete investment program. Investors are reminded that all investing involves risk, including possible loss of principal. Consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. A prospectus with this and other information about the Funds may be obtained by visiting www.indexiq.com or by calling (888) 934-0777. Read the prospectus carefully before investing. The Funds are distributed by ALPS Distributors, Inc. (ALPS), which is not affiliated with IndexIQ. Adam Patti is a registered representative of ALPS.