IndexIQ, a leader in developing index-based commodity, international, and liquid alternative investment solutions, is launching the IQ Emerging Markets Mid Cap ETF (Ticker: EMER) on the NYSE Arca platform this morning, it was announced today. EMER is the first Exchange-Traded Fund (ETF) dedicated to providing access to mid-cap Emerging Market equities and will do so via a “pure play” approach, meaning that all of the equities included in the fund’s underlying index will be listed on an exchange in a less developed market in the Americas, Europe, Asia, Africa and the Middle East. The fund will be diversified across both Emerging Market countries and industry sectors. As of May 31, 2011, the fund’s underlying index contained exposures to Consumer Discretionary (18.69 percent), Financials (18.10 percent), Industrials (15.88 percent), Materials (13.28 percent), Technology (9.15 percent) and more. EMER seeks to replicate, before fees and expenses, the performance of the IQ Emerging Markets Mid Cap Index (IQMDEMG), a float-adjusted market cap-weighted index that is intended to track the overall performance of the mid capitalization sector of publicly traded companies domiciled and primarily listed on an exchange in the Emerging Markets. EMER is intended to provide pure-play exposure to this sector either as a standalone vehicle or used in combination with large- and small-cap Emerging Market offerings to create a broad-based portfolio. “Just as it is important for investors to diversify across capitalization spectrum in their domestic portfolios, the same holds true for investors allocating to emerging markets,” said Adam Patti, CEO of IndexIQ. “Prior to EMER, only the large- and small-cap sectors of the Emerging Markets landscape were available to ETF investors. That changes today as we bring out this first-of-its-kind product to allow investors to access the growth potential of the Emerging Market mid-cap sector in a highly-liquid, highly-transparent way.”
EMER has an expense ratio of 0.75 percent and joins IndexIQ’s family of International ETFs, which also includes:
- 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;
- IQ Australia Small Cap ETF (NYSE Arca: KROO), the first Australia small cap ETF;
- IQ Canada Small Cap ETF (NYSE Arca: CNDA), the first Canada small cap ETF;
- IQ Hong Kong Small Cap ETF (NYSE Arca: HKK), the first Hong Kong small cap ETF; and
- IQ Japan Mid Cap ETF (NYSE Arca: RSUN), the first Japan mid cap ETF.
- IQ Global Resources ETF (NYSE Arca: GRES), the first Global Natural Resources ETF;
- IQ Global Agribusiness Small Cap ETF (NYSE Arca: CROP), the first global agribusiness small cap ETF;
- IQ Global Oil Small Cap ETF (NYSE Arca: IOIL), the first global oil small cap ETF; and
- IQ US Real Estate Small Cap ETF (NYSE Arca: ROOF), the first small-cap REIT ETF.
- IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), the first Global Macro ETF;
- IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), the first US-listed Hedge Fund Replication 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 Merger Arbitrage ETF (NYSE Arca: MNA), the first Merger Arbitrage ETF; and
- IQ Real Return ETF (NYSE Arca: CPI), the first multi-asset class “Real Return” ETF, which seeks to generate a real return above the rate of inflation as measured by changes in the Consumer Price Index.
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.As the Fund’s investments are concentrated in emerging markets, the value of its shares will be subject to a greater risk of loss than investments in developed markets. Since the Fund invests in foreign markets, it will be subject to risk of loss not typically associated with domestic markets. The Fund invests in the securities of mid capitalization companies, the value of which generally is more volatile than those of larger companies. Both the Fund’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 the Fund's Shares and the possibility of significant losses. An investment in the Fund does not represent a complete investment program. The Funds are distributed by ALPS Distributors, Inc. (ALPS), which is not affiliated with IndexIQ. Adam Patti is a registered representative of ALPS. IDX000720.070112