IndexIQ’S IQ U.S. Real Estate Small Cap ETF Completes Transition to Track IQ CBRE NextGen Real Estate Index (Ticker: ROOF)

Rhea-AI Summary

IndexIQ has announced that its U.S. Real Estate Small Cap ETF has transitioned to track the IQ CBRE NextGen Real Estate Index, now renamed the IQ CBRE NextGen Real Estate ETF. This change includes a reduction in management fees from 0.69% to 0.60%. The ETF aims to provide exposure to U.S. and foreign companies benefiting from significant economic trends over the long term. The index will consist of 75-150 real estate securities and will be rebalanced quarterly, focusing on sectors impacted by digital transformation, eCommerce, and generational change.

Positive

• Management fee reduced from 0.69% to 0.60%.
• The fund now tracks the IQ CBRE NextGen Real Estate Index, targeting emerging trends in real estate.
• Exposure to 75-150 securities allows for diversified investment in critical areas of real estate.

Negative

• None.

The ETF lowered its management fee and is tracking a new underlying index, the IQ CBRE NextGen Real Estate Index

NEW YORK--(BUSINESS WIRE)-- IndexIQ has announced that effective today, the IQ U.S. Real Estate Small Cap ETF (the “Fund”) has completed the transition to tracking the IQ CBRE NextGen Real Estate Index (the “New Underlying Index”) and has been renamed as the IQ CBRE NextGen Real Estate ETF. As part of the transition, the management fee has decreased from 0.69% to 0.60%.

Under these changes, the Fund seeks to provide exposure to real estate sectors and companies that are expected to benefit from large trends (“NextGen Trends”) affecting the global economy over a secular, multi-year time horizon. The New Underlying Index will primarily provide exposure to U.S.-based companies, but also includes securities of issuers based in foreign markets. The Index will typically be made up of 75-150 securities of real estate issuers and will be rebalanced quarterly.

The NextGen Trends are focused on property sectors aligned with the following:

• Digital Transformation: Companies in the technology real estate sector owning, operating, and developing cell tower, fiber network, and data center assets which enable the growth of data and digital communications
• eCommerce Revolution: Companies in the industrial sector owning, operating, and developing logistics facilities where products are stored and shipped to the end user and may benefit from the long-term growth of online sales
• Generational Change: Companies within the healthcare and residential real estate sectors that provide exposure to life science facilities, skilled nursing facilities, senior living facilities, multifamily residential, single family for rent, and student housing to capitalize on demand from aging populations, increased healthcare spending, and rising home ownership costs.

Ian Forrest, Head of IndexIQ said:

“There’s been a big shift in the real estate market particularly in the last couple of years, and we’re now witnessing a new wave of trends emerge within the sector that we believe are valuable to have in the portfolio. It remains a priority for us to regularly evaluate our lineup and enhance our product solutions to best fit the needs of our clients. We’re excited to be leveraging the tenured expertise from global real estate leader CBRE Investment Management to help identify these trends and build this new Index to best reflect the changing real estate market.”

Joseph Smith, Chief Investment Officer, Listed Strategies of CBRE Investment Management, said:

“This is an exciting opportunity to align with IndexIQ to better position this ETF and partner in offering the IQ CBRE NextGen Real Estate Index as the new benchmark for the ROOF ETF. There are several NextGen trends reshaping the real estate landscape, and this index has been designed to capture them in a global, diversified way.”

For more information on the fund and on IndexIQ’s full suite of ETF offerings, as well as insights and commentary on inflation and the current market environment, please visit our website here.

About IndexIQ

IndexIQ, a New York Life Investments company, is a provider of exchange-traded funds (ETFs), with a decade of offering highly differentiated and innovative solutions to retail and institutional investors. With $5.1 billion in assets under management as of December 31, 2021, IndexIQ leverages the asset management capabilities of New York Life Investments' multi-boutique platform into its suite of offerings which include: fixed income, equities, alternatives, ESG components and specialty asset classes. For additional information on IndexIQ, visit newyorklifeinvestments.com/etf or follow us on Twitter or LinkedIn.

About CBRE Investment Management

CBRE Investment Management is a leading global real assets investment management firm with $146.9 billion in assets under management* as of June 30, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people, and communities thrive. CBRE Investment Management Listed Real Assets LLC is a separately registered investment adviser within CBRE Investment Management that specializes in the management of global listed real assets solutions.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information about CBRE Investment Management, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.

Disclosures:

About Risk:

All investments are subject to risk and will fluctuate in value.

Foreign Securities Risk

Investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. These additional risks include greater market volatility, the availability of less reliable financial information, higher transactional and custody costs, taxation by foreign governments, decreased market liquidity and political instability.

Industry/Sector Concentration Risk

The Fund’s investment of a large percentage of its assets in the securities of issuers within the same industry or sector means that an adverse economic, business or political development may affect the value of the Fund’s investments more than if the Fund were more broadly diversified.

Real Estate Sector Risk

Companies in the real estate sector may be adversely affected by, among other things, general and local economic conditions, intense competition, overbuilding, supply and demand, interest rates, environmental liability, zoning laws, regulatory limitations on rents, property taxes, operating expenses and limited diversification.

Small- and/or Mid-Capitalization Companies Risk

Small- and mid-capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than larger, more established companies.

Consider the Funds' investment objectives, risks, charges and expenses carefully before investing. The prospectus and the statement of additional information include this and other relevant information about the Funds and are available by visiting IQetfs.com. Read the prospectus carefully before investing.

New York Life Investment Management LLC engages the services of federally registered advisors. CBRE Investment Management is unaffiliated with New York Life Investments.

"New York Life Investments" is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. IndexIQ® is the indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC and serves as the advisor to the IndexIQ ETFs. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs, and NYLIFE Distributors LLC is a distributor of the ETFs. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220901005129/en/

For additional information about IndexIQ, please contact:

Allison Scott / Sara Guenoun

New York Life Investments

Allison_scott@nylim.com / sara_j_guenoun@newyorklife.com

Chris Sullivan / Julia Stoll

MacMillan Communications

chris@macmillancom.com / julia@macmillancom.com

Source: IndexIQ

FAQ

What changes were made to the IQ U.S. Real Estate Small Cap ETF?

The ETF has transitioned to track the IQ CBRE NextGen Real Estate Index and has reduced its management fee to 0.60%.

What is the focus of the IQ CBRE NextGen Real Estate Index?

The index focuses on real estate sectors benefiting from digital transformation, eCommerce growth, and generational changes.

How many securities will be included in the new ETF index?

The new index will typically include between 75 and 150 real estate securities.

When will the new index for the ETF be rebalanced?

The index will be rebalanced quarterly.

What is the ticker symbol for the newly named IQ CBRE NextGen Real Estate ETF?

The ticker symbol for the ETF is ROOF.