IndexIQ Announces Change to ETF Lineup
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Insights
The decision by IndexIQ to liquidate the IQ Ultra Short Duration ETF (ULTR) has significant implications for the market, particularly for investors holding positions in the fund. The ETF's closure reflects a strategic shift or a response to underlying market conditions, such as low demand or underperformance relative to peers. Investors should closely monitor the fund's performance leading up to the liquidation date to understand the potential impact on their portfolios. Additionally, the liquidation process often leads to a final distribution of assets, which could have tax implications for shareholders.
From a financial perspective, the liquidation of ULTR may indicate a reallocation of resources by IndexIQ towards more profitable or strategically aligned funds. It's essential to analyze the fund's historical performance, asset under management (AUM) and expense ratios compared to industry benchmarks. If the fund's AUM was declining, it could suggest that investors were moving to other vehicles offering better returns or lower costs. The timing of the liquidation and the market's reaction could influence the net asset value (NAV) received by shareholders, which is crucial for evaluating the financial impact of the liquidation.
Legally, the liquidation process must adhere to the guidelines set forth in the fund's prospectus and regulatory requirements. Shareholders should be notified according to the terms and conditions outlined in the fund's documentation. The distribution of proceeds must be executed fairly and transparently, ensuring that all investors are treated equitably. It is important for shareholders to review their rights and any relevant legal documentation to understand how the liquidation will be conducted and how it will affect their holdings.
The Fund will cease trading and no longer accept creation or redemption orders after market close on April 22, 2024. Proceeds of the liquidation are expected to be sent to shareholders on or about April 29, 2024.
About IndexIQ
IndexIQ is a New York Life Investments' platform of exchange-traded funds (ETFs) with over a decade of offering highly differentiated and innovative solutions to retail and institutional investors. 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 https://www.newyorklifeinvestments.com/etf or follow us on Twitter or LinkedIn.
All investments are subject to risk and will fluctuate in value.
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 or calling (888) 474-7725. Read the prospectus carefully before investing.
IndexIQ® is an 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,
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228110154/en/
For additional information about IndexIQ, please contact:
New York Life Investments
Sara Guenoun
sara_j_guenoun@newyorklife.com
Craft & Capital
Chris Sullivan
chris@craftandcapital.com
Source: IndexIQ
FAQ
When will the IQ Ultra Short Duration ETF (ULTR) cease trading?
What will happen to creation or redemption orders for the IQ Ultra Short Duration ETF (ULTR) after the liquidation?
When are shareholders expected to receive proceeds from the liquidation of the IQ Ultra Short Duration ETF (ULTR)?
