“We define size based upon revenue as opposed to market cap because we’re trying to decouple price movements and momentums from the security selection and the ratings on big companies that are big because they have a lot of sales… because sales is the blood line of a company. That’s really what’s driving the company allowing them to do what they need to do on a forward basis.”
He added the ETF also looked to see if a company is in a leadership position in their sector and how their market share compares in their sector.
Mark Lacuesta, Director of Index Strategies with IndexIQ, added IQIN is an exciting addition to its international equity suite, which also includes the unique 50 percent currency hedged ETF family we brought to market in 2015.
“Our well-established research shows that stock selection based on fundamentals could be an important innovation as it decouples the linkage between a stock’s price and the underlying companies’ attributes,” Lacuesta said.
IndexIQ is a global provider of exchange-traded funds (ETFs), with a decade of offering highly differentiated and innovative long-term solutions to retail and institutional investors. Today, with assets under management of $4.1 billion, IndexIQ leverages the first-class asset management capabilities of New York Life Investments’ multi-boutique platform into its suite of offerings which include: fixed income, equities, alternatives and specialty asset classes.
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