Index IQ to close three niche small-cap ETFs

Jan 25th, 2018 | By | Category: ETF and Index News

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Index IQ plans to liquidate three of its IQ ETFs in an ongoing process to review its product lineup and ensure it meets the evolving needs of clients.

Index IQ to close three ETFs

Index IQ to close three ETFs

The IQ Canada Small Cap ETF (CNDA US), IQ Global Oil Small Cap ETF (IOIL US), and the IQ Australia Small Cap ETF (KROO US) are all set for the chop, and will trade on the NYSE Arca for the last time on 16 March 2018.

The funds offer exposures to different niche sectors, which have not seen the levels of demand anticipated at launch.

CNDA tracks the performance of the IQ Canada Small Cap Index, which has a relatively large exposure to energy and materials. KROO tracks the IQ Australian Small Cap Index, which has a large weighting in basic materials. While IOIL seeks to match the performance of the IQ Global Oil Small Cap Index, which focuses on companies across various geographies that are engaged in the oil sector.

As of 30 January 2018, CNDA had just $10.5 million AUM, IOIL had $3.5m and KROO had $7.5m.

The returns of each fund for the past year have ranged from as high as 28.0% for KROO to -6.7% for IOIL, with CNDA returning 12.2%.

Creations and redemptions will be accepted until 16 March 2018. Proceeds of the liquidations are expected to be sent to shareholders on or about 23 March 2018.

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