RYE BROOK, N.Y.--(BUSINESS WIRE)--The IQ US Real Estate Small Cap ETF (NYSE Arca: ROOF) celebrated its third anniversary on June 14th, it was announced by the fund’s sponsor, IndexIQ. At its introduction, ROOF was the first Exchange-Traded Fund (ETF) to provide exposure to the overall performance of small capitalization U.S. real estate companies, and remains unique in the fast-growing ETF marketplace.
“Small-capitalization REITs historically have offered investors the opportunity for higher yields and less correlated performance,” said Adam Patti, chief executive officer at IndexIQ. “Those factors were among our reasons for developing ROOF and its underlying index, and we have been very pleased with the way the fund has performed.”
ROOF seeks to replicate, before fees and expenses, the performance of the IQ US Real Estate Small Cap Index, a float-adjusted, market-cap weighted index that seeks to track the overall performance of small-capitalization US real estate companies. As of March 31st, the top three sector allocations in the fund and index were Mortgage REITs (approximately 23 percent of holdings), Office REITs (approximately 18 percent), and Specialized REITs (approximately 14 percent). The fund and index also offer exposure to Hotel REITs, Diversified REITs, Retail REITs and Residential REITs.
“Small-cap REITs can serve as an effective complement to investors’ large-cap REIT exposure,” added Patti. “Not only do they offer the potential for outperformance, but in many cases these REITs also become acquisition targets in their own right, further benefiting shareholders.”
In addition to ROOF, IndexIQ’s product family includes several other innovative offerings, including:
- 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 Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), the first and largest hedge fund-style ETF, which recently passed the $750 million assets under management mark;
- IQ Hedge Market Neutral Tracker ETF (NYSE Arca: QMN), the first market neutral hedge fund style ETF;
- IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), the first ETF to provide exposure to the risk-adjusted characteristics of the universe of hedge funds pursuing a macro strategy;
- IQ Merger Arbitrage ETF (NYSE Arca: MNA), the first merger arbitrage ETF;
- IQ Real Return ETF (NYSE Arca: CPI), the first US-listed “real return” ETF, which seeks to generate a real return above the rate of inflation as measured by changes in the Consumer Price Index;
- IQ Global Resources ETF (NYSE Arca: GRES), the broadest commodity equity ETF in the market;
- IQ Global Agribusiness Small Cap ETF (NYSE Arca: CROP), the first agribusiness small-cap ETF;
- IQ Global Oil Small Cap ETF (NYSE Arca: IOIL), the first small-cap global oil equity ETF;
- IQ Canada Small Cap ETF (NYSE Arca: CNDA), which targets the small-cap segment of the resource-rich Canadian marketplace; and
- IQ Australia Small Cap ETF (NYSE Arca: KROO), which targets the small-cap spectrum of the Australian marketplace, another resource-driven economy where pure play exposure to factors “on the ground” can be an important component of an investment strategy.
IndexIQ is a leading issuer of liquid alternative investments focused on absolute return, real asset and international strategies. IndexIQ solutions are offered as ETFs, Mutual Funds, Separate Accounts and Model Portfolios. IndexIQ’s philosophy is to democratize investment management by making innovative alternative investment strategies available to investors in low cost, liquid and transparent products.* IndexIQ strategies are marketed through the company’s proprietary investment products and select partnerships with leading global financial institutions. Additional information about the company and its products can be found at www.IndexIQ.com.
*IndexIQ’s ETF holdings are available daily on IndexIQ’s website. Brokerage commissions apply to ETFs. ETFs are liquid in that they are exchange-traded.
As ROOF’s investments are concentrated in the real estate sector, it is exposed to concentration risk, interest rate risk, leverage risk, property risk and management risk. The Fund is concentrated in small capitalization companies, whose stock prices generally are more volatile than those of larger companies. The Fund is non-diversified and is susceptible to greater losses if a single portfolio investment declines than would a diversified fund. 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 involves a substantial degree of risk and the Fund does not represent a complete investment program.
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.
IndexIQ ETFs and mutual funds are distributed by ALPS Distributors, Inc. (ALPS), which is not affiliated with IndexIQ. Adam Patti is a registered representative of ALPS.