NEW YORK--(BUSINESS WIRE)--IndexIQ yesterday announced the launch of the IQ Ultra Short Duration ETF (Ticker: ULTR) (“Fund”), which provides financial advisors the flexibility to manage interest rate risk while seeking to deliver attractive current income.
The Fund is actively managed by NYL Investors, which oversees over $252 billion in assets as of March 31, 2019. Managed by Senior Portfolio Manager Kenneth Sommer, this is the first ETF brought to market by this team.
“This Fund aims to provide investment solutions that generate consistent, risk-controlled excess returns for our clients. ULTR represents a strategy which helps mitigate interest rate risk while seeking to minimize price volatility,” said Kenneth Sommer. “We believe this ETF can play an important role in managing client portfolios in any investment environment.”
ULTR is the third in a series of actively managed ETF offerings from IndexIQ following the launch of two active municipal bond funds: IQ MacKay Municipal Insured ETF (Ticker: MMIN) and IQ MacKay Municipal Intermediate ETF (Ticker: MMIT)
“For the first time, our clients can access the markets through an ETF developed and run by the experienced institutional asset management team at NYL Investors,” said IndexIQ’s Chief Investment Officer, Salvatore Bruno. “Adding to our lineup of active managers on our IndexIQ platform is a testament to the capabilities of New York Life Investments and how we continue to bring innovative solutions to market.”
IndexIQ, a New York Life Investments Company, 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. For additional information on IndexIQ, visit IQetfs.com | Twitter | LinkedIn
Investors should not expect the Fund’s returns to track the returns of any index or market for any period of time.
The Fund is a new fund. As a new fund, there can be no assurance that it will grow to or maintain an economically viable size, in which case it could ultimately liquidate.
The risks of investing in debt or fixed-income securities include (without limitation): credit risk, maturity risk, market risk, interest rate risk, and call risk.
Interest rates in the United States are near historic lows, and the Fund currently faces a heightened level of interest rate risk. To the extent the Federal Reserve Board continues to raise the federal funds rate, there is a risk that interest rates across the financial system may rise, possibly significantly and/or rapidly. Rising interest rates or lack of market participants may lead to decreased liquidity and increased volatility in the fixed-income or debt markets, making it more difficult for the Fund to sell its fixed-income or debt holdings at a time when the Subadvisor might wish to sell. Decreased liquidity in the fixed-income or debt markets also may make it more difficult to value some or all of the Fund’s fixed-income or debt holdings.
When the Fund invests in foreign markets, it will be subject to risk of loss not typically associated with domestic markets. Loss may result because of less foreign government regulation, less public information and less economic, political and social stability. Loss may also result from the imposition of exchange controls, confiscations and other governmental restrictions.
Fund shares are not individually redeemable and will be issued and redeemed at the NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units”, and otherwise, can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in-kind.
Consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus and the statement of additional information, including this and other relevant information about the Fund, are available by visiting nylinvestments.com/etfs or calling 888-474-7725. Read the prospectus carefully before investing.
New York Life Investments is a service mark and name under which New York Life Investment Management LLC does business. New York Life Investments, an indirect subsidiary of New York Life Insurance Company, located at 51 Madison Avenue, New York, New York 10010, provides investment advisory products and services. 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, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.