IndexIQ Teams Up with U.S. Growth Equity Investing Specialists at Winslow Capital to Introduce Two Semi-Transparent Actively Managed ETFs
NEW YORK--(BUSINESS WIRE)--IndexIQ, a leading provider of innovative multi-asset investment solutions, today announced the launch of its first active semi-transparent Exchange Traded Funds (ETFs): IQ Winslow Large Cap Growth ETF (IWLG) and IQ Winslow Focused Large Cap Growth ETF (IWFG).
The new ETFs are managed by Winslow Capital Management, LLC (Winslow Capital) one of the leading firms in growth equity investing. Through repeatable processes firmly rooted in fundamental research, Winslow Capital seeks to achieve successful client outcomes over the long-term while carefully managing risk. Both ETFs are led by the portfolio managers Justin Kelly, Patrick Burton and Peter Dlugosch, who also manage Winslow’s flagship, U.S. Large Cap Growth strategy. The portfolio management team is further supported by Winslow Capital’s investment team, which averages over 25 years of industry experience.
“We are excited to be partnering with Winslow Capital to continue to expand our line-up of equity ETFs, in our ongoing efforts to provide investors with a wide range of products to help meet their investment needs,” Ian Forrest, Head of IndexIQ said. “Our investors are always our highest priority, and we are pleased to be able to share with them Winslow’s longstanding experience with large-cap growth investment options.”
“As active managers, we are continually seeking to identify areas of the market that provide opportunity while still managing risk appropriately,” Justin Kelly, CEO and CIO of Winslow Capital said. “After the recent correction in growth stocks we believe long-term investors will find this to be a compelling entry point.”
“Our long-term flexible approach to growth allows for investors to leverage the strategy both as a core component of their portfolio and a complement to other strategies they may be utilizing,” Pat Burton, a Portfolio Manager for the funds, added.
Winslow Capital’s investment team employs a ‘no preferred habitat’ approach which underpins both strategies and allocates across three different, yet complementary, types of growth companies: consistent growth, dynamic growth, and cyclical growth. Winslow Capital focuses on discovering companies with identifiable and sustainable competitive advantages, strong management teams, and improving fundamentals driving long-term shareholder value. Winslow Capital has successfully employed the same philosophy and flexible approach to growth investing for over two decades and strives to deliver strong returns over the long term.
These ETFs are different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For additional information regarding the unique attributes and risks of the ETF, please see the About the Semi-Transparent ETF structure and the About Risk section as well as the fund's prospectus.
IWLG and IWFG seek long-term growth of capital by employing a bottom-up investment process while investing in companies that have the potential for above-average future earnings and cash flow growth. Both ETFs are non-diversified, which means they can invest a larger percentage of assets in a smaller number of companies, allowing the portfolio management team to express conviction in their best ideas.
IWLG typically invests in a portfolio of 45-55 stocks, allocating 25-40% across each growth type.
The more concentrated IWFG typically invests in a portfolio of 25-35 stocks, allocating 10-60% across each growth type.
IndexIQ’s growing lineup of ETFs.
The IQ Winslow funds are the latest addition to IndexIQ’s fast-growing lineup of cutting-edge ETFs, each designed to provide investors with a key portfolio solution. The IndexIQ ETF family includes the IQ Hedge Multi-Strategy ETF (QAI), the first liquid alternative ETF; innovative fixed income offerings like the IQ MacKay ESG Core Plus Bond ETF (ESGB); and the firm’s recently launched R&D Leaders suite, which includes the IQ US Large Cap R&D Leaders ETF (LRND), the IQ U.S. Mid Cap R&D Leaders ETF (MRND), and the IQ Global Equity R&D Leaders ETF (WRND).
For more information on the fund and on IndexIQ’s full slate of ETF offerings, please visit our website here.
About the Semi-Transparent ETF structure
Leveraging the NYSE’s Actively Managed Solution, or AMSSM, structure, the ETFs are semi-transparent, meaning the holdings will be disclosed on a monthly basis on a one-month lag, rather than daily. This structure allows the portfolio managers the freedom to actively manage and pursue the investment objectives of the strategy without the risk of signaling position changes to the market.
Similar to index-tracking ETFs, semitransparent ETFs share certain tax-efficiency and intra-day liquidity benefits.
These ETFs are different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example:
- You may have to pay more money to trade the ETF’s shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.
- The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.
- These additional risks may be even greater in bad or uncertain market conditions.
- The ETF will publish on its website each day a “Proxy Portfolio” designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF’s holdings, it is not the ETF’s actual portfolio.
The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance.
For additional information regarding the unique attributes and risks of the ETF, please see the About Risk section as well as the fund's prospectus.
IndexIQ, a New York Life Investments company, is a provider of exchange-traded funds (ETFs), with a decade of offering highly differentiated and innovative solutions to retail and institutional investors. With $5.1 billion in assets under management as of December 31, 2021, 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.
About Winslow Capital
Winslow Capital, subadvisor for New York Life Investments, is a premier growth equity investment firm grounded in fundamental, long-term investing with more than $26 billion in assets as of March 31, 2022 across its lineup of growth equity offerings. Through a disciplined approach and deep fundamental research, Winslow Capital aims to identify sustainable opportunities in public and private markets globally. Winslow Capital’s flagship offering is a U.S. Large Cap Growth Equity Strategy, which has been managed since the Firm’s inception.
“AMSSM is a service mark of NYSE Group, Inc. or its affiliates (“NYSE”) and has been licensed for use by IndexIQ Advisors LLC (“Licensee”) in connection with IQ Winslow Large Cap Growth ETF and IQ Winslow Focused Large Cap Growth ETF (each a “Fund”). Neither Licensee nor a Fund is sponsored, endorsed, sold or promoted by NYSE. NYSE makes no representations or warranties regarding Licensee or a Fund or the ability of the AMSSM to track the intra-day performance of any fund.
“NYSE MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO AMSSM OR ANY DATA INCLUDED THEREIN. IN NO EVENT SHALL NYSE HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.”
Before considering an investment in the Fund, you should understand that you could lose money.
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.
Growth-oriented common stocks and other equity type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments. Typically, the subadvisor intends to invest substantially all of the Fund's investable assets in domestic securities. However, the Fund is permitted to invest up to 20% of its net assets in foreign securities. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. These risks may be greater for emerging markets.
Certain environmental, social, and governance ("ESG") criteria may be considered when evaluating an investment opportunity. This may result in the Fund having exposure to securities or sectors that are significantly different than the composition of the Fund's benchmark and performing differently than other funds and strategies in its peer group that do not take into account ESG criteria.
The Fund is non-diversified. By concentrating in a smaller number of investments, the Fund's risk is increased because each investment has a greater effect on the Fund's performance.
Proxy Portfolio Risk. Unlike traditional ETFs that provide daily disclosure of their portfolio holdings, the Fund does not disclose the daily holdings of the Actual Portfolio. Instead, the Fund discloses a Proxy Portfolio that is designed to reflect the economic exposure and risk characteristics of the Fund’s Actual Portfolio on any given trading day. While the Proxy Portfolio includes some of the ETFs holdings, it is not the actual portfolio. Daily portfolio statistics will be provided as an indication of the similarities and differences between the Proxy Portfolio and the actual holdings. The Proxy Portfolio and other metrics, including Portfolio Overlap, are intended to provide investors and traders with enough information encourage transactions that help keep the ETF’s market price close to its NAV. There is a risk that market prices will differ from the NAV, ETFs trading on the basis of a Proxy Portfolio may trade at a wider bid/ask spread than shares of ETFs that publish their portfolios on a daily basis, especially during periods of market disruption or volatility and, therefore, may cost investors more to trade. There is a risk that the performance of the Proxy Portfolio will diverge from the performance of the Actual Portfolio, potentially materially. The ETF’s daily Proxy Portfolio, Portfolio Overlap and other tracking data are available at newyorklifeinvestments.com.
Consider the Fund’s 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 Fund and are available by visiting www.newyorklifeinvestments.com or calling 888-474-7725. Read the prospectus carefully before investing.
Winslow Capital Management, LLC is unaffiliated with New York Life Investments. “New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. IndexIQ® is the 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.