IndexIQ launches the first active semi-transparent ETFs

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IndexIQ, a New York Life investment management firm, on Thursday announced the launch of its first semi-transparent active exchange-traded funds, the IQ Winslow Large Cap Growth ETF and the IQ Winslow Focused Large Cap Growth ETF. .

The new ETFs are managed by Winslow Capital Management, a sub-advisor to New York Life Investments, a spokeswoman for IndexIQ said. The semi-transparent structure of ETFs means holdings will be disclosed monthly with a one-month lag instead of daily, she said.

New York Life Investments has been offering its large-cap growth strategy in a mutual fund format in partnership with Winslow as a sub-advisor since April 2005, IndexIQ head Ian Forrest said in comments provided to Pensions and investments by the spokesperson.

“We’ve seen the adoption and use of ETFs by institutional investors increase significantly over the past few years,” said Forrest, “and that’s why we continue to build our robust platform of multi-asset solutions and continue to grow our institutional-focused sales team as this demand grows.”

The new ETFs, which will use a bottom-up investment process, are undiversified, meaning they can invest a larger percentage of assets in a smaller number of companies, according to a press release from IndexIQ Thursday.

The IQ Winslow Large Cap Growth ETF will typically invest in 45-55 stocks, while the more concentrated IQ Winslow Focused Large Cap Growth ETF will typically invest in 25-35 stocks, according to the release.

“We believe the semi-transparent ETF structure provides clients with additional value as our portfolio managers maintain the integrity of their investment process and the liquidity and tax efficiency of the ETF structure,” said said Mr. Forrest.

The two new funds bring the total number of ETFs offered by IndexIQ to 30, he said. IndexIQ had $5.1 billion in assets under management as of Dec. 31, of which ETFs accounted for about $4.7 billion, Forrest said.

New York Life Investments had more than $650 billion in assets under management as of March 31.

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