GRES will continue to offer investors and advisors a broadly diversified investment approach to accessing natural resources and various areas of the commodity market by investing in global companies that operate in commodity-specific market segments and whose equity securities trade in developed markets.
Going forward, GRES will be 100% long-only, removing short positions from the portfolio. Additionally, the fund’s approach is shifting from a momentum/valuation-based weighting scheme to a tiered weighting approach. Energy, Metals (including industrial metals and precious metals), and Agriculture (grains, food & fiber, and livestock) will each make up 30% of the fund’s underlying holdings. Water and timber will each receive a 5% weighting. Coal is also being removed from the universe of underlying commodity sub-sectors.
The fund’s management fee is also being reduced by more than 50%, from 75 bps to 30 bps, making it one of the most competitively priced diversified natural resource ETFs on the market.
Sal Bruno, CIO of IndexIQ, said:
“We’ve designed these updates to the strategy that underpins GRES to better align with clients’ needs for a purer, more consistent commodity and natural resource exposure and to offer a competitively priced portfolio solution that also has improved climate awareness. In a time of inflationary concerns, when commodity exposure can provide a powerful hedge, it is important for investors to have exposure to the major areas of growth across the commodity space while avoiding concentration risk, and that is just what we have sought to do with these changes to GRES.”
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 $4.2 billion in assets under management as of December 31, 2020, 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 newyorklifeinvestments.com/etf or follow us on Twitter or LinkedIn.
Before considering an investment in the Fund, you should understand that you could lose money.
Impact investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating.
Consider the Fund's investment objectives, risks, and 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.
"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.
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