IQ Engender Equality ETF
Ticker: EQUL
Exchange: TBD
Expense ratio: TBD
Original filing date: December 18, 2020
Effective date: March 3, 2021
Listing Date: TBD
CUSIP: TBD
Active: No
Index: TBD
Investment Objective:
The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the [ ] Index (the “Underlying Index”).
Investment Strategy:
US small, mid, large companies: universe of 1,000 companies.
1. ESG screen including environmental an social
2. Selection and weightings to be determined with an "engender" score to be determined from:
- Gender Balance In Leadership & Workforce
- Equal Compensation & Work Life Balance
- Policies Promoting Gender Equality
- Commitment, Transparency & Accountability
3. Top 75 companies selected.
Constituents: 75
Adviser: IndexIQ Advisors LLC, a
wholly-owned subsidiary of the New York Life Investment Management Holdings LLC
The portfolio managers jointly and primarily responsible for the day-to-day management of the Fund’s portfolios are Greg Barrato and James Harrison.
Sub-Adviser: Not applicable
Prospectus is here.
The portfolio managers jointly and primarily responsible for the day-to-day management of the Fund’s portfolios are Greg Barrato and James Harrison.
Greg Barrato joined the Advisor as Vice President in November 2010 and has been Senior Vice President of the Advisor since August 2013. Prior to joining the Advisor, Mr. Barrato served as Head Global Equity Trader and Trader at Lucerne Capital Management, LLC from 2008 to 2010 and as Assistant Trader and Operations Manager at ReachCapital Management, LP from 2004 to 2008. Mr. Barrato is a graduate of the University of Connecticut.
James Harrison has been a member of the portfolio management team of the Advisor since 2015. Prior to joining the Advisor, Mr. Harrison served as a New York Stock Exchange member Floor Broker and Equity Sales Trader for Cuttone and Company from 2010 to 2015. Mr. Harrison is a graduate of St. Lawrence University.
Principal Investment Strategies
The Fund employs a “passive management” — or indexing — investment approach designed to track the performance of the Underlying Index, which was developed by [ ] (“[ ]” or the “Index Provider”) and [ ] (“[ ]”). [ ] constructs the Underlying Index using the [ ] Score, which is calculated based on data and the scoring methodology developed and produced by [ ].
The Underlying Index is designed to track the U.S. large-, mid- and small-capitalization companies that have the best [ ] Score. The criteria and factors used to calculate the [ ] Score are in alignment with initiatives, research and programs of [ ], a 501(c)(3) public charity, (“[ ]®”). Each of the criteria used to calculate the [ ] Score addresses issues or areas historically supported by [ ]®.
The index universe consists of the 1000 largest companies in the U.S. stock market. The Underlying Index includes an exclusionary screen that excludes companies that derive certain minimum amounts of revenue from:
• unconventional fossil fuels (including coal, hydraulic fracturing, oil sands and deep water drilling);
• nuclear energy;
• controversial businesses (including gambling, adult entertainment, alcohol, tobacco, and military equipment);
• controversial weapons (including landmines, biological and chemical weapons, cluster munitions and nuclear weapons); or
• norms-based international initiatives and guidelines (such as UN Principles and OECD Guidelines).
The Underlying Index also excludes companies for a period of one year if, in the past two years the company has engaged in unethical business practices that resulted in:
• a legal judgement or an official ruling regarding discrimination against any employees;
• two or more legal cases brought against the company regarding discrimination against any employees; or
• a legal judgement or an official ruling regarding unethical practices in the company’s marketing and advertisement.
After the exclusionary screens have been applied, all remaining securities are ranked according to the [ ] Score. A company’s [ ] Score is determined based on how the company scores on the following factors in the areas of: (1) gender balance in leadership & workforce; (2) equal compensation & work life balance; (3) policies promoting gender equality; (4) policies promoting gender equality; and (5) commitment, transparency & accountability. [ ] determines a company’s [ ] Score based upon its analysis of publicly available information, as reported by such company in its most recent annual report for its fiscal year end.
Gender Balance In Leadership & Workforce
• Non-Executive Board: Percentage of male and female as a proportion of the total number of non-executive Board members.
• Executives: Percentage of male and female executives as a proportion of the total number of executives.
• Senior Management: Percentage of male and female senior management, as a proportion of the total number of senior management.
• Workforce: Percentage of male and female employees at the company, as a percentage of total employees.
• Promotion & Career Development Opportunities: Ratio of male and female employees in management compared to ratio of each gender in total employees.
Equal Compensation & Work Life Balance
• Fair Remuneration: Demonstrates a commitment to ensure payment of a fair wage to all employees.
• Equal Pay: Commitment to provide comparable wages, hours, and benefits, including retirement benefits, for all employees for comparable work.
• Parental Leave: Paid leave programs for child and dependent care to both women and men (maternity leave, paternity leave, dependent care).
• Flexible Work Options: Option for employees to control and/or vary the start/end times of the work-day and/or vary the location from which employees work.
Policies Promoting Gender Equality
• Training and Career Development: Ensures equal access to training and career development.
• Recruitment Strategy: Commitment to ensure non-discrimination against any type of demographic group.
• Freedom from Violence, Abuse and Sexual Harassment: Prohibit all forms of violence in the workplace, including verbal, physical and sexual harassment.
• Safety at Work: Commitment to the safety of employees in the workplace and company-related travel.
• Human Rights: Commitment to ensure the protection of the rights of all people it works with including employees’ rights to participate in legal, civic and political affairs.
• Social Supply Chain: Commitment to reduce social risks in its supply chain such as forbidding business-related activities that condone, support, or otherwise participate in human trafficking, including for labor or sexual exploitation
• Supplier Diversity: Commitment to ensure diversity in the supply chain, including a focus to ensure female-owned businesses in the supply chain.
• Employee Protection: Systems and policies for the reporting of internal ethical compliance complaints without retaliation or retribution, including but not limited to access to confidential third-party ethics hotlines or systems for confidential written complaints.
Commitment, Transparency & Accountability
• Commitment to Women’s Empowerment: Recognition and commitment to ensuring women’s empowerment in the workplace.
• Audit: Undertaken and awarded an independent gender audit certificate by an [ ]-recognized body.
The Underlying Index consists of the 75 securities with the best [ ] Score, subject to constraints on component turnover and industry exposure. The Underlying Index is equally weighted and rebalanced quarterly.
As of [ ], 2021, the market capitalization range of the Underlying Index was approximately $[ ] to $[ ]. As of [ ], the primary sectors within the Underlying index are information technology, financials, and communication services.
The Underlying Index may include as a component one or more ETFs advised by the Advisor (“Affiliated ETFs”) and the Fund will typically invest in any Affiliated ETF included in the Underlying Index. The Fund also may invest in Affiliated ETFs that are not components of the index if such an investment will help the Fund track the Underlying Index.
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