Invesco MSCI Green Building ETF

Ticker: TBD

Exchange: NYSE Arca

Expense ratio: TBD

Original filing date: February 3, 2021

Effective date: April 19, 2021

Listing Date: TBD

CUSIP: TBD

Active: No

Index: MSCI Global Green Building Index

Investment Objective:

The Invesco MSCI Green Building ETF seeks to track the investment results (before fees and expenses) of the MSCI Global Green Building Index.

Investment Strategy:

Universe: MSCI ACWI Investable Market Index

Companies that derive 50% or more of their revenue from green buildings. Such companies are evaluated for their level of involvement in, and strategic commitment to green building, based on MSCI’s internal environmental, social and governance rating and score data. Once included in the index, securities will remain constituents as long as the revenue they derive from green building does not fall below 40%.

 

Adviser: Invesco CapitalManagement LLC

Prospectus is here.

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Principal Investment Strategies

The Fund generally will invest at least 90% of its total assets in the securities that comprise the Underlying Index.

Strictly in accordance with its guidelines and mandated procedures, MSCI Inc. (the “Index Provider”) compiles, maintains and calculates the Underlying Index, which is comprised of companies that the index methodology has determined provide exposure to the environment impact theme of “green building”. The index methodology defines “green building” to include the design, construction, redevelopment, retrofitting, or acquisition of green-certified properties to promote mechanisms for raising capacity for effective climate change mitigation and adaptation.

The Underlying Index is composed of securities that are also components of the MSCI ACWI Investable Market Index (the “Parent Index”), an equity index composed of more than 8,700 securities of large-, mid- and small-capitalization companies located in both developed and emerging market countries around the world. Securities eligible for inclusion in the Underlying Index include American depositary receipts (“ADRs”), global depositary receipts (“GDRs”), and real estate investment trusts (“REITs”). Companies that derive 50% or more of their revenue from green building are eligible for inclusion in the Underlying Index. Such companies are evaluated for their level of involvement in, and strategic commitment to green building, based on the Index Provider’s internal environmental, social and governance (“ESG”) rating and score data. Once included in the Underlying Index, securities will remain constituents as long as the revenue they derive from green building does not fall below 40%. The Underlying Index weights its constituents by their free-float adjusted market capitalization.

As of [ ], the Underlying Index was comprised of [ ] constituents with market capitalizations ranging from $[ ] to $[ ].

The Fund employs a “full replication” methodology in seeking to track the Underlying Index, meaning that the Fund generally invests in all of the securities comprising the Underlying Index in proportion to their weightings in the Underlying Index. The Fund is “non-diversified” and therefore is not required to meet certain diversification requirements under the Investment Company Act of 1940, as amended (the “1940 Act”).

Concentration Policy. The Fund will concentrate its investments (i.e., invest 25% or more of the value of its total assets) in securities of issuers in any one industry or group of industries only to the extent that the Underlying Index reflects a concentration in that industry or group of industries. The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or group of industries. As of [          ], the Fund had significant exposure to the real estate industry. The Fund's portfolio holdings, and the extent to which it concentrates its investments, are likely to change over time.

Rayliant Quantamental China Equity ETF

Ticker: RAYC

Exchange: NYSE Arca

Expense ratio: 1.28% waived to 0.80% until January 31, 2022.

Original filing date: October 16, 2020

Effective date: December 30, 2020

Listing Date: December 31, 2020

CUSIP: 00774Q197

Active: Yes

Index: Not applicable

Investment Objective:

The Rayliant Quantamental China Equity ETF (the “Fund”) seeks long-term capital appreciation.

Investment Strategy:

The Adviser selects stocks on behalf of the Fund using a combination of quantitative and fundamental investment approaches, known as “quantamental” investing. The Adviser’s quantitative investment model allocates more weight to stocks for which the model identifies the potential for higher future returns, taking into account risk (i.e., risk-adjusted returns), and less weight to stocks for which the model identifies the potential for lower future risk-adjusted returns.

 

Adviser: Rayliant Investment Research, doing business as Rayliant Asset Management

Sub-Adviser: 0

 

Prospectus is here.

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Principal Investment Strategies

The Fund invests, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes in equity securities of issuers based in China. This investment policy may be changed by the Fund upon 60 days’ prior written notice to shareholders.

For purposes of the Fund’s investments, China includes the People’s Republic of China (“PRC”) as well as its special administrative regions and other districts, such as Hong Kong. The Adviser considers an issuer to be based in China if: (i) the issuer is organized under the laws of, or has its principal office in China; (ii) the issuer has the primary trading markets for its securities in China; (iii) the issuer derives at least 50% of its revenue or earnings from goods or services sold or produced in China; or (iv) the issuer has at least 50% of its assets in China.

The equity securities in which the Fund primarily invests are common stock, preferred stock, American Depositary Receipts (“ADRs”), and real estate investment trusts (“REITs”). The Fund may invest in securities of companies with any market capitalization. The Fund’s equity investments may also include derivatives, principally futures contracts and swaps, which will be used primarily by the Fund for hedging purposes, to equitize cash positions in the Fund’s portfolio (i.e., obtain exposure to the equity markets and maintain liquidity while the Adviser seeks out long-term investments for the Fund), or to otherwise gain exposure to an instrument without investing in such instrument directly. The Fund may also invest in exchange traded funds (“ETFs”) to equitize cash, and engage in securities lending. From time to time, the Fund may focus its investments in a particular sector, such as the financials or consumer discretionary sector. The Fund will invest in A Shares of companies incorporated in China (“China A Shares”) that trade on the Shanghai Stock Exchange and the Shenzhen Stock Exchange through the Shanghai – Hong Kong and Shenzhen – Hong Kong Stock Connect programs (“Stock Connect”).

The Adviser selects stocks on behalf of the Fund using a combination of quantitative and fundamental investment approaches, known as “quantamental” investing. The Adviser’s quantitative investment model allocates more weight to stocks for which the model identifies the potential for higher future returns, taking into account risk (i.e., risk-adjusted returns), and less weight to stocks for which the model identifies the potential for lower future risk-adjusted returns. The Adviser’s portfolio management team may adjust portfolio weights for the Fund based on their own analysis of the securities in the Fund’s investment universe in order to enhance evaluations made by the quantitative model.

The Fund is classified as “non-diversified,” which means that it may invest a larger percentage of its assets in a smaller number of issuers than a diversified fund.

Goldman Sachs Future Tech Leaders Equity ETF

Ticker: GTEK

Exchange: TBD

Expense ratio: 0.75%

Original filing date: January 22, 2021

Effective date: April 7, 2021

Listing Date: TBD

CUSIP: TBD

Active: Yes

Index: Not applicable

Investment Objective:

The Goldman Sachs Future Tech Leaders Equity ETF (the “Fund”) seeks long-term growth of capital.

Investment Strategy: 

Global technology companies with market caps of less than $100 billion: 

Information technology or communication services sectors, 

internet and direct marketing retail or healthcare technology industries. 

Companies driving technological innovation and potential to grow their business over many years. 

Developing differentiated technology to disrupt existing markets, service existing markets more efficiently, or apply proven business models to new geographies.

Adviser: Goldman Sachs Asset Management, L.P.

Sub-Adviser: Not applicable

 

Prospectus is here.

Updated prospectus is here.

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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.

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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.

Vanguard Ultra-Short Bond ETF

Ticker: VUSB

Exchange: TBD

Expense ratio: 0.10%

Original filing date: January 19, 2021

Effective date: April 5, 2021

Listing Date: TBD

CUSIP: 92203C303

 

Active: Yes

Index: Not applicable

Investment Objective:

The Fund seeks to provide current income while maintaining limited price volatility.

Investment Strategy: Principal Investment Strategies

The Fund invests in a diversified portfolio of high-quality fixed income securities rated the equivalent of A3 or better by Moody's, and some medium-quality fixed income securities are those rated the equivalent of Baa1, Baa2, or Baa3.

Dollar-weighted average maturity of 0 to 2 years.

Adviser: The Vanguard Group, Inc.

Sub-Adviser: Not applicable

 

Prospectus is here.

 

The Fund seeks to provide current income while maintaining limited price volatility.

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Principal Investment Strategies

The Fund invests in a diversified portfolio of high-quality and, to a lesser extent, medium-quality fixed income securities. High-quality fixed income securities are those rated the equivalent of A3 or better by Moody's Investors Service, Inc.

(Moody's) or another independent rating agency or, if unrated, are determined to be of comparable quality by the Fund's advisor. Medium-quality fixed income securities are those rated the equivalent of Baa1, Baa2, or Baa3 by Moody's or another independent rating agency or, if unrated, are determined to be of comparable quality by the Fund's advisor. The Fund is expected to maintain a dollar-weighted average maturity of 0 to 2 years. Under normal circumstances, the Fund will invest at least 80% of its assets in fixed income securities.

Gavekal Asia Pacific Government Bond ETF

Ticker: AGOV

Exchange: TBD

Expense ratio: TBD

Original filing date: January 20, 2021

Effective date: April 05, 2021

Listing Date: TBD

CUSIP: TBD

Active: Yes

Index: Not applicable

Investment Objective: The Gavekal Asia Pacific Government Bond ETF seeks to provide absolute positive returns.

Investment Strategy:

Local currency government bonds of the following countries, with a minimum 3% and maximum 9.5% in each country:

• Australia
• China
• Hong Kong
• India
• Indonesia
• Japan
• Kazakhstan
• Malaysia
• New Zealand
• Pakistan
• Russia
• Singapore
• South Korea
• Sri Lanka
• Taiwan
• Thailand
• the Philippines
• Vietnam

1. Liquidity

2. Yield

3. Duraction < 5 years

Acquire bonds with 6-12 years remaining to maturity

Maintain dollar-weighted average portfolio maturity of at least 5 years

Adviser: Exchange Traded Concepts, LLC

Sub-Adviser: Gavekal Capital Limited

 

Prospectus is here.

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Principal Investment Strategies

The Fund is an actively-managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing in local currency bonds issued by national governments (i.e., sovereign bonds), instrumentalities or political sub-divisions (i.e., quasi-sovereign bonds), and supranational entities such as the World Bank, Asia Development Bank, and Asian Infrastructure Bank (i.e., supranational bonds) in the Asia-Pacific region (“Asia-Pacific government bonds”). Under normal circumstances, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in Asia-Pacific government bonds. The Fund may invest without limit in securities of issuers in emerging markets, including frontier markets. As of the date of this Prospectus, the Asia-Pacific government bonds in which the Fund invests are those from China, India, Indonesia, Singapore, South Korea, Russia, Japan, Malaysia, Taiwan, Thailand, Hong Kong, the Philippines, Pakistan, Vietnam, Sri Lanka, Kazakhstan, Australia, and New Zealand. Gavekal Capital Limited, the Fund’s sub-adviser (the “Sub-Adviser”), expects to allocate at least 3% and no more than 9.5% of the Fund’s total assets to Asia-Pacific government bonds of each country. The list of countries in which the Fund may invest may change from time to time to include other countries in the Asia-Pacific region.

In selecting investments for the Fund, the Sub-Adviser considers (i) a bond’s liquidity, with an emphasis on bonds that can be purchased while having the smallest impact on price, and (ii) a bond’s expected yield, with an emphasis on bonds that have relatively higher yields. The Fund may invest in bonds rated in any category, including bonds that are rated below investment grade. Bonds rated below investment grade are commonly known as “junk bonds.” The Fund will normally maintain an average portfolio duration of at least five years, but may invest in bonds of any duration. Duration is a measure of the sensitivity of a fixed-income investment to a change in interest rates (e.g., for every 1% change in interest rates, a bond’s price will change by 1% for every year of duration). For example, if a bond has a duration of 5 years and interest rates increase by 1%, the value of that bond can be expected to decrease by 5%.

The Fund will generally acquire bonds that have a remaining maturity of between 6 and 12 years at the time of investment and the Sub-Adviser expects to maintain for the Fund a dollar-weighted average portfolio maturity of at least five years. When a bond’s maturity falls below five years, the Sub-Adviser will seek to replace it with a bond with a longer remaining time to maturity. The Fund may also invest in inflation-protected bonds.

The Fund may invest in bonds of Chinese issuers through a Bond Connect Company Limited program (“Bond Connect”), which allows foreign investors, such as the Fund, to invest in such bonds through a Hong Kong account.

VanEck Vectors Digital Assets ETF

Ticker: DAPP

Exchange: NASDAQ

Expense ratio: 0.65%

Original filing date: January 21, 2021

Effective date: April 6, 2021

Listing Date: TBD

CUSIP: 92189H821

Active: No

Index: MVIS® Global Digital Assets Equity Index

Investment Objective: Track as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Global Digital Assets Equity Index.

Investment Strategy:

Invest in "Digital Transformation Companies":

• operate digital asset exchanges
• operate payment gateways
• engage in mining operations
• provide software, equipment and technology or services to the digital asset industry
• operate digital asset infrastructure businesses
• facilitate commerce with the use of digital assets

• own a material amount of digital assets
• generate revenues related to digital asset operations

Constituents: Global, small to large cap, developed and emerging markets.

 

Adviser: Van Eck Associates Corporation

Sub-Adviser: Not applicable.

 

Prospectus is here.

Updated prospectus is here.

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