The IndexIQ Global Resources ETF (GRES), the first global resources hedged Exchange-Traded Fund, has received a 5-Star Overall Morningstar RatingTM and a 5-Star Three-Year Morningstar RatingTM as of November 30, 2012 out of 22 funds in the Natural Resources category, it was announced today.
Introduced on October 27, 2009, GRES is the broadest commodities and natural resources ETF, including: livestock; precious metals; grains, food and fiber; energy; industrial metals; plus timber, water, and coal. It is based on an index with over five years of live history, designed to reweight its allocations to individual commodity sectors monthly. The fund is diversified both geographically and by sector. We believe GRES offers a unique and market proven methodology and has been among the highest performing ETFs in the commodities and natural resources category during its more than three years of live history, as well as exhibiting among the lowest levels of volatility in its category.
“The last three years have seen tremendous growth in demand for commodities worldwide,” said Adam S. Patti, chief executive officer at IndexIQ. “GRES was introduced into this market to help investors achieve broad exposure to this asset class through a single ETF with a globally diversified portfolio of holdings. The fund offers wide ranging commodities exposure in tandem with the benefits of an Exchange-Traded Fund – liquidity, transparency, and low cost when compared to traditional commodities-oriented hedge fund vehicles.”
As of September 30, 2012, weightings in the fund included Grains, Food & Fiber (27.3 percent): Timber and Livestock (approximately 22 percent each); Industrial Metals (19.4 percent); Water (9.52 percent); Coal (18.71 percent); Precious Metals (3.43 percent); and Energy (3.08 percent). The fund had an Equity Market Hedge (short) position of -25.77 percent as of that date.
As of November 30, 2012, the Fund has performed as follows:
|As of November 30, 2012||As of September 30, 2012|
|1 Month||3 Month||YTD||1 Year||3 Year||Since Fund Inception*||Since Index Inception*||1 Year||Since Fund Inception*||Since Index Inception*||Inception Date|
|Index - IQGREST||1.52%||7.12%||7.50%||4.56%||7.59%||7.99%||2.31%||9.15%||7.06%||1.60%||10/31/2007|
The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Investment return and value of the Fund shares will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. Fund returns reflect dividends and capital gains distributions. Fund performance current to the most recent month-end is available by calling 1-888-934-0777 or by visiting www.indexiq.com. The total expense ratio of the Fund is 0.75%.
For 2012, IndexIQ anticipates that holders of GRES will have zero capital gains exposure through the fund.
IndexIQ Indexes underlie a variety of investment products globally including ETFs, mutual funds, and institutional accounts. IndexIQ products are designed to be liquid, transparent, low cost,* and accessible to a broad range of investors, many of which are the first of their kind to be introduced to the market, including:
Based in Rye Brook, New York, IndexIQ is a leading developer of index-based liquid alternative investment solutions that combine the benefits of traditional index investing with the risk-adjusted return potential sought by the best active managers. The company’s philosophy is to democratize investment management by making innovative alternative investment strategies available to investors in low cost, liquid and transparent products. IndexIQ strategies are marketed through the company’s proprietary investment products and select partnerships with leading global financial institutions. Additional information about the company and its products can be found at www.IndexIQ.com.
*Ordinary brokerage commissions apply. IndexIQ’s ETF holdings are available daily on IndexIQ’s website. ETFs are liquid in that they are exchange-traded.
Investors are reminded that all investing involves risk, including possible loss of principal. Consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. A prospectus with this and other information about the Funds may be obtained by visiting www.indexiq.com or by calling (888) 934-0777. Read the prospectus carefully before investing.
As the GRES investments are concentrated in the global resources sector, the value of its shares will be affected by factors specific to that sector and may fluctuate more widely than that of a fund which invests in a broad range of industries. The Fund also may be susceptible to foreign securities risk. Since the Fund invests in foreign markets, it will be subject to risk of loss not typically associated with domestic markets. Loss may result because of less foreign government regulation, less public information, less economic, political and social stability, or other factors. The Fund is exposed to mid and small capitalization companies risk. Stock prices of mid and small capitalization companies generally are more volatile than those of larger companies and also are more vulnerable than those of large capitalization companies to adverse business and economic developments. Since the Fund may invest directly in foreign currencies or insecurities that trade in, and receive revenues in, foreign currencies, the Fund is subject to the risk that those currencies will decline in value relative to the U.S. that the U.S. dollar will decline in value relative to the currency being hedged.
The Funds are distributed by ALPS Distributors, Inc. (ALPS), which is not affiliated with IndexIQ. Adam Patti is a registered representative of ALPS.
For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. As of November 30, 2012, IQ Global Resources ETF was rated against 22 U.S.-domiciled funds in the Natural Resources category overall and over the last three years. With respect to these funds, IQ Global Resources ETF received a 5-Star Overall Morningstar Rating and a 5-Star Three-year Morningstar Rating. Past performance is no guarantee of future results.
© 2012 Morningstar, Inc. All Rights Reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.