IQSM Profile
The IQ Candriam ESG U.S. Mid Cap Equity ETF offers investors targeted exposure to U.S. mid-cap companies that meet stringent environmental, social, and corporate governance (ESG) criteria. The underlying index, developed by Candriam, a leader in sustainable and responsible investing, is carefully constructed to include companies that demonstrate strong ESG practices. The ETF aims to provide a balanced investment approach, combining the growth potential of mid-cap stocks with the commitment to sustainability, aligning with the increasing demand for responsible investment strategies. By focusing on companies that prioritize ESG factors, the fund seeks to deliver long-term value while supporting positive environmental and social outcomes.
Under normal market conditions, the ETF invests at least 80% of its assets, including net assets and any borrowings for investment purposes, in U.S. equity securities of mid-capitalization companies. These companies are selected based on their adherence to Candriam's ESG criteria, which evaluate factors such as carbon footprint, resource efficiency, labor practices, and corporate governance. The index uses a market-capitalization weighting methodology, ensuring that the fund remains diversified across various sectors while emphasizing companies with significant market presence that are also ESG leaders within their respective industries.
The ETF's focus on mid-cap stocks offers a unique blend of growth and stability, as mid-cap companies are often in the expansion phase of their business cycles, providing opportunities for capital appreciation. At the same time, these companies may exhibit lower volatility compared to small-cap stocks, making the ETF a compelling choice for investors seeking exposure to growth-oriented companies with a commitment to ESG principles. The market-cap weighting approach also ensures that the fund is well-positioned to capture the performance of leading mid-cap companies that are actively improving their ESG profiles.
The IQ Candriam ESG U.S. Mid Cap Equity ETF is designed for investors who are looking to align their investment portfolios with their values without sacrificing financial returns. As ESG factors become increasingly important in investment decision-making, this ETF offers a way to participate in the growth of U.S. mid-cap companies that are committed to sustainable and responsible business practices. The fund is suitable for those seeking a long-term investment in companies that not only have strong financial prospects but also contribute positively to society and the environment.
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