IndexIQ introduces two semi-transparent active ETFs
ETF issuer IndexIQ has announced the launch of its first active semi-transparent ETFs, the IQ Winslow Large Cap Growth ETF (IWLG) and IQ Winslow Focused Large Cap Growth ETF (IWFG).
The firm writes that the new ETFs are managed by Winslow Capital Management, LLC (Winslow Capital) one of the leading firms in growth equity investing. Through repeatable processes firmly rooted in fundamental research, Winslow Capital seeks to achieve successful client outcomes over the long-term while carefully managing risk.
Both ETFs are led by the portfolio managers Justin Kelly, Patrick Burton and Peter Dlugosch, who also manage Winslow’s flagship, U.S. Large Cap Growth strategy. The portfolio management team is further supported by Winslow Capital’s investment team, which averages over 25 years of industry experience.
“We are excited to be partnering with Winslow Capital to continue to expand our line-up of equity ETFs, in our ongoing efforts to provide investors with a wide range of products to help meet their investment needs,” says Ian Forrest, Head of IndexIQ. “Our investors are always our highest priority, and we are pleased to be able to share with them Winslow’s longstanding experience with large-cap growth investment options.”
“As active managers, we are continually seeking to identify areas of the market that provide opportunity while still managing risk appropriately,” Justin Kelly, CEO and CIO of Winslow Capital says. “After the recent correction in growth stocks we believe long-term investors will find this to be a compelling entry point.”
“Our long-term flexible approach to growth allows for investors to leverage the strategy both as a core component of their portfolio and a complement to other strategies they may be utilizing,” Pat Burton, a Portfolio Manager for the funds, says.
Winslow Capital’s investment team employs a ‘no preferred habitat’ approach which underpins both strategies and allocates across three different, yet complementary, types of growth companies: consistent growth, dynamic growth, and cyclical growth. Winslow Capital focuses on discovering companies with identifiable and sustainable competitive advantages, strong management teams, and improving fundamentals driving long-term shareholder value. Winslow Capital has successfully employed the same philosophy and flexible approach to growth investing for over two decades and strives to deliver strong returns over the long term.
The firm writes that these ETFs are different from traditional ETFs. “Traditional ETFs tell the public what assets they hold each day. This ETF will not.”
IWLG and IWFG seek long-term growth of capital by employing a bottom-up investment process while investing in companies that have the potential for above-average future earnings and cash flow growth. Both ETFs are non-diversified, which means they can invest a larger percentage of assets in a smaller number of companies, allowing the portfolio management team to express conviction in their best ideas.
IWLG typically invests in a portfolio of 45-55 stocks, allocating 25-40 per cent across each growth type.
The more concentrated IWFG typically invests in a portfolio of 25-35 stocks, allocating 10-60 per cent across each growth type.