IQ Enhanced Core Bond U.S. ETF (AGGE)

Overview

The investment endeavors to mirror the performance, before fees and expenses, of its benchmark index, the IQ Enhanced Core Bond U.S. Index. This fund operates primarily as a "fund of funds," which signifies that it allocates at least 80% of its net assets, in addition to any borrowed funds for investment purposes, towards the securities that are part of its underlying index. The core objective of the underlying index is to surpass the returns of the U.S. dollar-denominated taxable fixed income market by employing a strategy that involves utilizing both short- and long-term momentum to variably increase or decrease its investment in different sectors of the investment grade U.S. fixed income securities market.

Products and Services

• IQ Enhanced Core Bond U.S. Index Tracking

  - The primary service offered involves tracking the performance, excluding fees and expenses, of the IQ Enhanced Core Bond U.S. Index. This is achieved through a strategic investment in a diversified portfolio of U.S. dollar-denominated, taxable fixed income securities. The fund's goal is to emulate the yield and price performance of its underlying index as closely as possible.

• Fund of Funds Investment Strategy

  - As a "fund of funds," the investment vehicle commits at least 80% of its total net assets, along with any funds borrowed for the purpose of investment, into the securities featured within its underlying index. This method offers investors broad exposure to diversified investment grade U.S. fixed income securities through a single investment, enhancing the potential for risk-adjusted returns.

• Sector Overweighting and Underweighting

  - Leveraging both short- and long-term momentum indicators, the fund's investment strategy includes the tactical overweighting and underweighting of various sectors within the investment grade U.S. fixed income securities market. This dynamic allocation approach aims to capitalize on market trends and anomalies to outperform the traditional U.S. dollar-denominated taxable fixed income universe.