TWON is designed to provide additional Alpha exposure as a satellite holding built around an investor’s core equity portfolio and seeks to track, before fees and expenses, the performance of the IQ Taiwan Small Cap Index. The market capitalization-weighted Index is intended to give investors a means of tracking the overall performance of the small capitalization sector of publicly traded companies domiciled and primarily listed on an exchange in Taiwan.
“In our view, domestically-oriented small capitalization companies provide one of the best vehicles for investors seeking to build exposure to the internal dynamics of an emerging market economy,” said Adam Patti, chief executive officer at IndexIQ, in a news release. “Taiwan has been growing rapidly for many years, and is well-positioned to continue to expand.”
The TWON Exchange-Traded Fund (ETF) is designed to provide exposure to the small cap companies believed to be best positioned to take advantage of the economic developments driving the country’s growth, the announcement said.To be included in the index underlying TWON, companies must have a minimum average market capitalization of $150 million for the prior 90-day period; the average maximum capitalization must be equal to the bottom15% ranking of companies in Taiwan.
Stocks are required to have a minimum average daily trading volume of at least $1 million for the prior 90 days, and a minimum monthly volume of 250,000 shares for the prior six months. The Index’s components and their respective weights are rebalanced quarterly.
More information is at www.IndexIQ.com.