IndexIQ Launches Small Cap Oil ETF
The firm says IOIL is the first global small-cap exchange-traded fund (ETF) designed to provide pure play exposure to companies that are primarily engaged in the oil industry. This includes firms involved in exploration and production (E&P); refining and marketing; and equipment, services and drilling.
The fund seeks to track, before fees and expenses, the performance of the IQ Global Oil Small Cap Index (Bloomberg Index Ticker IQSMOIL).
According to a press release, to be included in the index, companies must have a minimum average market capitalization of $150 million for the prior 90-day period. 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.
As of April 11, 2011, the index had sector allocations in refining & marketing (40.46%), exploration & production (36.90%) and equipment & services (22.64%); while the top three countries were the United States (45.08%), Canada (11.67%) and Thailand (7.46%).