The Rye Brook, New York-based firm said SKOR seeks to replicate, before fees and expenses, the performance of the IQ South Korea 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 South Korea.
“Investors targeting South Korea typically have been required to invest in funds with broad-based exposure to large cap and global companies domiciled or operating in this market,” said Adam Patti, chief executive officer at IndexIQ, in a news release. “However, the South Korean economy has its own important dynamics, which are perhaps best captured thorough small capitalization companies. The growth of South Korea’s economy has been driven by a robust domestic consumer-class, coupled with an export-driven trade platform, a high-growth technology sector, and the unique status as one of the world’s most innovative countries.”
To be included in the index underlying SKOR, 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 bottom 15% ranking of companies in South Korea based on the prior 90 days.
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.