UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22739
IndexIQ Active ETF Trust
(Exact name of registrant as specified in charter)
51 Madison Avenue
New York, NY 10010
(Address of principal executive offices) (Zip code)
Kirk C. Lehneis
IndexIQ Advisors LLC
51 Madison Avenue
New York, NY 10010
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-888-474-7725
Date of fiscal year end: April 30
Date of reporting period: April 30, 2021
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
| (a) | Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1). |
IndexIQ Active ETF Trust
Annual Report
April 30, 2021
| | IQ MacKay Municipal Insured ETF (MMIN) | | | | |
| | IQ MacKay Municipal Intermediate ETF (MMIT) | | | | |
| | IQ Ultra Short Duration ETF (ULTR) | | | | |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you hold accounts through a financial intermediary, you may contact your financial intermediary to enroll in electronic delivery. Please note that not all financial intermediaries may offer this service.
You may elect to receive all future reports in paper free of charge. If you hold accounts through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with your financial intermediary.
Not FDIC Insured | May Lose Value | No Bank Guarantee
The investment return and value of each of the Funds’ shares will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. The prospectus and the statement of additional information include this and other relevant information about the Funds and are available by visiting newyorklifeinvestments.com or by calling 1-888-474-7725. Read the prospectus carefully before investing.
Each of the Funds’ performance that is current to the most recent month-end is available by visiting newyorklifeinvestments.com or by calling 1-888-474-7725.
Availability of Proxy Voting Policies and Proxy Voting Records
You may obtain a description of the IndexIQ Active ETF Trust proxy voting policies, procedures and information regarding how each Fund voted proxies relating to portfolio securities during the 12-month period ending June 30 (available by August 31) without charge, upon request, by calling 1-888-474-7725 or by accessing the SEC’s website at sec.gov.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-PORT. The Funds’ Forms N-PORT is available on the Commission’s web site at sec.gov. Additionally, the Funds' make their portfolio holdings for the first and third quarters of each fiscal year available at newyorklifeinvestments.com\documents. Each Funds’ premium/discount information is available, free of charge, on the Funds’ website at newyorklifeinvestments.com or by calling 1-888-474-7725.
Electronic Delivery
Receive email notifications when your most recent shareholder communications are available for review. Access prospectuses, annual reports and semi-annual reports online.
To enroll:
Visit https://www.fundreports.com
If you have questions about IndexIQ e-Delivery services, contact a representative at 1-888-474-7725.
IndexIQ® and IQ® are registered service marks of New York Life Insurance Company.
“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. IndexIQ® is the indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC and serves as the advisor to the IndexIQ ETFs. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs, and NYLIFE Distributors LLC is a distributor of the ETFs. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.
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Shareholder Letter (unaudited)
Message from the President
During the 12 months ended April 30, 2021, investors shifted from seeking the safety of high-quality assets at the beginning of the period and into riskier segments to capitalize on a growing economic recovery.
A year ago, the world was beginning to come to grips with COVID-19 and was struggling with how best to mitigate its effects. Today, with the help of an extraordinary coordination of monetary and fiscal policy and the availability of vaccines, the economy has continued to recover, and the markets have rebounded sharply.
The Federal Reserve kept interest rates low and assisted the functioning of markets while fiscal stimulus provided a broad range of relief, including to individuals and small businesses. This helped markets stabilize early in the reporting period as investors anticipated further stimulus and awaited progress on a vaccine.
Investors initially sought out higher quality investments, including U.S. Treasuries, investment grade corporate bonds, including short-term securities. Higher quality municipal bonds also benefited, while high-yield bonds and segments of the revenue bond sector of the municipal market, especially those related to travel, health care and education saw significant declines.
When vaccine approvals occurred in November and a $900 billion relief package passed in December, investors quickly shifted further out of safer investments, causing yields on longer-dated U.S. Treasuries to rise. Combined with brighter economic prospects, this took a toll on higher quality segments of the fixed-income market. In the municipal bond market, lower-rated credits rebounded, while essential services bonds and bonds from more fiscally sound issuers remained flat. A brighter fiscal outlook also benefited longer maturities more than shorter maturities.
In January, the Federal Reserve left interest rates unchanged, pointing out that the pace of the global recovery was still uncertain and that inflation was still low. But the massive fiscal and monetary stimulus that had supported the economic recovery soon gave rise to concerns about inflation. In March, the $1.9 billion American Rescue Plan was passed, providing payments of $1,400 for those earning less than $75,000 per year, plus $1,400 per dependent. This, combined with a proposed $2 trillion infrastructure spending bill fueled inflation expectations. While these rising expectations weighed heavily on longer-term corporate bonds, short-term maturities held up better.
The American Rescue Plan also included $350 billion in aid to states and municipalities, reassuring investors about the fiscal health of many municipal bond issuers. The much-anticipated infrastructure spending bill was also viewed as a boon, but the prospect of $2 trillion in additional federal spending led investors to adjust their inflation expectations further upward. Nevertheless, the municipal market also benefited from the prospect of an increase federal in income tax rates, which could encourage high-income earners to turn to the tax-exempt income provided by municipal bonds. While shorter-term munis benefited from this environment, the higher tax-free yields of longer-term munis became especially attractive.
On the following pages, we provide an in-depth review of the factors that drove performance of each ETF during the 12-months ended April 30, 2021. Today, the coming year looks much brighter than it did one year ago, and we look forward to continuing to provide our investors with high quality investment products. If you have any questions or would like more information about IndexIQ ETFs, we invite you to visit us at newyorklifeinvestments.com or call us at 1-888-474-7725.
Sincerely,
Kirk C. Lehneis
President
The opinions expressed are as of the date of this report and are subject to change. There is no guarantee that any forecast made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. Past performance is no guarantee of future results.
Management’s Discussion of Fund Performance (unaudited)
IQ MacKay Municipal Insured ETF
How did IQ MacKay Municipal Insured ETF perform during the 12 months ended April 30, 2021?
For the 12 months ended April 30, 2021 (the “reporting period”), IQ MacKay Municipal Insured ETF returned 8.32% at NAV (net asset value) and 7.97% at market price.1 To compare, the ETF’s benchmark Index, the Bloomberg Barclays Municipal All Insured Bond Index2 returned 9.30% for the same period.
What factors affected the ETF’s performance during the reporting period?
The ETF modestly underperformed the Bloomberg Barclays Municipal All Insured Bond Index during the reporting period in part because the long end of the yield curve3 outperformed as investors gravitated towards the extra yield offered by longer-dated maturities. As a result, the ETF’s underweight exposure to bonds maturing 25 years and later represented a modest drag on relative results. The ETF’s overweight position in the education and local general obligation sectors bolstered relative outperformance, while underweight exposure to the transportation sector represented the largest drag on relative results. The ETF’s overweight exposure to credits from the state of Illinois enhanced relative results, while underweight exposure to credits from the state of New Jersey was the largest drag on relative performance from a geographic standpoint.
What was the ETF’s duration4 strategy during the reporting period?
As active, relative value managers, we typically manage portfolios within a range of benchmark duration that we view as a neutral range. The ETF finished the reporting period with a modified duration5 of 5.81 years versus the benchmark modified duration of 6.16 years. Longer-duration bonds outperformed during the reporting period. The ETF’s slightly below-benchmark duration detracted from the ETFs relative performance.
During the reporting period, which sectors made the strongest contributions to the ETF’s performance and which sectors made the weakest contributions?
The strongest positive contributors to the ETF’s performance relative to the Bloomberg Barclays Municipal All Insured Bond Index during the reporting period were the local general obligation, education and incremental tax sectors. Conversely, the weakest contributors to relative performance were the transportation, special tax and leasing sectors.
What were some of the ETF’s largest purchases and sales during the reporting period?
The ETF’s largest purchases during the reporting period included State of Connecticut special tax obligation bonds, New York Metropolitan Transportation Authority bonds and West Virginia United Health bonds. All of these purchases represented attractive relative value for longer-dated bonds. During the same period, the ETF’s most significant sales included its entire positions in Apple Valley, California tax allocation bonds; Palm Bay, Florida bonds and Florida International University bonds. All three sales were recent purchases with lower book yields that could be replaced at more attractive levels.
How did the ETF’s sector weightings change during the reporting period?
During the reporting period, the ETF’s exposure to the education sector increased from 6.03% to 7.73% and exposure to leasing sector increased from 9.85% to 14.06%. Conversely, the ETF’s exposure to the water/sewer sector decreased from 13.30% to 8.19%, and exposure to the hospital sector decreased from 6.49% to 1.76%.
The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecasts will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.
1
The price used to calculate the market price returns is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times.
2
See page
6 for more information on this index.
3
The yield curve is a line that plots the yields of various securities of similar quality — typically U.S. Treasury issues — across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.
4
Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.
5
Modified duration is inversely related to the approximate percentage change in price for a given change in yield.
Management’s Discussion of Fund Performance (unaudited) (continued)
Hypothetical Growth of a $10,000 Investment
(Since Inception through 4/30/21)
Fund Performance History
IQ Mackay Municipal Insured ETF
(as of April 30, 2021)
| | | | 1 Year | | | 3 Year | | | Since Inception1 | |
| | | | Avg Annual | | | Avg Annual | | | Avg Annual | | | Cumulative | |
IQ MacKay Municipal Insured ETF Market Price2 | | | | | 7.97% | | | | | | 6.11% | | | | | | 5.35% | | | | | | 20.21% | | |
| IQ MacKay Municipal Insured ETF NAV | | | | | 8.32% | | | | | | 6.35% | | | | | | 5.32% | | | | | | 20.12% | | |
| Bloomberg Barclays Municipal All Insured Bond Index | | | | | 9.30% | | | | | | 6.45% | | | | | | 5.15% | | | | | | 19.45% | | |
1
Fund Inception Date: 10/18/2017
2
The price used to calculate the market price returns is the mean between the day’s last bid and ask prices. The market price returns do not represent returns an investor would receive if shares were traded at other times.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Performance figures may reflect certain fee waivers and/or expense limitations, without which total returns may have been lower.
Management’s Discussion of Fund Performance (unaudited) (continued)
IQ MacKay Municipal Intermediate ETF
How did IQ MacKay Municipal Intermediate ETF perform during the 12 months ended April 30, 2021?
For the 12 months ended April 30, 2021 (the “reporting period”), IQ MacKay Municipal Intermediate ETF returned 8.80% at NAV (net asset value) and 8.90% at market price.1 To compare, the ETF’s benchmark Index, the Bloomberg Barclays Municipal Bond Index 1-15 Year Blend2 returned 6.33% for the same period.
What factors affected the ETF’s performance during the reporting period?
The major factor affecting the ETF’s performance during the reporting period was the economic shutdown due to the COVID-19 pandemic. The shutdown caused credit spreads3 to widen during March and April of 2020. Over the ensuing twelve months, strong cash flows into the municipal market and a relatively light new-issue calendar of attractively priced securities led to declining municipal bond yields, municipal-to-Treasury yield ratios and municipal credit spreads. In the last four months of the reporting period, massive fiscal stimulus, a quickly enacted vaccine program and ongoing strong demand for municipal bonds also contributed to performance.
The ETF’s relative performance was driven by several factors specific to the ETF’s positioning. Demand for incremental yield in municipal bonds contributed to both spread tightening and lower rates. The ETF’s bias to credit, therefore, enhanced relative performance, as did its yield curve4 positioning and longer-than-benchmark duration5 position. Opportunistic positioning in municipal bonds that came under pressure due to the pandemic-related shutdown also bolstered performance as credit spreads subsequently tightened.
Were there any changes to the Fund during the reporting period?
Effective December 11, 2020, the Fund’s principal investment strategies were modified and the ETF will no longer purchase municipal bonds whose interest is subject to the federal alternative minimum tax. For more information about these changes refer to the prospectus supplement dated December 11, 2020.
What was the ETF’s duration strategy during the reporting period?
As active, relative value managers, we typically manage portfolios within a range of benchmark duration that we view as a neutral range. During the reporting period, the ETF’s duration was longer than the duration of the ETF’s benchmark Index. The rationale for this was based on the relatively benign interest-rate environment in combination with positive technical conditions, notably the strong, ongoing inflows of new money into the municipal market. As of April 30, 2021, the ETF’s duration was 4.3 years. The ETF’s duration strategy made a positive contribution to performance. (Contributions take weightings and total returns into account.)
During the reporting period, which sectors made the strongest contributions to the ETF’s performance and which sectors made the weakest contributions?
The strongest positive contributors to the ETF’s performance during the reporting period were the local general obligation and special tax sectors. Conversely, the weakest contributors to performance were the industrial development/pollution control and tobacco sectors.
What were some of the ETF’s largest purchases and sales during the reporting period?
The ETF’s largest purchases during the reporting period included New York Metropolitan Transportation Authority bonds and State of Connecticut special tax obligation bonds. At the time of purchase, New York’s transit bonds were trading at wide credit spreads due to market concerns over the pandemic-related shutdown. However, significant federal monetary and political support suggested to us that the bonds were priced too cheaply. Connecticut’s special tax obligation bonds fit with our effort to add positions in high wealth/high tax states to the ETF. The opportunity to add bond insurance at a very attractive premium further enhanced the perceived relative value opportunity.
During the same period, the ETF’s most significant sales included an Oxnard, California water revenue bond and an Atlantic City, New Jersey general obligation bond. The ETF’s sale of the insured, California water revenue bond was motivated by the bond’s significant relative price move since purchase, almost 12 basis points, and the opportunity to take profit at a tight credit spread. (A basis point is one one-hundredth of a percentage point.) The ETF’s sale of the insured New Jersey general obligation bond was motivated by the tightening of its spread. The trade generated a strong gain by selling into robust demand for short-call bonds.
1
The price used to calculate the market price returns is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times.
2
See page
9 for more information on this index.
3
The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.
4
The yield curve is a line that plots the yields of various securities of similar quality — typically U.S. Treasury issues — across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting.
5
Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.
Management’s Discussion of Fund Performance (unaudited) (continued)
How did the ETF’s sector weightings change during the reporting period?
During the reporting period, the ETF’s exposure to the transportation sector increased from 5.40% to 15.10%. In addition, the ETF’s exposure to the prerefunded sector increased from 0.00% to 2.80%.
During the same period, the ETF’s exposure to the housing sector decreased from 7.20% to 0.50%. In addition, the ETF’s exposure to the local general obligation sector decreased from 27.40% to 20.90%.
Note: relative weights are net of cash
How was the ETF positioned at the end of the reporting period?
As of April 30, 2021, the ETF had an overweight position in insured bonds. However, the ETF held underweight exposure to high-quality investment-grade bonds while having an overweight position in BBB-rated6 bonds. The ETF held underweight exposure to the state general obligation and prerefunded sectors, but held overweight exposure to the transportation and local general obligation sectors. The ETF’s yield curve positioning was essentially a barbell structure with overweight exposures in the 0-to-3 year and 15-to-25 year segments of the yield curve.
The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecasts will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.
6
An obligation rated ‘BBB’ by S&P is deemed by S&P to exhibit adequate protection parameters. In the opinion of S&P, however, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. When applied to Fund holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Fund.
Management’s Discussion of Fund Performance (unaudited) (continued)
Hypothetical Growth of a $10,000 Investment
(Since Inception through 4/30/21)
Fund Performance History
IQ Mackay Municipal Intermediate ETF
(as of April 30, 2021)
| | | | 1 Year | | | 3 Year | | | Since Inception1 | |
| | | | Avg Annual | | | Avg Annual | | | Avg Annual | | | Cumulative | |
IQ MacKay Municipal Intermediate ETF Market Price2 | | | | | 8.90% | | | | | | 5.95% | | | | | | 4.98% | | | | | | 18.72% | | |
| IQ MacKay Municipal Intermediate ETF NAV | | | | | 8.80% | | | | | | 5.98% | | | | | | 4.96% | | | | | | 18.64% | | |
| Bloomberg Barclays Municipal Bond Index 1-15 Yr Blend | | | | | 6.33% | | | | | | 4.75% | | | | | | 3.58% | | | | | | 13.23% | | |
1
Fund Inception Date:10/18/2017
2
The price used to calculate the market price returns is the mean between the day’s last bid and ask prices.
Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Performance figures may reflect certain fee waivers and/or expense limitations, without which total returns may have been lower.
Management’s Discussion of Fund Performance (unaudited) (continued)
IQ Ultra Short Duration ETF
How did IQ Ultra Short Duration ETF perform during the 12 months ended April 30, 2021?
For the 12 months ended April 30, 2021 (the “reporting period”), IQ Ultra Short Duration ETF returned 3.08% at NAV (net asset value) and 2.88% at market price.1 To compare, the Fund’s benchmark Index, Bloomberg Barclays Short Treasury 3-6 Month Index,2 returned 0.13% for the same period.
What factors affected the Fund’s relative performance during the reporting period?
The ETF held overweight positions relative to the Bloomberg Barclays Short Treasury 3-6 Month Index) in U.S. government agencies, corporates, asset-backed securities (“ABS”), mortgage-backed securities and commercial mortgage-backed securities (“CMBS”) throughout the reporting period. To facilitate these overweight positions, the ETF maintained an underweight position in the U.S. Treasury sector. Within the corporate sector, where the ETF had its largest overweight position, option-adjusted spreads3 (“OAS”) were 234 basis points tighter over the reporting period. (A basis point is one one-hundredth of a percentage point.) The corporate sector was the best performing sector during the reporting period, led by the financials and industrials sectors. Overweight exposure to ABS was also accretive to performance driven by both the floating-rate and fixed-rate subcomponents. Positioning in CMBS, particularly the non-agency subcomponent, added to performance during the reporting period, as did the ETF’s rates positioning.
During the reporting period, how was the ETF’s performance materially affected by investments in derivatives?
During the reporting period, the use of derivatives was limited to interest rate derivatives designed to keep the duration5 of the ETF in line with our target duration. Generally, interest rate derivatives had a positive impact on performance during this portion of the reporting period.
What was the FUND’s duration strategy during the reporting period?
During the reporting period, the ETF maintained a duration that was longer than the duration of the Bloomberg Barclays Short Treasury 3-6 Index. Throughout the reporting period, the ETF was positioned with a longer duration than the designated benchmark in the front end of the interest rate curve (2-5 years) and a shorter duration than the designated benchmark in the longer end of the curve (10+ years). This curve positioning was accretive to performance as interest rates in the longer end of the curve moved higher than interest rates in the front end of the curve. As of April 30, 2021, the effective duration of the Fund was 0.70 years compared to a duration of 0.38 years for the Bloomberg Barclays Short Treasury 3-6 Index.
During the reporting period, which sectors were the strongest positive contributors to the Fund’s relative performance and which sectors were particularly weak?
During the reporting period, the ETF maintained overweight exposure compared to the Bloomberg Barclays Short Treasury 3-6 Index in the industrials and financial sectors, both of which were accretive to the ETF’s relative performance. Among industrials, holdings in the energy, consumer cyclical and consumer non-cyclical subsectors were particularly strong, with bonds issued by Ford Motor Credit, Bayer US Finance II, Occidental Petroleum and MPLX among the Fund’s strongest performers. Among financials, overweight exposure to banks had the most positive impact on the Fund’s relative performance, particularly holdings in Banco Santander SA, BNP Paribas SA, HSBC Holdings and JPMorgan Chase. Within securitized products, ABS
1
The price used to calculate the market price returns is the mean between the day’s last bid and ask prices and does not represent returns an investor would receive if shares were traded at other times.
2
See page
12 for more information on this index.
3
The terms “spread” and “yield spread” may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time.
4
OAS numbers quoted in answer refer to Bloomberg Barclays U.S. Aggregate 1-3 Years Index.
5
Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity.
Management’s Discussion of Fund Performance (unaudited) (continued)
was the best performing sector, particularly AAA-rated and AA-rated6 collateralized loan obligations (“CLOs”). Within the CMBS sector, the AAA-rated non-agency subcomponent was accretive to performance during the reporting period. Conversely, the ETF’s positioning in the sovereign subsector detracted slightly from performance.
What were some of the ETF’s largest purchases and sales during the reporting period?
The ETF’s three largest purchases during the reporting period included bonds issued by Lloyds Banking Group, Standard Chartered and American Honda Finance. The ETF’s largest sales during the same period were holdings in National Securities Clearing, Mizuho Financial Group and Barclays Bank.
How did the ETF’s sector weightings change during the reporting period?
During the reporting period, the ETF held overweight exposure to the industrials and financials sectors within the corporate sector. In the first quarter of 2021, the corporate weighting in the ETF decreased as short-duration corporate credit spreads declined. Companies continued to tender and extend maturities, leading to less attractive valuations and thereby resulting in a modestly lower allocation to the sector.
During the latter half of the reporting period, we reduced the ETF’s weighting in the U.S. government callable agency sector. As the economy continued to heal from the pandemic and volatility fell sharply, OAS within U.S. government callable agencies tightened dramatically. The spread compression drove us to reduce the ETF’s weighting within the sector.
Within the securitized products sector, we initiated a position in agency CMBS interest-only securities in 2021, viewing it as providing an attractive risk-adjusted yield in the investment-grade fixed-income landscape.
How was the Fund positioned at the end of the reporting period?
As of April 30, 2021, the ETF held its most significantly overweight exposure relative to the Bloomberg Barclays Short Treasury 3-6 Index in the corporate sector. Within the corporate sector, the ETF held relatively overweight positions in financials, industrials and utilities. The second largest overweight position was concentrated in the ABS sector, particularly in the CLO subcomponent. The ETF also held overweight positions in CMBS and U.S. government agencies. As of the same date, the ETF held an underweight position in the U.S. Treasury sector.
The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecasts will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment.
6
An obligation rated ‘AAA’ has the highest rating assigned by Standard & Poor’s (“S&P”), and in the opinion of S&P, the obligor’s capacity to meet its financial commitment on the obligation is extremely strong. An obligation rated ‘AA’ by S&P is deemed by S&P to differ from the highest-rated obligations only to a small degree. In the opinion of S&P, the obligor’s capacity to meet its financial commitment on the obligation is very strong. When applied to Portfolio holdings, ratings are based solely on the creditworthiness of the bonds in the portfolio and are not meant to represent the security or safety of the Portfolio.
Management’s Discussion of Fund Performance (unaudited) (continued)
Hypothetical Growth of a $10,000 Investment
(Since Inception through 4/30/21)
Fund Performance History
IQ Ultra Short Duration ETF
(as of April 30, 2021)
| | | | 1 Year | | | Since Inception1 | |
| | | | Avg Annual | | | Avg Annual | | | Cumulative | |
IQ Ultra Short Duration ETF Market Price2 | | | | | 2.88% | | | | | | 1.33% | | | | | | 2.34% | | |
| IQ Ultra Short Duration ETF NAV | | | | | 3.08% | | | | | | 1.34% | | | | | | 2.36% | | |
| Bloomberg Barclays Short Treasury 3-6 Month Index | | | | | 0.13% | | | | | | 1.04% | | | | | | 1.84% | | |
1
Fund Inception Date: 7/30/2019
2
The price used to calculate the market price returns is the mean between the day’s last bid and ask prices.
The market price returns do not represent returns an investor would receive if shares were traded at other times.
Fund Expenses (unaudited)
As a shareholder of a fund, you incur two types of costs: (1) transaction costs on purchases and sales and (2) ongoing costs, including Advisory fees and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other funds. Shareholders may pay brokerage commissions on their purchase and sale of the Fund, which are not reflected in the example.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information together with the amount you invested, in a particular fund, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period 11/01/20 to 04/30/21” to estimate the expenses you paid on your account during this period. Each Fund will indirectly bear its pro rata share of the expenses incurred by the underlying Fund investments in which each Fund invests. These expenses are not included in the table.
Hypothetical Example for Comparison Purposes
The second line of the table below also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. The Funds will indirectly bear their pro rata share of the expenses incurred by the underlying fund investments in which the Funds invest. These expenses are not included in the table.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | Beginning
Account
Value
11/01/20 | | | Ending
Account
Value
04/30/21 | | | Annualized
Expense
Ratios for the
Period
11/01/20
to 04/30/21 | | | Expenses
Paid for
Period
11/01/20
to 04/30/211 | |
| | | | | | |
| IQ MacKay Municipal Insured ETF | | | | | | | | | | | | | | | | | | | | | | | | | |
| Actual | | | | $ | 1,000.00 | | | | | $ | 1,025.40 | | | | | | 0.30% | | | | | $ | 1.51 | | |
| Hypothetical (assuming a 5% return before expenses) | | | | $ | 1,000.00 | | | | | $ | 1,023.31 | | | | | | 0.30% | | | | | $ | 1.51 | | |
| IQ MacKay Municipal Intermediate ETF | | | | | | | | | | | | | | | | | | | | | | | | | |
| Actual | | | | $ | 1,000.00 | | | | | $ | 1,033.10 | | | | | | 0.30% | | | | | $ | 1.51 | | |
| Hypothetical (assuming a 5% return before expenses) | | | | $ | 1,000.00 | | | | | $ | 1,023.31 | | | | | | 0.30% | | | | | $ | 1.51 | | |
| IQ Ultra Short Duration ETF | | | | | | | | | | | | | | | | | | | | | | | | | |
| Actual | | | | $ | 1,000.00 | | | | | $ | 1,008.80 | | | | | | 0.24% | | | | | $ | 1.20 | | |
| Hypothetical (assuming a 5% return before expenses) | | | | $ | 1,000.00 | | | | | $ | 1,023.60 | | | | | | 0.24% | | | | | $ | 1.20 | | |
1
Unless otherwise indicated, expenses are calculated using the Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 181/365. (to reflect the one-half year period).
Portfolio Summaries* (Unaudited)
IQ MacKay Municipal Insured ETF
Net Assets ($ mil): $444.3
| Industry | | | % of
Net Assets | |
| School District | | | | | 22.1% | | |
| General Obligation | | | | | 18.8 | | |
| General | | | | | 15.5 | | |
| Transportation | | | | | 8.5 | | |
| Money Market Fund | | | | | 8.4 | | |
| Water | | | | | 7.5 | | |
| Education | | | | | 4.7 | | |
| Development | | | | | 3.6 | | |
| Higher Education | | | | | 3.1 | | |
| Housing | | | | | 2.8 | | |
| Medical | | | | | 2.6 | | |
| Airport | | | | | 2.0 | | |
| Mello-Roos | | | | | 1.2 | | |
| Power | | | | | 0.6 | | |
| Facilities | | | | | 0.5 | | |
| Pollution | | | | | 0.5 | | |
| Utilities | | | | | 0.5 | | |
| Bond Bank | | | | | 0.3 | | |
| Tobacco Settlement | | | | | 0.2 | | |
| Student Loan | | | | | 0.0(a) | | |
| Total Investments | | | | | 103.4 | | |
| Other Assets and Liabilites, Net | | | | | (3.4) | | |
| Net Assets | | | | | 100.0% | | |
IQ MacKay Municipal Intermediate ETF
Net Assets ($ mil): $124.7
| Industry | | | % of
Net Assets | |
| Money Market Fund | | | | | 19.8% | | |
| General | | | | | 18.8 | | |
| Transportation | | | | | 13.3 | | |
| General Obligation | | | | | 11.7 | | |
| School District | | | | | 8.6 | | |
| Medical | | | | | 7.0 | | |
| Education | | | | | 5.2 | | |
| Water | | | | | 4.2 | | |
| Housing | | | | | 3.3 | | |
| Higher Education | | | | | 2.9 | | |
| Airport | | | | | 2.2 | | |
| Development | | | | | 1.8 | | |
| Power | | | | | 1.6 | | |
| Mello-Roos | | | | | 1.0 | | |
| Utilities | | | | | 0.9 | | |
| Facilities | | | | | 0.8 | | |
| Tobacco Settlement | | | | | 0.5 | | |
| Nursing Homes | | | | | 0.4 | | |
| Multifamily Housing | | | | | 0.4 | | |
| Student Loan | | | | | 0.1 | | |
| Total Investments | | | | | 104.5 | | |
| Other Assets and Liabilites, Net | | | | | (4.5) | | |
| Net Assets | | | | | 100.0% | | |
IQ Ultra Short Duration ETF
Net Assets ($ mil): $253.0
| Country | | | % of
Net Assets | |
| United States | | | | | 66.2% | | |
| Cayman Islands | | | | | 16.9 | | |
| United Kingdom | | | | | 5.8 | | |
| Switzerland | | | | | 2.8 | | |
| Japan | | | | | 2.7 | | |
| Germany | | | | | 2.6 | | |
| Canada | | | | | 2.4 | | |
| France | | | | | 1.5 | | |
| Spain | | | | | 0.7 | | |
| Supranational | | | | | 0.6 | | |
| China | | | | | 0.5 | | |
| Singapore | | | | | 0.2 | | |
| Total Investments | | | | | 102.9 | | |
| Other Assets and Liabilites, Net | | | | | (2.9) | | |
| Net Assets | | | | | 100.0% | | |
*
Each Funds portfolio is subject to change.
(a)
Less than 0.05%.
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF
| | | | Principal
Amount | | | Value | |
| Municipal Bonds — 95.0% | |
| Alabama — 1.4% | |
Alabama Community College System,
Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 6/1/25 | | | | $ | 260,000 | | | | | $ | 284,415 | | |
| 4.000%, due 6/1/26 | | | | | 150,000 | | | | | | 174,613 | | |
Alabaster Board of Education, Special
Tax Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 9/1/25 | | | | | 100,000 | | | | | | 114,575 | | |
| Bibb County Board of Education, Special Tax Series B Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 4/1/35 | | | | | 425,000 | | | | | | 509,212 | | |
| 4.000%, due 4/1/37 | | | | | 460,000 | | | | | | 547,642 | | |
| City of Russellville AL, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/28 | | | | | 390,000 | | | | | | 477,761 | | |
| City of Troy AL, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 7/1/24 | | | | | 500,000 | | | | | | 568,405 | | |
| County of Dallas AL, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
1.410%, due 5/1/26(a) | | | | | 305,000 | | | | | | 284,327 | | |
| Phenix City Board of Education, Special Tax Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/1/37 | | | | | 1,500,000 | | | | | | 1,799,985 | | |
| University of West Alabama, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 1/1/41 | | | | | 350,000 | | | | | | 400,586 | | |
Warrior River Water Authority, Revenue
Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/1/43 | | | | | 1,000,000 | | | | | | 1,150,872 | | |
| | | | | | | | | | | | 6,312,393 | | |
| Arizona — 0.3% | |
| Arizona Industrial Development Authority, Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 6/1/34 | | | | | 250,000 | | | | | | 289,082 | | |
| 4.000%, due 6/1/39 | | | | | 455,000 | | | | | | 519,491 | | |
| 5.000%, due 6/1/33 | | | | | 350,000 | | | | | | 438,044 | | |
| Student & Academic Services LLC, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 6/1/26 | | | | | 195,000 | | | | | | 221,431 | | |
| | | | | | | | | | | | 1,468,048 | | |
| Arkansas — 0.3% | |
| Arkansas Development Finance Authority, Revenue Bonds Insured: AMBAC | | | | | | | | | | | | | |
1.710%, due 7/1/30(a) | | | | | 1,000,000 | | | | | | 855,638 | | |
| County of Sharp AR, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 3/1/34 | | | | | 245,000 | | | | | | 256,527 | | |
| University of Arkansas — Pulaski Technical College, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 4/1/41 | | | | | 350,000 | | | | | | 356,941 | | |
| | | | | | | | | | | | 1,469,106 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| California — 14.8% | |
| Abag Finance Authority for Nonprofit Corps, Special Tax Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 9/2/30 | | | | $ | 750,000 | | | | | $ | 939,174 | | |
| 5.000%, due 9/2/34 | | | | | 175,000 | | | | | | 218,194 | | |
| Alameda Corridor Transportation Authority, Revenue Bonds Insured: NATL | | | | | | | | | | | | | |
1.890%, due 10/1/33(a) | | | | | 3,545,000 | | | | | | 2,805,772 | | |
| Baldwin Park Unified School District, General Obligation Bonds Insured: NATL | | | | | | | | | | | | | |
0.680%, due 8/1/23(a) | | | | | 300,000 | | | | | | 295,424 | | |
1.690%, due 8/1/29(a) | | | | | 335,000 | | | | | | 291,615 | | |
| Bass Lake Joint Elementary District, General Obligation Bonds Insured: NATL | | | | | | | | | | | | | |
1.690%, due 8/1/29(a) | | | | | 150,000 | | | | | | 130,574 | | |
| Beaumont Public Improvement Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 9/1/25 | | | | | 575,000 | | | | | | 685,883 | | |
Bellevue Union School District, General
Obligation Bonds Series A Insured:
AGM | | | | | | | | | | | | | |
2.090%, due 8/1/35(a) | | | | | 320,000 | | | | | | 237,766 | | |
| Calexico Unified School District, General Obligation Bonds Series B Insured: NATL | | | | | | | | | | | | | |
1.340%, due 8/1/27(a) | | | | | 250,000 | | | | | | 230,015 | | |
1.510%, due 8/1/28(a) | | | | | 390,000 | | | | | | 349,597 | | |
California Municipal Finance Authority,
Certificates of Participation Insured:
AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/26 | | | | | 350,000 | | | | | | 418,091 | | |
California Municipal Finance Authority,
Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 5/15/43 | | | | | 250,000 | | | | | | 302,612 | | |
| Series A-P3 Insured: AGM | | | |
| 3.500%, due 12/31/35 | | | | | 250,000 | | | | | | 274,639 | | |
| Ceres Unified School District, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
0.900%, due 8/1/25(a) | | | | | 200,000 | | | | | | 192,532 | | |
| City of Dana Point CA, Special Tax Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 9/1/35 | | | | | 150,000 | | | | | | 182,662 | | |
| 4.000%, due 9/1/37 | | | | | 200,000 | | | | | | 241,754 | | |
| City of El Cerrito CA, Revenue Bonds Insured: NATL | | | | | | | | | | | | | |
| 5.000%, due 5/1/26 | | | | | 260,000 | | | | | | 307,972 | | |
| 5.000%, due 5/1/28 | | | | | 355,000 | | | | | | 429,466 | | |
| 5.000%, due 5/1/36 | | | | | 325,000 | | | | | | 387,121 | | |
City of Lincoln CA, Special Tax Insured:
AGM | | | | | | | | | | | | | |
| 5.000%, due 9/1/34 | | | | | 525,000 | | | | | | 649,593 | | |
| City of Susanville CA Natural Gas Revenue, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 6/1/45 | | | | | 875,000 | | | | | | 984,168 | | |
| Cloverdale Unified School District, General Obligation Bonds Series C Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/50 | | | | | 300,000 | | | | | | 345,435 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| California (continued) | |
Clovis Unified School District, General Obligation Bonds Series A Insured: NATL 1.020%, due 8/1/27(a) | | | | $ | 335,000 | | | | | $ | 314,401 | | |
Series B Insured: NATL 0.680%, due 8/1/25(a) | | | | | 750,000 | | | | | | 728,739 | | |
| Coachella Valley Unified School District, General Obligation Bonds Series C Insured: AGM | | | | | | | | | | | | | |
2.100%, due 8/1/34(a) | | | | | 1,145,000 | | | | | | 867,550 | | |
| Series D Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 8/1/37 | | | | | 450,000 | | | | | | 477,413 | | |
| Colton Joint Unified School District, General Obligation Bonds Series E Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/46 | | | | | 500,000 | | | | | | 580,443 | | |
Compton Unified School District,
Certificates of Participation Series A
Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 6/1/33 | | | | | 250,000 | | | | | | 288,696 | | |
| Dixon Unified School District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 8/1/37 | | | | | 570,000 | | | | | | 723,610 | | |
Duarte Unified School District, General
Obligation Bonds Series E Insured:
AGM | | | | | | | | | | | | | |
1.460%, due 11/1/29(a) | | | | | 350,000 | | | | | | 309,343 | | |
| El Centro Redevelopment Agency Successor Agency, Tax Allocation Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 11/1/26 | | | | | 485,000 | | | | | | 595,545 | | |
| Empire Union School District, Special Tax Series 1-A Insured: AMBAC | | | | | | | | | | | | | |
2.140%, due 10/1/32(a) | | | | | 450,000 | | | | | | 352,757 | | |
| Garden Grove Agency Community Development Successor Agency, Tax Allocation Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 10/1/27 | | | | | 250,000 | | | | | | 284,775 | | |
| Goleta Redevelopment Agency Successor Agency, Tax Allocation Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/43 | | | | | 2,610,000 | | | | | | 3,038,501 | | |
Grossmont Healthcare District, General
Obligation Bonds Series A Insured:
AMBAC | | | | | | | | | | | | | |
1.780%, due 7/15/32(a) | | | | | 1,500,000 | | | | | | 1,229,332 | | |
| Guadalupe Union School District, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/44 | | | | | 1,005,000 | | | | | | 1,139,059 | | |
| Hayward Unified School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/45 | | | | | 2,250,000 | | | | | | 2,632,515 | | |
| 4.000%, due 8/1/50 | | | | | 2,000,000 | | | | | | 2,326,786 | | |
| Series A Insured: AGM | | | |
1.810%, due 8/1/32(a) | | | | | 210,000 | | | | | | 171,356 | | |
Hemet Unified School District, General
Obligation Bonds Series A Insured:
AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/40 | | | | | 600,000 | | | | | | 670,697 | | |
| Hueneme Elementary School District, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/35 | | | | | 150,000 | | | | | | 176,466 | | |
| 4.000%, due 8/1/36 | | | | | 185,000 | | | | | | 217,058 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| California (continued) | |
| Imperial Community College District, General Obligation Bonds Insured: AGC | | | | | | | | | | | | | |
2.170%, due 8/1/37(a) | | | | $ | 400,000 | | | | | $ | 281,728 | | |
Independent Cities Finance Authority,
Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 6/1/31 | | | | | 430,000 | | | | | | 503,822 | | |
| 4.000%, due 6/1/41 | | | | | 900,000 | | | | | | 1,026,860 | | |
| Jamul-Dulzura Union School District, General Obligation Bonds Series A Insured: BAM | | | | | | | | | | | | | |
1.290%, due 11/1/27(a) | | | | | 585,000 | | | | | | 538,115 | | |
| Jurupa Public Financing Authority, Special Tax Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/36 | | | | | 785,000 | | | | | | 905,345 | | |
| Kelseyville Unified School District, General Obligation Bonds Series C Insured: AGM | | | | | | | | | | | | | |
1.600%, due 8/1/31(a) | | | | | 155,000 | | | | | | 119,905 | | |
| La Mirada Redevelopment Agency Successor Agency, Tax Allocation Insured: NATL | | | | | | | | | | | | | |
1.090%, due 8/15/25(a) | | | | | 1,000,000 | | | | | | 954,388 | | |
| Lancaster Financing Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 6/1/44 | | | | | 995,000 | | | | | | 1,155,575 | | |
| Las Virgenes Unified School District, General Obligation Bonds Series D Insured: NATL | | | | | | | | | | | | | |
0.680%, due 9/1/25(a) | | | | | 750,000 | | | | | | 728,350 | | |
Los Angeles County Schools,
Certificates of Participation Series A
Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/25 | | | | | 500,000 | | | | | | 568,232 | | |
Los Angeles Unified School District,
Certificates of Participation Series A
Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 10/1/33 | | | | | 500,000 | | | | | | 612,286 | | |
Lynwood Unified School District,
Certificates of Participation Insured:
AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/23 | | | | | 285,000 | | | | | | 316,313 | | |
| Madera County Public Financing Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 10/1/37 | | | | | 945,000 | | | | | | 1,118,276 | | |
| Manteca Unified School District, General Obligation Bonds Insured: NATL | | | | | | | | | | | | | |
0.960%, due 8/1/25(a) | | | | | 575,000 | | | | | | 552,130 | | |
Menifee Union School District, General
Obligation Bonds Series C Insured:
AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/36 | | | | | 450,000 | | | | | | 545,937 | | |
| Merced Irrigation District, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/24 | | | | | 250,000 | | | | | | 290,373 | | |
| Mountain House Public Financing Authority, Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 3.250%, due 12/1/41 | | | | | 300,000 | | | | | | 320,529 | | |
| Napa Valley Unified School District, General Obligation Bonds Series C Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/44 | | | | | 1,000,000 | | | | | | 1,146,454 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| California (continued) | |
| Natomas Unified School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 8/1/39 | | | | $ | 1,040,000 | | | | | $ | 1,096,382 | | |
| Norwalk-La Mirada Unified School District, General Obligation Bonds Series D Insured: AGM | | | | | | | | | | | | | |
1.790%, due 8/1/32(a) | | | | | 365,000 | | | | | | 298,497 | | |
| Oak Grove School District, General Obligation Bonds Series F-2 | | | | | | | | | | | | | |
2.570%, due 8/1/44(a) | | | | | 675,000 | | | | | | 339,047 | | |
| Oceanside Unified School District, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
1.930%, due 8/1/34(a) | | | | | 300,000 | | | | | | 232,428 | | |
| Ontario Montclair School District, General Obligation Bonds Series B Insured: NATL | | | | | | | | | | | | | |
1.550%, due 8/1/29(a) | | | | | 390,000 | | | | | | 343,400 | | |
| Oxnard School District, General Obligation Bonds Series A Insured: NATL | | | | | | | | | | | | | |
| 5.750%, due 8/1/30 | | | | | 300,000 | | | | | | 321,390 | | |
| Paramount Unified School District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
0.210%, due 8/1/48(a) | | | | | 1,480,000 | | | | | | 257,462 | | |
| Redwood City Redevelopment Agency Successor Agency, Tax Allocation Series 2-A Insured: AMBAC | | | | | | | | | | | | | |
1.720%, due 7/15/29(a) | | | | | 210,000 | | | | | | 182,422 | | |
| Ripon Redevelopment Agency Successor Agency, Tax Allocation Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 11/1/29 | | | | | 380,000 | | | | | | 460,215 | | |
| 4.000%, due 11/1/36 | | | | | 835,000 | | | | | | 992,270 | | |
River Islands Public Financing Authority,
Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/40 | | | | | 1,500,000 | | | | | | 1,751,427 | | |
| Riverbank Unified School District, General Obligation Bonds Series B Insured: AGC | | | | | | | | | | | | | |
2.910%, due 8/1/48(a) | | | | | 50,000 | | | | | | 22,764 | | |
| Riverside County Community Facilities Districts, Special Tax Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/29 | | | | | 770,000 | | | | | | 939,650 | | |
| 4.000%, due 9/1/30 | | | | | 830,000 | | | | | | 1,025,292 | | |
| 4.000%, due 9/1/45 | | | | | 1,000,000 | | | | | | 1,173,567 | | |
| Riverside County Redevelopment Successor Agency, Tax Allocation Series B Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 10/1/26 | | | | | 575,000 | | | | | | 678,447 | | |
| Roseville Joint Union High School District, Certificates of Participation Insured: BAM | | | | | | | | | | | | | |
| 2.125%, due 6/1/35 | | | | | 385,000 | | | | | | 387,912 | | |
Sacramento City Schools Joint Powers
Financing Authority, Revenue Bonds
Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 3/1/24 | | | | | 250,000 | | | | | | 281,934 | | |
Sacramento City Unified School District,
General Obligation Bonds Insured:
AGM | | | | | | | | | | | | | |
0.720%, due 7/1/24(a) | | | | | 310,000 | | | | | | 303,053 | | |
| Series C-1 Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 8/1/25 | | | | | 200,000 | | | | | | 234,421 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| California (continued) | |
| Salinas Union High School District, General Obligation Bonds Series A Insured: NATL | | | | | | | | | | | | | |
0.450%, due 10/1/23(a) | | | | $ | 225,000 | | | | | $ | 222,575 | | |
| Salinas Valley Solid Waste Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.500%, due 8/1/26 | | | | | 520,000 | | | | | | 603,330 | | |
| San Juan Unified School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
0.280%, due 8/1/23(a) | | | | | 1,000,000 | | | | | | 993,595 | | |
San Mateo County Community
College District, General Obligation
Bonds Series B Insured: NATL | | | | | | | | | | | | | |
0.900%, due 9/1/27(a) | | | | | 150,000 | | | | | | 141,719 | | |
| San Ysidro School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 8/1/25 | | | | | 525,000 | | | | | | 618,237 | | |
| Series A Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 8/1/21 | | | | | 500,000 | | | | | | 503,355 | | |
| Series F Insured: AGM | | | | | | | | | | | | | |
2.220%, due 8/1/41(a) | | | | | 2,000,000 | | | | | | 1,278,883 | | |
Sanger Unified School District, General
Obligation Bonds Series A Insured:
AGM | | | | | | | | | | | | | |
1.400%, due 8/1/28(a) | | | | | 305,000 | | | | | | 275,573 | | |
| Santa Rita Union School District, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
2.310%, due 8/1/39(a) | | | | | 820,000 | | | | | | 539,542 | | |
| Savanna School District, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
2.100%, due 8/1/35(a) | | | | | 250,000 | | | | | | 185,493 | | |
Sonoma County Community
Redevelopment Agency Successor
Agency, Tax Allocation Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/1/31 | | | | | 155,000 | | | | | | 175,478 | | |
| South Whittier School District, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/40 | | | | | 215,000 | | | | | | 245,452 | | |
| Southwestern Community College District, General Obligation Bonds Insured: NATL | | | | | | | | | | | | | |
0.490%, due 8/1/24(a) | | | | | 560,000 | | | | | | 551,202 | | |
| Tulare Local Health Care District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/1/35 | | | | | 350,000 | | | | | | 416,047 | | |
| 4.000%, due 8/1/39 | | | | | 835,000 | | | | | | 980,806 | | |
| Turlock Redevelopment Agency Successor Agency, Tax Allocation Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 9/1/25 | | | | | 310,000 | | | | | | 368,608 | | |
| Ukiah Unified School District, General Obligation Bonds Insured: XLCA | | | | | | | | | | | | | |
1.950%, due 8/1/31(a) | | | | | 250,000 | | | | | | 204,973 | | |
| West Contra Costa Unified School District, General Obligation Bonds Series F Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/49 | | | | | 3,740,000 | | | | | | 4,403,067 | | |
West Kern Community College District,
Certificates of Participation Insured:
AGM | | | | | | | | | | | | | |
| 4.000%, due 11/1/44 | | | | | 600,000 | | | | | | 685,526 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| California (continued) | |
| Winters Joint Unified School District, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/47 | | | | $ | 380,000 | | | | | $ | 445,350 | | |
Woodland Joint Unified School District,
Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/1/33 | | | | | 300,000 | | | | | | 358,037 | | |
| Yuba City Unified School District, General Obligation Bonds Insured: NATL | | | | | | | | | | | | | |
0.740%, due 9/1/23(a) | | | | | 350,000 | | | | | | 344,012 | | |
| | | | | | | | | | | | 65,572,559 | | |
| Colorado — 3.8% | |
| BNC Metropolitan District No 1, General Obligation Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/37 | | | | | 395,000 | | | | | | 473,537 | | |
Castle Oaks Metropolitan District No 3,
General Obligation Bonds Insured:
AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/40 | | | | | 1,840,000 | | | | | | 2,198,568 | | |
| 4.000%, due 12/1/45 | | | | | 2,150,000 | | | | | | 2,537,733 | | |
| Cherokee Metropolitan District, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/1/35 | | | | | 675,000 | | | | | | 834,099 | | |
| Colorado Educational & Cultural Facilities Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/31 | | | | | 1,015,000 | | | | | | 1,212,103 | | |
Crystal Valley Metropolitan District No
2, General Obligation Bonds Series A
Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/39 | | | | | 500,000 | | | | | | 591,697 | | |
| 4.000%, due 12/1/40 | | | | | 800,000 | | | | | | 944,321 | | |
| Grand Junction Regional Airport Authority, Revenue Bonds Series A Insured: NATL | | | | | | | | | | | | | |
| 5.000%, due 12/1/26 | | | | | 500,000 | | | | | | 606,201 | | |
| Grand River Hospital District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.250%, due 12/1/37 | | | | | 425,000 | | | | | | 496,195 | | |
| Lewis Pointe Metropolitan District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/47 | | | | | 1,000,000 | | | | | | 1,162,481 | | |
| Morgan County Quality Water District, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/45 | | | | | 1,090,000 | | | | | | 1,279,287 | | |
| 4.000%, due 12/1/50 | | | | | 1,150,000 | | | | | | 1,344,434 | | |
| Poudre Tech Metropolitan District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/32 | | | | | 1,310,000 | | | | | | 1,545,527 | | |
| Rio Blanco County School District No Re-1 Meeker, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.500%, due 12/1/35 | | | | | 450,000 | | | | | | 584,020 | | |
| Series B Insured: BAM | | | | | | | | | | | | | |
| 5.250%, due 12/1/33 | | | | | 150,000 | | | | | | 192,221 | | |
| 5.250%, due 12/1/35 | | | | | 115,000 | | | | | | 146,711 | | |
| Saddle Rock Metropolitan District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 12/1/26 | | | | | 225,000 | | | | | | 251,604 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Colorado (continued) | |
South Sloan’s Lake Metropolitan District
No 2, General Obligation Bonds
Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/33 | | | | $ | 250,000 | | | | | $ | 293,928 | | |
| Vauxmont Metropolitan District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 12/15/31 | | | | | 135,000 | | | | | | 157,244 | | |
| 5.000%, due 12/15/32 | | | | | 155,000 | | | | | | 180,238 | | |
| | | | | | | | | | | | 17,032,149 | | |
| Connecticut — 4.1% | |
City of Hartford CT, General Obligation
Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 7/1/34 | | | | | 25,000 | | | | | | 27,880 | | |
| 5.000%, due 4/1/23 | | | | | 220,000 | | | | | | 229,578 | | |
| 5.000%, due 7/1/24 | | | | | 20,000 | | | | | | 22,892 | | |
| 5.000%, due 7/1/27 | | | | | 60,000 | | | | | | 70,586 | | |
| Series B Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/23 | | | | | 15,000 | | | | | | 16,698 | | |
| Series C Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/15/32 | | | | | 20,000 | | | | | | 23,401 | | |
| City of New Britain CT, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 9/1/44 | | | | | 2,625,000 | | | | | | 2,754,015 | | |
| Series B Insured: AGM | | | | | | | | | | | | | |
| 5.250%, due 9/1/29 | | | | | 250,000 | | | | | | 317,184 | | |
| 5.250%, due 9/1/30 | | | | | 300,000 | | | | | | 378,685 | | |
| Series C Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 3/1/26 | | | | | 435,000 | | | | | | 520,295 | | |
| City of New Haven CT, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 8/1/39 | | | | | 1,150,000 | | | | | | 1,441,888 | | |
| Series B Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 8/15/27 | | | | | 1,000,000 | | | | | | 1,176,676 | | |
| City of West Haven CT, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 3/15/28 | | | | | 205,000 | | | | | | 240,079 | | |
| 4.000%, due 3/15/35 | | | | | 925,000 | | | | | | 1,060,579 | | |
| Connecticut State Health & Educational Facilities Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/1/41 | | | | | 110,000 | | | | | | 110,855 | | |
| State of Connecticut Special Tax Revenue, Revenue Bonds Series A | | | | | | | | | | | | | |
| 4.000%, due 5/1/38 | | | | | 6,500,000 | | | | | | 7,867,863 | | |
| Town of Stratford CT, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/1/33 | | | | | 250,000 | | | | | | 293,195 | | |
| Town of Windham CT, General Obligation Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/15/32 | | | | | 445,000 | | | | | | 548,873 | | |
| 4.000%, due 8/15/35 | | | | | 1,025,000 | | | | | | 1,252,343 | | |
| | | | | | | | | | | | 18,353,565 | | |
| Delaware — 0.1% | |
| Delaware State Economic Development Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/21 | | | | | 150,000 | | | | | | 152,818 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Delaware (continued) | |
| 5.000%, due 10/1/26 | | | | $ | 280,000 | | | | | $ | 335,639 | | |
| | | | | | | | | | | | 488,457 | | |
| District of Columbia — 0.8% | |
| Metropolitan Washington Airports Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 10/1/34 | | | | | 2,000,000 | | | | | | 2,599,646 | | |
| Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Revenue Bonds Insured: AGC | | | | | | | | | | | | | |
2.060%, due 10/1/36(a) | | | | | 1,585,000 | | | | | | 1,154,794 | | |
| | | | | | | | | | | | 3,754,440 | | |
| Florida — 3.5% | |
| Central Florida Expressway Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 7/1/34 | | | | | 3,250,000 | | | | | | 4,032,072 | | |
City of Boynton beach FL Utility System
Revenue, Revenue Bonds Insured:
AGM | | | | | | | | | | | | | |
| 4.500%, due 11/1/22 | | | | | 215,000 | | | | | | 219,465 | | |
| City of Melbourne FL Water & Sewer Revenue, Revenue Bonds Series B Insured: NATL | | | | | | | | | | | | | |
0.320%, due 10/1/21(a) | | | | | 100,000 | | | | | | 99,866 | | |
| City of Miami FL Parking System Revenue, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 10/1/38 | | | | | 1,000,000 | | | | | | 1,157,319 | | |
City of Palm Bay FL, General Obligation
Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/1/25 | | | | | 1,035,000 | | | | | | 1,228,319 | | |
| County of Lee FL Transportation Facilities Revenue, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/25 | | | | | 500,000 | | | | | | 576,867 | | |
| County of Miami-Dade FL Transit System, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/1/42 | | | | | 630,000 | | | | | | 665,651 | | |
| Florida Governmental Utility Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/22 | | | | | 215,000 | | | | | | 229,380 | | |
| Florida State Board of Governors Florida International University Dormitory Rev, Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 7/1/32 | | | | | 2,195,000 | | | | | | 2,674,836 | | |
| Herons Glen Recreation District, Special Assessment Insured: BAM | | | | | | | | | | | | | |
| 2.500%, due 5/1/25 | | | | | 175,000 | | | | | | 184,744 | | |
| 2.500%, due 5/1/26 | | | | | 200,000 | | | | | | 212,735 | | |
| Hillsborough County School Board, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/22 | | | | | 245,000 | | | | | | 261,242 | | |
Miami Beach Redevelopment Agency,
Tax Allocation Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 2/1/31 | | | | | 150,000 | | | | | | 167,972 | | |
North Sumter County Utility Dependent
District, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 10/1/49 | | | | | 1,350,000 | | | | | | 1,661,816 | | |
| Orange County Convention Center/Orlando, Revenue Bonds Series B | | | | | | | | | | | | | |
| 5.000%, due 10/1/31 | | | | | 1,250,000 | | | | | | 1,512,843 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Florida (continued) | |
| School Board of Miami-Dade County (The), Certificates of Participation Series C Insured: AMBAC | | | | | | | | | | | | | |
| 5.000%, due 10/1/21 | | | | $ | 150,000 | | | | | $ | 153,012 | | |
| St Lucie County School Board, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/23 | | | | | 615,000 | | | | | | 681,785 | | |
| | | | | | | | | | | | 15,719,924 | | |
| Georgia — 0.2% | |
| Carrollton Payroll Development Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/15/28 | | | | | 415,000 | | | | | | 485,944 | | |
| Metropolitan Atlanta Rapid Transit Authority, Revenue Bonds Series A Insured: NATL | | | | | | | | | | | | | |
| 5.250%, due 7/1/24 | | | | | 205,000 | | | | | | 237,022 | | |
| | | | | | | | | | | | 722,966 | | |
| Illinois — 14.1% | |
Chicago Board of Education, General
Obligation Bonds Insured: NATL | | | | | | | | | | | | | |
0.800%, due 12/1/22(a) | | | | | 200,000 | | | | | | 197,467 | | |
0.970%, due 12/1/23(a) | | | | | 500,000 | | | | | | 487,644 | | |
| Series A Insured: AGC-ICC FGIC | | | |
| 5.500%, due 12/1/26 | | | | | 250,000 | | | | | | 296,775 | | |
| Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 12/1/27 | | | | | 500,000 | | | | | | 620,074 | | |
| 5.000%, due 12/1/31 | | | | | 500,000 | | | | | | 617,421 | | |
| Series A Insured: NATL | | | | | | | | | | | | | |
1.390%, due 12/1/25(a) | | | | | 1,295,000 | | | | | | 1,215,137 | | |
| Chicago O’Hare International Airport, Revenue Bonds Series E Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 1/1/39 | | | | | 1,300,000 | | | | | | 1,536,332 | | |
| Series F Insured: BAM | | | |
| 4.250%, due 1/1/47 | | | | | 365,000 | | | | | | 410,953 | | |
| Chicago Park District, General Obligation Bonds Series D Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 1/1/39 | | | | | 500,000 | | | | | | 578,272 | | |
| Series E Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 11/15/32 | | | | | 1,000,000 | | | | | | 1,181,760 | | |
| Series F-2 | | | | | | | | | | | | | |
| 5.000%, due 1/1/40 | | | | | 1,065,000 | | | | | | 1,315,109 | | |
| City of Chicago IL Wastewater Transmission Revenue, Revenue Bonds Series A Insured: NATL | | | | | | | | | | | | | |
0.410%, due 1/1/22(a) | | | | | 345,000 | | | | | | 344,050 | | |
| City of Kankakee IL, General Obligation Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 1/1/34 | | | | | 450,000 | | | | | | 500,211 | | |
| 4.000%, due 1/1/35 | | | | | 715,000 | | | | | | 791,705 | | |
| City of Sterling IL, General Obligation Bonds Series B Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 11/1/36 | | | | | 600,000 | | | | | | 719,367 | | |
| 4.000%, due 11/1/37 | | | | | 570,000 | | | | | | 681,225 | | |
| 4.000%, due 11/1/38 | | | | | 500,000 | | | | | | 595,866 | | |
| 4.000%, due 11/1/39 | | | | | 610,000 | | | | | | 725,191 | | |
| 4.000%, due 11/1/40 | | | | | 635,000 | | | | | | 753,066 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Illinois (continued) | |
| City of Waukegan IL, General Obligation Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/30/36 | | | | $ | 1,065,000 | | | | | $ | 1,241,351 | | |
| 4.000%, due 12/30/37 | | | | | 1,080,000 | | | | | | 1,254,919 | | |
| City of Waukegan IL Water & Sewer System Revenue, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/30/22 | | | | | 125,000 | | | | | | 132,268 | | |
| 4.000%, due 12/30/40 | | | | | 485,000 | | | | | | 548,537 | | |
Community Unit School District Number
427 DeKalb and Kane Counties
Illinois, General Obligation Bonds
Series B Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 2/1/34 | | | | | 250,000 | | | | | | 293,663 | | |
| 4.000%, due 2/1/36 | | | | | 400,000 | | | | | | 466,045 | | |
| 4.000%, due 2/1/37 | | | | | 535,000 | | | | | | 621,336 | | |
| 4.000%, due 2/1/38 | | | | | 525,000 | | | | | | 608,008 | | |
| 4.000%, due 2/1/40 | | | | | 425,000 | | | | | | 488,784 | | |
Cook & Will Counties School District No
194, General Obligation Bonds
Series B Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/31 | | | | | 325,000 | | | | | | 376,126 | | |
Cook County School District No 88
Bellwood, General Obligation Bonds
Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/21 | | | | | 365,000 | | | | | | 372,752 | | |
| Cook County School District No 94, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/40 | | | | | 460,000 | | | | | | 521,682 | | |
| Cook County Township High School District No 220 Reavis, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 6/1/40 | | | | | 1,005,000 | | | | | | 1,144,873 | | |
County of Union IL, General Obligation
Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/26 | | | | | 360,000 | | | | | | 416,995 | | |
| Crawford Hospital District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 1/1/31 | | | | | 345,000 | | | | | | 393,666 | | |
| 4.000%, due 1/1/34 | | | | | 675,000 | | | | | | 783,864 | | |
| Darien-Woodridge Fire Protection District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 12/30/26 | | | | | 100,000 | | | | | | 110,473 | | |
Governors State University, Certificates
of Participation Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 7/1/23 | | | | | 385,000 | | | | | | 417,969 | | |
| La Salle & Bureau Counties Township High School District No 120 LaSalle-Peru, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/37 | | | | | 1,000,000 | | | | | | 1,166,146 | | |
Lake County Community Consolidated
School District No 3 Beach Park,
General Obligation Bonds Insured:
AGM | | | | | | | | | | | | | |
| 4.000%, due 2/1/29 | | | | | 1,130,000 | | | | | | 1,355,928 | | |
| Macon County School District No 61 Decatur, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/25 | | | | | 695,000 | | | | | | 787,468 | | |
| 4.000%, due 12/1/30 | | | | | 250,000 | | | | | | 287,293 | | |
| 4.000%, due 12/1/32 | | | | | 200,000 | | | | | | 228,681 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Illinois (continued) | |
| 4.000%, due 12/1/34 | | | | $ | 150,000 | | | | | $ | 170,703 | | |
| 4.000%, due 12/1/37 | | | | | 205,000 | | | | | | 231,963 | | |
| 5.000%, due 12/1/40 | | | | | 1,000,000 | | | | | | 1,234,605 | | |
Madison Bond Etc Counties
Community Unit School District No 5
Highland, General Obligation Bonds
Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 2/1/22 | | | | | 1,000,000 | | | | | | 1,020,136 | | |
| 3.000%, due 2/1/23 | | | | | 1,000,000 | | | | | | 1,045,792 | | |
| 3.000%, due 2/1/24 | | | | | 300,000 | | | | | | 320,754 | | |
| Madison County Community Unit School District No 7 Edwardsville, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/30 | | | | | 275,000 | | | | | | 327,927 | | |
Madison-Macoupin Etc Counties
Community College District No 536,
General Obligation Bonds Series A
Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 11/1/32 | | | | | 160,000 | | | | | | 194,258 | | |
| Metropolitan Pier & Exposition Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
2.900%, due 6/15/45(a) | | | | | 500,000 | | | | | | 249,620 | | |
2.930%, due 6/15/47(a) | | | | | 225,000 | | | | | | 105,308 | | |
| Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 6/15/50 | | | | | 1,850,000 | | | | | | 2,085,238 | | |
Montgomery & Macoupin Counties
Community Unit School District No 12
Litchfield, General Obligation Bonds
Series C Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 10/1/24 | | | | | 335,000 | | | | | | 371,214 | | |
| 4.000%, due 10/1/33 | | | | | 1,000,000 | | | | | | 1,198,835 | | |
| Northern Illinois University, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 10/1/38 | | | | | 1,000,000 | | | | | | 1,172,096 | | |
| 4.000%, due 10/1/40 | | | | | 855,000 | | | | | | 998,816 | | |
| 4.000%, due 10/1/43 | | | | | 1,300,000 | | | | | | 1,510,217 | | |
| Series B Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 4/1/35 | | | | | 1,200,000 | | | | | | 1,401,968 | | |
| Regional Transportation Authority, Revenue Bonds Series A Insured: NATL | | | | | | | | | | | | | |
| 5.500%, due 7/1/23 | | | | | 155,000 | | | | | | 171,544 | | |
Sales Tax Securitization Corp., Revenue
Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 1/1/37 | | | | | 2,030,000 | | | | | | 2,547,394 | | |
| Sangamon County School District No 186 Springfield, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 2/1/34 | | | | | 500,000 | | | | | | 644,340 | | |
Sangamon Logan & Menard Counties
Community Unit School Dist No 15
Williamsville, General Obligation
Bonds Series B Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/36 | | | | | 1,000,000 | | | | | | 1,258,368 | | |
Stark Knox Marshall Henry & Peoria
Counties Community Unit School Dist
No 100, General Obligation Bonds
Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/38 | | | | | 1,000,000 | | | | | | 1,182,035 | | |
| 4.000%, due 12/1/40 | | | | | 2,010,000 | | | | | | 2,354,721 | | |
| State of Illinois, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 2/1/30 | | | | | 690,000 | | | | | | 778,579 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Illinois (continued) | |
| Insured: NATL | | | | | | | | | | | | | |
| 6.000%, due 11/1/26 | | | | $ | 500,000 | | | | | $ | 606,386 | | |
| Series D | | | | | | | | | | | | | |
| 5.000%, due 11/1/24 | | | | | 2,800,000 | | | | | | 3,186,479 | | |
State of Illinois, Revenue Bonds Insured:
BAM | | | | | | | | | | | | | |
| 4.250%, due 6/15/30 | | | | | 500,000 | | | | | | 501,580 | | |
| Insured: NATL | | | | | | | | | | | | | |
| 6.000%, due 6/15/23 | | | | | 180,000 | | | | | | 199,256 | | |
| 6.000%, due 6/15/24 | | | | | 350,000 | | | | | | 405,272 | | |
| Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 6/15/35 | | | | | 750,000 | | | | | | 834,184 | | |
| Series C | | | | | | | | | | | | | |
| 4.000%, due 6/15/21 | | | | | 225,000 | | | | | | 225,790 | | |
| Summerfield Lebanon Mascoutah Water Commission St Clair County, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 4/1/26 | | | | | 205,000 | | | | | | 242,739 | | |
| Town of Cicero IL, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 1/1/30 | | | | | 475,000 | | | | | | 595,380 | | |
| University of Illinois, Revenue Bonds Series A Insured: NATL | | | | | | | | | | | | | |
0.330%, due 4/1/22(a) | | | | | 200,000 | | | | | | 199,385 | | |
| Village of Stone Park IL, General Obligation Bonds Series B Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 2/1/22 | | | | | 125,000 | | | | | | 128,433 | | |
Washington County Community Unit
School Dist No 10 West Washington,
General Obligation Bonds Insured:
BAM | | | | | | | | | | | | | |
| 4.000%, due 1/15/25 | | | | | 750,000 | | | | | | 840,599 | | |
| West Chicago Park District, General Obligation Bonds Series B Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 12/1/26 | | | | | 565,000 | | | | | | 626,916 | | |
| Western Illinois University, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 4/1/32 | | | | | 1,000,000 | | | | | | 1,189,309 | | |
| Will County Community Unit School District No 201-U Crete-Monee, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 1/1/33 | | | | | 500,000 | | | | | | 566,439 | | |
| 4.000%, due 1/1/35 | | | | | 480,000 | | | | | | 541,235 | | |
| Woodford Lasalle Livingston Etc Counties Community Unit Sch Dist No 6 Fieldcrest, General Obligation Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/34 | | | | | 500,000 | | | | | | 586,376 | | |
| 4.000%, due 12/1/36 | | | | | 500,000 | | | | | | 583,022 | | |
| 4.000%, due 12/1/37 | | | | | 515,000 | | | | | | 598,795 | | |
| | | | | | | | | | | | 62,820,458 | | |
| Indiana — 1.5% | |
| City of Columbus IN Sewage Works Revenue, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 2/15/24 | | | | | 500,000 | | | | | | 537,044 | | |
| City of Washington IN Electric Utility Revenue, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 1/1/22 | | | | | 205,000 | | | | | | 208,555 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Indiana (continued) | |
| Indiana Bond Bank, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 9/1/22 | | | | $ | 545,000 | | | | | $ | 565,856 | | |
Indianapolis Local Public Improvement
Bond Bank, Revenue Bonds Series E
Insured: AMBAC | | | | | | | | | | | | | |
0.450%, due 2/1/24(a) | | | | | 450,000 | | | | | | 444,515 | | |
0.640%, due 2/1/25(a) | | | | | 300,000 | | | | | | 292,906 | | |
| Muncie Sanitary District, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 1/1/23 | | | | | 520,000 | | | | | | 543,472 | | |
| 4.000%, due 1/1/24 | | | | | 700,000 | | | | | | 765,376 | | |
| Series A Insured: NATL | | | |
| 2.000%, due 1/1/22 | | | | | 140,000 | | | | | | 141,480 | | |
| Series C Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 7/1/22 | | | | | 750,000 | | | | | | 773,840 | | |
Terre Haute Sanitation District, Revenue
Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 7/1/29 | | | | | 890,000 | | | | | | 1,048,265 | | |
| 4.000%, due 1/1/30 | | | | | 205,000 | | | | | | 242,102 | | |
| Town of Speedway IN Sewage Works Revenue, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 9/1/23 | | | | | 350,000 | | | | | | 370,839 | | |
| 3.000%, due 9/1/25 | | | | | 525,000 | | | | | | 574,976 | | |
| | | | | | | | | | | | 6,509,226 | | |
| Iowa — 1.0% | |
Camanche Community School District,
General Obligation Bonds Insured:
AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/28 | | | | | 620,000 | | | | | | 787,918 | | |
City of Altoona IA, General Obligation
Bonds Series C Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 6/1/22 | | | | | 320,000 | | | | | | 329,441 | | |
| 3.000%, due 6/1/24 | | | | | 345,000 | | | | | | 371,081 | | |
City of Newton IA, General Obligation
Bonds Series C Insured: AGM | | | | | | | | | | | | | |
| 2.000%, due 6/1/21 | | | | | 500,000 | | | | | | 500,697 | | |
Lewis Central Community School
District, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 7/1/22 | | | | | 525,000 | | | | | | 548,257 | | |
| 4.000%, due 7/1/29 | | | | | 995,000 | | | | | | 1,211,743 | | |
| Red Oak Community School District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 6/1/25 | | | | | 145,000 | | | | | | 171,155 | | |
| Sioux Center Community School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 5/1/24 | | | | | 290,000 | | | | | | 329,740 | | |
| | | | | | | | | | | | 4,250,032 | | |
| Kentucky — 0.3% | |
| Kentucky Asset Liability Commission, Revenue Bonds Series B Insured: NATL | | | | | | | | | | | | | |
0.657% (3-Month LIBOR + 0.52%),
due 11/1/21(b) | | | | | 510,000 | | | | | | 510,000 | | |
0.687% (3-Month LIBOR + 0.55%),
due 11/1/25(b) | | | | | 130,000 | | | | | | 130,000 | | |
| Kentucky Economic Development Finance Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 6/1/37 | | | | | 500,000 | | | | | | 559,241 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Kentucky (continued) | |
| Louisville & Jefferson County Visitors and Convention Commission, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 6/1/36 | | | | $ | 100,000 | | | | | $ | 112,478 | | |
| | | | | | | | | | | | 1,311,719 | | |
| Louisiana — 3.6% | |
| Calcasieu Parish School District No 23, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 9/1/27 | | | | | 600,000 | | | | | | 743,418 | | |
| 5.000%, due 9/1/28 | | | | | 910,000 | | | | | | 1,152,035 | | |
| City of New Orleans LA Sewerage Service Revenue, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 6/1/35 | | | | | 400,000 | | | | | | 475,224 | | |
| 4.000%, due 6/1/36 | | | | | 400,000 | | | | | | 473,690 | | |
| 4.000%, due 6/1/37 | | | | | 325,000 | | | | | | 383,603 | | |
| 4.000%, due 6/1/38 | | | | | 350,000 | | | | | | 411,970 | | |
| 4.000%, due 6/1/39 | | | | | 850,000 | | | | | | 997,857 | | |
City of Plaquemine LA, Revenue Bonds
Series A Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 12/1/24 | | | | | 750,000 | | | | | | 814,121 | | |
| City of Shreveport LA Water & Sewer Revenue, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/33 | | | | | 270,000 | | | | | | 314,561 | | |
| Series C Insured: BAM | | | |
| 5.000%, due 12/1/31 | | | | | 500,000 | | | | | | 644,937 | | |
| 5.000%, due 12/1/32 | | | | | 125,000 | | | | | | 160,716 | | |
Greater Ouachita Water Co., Revenue
Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 9/1/36 | | | | | 775,000 | | | | | | 904,161 | | |
Jefferson Davis Parish Water and Sewer
Commission No 1, Revenue Bonds
Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 12/1/34 | | | | | 120,000 | | | | | | 130,242 | | |
| 3.000%, due 12/1/39 | | | | | 365,000 | | | | | | 387,283 | | |
| 3.000%, due 12/1/43 | | | | | 360,000 | | | | | | 376,344 | | |
| Louisiana Energy & Power Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/23 | | | | | 445,000 | | | | | | 488,590 | | |
| Louisiana Local Government Environmental Facilities & Community Development Auth, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 10/1/38 | | | | | 1,000,000 | | | | | | 1,198,107 | | |
| 4.000%, due 10/1/39 | | | | | 600,000 | | | | | | 717,084 | | |
| 4.000%, due 10/1/40 | | | | | 755,000 | | | | | | 900,198 | | |
| Insured: BAM 4.000%, due 10/1/40 | | | | | 850,000 | | | | | | 1,010,227 | | |
| Louisiana State Citizens Property Insurance Corp., Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/21 | | | | | 100,000 | | | | | | 100,367 | | |
New Orleans Aviation Board, Revenue
Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/37 | | | | | 1,000,000 | | | | | | 1,247,239 | | |
| Parish of St Mary LA, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 3/1/27 | | | | | 330,000 | | | | | | 405,836 | | |
| Port New Orleans Board of Commissioners, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 4/1/36 | | | | | 610,000 | | | | | | 738,277 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Louisiana (continued) | |
Ward Two Water District of Livingston
Parish, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 4/1/27 | | | | $ | 500,000 | | | | | $ | 580,324 | | |
| 4.000%, due 4/1/28 | | | | | 300,000 | | | | | | 353,266 | | |
| | | | | | | | | | | | 16,109,677 | | |
| Maine — 0.0%(c) | |
| Finance Authority of Maine, Revenue Bonds Series A-1 Insured: AGC | | | | | | | | | | | | | |
| 5.000%, due 12/1/26 | | | | | 150,000 | | | | | | 178,724 | | |
| Maryland — 0.3% | |
| City of Cumberland MD, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/24 | | | | | 400,000 | | | | | | 456,988 | | |
| 5.000%, due 6/1/25 | | | | | 450,000 | | | | | | 530,970 | | |
| Maryland State Transportation Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/23 | | | | | 245,000 | | | | | | 268,623 | | |
| | | | | | | | | | | | 1,256,581 | | |
| Massachusetts — 1.6% | |
Bridgewater-Raynham Regional School
District, General Obligation Bonds
Series B Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 2/1/29 | | | | | 1,405,000 | | | | | | 1,726,571 | | |
| City of Worcester MA, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 2/15/31 | | | | | 500,000 | | | | | | 568,956 | | |
| Commonwealth of Massachusetts, General Obligation Bonds Series A Insured: NATL | | | | | | | | | | | | | |
0.707% (3-Month LIBOR + 0.57%),
due 5/1/37(b) | | | | | 85,000 | | | | | | 84,845 | | |
| Series B Insured: AMBAC-TCRS-BNY | | | | | | | | | | | | | |
| 5.250%, due 8/1/28 | | | | | 415,000 | | | | | | 545,499 | | |
| Commonwealth of Massachusetts, Revenue Bonds Insured: NATL | | | | | | | | | | | | | |
| 5.500%, due 1/1/22 | | | | | 2,415,000 | | | | | | 2,497,192 | | |
| 5.500%, due 1/1/25 | | | | | 600,000 | | | | | | 706,929 | | |
| Massachusetts Department of Transportation, Revenue Bonds Series C Insured: NATL | | | | | | | | | | | | | |
0.370%, due 1/1/22(a) | | | | | 325,000 | | | | | | 324,190 | | |
| Massachusetts School Building Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 11/15/34 | | | | | 350,000 | | | | | | 417,444 | | |
| | | | | | | | | | | | 6,871,626 | | |
| Michigan — 3.4% | |
| Benzie County Central Schools, General Obligation Bonds Series I Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 5/1/35 | | | | | 340,000 | | | | | | 422,295 | | |
| 4.000%, due 5/1/36 | | | | | 300,000 | | | | | | 371,304 | | |
| 4.000%, due 5/1/37 | | | | | 330,000 | | | | | | 406,942 | | |
| 4.000%, due 5/1/38 | | | | | 300,000 | | | | | | 368,832 | | |
| 4.000%, due 5/1/39 | | | | | 300,000 | | | | | | 367,744 | | |
| 4.000%, due 5/1/40 | | | | | 300,000 | | | | | | 366,954 | | |
| 4.000%, due 5/1/41 | | | | | 300,000 | | | | | | 365,862 | | |
| 4.000%, due 5/1/45 | | | | | 1,250,000 | | | | | | 1,508,082 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Michigan (continued) | |
| City of Detroit MI Sewage Disposal System Revenue, Revenue Bonds Series B Insured: NATL | | | | | | | | | | | | | |
| 5.500%, due 7/1/21 | | | | $ | 500,000 | | | | | $ | 504,037 | | |
| 5.500%, due 7/1/22 | | | | | 1,000,000 | | | | | | 1,058,874 | | |
| City of Taylor MI, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 3/1/24 | | | | | 770,000 | | | | | | 847,529 | | |
| 4.000%, due 3/1/27 | | | | | 490,000 | | | | | | 578,524 | | |
| 4.000%, due 3/1/29 | | | | | 710,000 | | | | | | 862,983 | | |
| 4.000%, due 3/1/35 | | | | | 1,185,000 | | | | | | 1,445,442 | | |
| Eastern Michigan University, Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 3/1/27 | | | | | 750,000 | | | | | | 924,268 | | |
| Fitzgerald Public School District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 5/1/22 | | | | | 150,000 | | | | | | 155,324 | | |
| Grandville Public Schools, General Obligation Bonds Series I Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 5/1/37 | | | | | 245,000 | | | | | | 291,555 | | |
| 4.000%, due 5/1/40 | | | | | 200,000 | | | | | | 236,068 | | |
| Leland Public School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 5/1/37 | | | | | 590,000 | | | | | | 684,264 | | |
| Saginaw City School District, General Obligation Bonds | | | | | | | | | | | | | |
| 4.000%, due 5/1/44 | | | | | 2,505,000 | | | | | | 2,997,471 | | |
Warren Consolidated Schools, General
Obligation Bonds Series B Insured:
BAM | | | | | | | | | | | | | |
| 5.000%, due 5/1/22 | | | | | 280,000 | | | | | | 293,337 | | |
| Wayne County Airport Authority, Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/42 | | | | | 110,000 | | | | | | 117,556 | | |
| | | | | | | | | | | | 15,175,247 | | |
| Minnesota — 0.2% | |
Centennial Independent School District
No 12, General Obligation Bonds
Series A Insured: SD CRED PROG | | | | | | | | | | | | | |
0.170%, due 2/1/22(a) | | | | | 650,000 | | | | | | 649,185 | | |
| Mississippi — 0.5% | |
| Biloxi Public School District, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 4/1/24 | | | | | 270,000 | | | | | | 305,443 | | |
City of Jackson MS, General Obligation
Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 5/1/25 | | | | | 150,000 | | | | | | 170,842 | | |
| Mississippi Development Bank, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 7/1/45 | | | | $ | 500,000 | | | | | $ | 589,147 | | |
| 5.000%, due 7/1/33 | | | | | 490,000 | | | | | | 642,977 | | |
| 5.250%, due 10/1/38 | | | | | 460,000 | | | | | | 583,795 | | |
| | | | | | | | | | | | 2,292,204 | | |
| Missouri — 1.5% | |
| City of St Louis MO Airport Revenue, Revenue Bonds Insured: NATL | | | | | | | | | | | | | |
| 5.500%, due 7/1/28 | | | | | 1,000,000 | | | | | | 1,309,665 | | |
| Series A Insured: AGM | | | |
| 5.000%, due 7/1/23 | | | | | 1,000,000 | | | | | | 1,102,406 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Missouri (continued) | |
| Kansas City Industrial Development Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 3/1/50 | | | | $ | 1,480,000 | | | | | $ | 1,707,005 | | |
| Series B | | | | | | | | | | | | | |
| 5.000%, due 3/1/46 | | | | | 2,000,000 | | | | | | 2,432,277 | | |
| | | | | | | | | | | | 6,551,353 | | |
| Montana — 0.1% | |
| City of Bozeman MT, Tax Allocation Insured: AGM | | | | | | | | | | | | | |
| 2.000%, due 7/1/21 | | | | | 90,000 | | | | | | 90,200 | | |
| 2.000%, due 7/1/22 | | | | | 50,000 | | | | | | 50,807 | | |
| 3.000%, due 7/1/24 | | | | | 100,000 | | | | | | 106,915 | | |
| 4.000%, due 7/1/26 | | | | | 75,000 | | | | | | 86,229 | | |
| 4.000%, due 7/1/27 | | | | | 100,000 | | | | | | 116,969 | | |
| | | | | | | | | | | | 451,120 | | |
| Nevada — 0.9% | |
| City of Reno NV, Revenue Bonds Series A-1 Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/28 | | | | | 730,000 | | | | | | 896,615 | | |
| 5.000%, due 6/1/32 | | | | | 265,000 | | | | | | 319,361 | | |
| Clark County School District, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 6/15/40 | | | | | 400,000 | | | | | | 475,087 | | |
| Series B Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 6/15/28 | | | | | 250,000 | | | | | | 320,274 | | |
| 5.000%, due 6/15/31 | | | | | 1,500,000 | | | | | | 1,988,805 | | |
| | | | | | | | | | | | 4,000,142 | | |
| New Jersey — 6.9% | |
| Atlantic City Board of Education, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 4/1/26 | | | | | 400,000 | | | | | | 456,237 | | |
| 4.000%, due 4/1/28 | | | | | 425,000 | | | | | | 498,926 | | |
| 4.000%, due 4/1/30 | | | | | 335,000 | | | | | | 391,014 | | |
| 4.000%, due 4/1/33 | | | | | 325,000 | | | | | | 373,847 | | |
| 4.000%, due 4/1/35 | | | | | 330,000 | | | | | | 377,169 | | |
| Borough of Paulsboro NJ, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 1.000%, due 8/15/23 | | | | | 160,000 | | | | | | 162,286 | | |
| 1.000%, due 8/15/24 | | | | | 160,000 | | | | | | 162,526 | | |
| 1.000%, due 8/15/25 | | | | | 165,000 | | | | | | 167,478 | | |
| Camden County Improvement Authority (The), Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 7/1/25 | | | | | 875,000 | | | | | | 1,032,880 | | |
| Casino Reinvestment Development Authority, Inc., Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 11/1/27 | | | | | 500,000 | | | | | | 564,212 | | |
| City of Atlantic City NJ, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 11/1/21 | | | | | 165,000 | | | | | | 168,659 | | |
| City of Bayonne NJ, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 7/15/24 | | | | | 100,000 | | | | | | 111,480 | | |
| City of East Orange NJ, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/15/23 | | | | | 665,000 | | | | | | 723,621 | | |
| 4.000%, due 9/15/24 | | | | | 125,000 | | | | | | 140,001 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| New Jersey (continued) | |
City of Newark NJ, General Obligation
Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/27 | | | | $ | 500,000 | | | ��� | | $ | 616,836 | | |
| 5.000%, due 10/1/28 | | | | | 750,000 | | | | | | 940,745 | | |
| Series C Insured: AGM | | | |
| 5.000%, due 10/1/28 | | | | | 145,000 | | | | | | 181,877 | | |
| 5.000%, due 10/1/29 | | | | | 190,000 | | | | | | 242,009 | | |
| City of Orange Township NJ, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/27 | | | | | 1,295,000 | | | | | | 1,523,436 | | |
| City of Perth Amboy NJ, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/1/25 | | | | | 765,000 | | | | | | 900,616 | | |
City of Trenton NJ, General Obligation
Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 3/15/23 | | | | | 250,000 | | | | | | 262,440 | | |
| City of Union City NJ, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 0.050%, due 8/1/24 | | | | | 1,425,000 | | | | | | 1,390,907 | | |
| 2.250%, due 8/1/25 | | | | | 1,450,000 | | | | | | 1,527,609 | | |
East Orange Board Of Education,
Certificates of Participation Insured:
AGM | | | | | | | | | | | | | |
1.190%, due 8/1/26(a) | | | | | 100,000 | | | | | | 93,952 | | |
| Garden State Preservation Trust, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
1.110%, due 11/1/25(a) | | | | | 110,000 | | | | | | 104,632 | | |
| Gloucester County Improvement Authority (The), Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 7/1/28 | | | | | 265,000 | | | | | | 311,196 | | |
| Long Branch Board of Education, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/15/29 | | | | | 265,000 | | | | | | 335,591 | | |
| New Jersey Economic Development Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 4.000%, due 7/1/22 | | | | | 2,725,000 | | | | | | 2,839,867 | | |
| Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 7/1/34 | | | | | 150,000 | | | | | | 169,313 | | |
| 5.000%, due 7/1/23 | | | | | 1,500,000 | | | | | | 1,657,732 | | |
| Series K Insured: NATL | | | | | | | | | | | | | |
| 5.250%, due 12/15/21 | | | | | 110,000 | | | | | | 113,371 | | |
| New Jersey Educational Facilities Authority, Revenue Bonds Series F Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 7/1/25 | | | | | 300,000 | | | | | | 356,033 | | |
| New Jersey Transportation Trust Fund Authority, Revenue Bonds | | | | | | | | | | | | | |
1.690%, due 12/15/31(a) | | | | | 410,000 | | | | | | 342,698 | | |
| Insured: BHAC-CR AMBAC | | | | | | | | | | | | | |
0.450%, due 12/15/24(a) | | | | | 670,000 | | | | | | 659,084 | | |
1.280%, due 12/15/28(a) | | | | | 235,000 | | | | | | 213,195 | | |
| Insured: BHAC-CR MBIA | | | | | | | | | | | | | |
1.100%, due 12/15/27(a) | | | | | 500,000 | | | | | | 464,803 | | |
| Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/15/37 | | | | | 275,000 | | | | | | 317,728 | | |
| Series A Insured: NATL | | | | | | | | | �� | | | | |
| 5.250%, due 12/15/21 | | | | | 500,000 | | | | | | 515,324 | | |
| Series B Insured: AMBAC | | | | | | | | | | | | | |
| 5.250%, due 12/15/23 | | | | | 340,000 | | | | | | 383,676 | | |
| Series B Insured: NATL | | | | | | | | | | | | | |
| 5.500%, due 12/15/21 | | | | | 500,000 | | | | | | 516,091 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| New Jersey (continued) | |
| Series C Insured: AGM | | | | | | | | | | | | | |
2.000%, due 12/15/33(a) | | | | $ | 250,000 | | | | | $ | 194,428 | | |
| Series C Insured: AMBAC | | | | | | | | | | | | | |
0.660%, due 12/15/24(a) | | | | | 750,000 | | | | | | 732,218 | | |
0.900%, due 12/15/25(a) | | | | | 780,000 | | | | | | 748,320 | | |
1.140%, due 12/15/26(a) | | | | | 1,330,000 | | | | | | 1,247,737 | | |
| Oceanport School District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 2.500%, due 7/15/24 | | | | | 495,000 | | | | | | 525,973 | | |
| Passaic Valley Sewerage Commission, Revenue Bonds Series H Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 12/1/24 | | | | | 450,000 | | | | | | 520,443 | | |
| Series I Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 12/1/25 | | | | | 100,000 | | | | | | 119,296 | | |
| South Jersey Transportation Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 11/1/40 | | | | | 880,000 | | | | | | 1,036,913 | | |
| 5.000%, due 11/1/30 | | | | | 700,000 | | | | | | 910,053 | | |
| State of New Jersey, General Obligation Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 6/1/29 | | | | | 700,000 | | | | | | 911,620 | | |
| Township of Hillside NJ, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 5/15/30 | | | | | 565,000 | | | | | | 606,739 | | |
| Union Township Board of Education/Union County, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/15/31 | | | | | 350,000 | | | | | | 434,938 | | |
Washington Borough Board of
Education/Warren County, General
Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 7/15/25 | | | | | 125,000 | | | | | | 142,063 | | |
| 4.000%, due 7/15/27 | | | | | 135,000 | | | | | | 158,444 | | |
| | | | | | | | | | | | 30,600,282 | | |
| New York — 10.5% | |
Broome County Local Development
Corp., Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 4/1/45 | | | | | 1,200,000 | | | | | | 1,237,240 | | |
| Buffalo Municipal Water Finance Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 7/1/49 | | | | | 925,000 | | | | | | 1,044,962 | | |
| City of New York NY, General Obligation Bonds Series B-1 Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 10/1/42 | | | | | 1,425,000 | | | | | | 1,794,449 | | |
| 5.000%, due 10/1/43 | | | | | 1,030,000 | | | | | | 1,294,367 | | |
| City of Schenectady NY, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 5/1/23 | | | | | 250,000 | | | | | | 263,496 | | |
| City of Syracuse NY, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 5/15/34 | | | | | 930,000 | | | | | | 1,083,834 | | |
City of Yonkers NY, General Obligation
Bonds Series A | | | | | | | | | | | | | |
| 4.000%, due 2/15/23 | | | | | 265,000 | | | | | | 282,300 | | |
| 4.000%, due 2/15/24 | | | | | 250,000 | | | | | | 274,193 | | |
| Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 2/15/26 | | | | | 825,000 | | | | | | 993,227 | | |
| 5.000%, due 2/15/28 | | | | | 650,000 | | | | | | 821,578 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| New York (continued) | |
| Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 5/1/28 | | | | $ | 1,215,000 | | | | | $ | 1,542,920 | | |
| Series B | | | | | | | | | | | | | |
| 4.000%, due 2/15/23 | | | | | 280,000 | | | | | | 298,331 | | |
| 4.000%, due 2/15/24 | | | | | 290,000 | | | | | | 318,149 | | |
| Series B Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 2/15/26 | | | | | 640,000 | | | | | | 770,839 | | |
| 5.000%, due 2/15/28 | | | | | 560,000 | | | | | | 709,502 | | |
| 5.000%, due 2/15/30 | | | | | 770,000 | | | | | | 1,011,327 | | |
| County of Chautauqua NY, General Obligation Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 2.000%, due 12/15/22 | | | | | 130,000 | | | | | | 133,726 | | |
| County of Monroe NY, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/22 | | | | | 1,070,000 | | | | | | 1,125,004 | | |
| Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 6/1/25 | | | | | 280,000 | | | | | | 330,381 | | |
| County of Suffolk NY, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 10/15/21 | | | | | 50,000 | | | | | | 50,815 | | |
| 5.000%, due 10/15/28 | | | | | 500,000 | | | | | | 633,424 | | |
| Series C Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 2/1/28 | | | | | 280,000 | | | | | | 334,573 | | |
| 5.000%, due 2/1/23 | | | | | 410,000 | | | | | | 442,848 | | |
| 5.000%, due 5/1/27 | | | | | 145,000 | | | | | | 164,081 | | |
| Metropolitan Transportation Authority, Revenue Bonds Series A-1 | | | | | | | | | | | | | |
| 4.000%, due 11/15/48 | | | | | 3,620,000 | | | | | | 4,140,526 | | |
| 4.000%, due 11/15/52 | | | | | 595,000 | | | | | | 670,686 | | |
| 5.000%, due 11/15/29 | | | | | 500,000 | | | | | | 594,173 | | |
| Series A-1 Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 11/15/44 | | | | | 1,000,000 | | | | | | 1,149,657 | | |
| Series B Insured: AMBAC | | | | | | | | | | | | | |
| 5.250%, due 11/15/24 | | | | | 1,000,000 | | | | | | 1,170,170 | | |
| Series C Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 11/15/46 | | | | | 745,000 | | | | | | 848,912 | | |
| Series C Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 11/15/44 | | | | | 650,000 | | | | | | 802,228 | | |
| Series C-1 | | | | | | | | | | | | | |
| 4.750%, due 11/15/45 | | | | | 600,000 | | | | | | 722,552 | | |
| Series E | | | | | | | | | | | | | |
| 4.000%, due 11/15/45 | | | | | 450,000 | | | | | | 513,377 | | |
| Mount Vernon City School District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 9/15/21 | | | | | 350,000 | | | | | | 354,978 | | |
| Series A Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 3/15/24 | | | | | 275,000 | | | | | | 295,274 | | |
| New York City Industrial Development Agency, Revenue Bonds Insured: NATL | | | | | | | | | | | | | |
2.260%, due 3/1/24(b)(d) | | | | | 1,500,000 | | | | | | 1,542,742 | | |
| Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 1/1/30 | | | | | 1,750,000 | | | | | | 2,288,741 | | |
| 5.000%, due 1/1/31 | | | | | 1,250,000 | | | | | | 1,661,334 | | |
New York Convention Center
Development Corp., Revenue Bonds
Series B Insured: BAM | | | | | | | | | | | | | |
2.120%, due 11/15/33(a) | | | | | 1,500,000 | | | | | | 1,151,775 | | |
2.370%, due 11/15/38(a) | | | | | 375,000 | | | | | | 247,877 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| New York (continued) | |
| New York State Dormitory Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 10/1/36 | | | | $ | 500,000 | | | | | $ | 579,886 | | |
| Series A Insured: NATL | | | | | | | | | | | | | |
| 5.500%, due 5/15/21 | | | | | 375,000 | | | | | | 375,618 | | |
| Series B Insured: AMBAC | | | | | | | | | | | | | |
| 5.500%, due 3/15/24 | | | | | 125,000 | | | | | | 143,465 | | |
| Series B Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/15/33 | | | | | 115,000 | | | | | | 132,038 | | |
| 4.000%, due 8/15/34 | | | | | 120,000 | | | | | | 137,165 | | |
| 4.000%, due 8/15/35 | | | | | 160,000 | | | | | | 182,295 | | |
| 4.000%, due 8/15/36 | | | | | 200,000 | | | | | | 226,822 | | |
| 4.000%, due 8/15/37 | | | | | 450,000 | | | | | | 508,040 | | |
| Series D Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/30 | | | | | 1,000,000 | | | | | | 1,277,818 | | |
| New York State Thruway Authority, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 1/1/45 | | | | | 1,115,000 | | | | | | 1,287,716 | | |
Niagara Falls City School District,
Certificates of Participation Insured:
AGM | | | | | | | | | | | | | |
| 4.000%, due 6/15/26 | | | | | 200,000 | | | | | | 219,265 | | |
| 5.000%, due 6/15/25 | | | | | 670,000 | | | | | | 760,277 | | |
| Niagara Falls City School District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 6/15/28 | | | | | 590,000 | | | | | | 737,402 | | |
North Syracuse Central School District,
General Obligation Bonds Insured:
NATL | | | | | | | | | | | | | |
| 5.000%, due 6/15/22 | | | | | 90,000 | | | | | | 94,804 | | |
| Oneida County Local Development Corp., Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 12/1/44 | | | | | 250,000 | | | | | | 259,860 | | |
| 4.000%, due 12/1/38 | | | | | 250,000 | | | | | | 286,102 | | |
Pulaski Central School District, General
Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/15/23 | | | | | 250,000 | | | | | | 273,922 | | |
| Town of Oyster Bay NY, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 3/1/28 | | | | | 835,000 | | | | | | 1,006,992 | | |
| Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 2/15/26 | | | | | 65,000 | | | | | | 75,300 | | |
| 4.000%, due 11/1/26 | | | | | 800,000 | | | | | | 941,272 | | |
| 4.000%, due 2/15/27 | | | | | 55,000 | | | | | | 65,121 | | |
| Series B Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 2/1/24 | | | | | 1,790,000 | | | | | | 1,918,915 | | |
| | | | | | | | | | | | 46,600,663 | | |
| North Carolina — 0.7% | |
| North Carolina Turnpike Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 1/1/32 | | | | | 525,000 | | | | | | 668,848 | | |
| Western Carolina University, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/26 | | | | | 945,000 | | | | | | 1,141,844 | | |
| 5.000%, due 6/1/27 | | | | | 500,000 | | | | | | 600,695 | | |
| 5.000%, due 6/1/28 | | | | | 550,000 | | | | | | 656,942 | | |
| Winston-Salem State University, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 6/1/21 | | | | | 125,000 | | | | | | 125,421 | | |
| | | | | | | | | | | | 3,193,750 | | |
| |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| North Dakota — 0.2% | |
State Board of Higher Education of the
State of North Dakota, Revenue
Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 4/1/44 | | | | $ | 670,000 | | | | | $ | 771,008 | | |
| Ohio — 0.8% | |
Bethel Local School District, Certificates
of Participation Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/25 | | | | | 265,000 | | | | | | 301,786 | | |
| City of Lorain OH, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.875%, due 12/1/27 | | | | | 605,000 | | | | | | 615,502 | | |
| Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/24 | | | | | 250,000 | | | | | | 279,264 | | |
| 4.000%, due 12/1/25 | | | | | 260,000 | | | | | | 297,349 | | |
| Cleveland Department of Public Utilities Division of Public Power, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 11/15/37 | | | | | 375,000 | | | | | | 443,864 | | |
| Conotton Valley Union Local School District, Certificates of Participation Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/33 | | | | | 315,000 | | | | | | 347,763 | | |
| County of Cuyahoga OH, Revenue Bonds | | | |
| 5.000%, due 2/15/28 | | | | | 500,000 | | | | | | 602,127 | | |
| Euclid City School District, Certificates of Participation Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/39 | | | | | 400,000 | | | | | | 459,198 | | |
| | | | |
| | | | | | | | | | | | 3,346,853 | | |
| Oklahoma — 0.1% | |
| Tulsa Airports Improvement Trust, Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 6/1/23 | | | | | 500,000 | | | | | | 547,662 | | |
| Oregon — 1.0% | |
| City of Seaside OR Transient Lodging Tax Revenue, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 12/15/37 | | | | | 400,000 | | | | | | 493,116 | | |
| Jackson County School District No 6 Central Point, General Obligation Bonds Series B Insured: SCH BD GTY | | | | | | | | | | | | | |
2.270%, due 6/15/49(a) | | | | | 500,000 | | | | | | 205,439 | | |
| Medford Hospital Facilities Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/15/45 | | | | | 3,170,000 | | | | | | 3,726,813 | | |
| | | | | | | | | | | | 4,425,368 | | |
| Pennsylvania — 5.6% | |
Allentown City School District, General
Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 2/15/22 | | | | | 200,000 | | | | | | 205,334 | | |
Ambridge Area School District, General
Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 11/1/22 | | | | | 660,000 | | | | | | 696,827 | | |
Bellwood-Antis School District, General
Obligation Bonds Series A Insured:
BAM | | | | | | | | | | | | | |
| 3.000%, due 6/1/25 | | | | | 480,000 | | | | | | 527,515 | | |
| Series AA Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 6/1/25 | | | | | 300,000 | | | | | | 329,697 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Pennsylvania (continued) | |
| 3.000%, due 6/1/26 | | | | $ | 305,000 | | | | | $ | 339,867 | | |
Bristol Borough School District, General
Obligation Bonds Series B Insured:
AGM | | | | | | | | | | | | | |
| 4.000%, due 3/1/25 | | | | | 250,000 | | | | | | 278,633 | | |
| Butler Area Sewer Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 7/1/26 | | | | | 390,000 | | | | | | 474,516 | | |
| Catasauqua Area School District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 2/15/26 | | | | | 245,000 | | | | | | 278,859 | | |
| 4.000%, due 2/15/27 | | | | | 70,000 | | | | | | 80,820 | | |
| 4.000%, due 2/15/28 | | | | | 430,000 | | | | | | 503,949 | | |
| 4.000%, due 2/15/29 | | | | | 695,000 | | | | | | 819,935 | | |
| 4.000%, due 2/15/30 | | | | | 595,000 | | | | | | 695,245 | | |
Coatesville Area School District Building
Authority, Revenue Bonds Insured:
BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/22 | | | | | 400,000 | | | | | | 427,743 | | |
| Coatesville School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 8/1/23 | | | | | 150,000 | | | | | | 165,500 | | |
| County of Cambria PA, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/32 | | | | | 250,000 | | | | | | 285,226 | | |
| Delaware County Regional Water Quality Control Authority, Revenue Bonds Insured: NATL | | | | | | | | | | | | | |
| 5.250%, due 5/1/22 | | | | | 205,000 | | | | | | 215,377 | | |
| Ephrata Borough Authority, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 11/1/43 | | | | | 1,150,000 | | | | | | 1,229,678 | | |
| Erie Sewer Authority, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 12/1/35 | | | | | 460,000 | | | | | | 577,854 | | |
| Gettysburg Municipal Authority, Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 11/15/31 | | | | | 1,135,000 | | | | | | 1,388,078 | | |
| Greater Johnstown School District, General Obligation Bonds Series C Insured: NATL | | | | | | | | | | | | | |
1.610%, due 8/1/28(a) | | | | | 200,000 | | | | | | 177,997 | | |
| Hazle Township Municipal Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/23 | | | | | 245,000 | | | | | | 267,082 | | |
| Lancaster Higher Education Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 10/1/31 | | | | | 500,000 | | | | | | 589,769 | | |
| 5.000%, due 10/1/23 | | | | | 300,000 | | | | | | 334,113 | | |
| Lancaster School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 6/1/36 | | | | | 35,000 | | | | | | 41,459 | | |
| Latrobe Municipal Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 4/1/32 | | | | | 190,000 | | | | | | 213,420 | | |
| Lehigh County Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
2.450%, due 12/1/37(a) | | | | | 405,000 | | | | | | 270,421 | | |
| Pennsylvania Higher Educational Facilities Authority, Revenue Bonds Series A Insured: AGC | | | | | | | | | | | | | |
0.735% (3-Month LIBOR + 0.60%),
due 7/1/27(b) | | | | | 185,000 | | | | | | 183,599 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Pennsylvania (continued) | |
| Pennsylvania Turnpike Commission, Revenue Bonds Series C Insured: AGM | | | | | | | | | | | | | |
| 6.250%, due 6/1/33 | | | | $ | 750,000 | | | | | $ | 947,399 | | |
| Pittsburgh Water & Sewer Authority, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/35 | | | | | 700,000 | | | | | | 838,887 | | |
| 4.000%, due 9/1/50 | | | | | 1,000,000 | | | | | | 1,170,861 | | |
| Reading School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 3/1/37 | | | | | 2,000,000 | | | | | | 2,422,083 | | |
| School District of Philadelphia (The), General Obligation Bonds Insured: BHAC-CR FGIC | | | | | | | | | | | | | |
| 5.000%, due 6/1/34 | | | | | 210,000 | | | | | | 295,378 | | |
| Series F Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 9/1/27 | | | | | 725,000 | | | | | | 884,089 | | |
Somerset Area School District, General
Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 2/15/23 | | | | | 425,000 | | | | | | 451,411 | | |
| Sports & Exhibition Authority of Pittsburgh and Allegheny County, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 2/1/31 | | | | | 250,000 | | | | | | 326,861 | | |
| State Public School Building Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/21 | | | | | 375,000 | | | | | | 376,337 | | |
| Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 3/1/39 | | | | | 750,000 | | | | | | 798,811 | | |
| Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 9/15/21 | | | | | 875,000 | | | | | | 889,812 | | |
| Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 6/15/22 | | | | | 285,000 | | | | | | 299,884 | | |
| Warrior Run School District/Montour Northumberland Union County PA, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/31 | | | | | 415,000 | | | | | | 466,890 | | |
| 4.000%, due 9/1/32 | | | | | 435,000 | | | | | | 487,831 | | |
Waverly Township Municipal Authority,
Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 2/15/27 | | | | | 950,000 | | | | | | 1,084,301 | | |
| Westmoreland County Municipal Authority, Revenue Bonds Series A Insured: FGIC | | | | | | | | | | | | | |
0.490%, due 8/15/23(a) | | | | | 815,000 | | | | | | 805,954 | | |
| Williamsport Sanitary Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 1/1/30 | | | | | 500,000 | | | | | | 645,847 | | |
| | | | | | | | | | | | 24,791,149 | | |
| Puerto Rico — 0.3% | |
| Commonwealth of Puerto Rico, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/1/35 | | | | | 480,000 | | | | | | 499,200 | | |
| Series A-4 Insured: AGM | | | | | | | | | | | | | |
| 5.250%, due 7/1/30 | | | | | 100,000 | | | | | | 102,902 | | |
| Puerto Rico Electric Power Authority, Revenue Bonds | | | | | | | | | | | | | |
| Series PP Insured: NATL | | | | | | | | | | | | | |
| 5.000%, due 7/1/24 | | | | | 25,000 | | | | | | 25,542 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Puerto Rico (continued) | |
| Series UU Insured: AGM | | | | | | | | | | | | | |
0.655% (3-Month LIBOR + 0.52%),
due 7/1/29(b) | | | | $ | 510,000 | | | | | $ | 472,402 | | |
| | | | | | | | | | | | 1,100,046 | | |
| Rhode Island — 0.7% | |
City of Cranston RI, General Obligation
Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/1/29 | | | | | 110,000 | | | | | | 134,003 | | |
| Providence Public Building Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/15/35 | | | | | 1,085,000 | | | | | | 1,238,618 | | |
| Series B Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/15/26 | | | | | 275,000 | | | | | | 327,007 | | |
| 5.000%, due 6/15/36 | | | | | 660,000 | | | | | | 805,773 | | |
| Rhode Island Health and Educational Building Corp., Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 5/15/36 | | | | | 390,000 | | | | | | 462,874 | | |
| 5.000%, due 5/15/29 | | | | | 110,000 | | | | | | 135,505 | | |
| | | | | | | | | | | | 3,103,780 | | |
| South Carolina — 0.3% | |
| City of Camden SC Combined Public Utility System Revenue, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 2.000%, due 3/1/23 | | | | | 600,000 | | | | | | 619,552 | | |
Williamsburg County Public Facilities
Corp., Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 6/1/30 | | | | | 625,000 | | | | | | 769,370 | | |
| | | | | | | | | | | | 1,388,922 | | |
| Tennessee — 0.1% | |
| County of Campbell TN, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/21 | | | | | 320,000 | | | | | | 321,166 | | |
| Texas — 5.9% | |
| Central Texas Turnpike System, Revenue Bonds Series A Insured: AMBAC | | | | | | | | | | | | | |
1.690%, due 8/15/29(a) | | | | | 1,000,000 | | | | | | 869,584 | | |
| Series A Insured: BHAC-CR AMBAC | | | | | | | | | | | | | |
0.720%, due 8/15/26(a) | | | | | 1,000,000 | | | | | | 962,816 | | |
0.890%, due 8/15/27(a) | | | | | 205,000 | | | | | | 193,826 | | |
City of Arlington TX Special Tax
Revenue, Special Tax Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 2/15/32 | | | | | 725,000 | | | | | | 841,220 | | |
| Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 2/15/44 | | | | | 2,000,000 | | | | | | 2,280,865 | | |
| 5.000%, due 2/15/38 | | | | | 700,000 | | | | | | 861,981 | | |
| City of Houston TX Combined Utility System Revenue, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
0.610%, due 12/1/25(a) | | | | | 460,000 | | | | | | 447,359 | | |
| City of Mission TX, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 2/15/22 | | | | | 1,395,000 | | | | | | 1,446,072 | | |
| City of Mount Pleasant TX, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 5/15/34 | | | | | 2,110,000 | | | | | | 2,607,236 | | |
| City of Rio Grande City TX, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 2/15/26 | | | | | 630,000 | | | | | | 727,579 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Texas (continued) | |
| Clear Lake City Water Authority, General Obligation Bonds Insured: NATL | | | | | | | | | | | | | |
| 3.000%, due 3/1/25 | | | | $ | 170,000 | | | | | $ | 185,062 | | |
| County of La Salle TX, General Obligation Bonds Insured: AGM | �� | | | | | | | | | | | | |
| 5.000%, due 3/1/27 | | | | | 500,000 | | | | | | 617,779 | | |
| Fort Bend County Municipal Utility District No 169, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 12/1/25 | | | | | 420,000 | | | | | | 459,518 | | |
| Fort Bend County Municipal Utility District No 58, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 4/1/33 | | | | | 400,000 | | | | | | 439,550 | | |
| 3.000%, due 4/1/34 | | | | | 445,000 | | | | | | 487,416 | | |
| 3.000%, due 4/1/35 | | | | | 435,000 | | | | | | 475,530 | | |
| 3.000%, due 4/1/37 | | | | | 825,000 | | | | | | 896,561 | | |
| Galveston County Municipal Utility District No 56, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/24 | | | | | 400,000 | | | | | | 444,570 | | |
| Greater Greenspoint Redevelopment Authority, Tax Allocation Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/34 | | | | | 325,000 | | | | | | 375,185 | | |
Harris County-Houston Sports Authority,
Revenue Bonds Series A Insured:
AGM | | | | | | | | | | | | | |
| 5.000%, due 11/15/25 | | | | | 220,000 | | | | | | 251,758 | | |
| Hidalgo County Regional Mobility Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 12/1/45 | | | | | 1,000,000 | | | | | | 1,070,672 | | |
| La Joya Independent School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 2/15/38 | | | | | 500,000 | | | | | | 557,524 | | |
| Lazy Nine Municipal Utility District No 1B, General Obligation Bonds Series 1B Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 9/1/21 | | | | | 180,000 | | | | | | 181,524 | | |
| 3.000%, due 9/1/22 | | | | | 180,000 | | | | | | 186,178 | | |
Matagorda County Navigation District
No 1, Revenue Bonds Insured:
AMBAC | | | | | | | | | | | | | |
5.125%, due 11/1/28(d) | | | | | 615,000 | | | | | | 777,518 | | |
New Hope Cultural Education Facilities
Finance Corp., Revenue Bonds
Series A-1 Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/1/28 | | | | | 500,000 | | | | | | 611,943 | | |
| Series B-1 Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 7/1/30 | | | | | 155,000 | | | | | | 177,714 | | |
North Texas Tollway Authority, Revenue
Bonds Series D Insured: AGC | | | | | | | | | | | | | |
1.360%, due 1/1/29(a) | | | | | 1,460,000 | | | | | | 1,316,204 | | |
| Northlake Municipal Management District No 1, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.500%, due 3/1/24 | | | | | 185,000 | | | | | | 204,275 | | |
| Southwest Houston Redevelopment Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/32 | | | | | 450,000 | | | | | | 516,249 | | |
| 5.000%, due 9/1/28 | | | | | 210,000 | | | | | | 255,654 | | |
| 5.000%, due 9/1/29 | | | | | 225,000 | | | | | | 277,302 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Texas (continued) | |
| 5.000%, due 9/1/30 | | | | $ | 350,000 | | | | | $ | 436,180 | | |
| Texas State Technical College, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/15/25 | | | | | 525,000 | | | | | | 625,402 | | |
| Timber Lane Utility District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.500%, due 8/1/23 | | | | | 500,000 | | | | | | 535,289 | | |
| 3.500%, due 8/1/24 | | | | | 500,000 | | | | | | 548,695 | | |
| 3.500%, due 8/1/25 | | | | | 500,000 | | | | | | 559,985 | | |
| 3.500%, due 8/1/26 | | | | | 500,000 | | | | | | 569,882 | | |
| Travis County Water Control & Improvement District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/15/26 | | | | | 505,000 | | | | | | 584,452 | | |
| Viridian Municipal Management District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/26 | | | | | 390,000 | | | | | | 458,716 | | |
| | | | | | | | | | | | 26,322,825 | | |
| Utah — 0.5% | |
| Utah Transit Authority, Revenue Bonds Series A Insured: BHAC-CR MBIA | | | | | | | | | | | | | |
| 5.000%, due 6/15/35 | | | | | 215,000 | | | | | | 298,842 | | |
| Series C Insured: AGM | | | | | | | | | | | | | |
| 5.250%, due 6/15/32 | | | | | 1,000,000 | | | | | | 1,373,093 | | |
| Weber Basin Water Conservancy District, Revenue Bonds Series A | | | | | | | | | | | | | |
| 4.000%, due 4/1/46 | | | | | 600,000 | | | | | | 702,534 | | |
| | | | | | | | | | | | 2,374,469 | | |
| Washington — 0.6% | |
Bellevue Convention Center Authority,
Revenue Bonds Insured: NATL | | | | | | | | | | | | | |
0.260%, due 2/1/22(a) | | | | | 530,000 | | | | | | 528,940 | | |
Chelan County Public Utility District No
1, Revenue Bonds Insured: NATL | | | | | | | | | | | | | |
0.590%, due 6/1/24(a) | | | | | 100,000 | | | | | | 98,209 | | |
| Series A Insured: NATL | | | | | | | | | | | | | |
0.420%, due 6/1/23(a) | | | | | 100,000 | | | | | | 99,127 | | |
Klickitat County Public Utility District No
1, Revenue Bonds Series A Insured:
AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/37 | | | | | 750,000 | | | | | | 888,293 | | |
| State of Washington, General Obligation Bonds Series 03-C Insured: NATL | | | | | | | | | | | | | |
0.810%, due 6/1/26(a) | | | | | 250,000 | | | | | | 239,915 | | |
| Series C Insured: AMBAC | | | | | | | | | | | | | |
0.330%, due 6/1/23(a) | | | | | 200,000 | | | | | | 198,623 | | |
0.500%, due 6/1/24(a) | | | | | 265,000 | | | | | | 260,973 | | |
0.810%, due 6/1/26(a) | | | | | 200,000 | | | | | | 191,932 | | |
| Series C Insured: NATL | | | | | | | | | | | | | |
1.340%, due 6/1/29(a) | | | | | 125,000 | | | | | | 112,218 | | |
| Series E Insured: XLCA | | | | | | | | | | | | | |
0.410%, due 12/1/23(a) | | | | | 100,000 | | | | | | 98,940 | | |
| | | | | | | | | | | | 2,717,170 | | |
| West Virginia — 1.3% | |
| City of Fairmont WV Water Revenue, Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 7/1/29 | | | | | 150,000 | | | | | | 176,548 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| West Virginia (continued) | |
| Morgantown Utility Board, Inc., Revenue Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 12/1/23 | | | | $ | 290,000 | | | | | $ | 307,725 | | |
| 4.000%, due 12/1/24 | | | | | 300,000 | | | | | | 334,440 | | |
| 4.000%, due 12/1/25 | | | | | 325,000 | | | | | | 370,429 | | |
| West Virginia Hospital Finance Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 6/1/51 | | | | | 4,200,000 | | | | | | 4,666,058 | | |
| | | | | | | | | | | | 5,855,200 | | |
| Wisconsin — 1.2% | |
| City of Racine WI Waterworks System Revenue, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 9/1/30 | | | | | 500,000 | | | | | | 626,075 | | |
| Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 9/1/26 | | | | | 300,000 | | | | | | 352,442 | | |
| 5.000%, due 9/1/28 | | | | | 250,000 | | | | | | 321,753 | | |
| City of Superior WI, Revenue Bonds Insured: NATL | | | | | | | | | | | | | |
| 6.900%, due 8/1/21 | | | | | 270,000 | | | | | | 274,448 | | |
| Fond Du Lac School District, General Obligation Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 4/1/35 | | | | | 400,000 | | | | | | 472,467 | | |
| Omro School District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 3/1/28 | | | | | 230,000 | | | | | | 261,521 | | |
| Public Finance Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 7/1/40 | | | | | 300,000 | | | | | | 340,193 | | |
| 4.000%, due 7/1/45 | | | | | 800,000 | | | | | | 898,129 | | |
| Village of Mount Pleasant WI, Tax Allocation Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 4/1/48 | | | | | 1,135,000 | | | | | | 1,365,256 | | |
| Wisconsin Center District, Revenue Bonds Series C Insured: AGM | | | | | | | | | | | | | |
2.310%, due 12/15/36(a) | | | | | 320,000 | | | | | | 211,375 | | |
| | | | |
| | | | | | | | | | | | 5,123,659 | | |
Total Municipal Bonds
(Cost $416,409,283) | | | | | | | | | | | 421,904,873 | | |
| | | | | | Shares | | | | | | | | |
| Short-Term Investment — 8.4% | | | | | | | | | | | | | |
| Money Market Fund — 8.4% | | | | | | | | | | | | | |
Fidelity Investments Money Market Treasury Only Class I, 0.01%(e)
(Cost $37,105,168) | | | | | 37,105,168 | | | | | | 37,105,168 | | |
Total Investments — 103.4%
(Cost $453,514,451) | | | | | | | | | | | 459,010,041 | | |
Other Assets and Liabilities,
Net — (3.4)% | | | | | | | | | | | (14,683,353) | | |
| Net Assets — 100.0% | | | | | | | | | | $ | 444,326,688 | | |
| |
(a)
The security was issued on a discount basis with no stated coupon rate. Rate shown reflects the effective yield.
(b)
Variable rate securities that may be tendered back to the issuer at any time prior to maturity at par. Rate shown is the rate in effect as of April 30, 2021.
(c)
Less than 0.05%.
(d)
Adjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions.
(e)
Reflects the 7-day yield at April 30, 2021.
Abbreviations
| | AGC | | | — | | | Assured Guaranty Corp. | |
| | AGM | | | — | | | Assured Guaranty Municipal Corp. | |
| | AMBAC | | | — | | | Ambac Assurance Corp. | |
| | BAM | | | — | | | Build America Mutual Assurance Co. | |
| | BHAC-CR | | | — | | | Berkshire Hathaway Assurance Corp. Custodial Receipts | |
| | FGIC | | | — | | | Financial Guaranty Insurance Co. | |
| | LIBOR | | | — | | | London InterBank Offered Rate | |
| | NATL | | | — | | | National Public Finance Guarantee Corp. | |
| | SCH BD GTY | | | — | | | School Bond Guaranty Program | |
| | XLCA | | | — | | | XL Capital Assurance | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Insured ETF (continued)
The following is a summary of the inputs used to value the Fund’s investments as of April 30, 2021. For more information on the valuation techniques, and their aggregation into the levels used in the table below, please refer to Note 2.
| Description | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Asset Valuation Inputs | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments in Securities:(f) | | | | | | | | | | | | | | | | | | | | | | | | | |
| Municipal Bonds | | | | $ | — | | | | | $ | 421,904,873 | | | | | $ | — | | | | | $ | 421,904,873 | | |
| Short-Term Investment: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Money Market Fund | | | | | 37,105,168 | | | | | | — | | | | | | — | | | | | | 37,105,168 | | |
| Total Investments in Securities | | | | $ | 37,105,168 | | | | | $ | 421,904,873 | | | | | $ | — | | | | | $ | 459,010,041 | | |
(f)
For a complete listing of investments and their states, see the Schedule of Investments.
For the year ended April 30, 2021, the Fund did not have any transfers into or out of Level 3 within the fair value hierarchy. (See Note 2)
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Intermediate ETF
| | | | Principal
Amount | | | Value | |
| Municipal Bonds — 84.7% | |
| Alabama — 1.5% | |
Birmingham Airport Authority, Revenue
Bonds Insured: BAM | | | |
| 5.000%, due 7/1/32 | | | | $ | 600,000 | | | | | $ | 784,259 | | |
Homewood Educational Building Authority, Revenue Bonds
Series A Insured: AGM | | | |
| 5.000%, due 12/1/41 | | | | | 1,000,000 | | | | | | 1,075,277 | | |
| | | | | | | | | | | | 1,859,536 | | |
| Alaska — 0.1% | |
Alaska Industrial Development & Export
Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 6/1/28 | | | | | 100,000 | | | | | | 115,662 | | |
| Arizona — 1.9% | |
| Arizona Industrial Development Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 11/1/31 | | | | | 550,000 | | | | | | 684,579 | | |
| Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 6/1/31 | | | | | 300,000 | | | | | | 378,002 | | |
| 5.000%, due 6/1/32 | | | | | 325,000 | | | | | | 408,139 | | |
| City of Phoenix Civic Improvement Corp., Revenue Bonds | | | | | | | | | | | | | |
| Series A | | | | | | | | | | | | | |
| 5.000%, due 7/1/34 | | | | | 500,000 | | | | | | 603,403 | | |
| Maricopa County Industrial Development Authority, Revenue Bonds Series C Insured: SD CRED PROG | | | | | | | | | | | | | |
| 5.000%, due 7/1/37 | | | | | 300,000 | | | | | | 357,126 | | |
| | | | | | | | | | | | 2,431,249 | | |
| Arkansas — 0.4% | |
University of Central Arkansas, Revenue
Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 11/1/34 | | | | | 400,000 | | | | | | 469,971 | | |
| California — 7.3% | |
Apple Valley Public Financing Authority,
Tax Allocation Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 6/1/31 | | | | | 1,000,000 | | | | | | 1,225,586 | | |
Benicia Unified School District, General
Obligation Bonds Series C Insured:
AGM | | | | | | | | | | | | | |
0.480%, due 8/1/23(a) | | | | | 300,000 | | | | | | 296,748 | | |
California Municipal Finance Authority,
Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 5/15/31 | | | | | 400,000 | | | | | | 491,979 | | |
| California State Public Works Board, Revenue Bonds Series B | | | | | | | | | | | | | |
| 4.000%, due 5/1/36 | | | | | 200,000 | | | | | | 246,490 | | |
Chaffey Joint Union High School District,
General Obligation Bonds Series B | | | | | | | | | | | | | |
1.090%, due 8/1/34(a) | | | | | 320,000 | | | | | | 201,688 | | |
| Hayward Unified School District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/45 | | | | | 270,000 | | | | | | 315,902 | | |
| Imperial Community College District, General Obligation Bonds Insured: AGC | | | | | | | | | | | | | |
2.170%, due 8/1/37(a) | | | | | 400,000 | | | | | | 281,728 | | |
| Independent Cities Finance Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 6/1/29 | | | | | 500,000 | | | | | | 577,837 | | |
| 4.000%, due 6/1/36 | | | | | 700,000 | | | | | | 810,463 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| California (continued) | |
| Kelseyville Unified School District, General Obligation Bonds Series C Insured: AGM | | | | | | | | | | | | | |
1.600%, due 8/1/31(a) | | | | $ | 150,000 | | | | | $ | 116,037 | | |
1.800%, due 8/1/33(a) | | | | | 35,000 | | | | | | 24,544 | | |
| Lake Elsinore School Financing Authority, Special Tax Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 10/1/33 | | | | | 250,000 | | | | | | 319,476 | | |
| Ripon Redevelopment Agency Successor Agency, Tax Allocation Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 11/1/28 | | | | | 600,000 | | | | | | 721,097 | | |
| Riverside County Community Facilities Districts, Special Tax Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/35 | | | | | 1,060,000 | | | | | | 1,284,652 | | |
| Roseville Natural Gas Financing Authority, Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 2/15/24 | | | | | 560,000 | | | | | | 630,801 | | |
Sacramento City Unified School District,
General Obligation Bonds Insured:
AGM | | | | | | | | | | | | | |
0.720%, due 7/1/24(a) | | | | | 305,000 | | | | | | 298,165 | | |
| State of California, General Obligation Bonds | | | | | | | | | | | | | |
| 4.000%, due 9/1/32 | | | | | 500,000 | | | | | | 582,919 | | |
University of California, Revenue Bonds
Series AO | | | | | | | | | | | | | |
| 5.000%, due 5/15/22 | | | | | 100,000 | | | | | | 105,078 | | |
| Series G | | | | | | | | | | | | | |
| 4.000%, due 5/15/22 | | | | | 200,000 | | | | | | 208,011 | | |
| West Sacramento Financing Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 10/1/31 | | | | | 250,000 | | | | | | 291,264 | | |
| Westminster School District, General Obligation Bonds Series B Insured: BAM | | | | | | | | | | | | | |
0.480%, due 8/1/48(a) | | | | | 100,000 | | | | | | 17,714 | | |
| | | | | | | | | | | | 9,048,179 | | |
| Colorado — 2.0% | |
| Cherokee Metropolitan District, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 8/1/34 | | | | | 200,000 | | | | | | 247,729 | | |
| Colorado Health Facilities Authority, Revenue Bonds Series A-1 | | | | | | | | | | | | | |
| 5.000%, due 8/1/34 | | | | | 75,000 | | | | | | 94,703 | | |
| 5.000%, due 8/1/35 | | | | | 105,000 | | | | | | 132,307 | | |
| Series A-2 | | | | | | | | | | | | | |
| 5.000%, due 8/1/32 | | | | | 110,000 | | | | | | 139,963 | | |
| 5.000%, due 8/1/33 | | | | | 90,000 | | | | | | 113,966 | | |
Crystal Valley Metropolitan District No 2,
General Obligation Bonds Series A
Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/1/36 | | | | | 500,000 | | | | | | 596,688 | | |
| Dawson Ridge Metropolitan District No 1, General Obligation Bonds Series B | | | | | | | | | | | | | |
0.240%, due 10/1/22(a) | | | | | 115,000 | | | | | | 114,612 | | |
| Grand River Hospital District, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 5.250%, due 12/1/37 | | | | | 425,000 | | | | | | 496,195 | | |
| Lewis Pointe Metropolitan District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/21 | | | | | 310,000 | | | | | | 316,584 | | |
| 4.000%, due 12/1/24 | | | | | 225,000 | | | | | | 252,441 | | |
| | | | | | | | | | | | 2,505,188 | | |
| |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Intermediate ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Connecticut — 3.9% | |
| City of Bridgeport CT, General Obligation Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 11/1/33 | | | | $ | 600,000 | | | | | $ | 728,302 | | |
City of Hartford CT, General Obligation
Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 4/1/30 | | | | | 100,000 | | | | | | 107,287 | | |
| City of New Britain CT, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 5.250%, due 9/1/30 | | | | | 600,000 | | | | | | 757,370 | | |
| City of West Haven CT, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 3/15/29 | | | | | 200,000 | | | | | | 236,069 | | |
| 4.000%, due 3/15/30 | | | | | 125,000 | | | | | | 148,296 | | |
| Connecticut State Health & Educational Facilities Authority, Revenue Bonds Series I-1 | | | | | | | | | | | | | |
| 5.000%, due 7/1/33 | | | | | 350,000 | | | | | | 422,889 | | |
| State of Connecticut Special Tax Revenue, Revenue Bonds | | | | | | | | | | | | | |
| 4.000%, due 5/1/36 | | | | | 500,000 | | | | | | 597,458 | | |
| Series A | | | | | | | | | | | | | |
| 4.000%, due 5/1/38 | | | | | 1,500,000 | | | | | | 1,815,661 | | |
| | | | | | | | | | | | 4,813,332 | | |
| Florida — 5.4% | |
| Bay County School Board, Certificates of Participation Series B | | | | | | | | | | | | | |
| 5.000%, due 7/1/21 | | | | | 100,000 | | | | | | 100,767 | | |
| Central Florida Expressway Authority, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 7/1/34 | | | | | 1,000,000 | | | | | | 1,240,637 | | |
| City of Jacksonville FL, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 10/1/21 | | | | | 170,000 | | | | | | 173,350 | | |
| County of Miami-Dade FL Aviation Revenue, Revenue Bonds Series A | | | | | | | | | | | | | |
| 4.000%, due 10/1/34 | | | | | 500,000 | | | | | | 603,891 | | |
| 4.000%, due 10/1/39 | | | | | 400,000 | | | | | | 476,145 | | |
| County of Miami-Dade FL Water & Sewer System Revenue, Revenue Bonds | | | | | | | | | | | | | |
| 4.000%, due 10/1/34 | | | | | 1,000,000 | | | | | | 1,236,533 | | |
| Florida Department of Environmental Protection, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 7/1/21 | | | | | 350,000 | | | | | | 352,731 | | |
| Florida Development Finance Corp., Revenue Bonds Series A | | | | | | | | | | | | | |
| 4.000%, due 7/1/24 | | | | | 200,000 | | | | | | 217,440 | | |
| Florida Municipal Power Agency, Revenue Bonds Series A | | | | | | | | | | | | | |
| 3.000%, due 10/1/33 | | | | | 500,000 | | | | | | 548,950 | | |
| Hillsborough County Industrial Development Authority, Revenue Bonds Series B | | | | | | | | | | | | | |
0.040%, due 11/1/38(b)(c) | | | | | 500,000 | | | | | | 500,000 | | |
| Orange County Convention Center/Orlando, Revenue Bonds Series B | | | | | | | | | | | | | |
| 5.000%, due 10/1/31 | | | | | 500,000 | | | | | | 605,137 | | |
| State of Florida, General Obligation Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 7/1/21 | | | | | 100,000 | | | | | | 100,780 | | |
| Series C | | | | | | | | | | | | | |
| 4.000%, due 6/1/30 | | | | | 500,000 | | | | | | 519,873 | | |
| | | | | | | | | | | | 6,676,234 | | |
| |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Georgia — 0.5% | |
Municipal Electric Authority of Georgia,
Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 1/1/38 | | | | $ | 500,000 | | | | | $ | 612,981 | | |
| Guam — 0.4% | |
| Guam Government Waterworks Authority, Revenue Bonds | | | | | | | | | | | | | |
| 5.250%, due 7/1/33 | | | | | 500,000 | | | | | | 552,861 | | |
| Idaho — 1.2% | |
| Idaho Housing & Finance Association, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 7/15/33 | | | | | 1,100,000 | | | | | | 1,468,210 | | |
| Illinois — 12.8% | |
| Chicago Board of Education, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 12/1/27 | | | | | 500,000 | | | | | | 620,074 | | |
| Chicago O’Hare International Airport, Revenue Bonds Series C | | | | | | | | | | | | | |
| 5.000%, due 1/1/28 | | | | | 100,000 | | | | | | 119,408 | | |
| Chicago Park District, General Obligation Bonds Series C Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 1/1/27 | | | | | 250,000 | | | | | | 273,566 | | |
| Series E Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 11/15/31 | | | | | 500,000 | | | | | | 593,029 | | |
| Cook County Township High School District No 220 Reavis, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/25 | | | | | 600,000 | | | | | | 710,125 | | |
| Illinois Finance Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 8/15/32 | | | | | 1,500,000 | | | | | | 2,017,046 | | |
| Kendall Kane & Will Counties Community Unit School District No 308, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
1.070%, due 2/1/26(a) | | | | | 450,000 | | | | | | 427,701 | | |
| Madison-Macoupin Etc Counties Community College District No 536, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 11/1/32 | | | | | 320,000 | | | | | | 388,516 | | |
| Northern Illinois University, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 10/1/26 | | | | | 250,000 | | | | | | 301,644 | | |
| 5.000%, due 10/1/28 | | | | | 650,000 | | | | | | 814,134 | | |
| 5.000%, due 10/1/30 | | | | | 690,000 | | | | | | 887,425 | | |
Sales Tax Securitization Corp., Revenue
Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 1/1/30 | | | | | 500,000 | | | | | | 646,326 | | |
| Sangamon County School District No 186 Springfield, General Obligation Bonds Series C Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/1/29 | | | | | 500,000 | | | | | | 647,128 | | |
| Sangamon Logan & Menard Counties Community Unit School Dist No 15 Williamsville, General Obligation Bonds Series B Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/32 | | | | | 500,000 | | | | | | 636,445 | | |
| Southwestern Illinois Development Authority, Revenue Bonds | | | | | | | | | | | | | |
| 4.000%, due 10/15/24 | | | | | 165,000 | | | | | | 183,128 | | |
| 4.000%, due 4/15/31 | | | | | 450,000 | | | | | | 543,717 | | |
| 4.000%, due 4/15/33 | | | | | 250,000 | | | | | | 299,310 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Intermediate ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Illinois (continued) | |
| State of Illinois, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.125%, due 4/1/33 | | | | $ | 550,000 | | | | | $ | 577,606 | | |
| Series D | | | | | | | | | | | | | |
| 5.000%, due 11/1/24 | | | | | 250,000 | | | | | | 284,507 | | |
| 5.000%, due 11/1/28 | | | | | 250,000 | | | | | | 300,333 | | |
| State of Illinois, Revenue Bonds | | | | | | | | | | | | | |
| 4.500%, due 6/15/36 | | | | | 500,000 | | | | | | 501,267 | | |
| Insured: BAM | | | | | | | | | | | | | |
| 4.250%, due 6/15/30 | | | | | 500,000 | | | | | | 501,580 | | |
| Town of Cicero IL, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/26 | | | | | 230,000 | | | | | | 246,780 | | |
| 5.000%, due 1/1/30 | | | | | 450,000 | | | | | | 564,044 | | |
| Upper Illinois River Valley Development Authority, Revenue Bonds | | | | | | | | | | | | | |
| 5.250%, due 12/1/38 | | | | | 425,000 | | | | | | 517,732 | | |
| Village of Matteson IL, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/29 | | | | | 465,000 | | | | | | 567,249 | | |
| Village of Mundelein IL, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 12/15/39 | | | | | 100,000 | | | | | | 115,993 | | |
| Village of Stone Park IL, General Obligation Bonds Series B Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 2/1/23 | | | | | 135,000 | | | | | | 140,493 | | |
| Will County School District No 114 Manhattan, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.500%, due 1/1/26 | | | | | 840,000 | | | | | | 896,422 | | |
Woodford Lasalle Livingston Etc
Counties Community Unit Sch Dist No
6 Fieldcrest, General Obligation
Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/35 | | | | | 500,000 | | | | | | 584,856 | | |
| | | | | | | | | | | | 15,907,584 | | |
| Indiana — 0.2% | |
| MSD of Wash Township School Building Corp., Revenue Bonds Insured: ST INTERCEPT | | | | | | | | | | | | | |
| 5.000%, due 7/15/35 | | | | | 225,000 | | | | | | 286,823 | | |
| Iowa — 0.7% | |
Iowa Finance Authority, Revenue Bonds
Series E | | | | | | | | | | | | | |
0.020%, due 2/15/41(b)(c) | | | | | 500,000 | | | | | | 500,000 | | |
| Iowa State University of Science & Technology, Revenue Bonds Series I.S.U. 2020 Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 7/1/22 | | | | | 400,000 | | | | | | 422,298 | | |
| | | | | | | | | | | | 922,298 | | |
| Kentucky — 0.9% | |
| Kentucky Economic Development Finance Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 7/1/28 | | | | | 335,000 | | | | | | 385,014 | | |
Louisville & Jefferson County Visitors and
Convention Commission, Revenue
Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 6/1/36 | | | | | 75,000 | | | | | | 84,358 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Kentucky (continued) | |
Louisville/Jefferson County Metropolitan
Government, Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 10/1/32 | | | | $ | 500,000 | | | | | $ | 600,201 | | |
| | | | | | | | | | | | 1,069,573 | | |
| Louisiana — 2.9% | |
| Cameron Parish School District No 15, General Obligation Bonds | | | |
| 4.000%, due 10/1/22 | | | | | 125,000 | | | | | | 130,446 | | |
| 5.000%, due 10/1/23 | | | | | 205,000 | | | | | | 224,151 | | |
| 5.000%, due 10/1/29 | | | | | 290,000 | | | | | | 353,020 | | |
| City of Shreveport LA Water & Sewer Revenue, Revenue Bonds Series C Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/31 | | | | | 100,000 | | | | | | 128,987 | | |
| City of Youngsville LA, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 5/1/32 | | | | | 250,000 | | | | | | 304,080 | | |
| 4.000%, due 5/1/34 | | | | | 300,000 | | | | | | 361,072 | | |
| New Orleans Aviation Board, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/37 | | | | | 600,000 | | | | | | 748,344 | | |
| Port New Orleans Board of Commissioners, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 4/1/36 | | | | | 620,000 | | | | | | 750,380 | | |
| Ward Two Water District of Livingston Parish, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 3.000%, due 4/1/22 | | | | | 300,000 | | | | | | 306,898 | | |
| 3.000%, due 4/1/23 | | | | | 300,000 | | | | | | 313,992 | | |
| | | | | | | | | | | | 3,621,370 | | |
| Maine — 0.1% | |
| Finance Authority of Maine, Revenue Bonds Series A-1 Insured: AGC | | | | | | | | | | | | | |
| 5.000%, due 12/1/26 | | | | | 155,000 | | | | | | 184,681 | | |
| Massachusetts — 1.3% | |
| City of Worcester MA, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 3.000%, due 2/15/31 | | | | | 500,000 | | | | | | 568,956 | | |
| Commonwealth of Massachusetts, Revenue Bonds Insured: NATL | | | | | | | | | | | | | |
| 5.500%, due 1/1/25 | | | | | 250,000 | | | | | | 294,554 | | |
Massachusetts Bay Transportation Authority, Revenue Bonds
4.000%, due 12/1/21 | | | | | 250,000 | | | | | | 255,632 | | |
| Massachusetts Development Finance Agency, Revenue Bonds Series U-6E | | | | | | | | | | | | | |
0.020%, due 10/1/42(b)(c) | | | | | 500,000 | | | | | | 500,000 | | |
| | | | | | | | | | | | 1,619,142 | | |
| Michigan — 1.8% | |
| City of Taylor MI, General Obligation Bonds Series 2021 Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 3/1/31 | | | | | 250,000 | | | | | | 311,024 | | |
| Michigan Finance Authority, Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 11/15/21 | | | | | 1,000,000 | | | | | | 1,025,222 | | |
| Series A | | | | | | | | | | | | | |
| 5.000%, due 2/15/34 | | | | | 235,000 | | | | | | 298,173 | | |
| Series A Class 1 | | | | | | | | | | | | | |
| 4.000%, due 6/1/34 | | | | | 500,000 | | | | | | 606,900 | | |
| | | | | | | | | | | | 2,241,319 | | |
| |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Intermediate ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Missouri — 1.0% | |
Health & Educational Facilities Authority
of the State of Missouri, Revenue
Bonds | | | | | | | | | | | | | |
| 4.000%, due 8/1/25 | | | | $ | 150,000 | | | | | $ | 167,819 | | |
| 4.500%, due 1/1/39 | | | | | 1,000,000 | | | | | | 1,094,872 | | |
| | | | | | | | | | | | 1,262,691 | | |
| Montana — 0.5% | |
| City of Bozeman MT, Tax Allocation Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 7/1/28 | | | | | 170,000 | | | | | | 201,717 | | |
| Montana Facility Finance Authority, Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 6/1/24 | | | | | 375,000 | | | | | | 424,230 | | |
| | | | | | | | | | | | 625,947 | | |
| Nebraska — 0.5% | |
Central Plains Energy Project, Revenue
Bonds | | | | | | | | | | | | | |
5.000%, due 3/1/50(b)(c) | | | | | 600,000 | | | | | | 667,770 | | |
| Nevada — 2.5% | |
| City of North Las Vegas NV, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 6/1/25 | | | | | 1,220,000 | | | | | | 1,442,228 | | |
Clark County School District, General Obligation Bonds Series B Insured:
BAM | | | | | | | | | | | | | |
| 5.000%, due 6/15/31 | | | | | 1,000,000 | | | | | | 1,325,870 | | |
| Las Vegas Convention & Visitors Authority, Revenue Bonds Series B | | | | | | | | | | | | | |
| 5.000%, due 7/1/43 | | | | | 250,000 | | | | | | 297,725 | | |
| | | | | | | | | | | | 3,065,823 | | |
| New Hampshire — 0.6% | |
| New Hampshire Business Finance Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 4.000%, due 4/1/30 | | | | | 675,000 | | | | | | 756,849 | | |
| New Jersey — 7.3% | |
| Atlantic City Board of Education, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 4/1/22 | | | | | 300,000 | | | | | | 309,392 | | |
City of Newark NJ, General Obligation Bonds Series B Insured:
AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/25 | | | | | 600,000 | | | | | | 706,434 | | |
| Essex County Improvement Authority, Revenue Bonds | | | | | | | | | | | | | |
| 4.000%, due 7/15/28 | | | | | 415,000 | | | | | | 473,941 | | |
| Series A Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 8/1/33 | | | | | 170,000 | | | | | | 226,174 | | |
| 5.000%, due 8/1/34 | | | | | 175,000 | | | | | | 232,230 | | |
| 5.000%, due 8/1/35 | | | | | 250,000 | | | | | | 330,922 | | |
| New Jersey Economic Development Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 4.000%, due 7/1/22 | | | | | 1,220,000 | | | | | | 1,271,427 | | |
| New Jersey Educational Facilities Authority, Revenue Bonds Series C Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/1/25 | | | | | 470,000 | | | | | | 554,804 | | |
| Series F Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 7/1/25 | | | | | 300,000 | | | | | | 356,033 | | |
| New Jersey Housing & Mortgage Finance Agency, Revenue Bonds Series E Insured: HUD | | | | | | | | | | | | | |
1.500%, due 9/1/22(b)(c) | | | | | 500,000 | | | | | | 502,095 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| New Jersey (continued) | |
| New Jersey Transportation Trust Fund Authority, Revenue Bonds Insured: BHAC-CR AMBAC | | | | | | | | | | | | | |
0.450%, due 12/15/24(a) | | | | $ | 690,000 | | | | | $ | 678,758 | | |
| Series A | | | | | | | | | | | | | |
1.340%, due 12/15/26(a) | | | | | 650,000 | | | | | | 603,029 | | |
New Jersey Turnpike Authority, Revenue
Bonds Series D-1
0.781% (1-Month LIBOR + 0.70%), due
1/1/24(b) | | | | | 1,000,000 | | | | | | 1,009,032 | | |
South Jersey Port Corp., Revenue Bonds
Series B | | | | | | | | | | | | | |
| 5.000%, due 1/1/31 | | | | | 500,000 | | | | | | 599,258 | | |
| State of New Jersey, General Obligation Bonds Series A | | | | | | | | | | | | | |
| 4.000%, due 6/1/31 | | | | | 500,000 | | | | | | 620,679 | | |
| 5.000%, due 6/1/29 | | | | | 500,000 | | | | | | 651,157 | | |
| | | | | | | | | | | | 9,125,365 | | |
| New York — 13.2% | |
City of Syracuse NY, General Obligation
Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 5/15/32 | | | | | 250,000 | | | | | | 293,618 | | |
| County of Suffolk NY, General Obligation Bonds | | | | | | | | | | | | | |
| Series C Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 2/1/23 | | | | | 410,000 | | | | | | 442,848 | | |
| Metropolitan Transportation Authority, Revenue Bonds Series A-1 | | | | | | | | | | | | | |
| 5.000%, due 11/15/29 | | | | | 500,000 | | | | | | 594,173 | | |
| Series B Insured: AMBAC | | | | | | | | | | | | | |
| 5.250%, due 11/15/24 | | | | | 500,000 | | | | | | 585,085 | | |
| Series C | | | | | | | | | | | | | |
| 5.000%, due 11/15/38 | | | | | 250,000 | | | | | | 268,397 | | |
| 5.000%, due 11/15/42 | | | | | 500,000 | | | | | | 535,871 | | |
| Series C-1 | | | | | | | | | | | | | |
| 4.750%, due 11/15/45 | | | | | 4,495,000 | | | | | | 5,413,116 | | |
Monroe County Industrial Development
Corp., Revenue Bonds
5.000%, due 5/1/24 | | | | | 500,000 | | | | | | 567,875 | | |
| Series A | | | | | | | | | | | | | |
| 4.000%, due 12/1/36 | | | | | 375,000 | | | | | | 440,308 | | |
| New York City Transitional Finance Authority Building Aid Revenue, Revenue Bonds Series S-3 | | | | | | | | | | | | | |
| 5.000%, due 7/15/33 | | | | | 150,000 | | | | | | 189,257 | | |
New York Convention Center
Development Corp., Revenue Bonds
Series B Insured: BAM | | | | | | | | | | | | | |
2.120%, due 11/15/33(a) | | | | | 500,000 | | | | | | 383,925 | | |
| New York Liberty Development Corp., Revenue Bonds Class 1 | | | | | | | | | | | | | |
| 2.450%, due 9/15/69 | | | | | 500,000 | | | | | | 519,557 | | |
| New York State Dormitory Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 3.000%, due 3/15/38 | | | | | 500,000 | | | | | | 537,972 | | |
| 5.000%, due 10/1/23 | | | | | 850,000 | | | | | | 938,628 | | |
| Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 10/1/33 | | | | | 500,000 | | | | | | 630,913 | | |
| New York State Thruway Authority, Revenue Bonds Series J | | | | | | | | | | | | | |
| 4.125%, due 1/1/31 | | | | | 200,000 | | | | | | 216,059 | | |
| New York State Urban Development Corp., Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 3/15/36 | | | | | 500,000 | | | | | | 650,692 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Intermediate ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| New York (continued) | |
| Series C | | | | | | | | | | | | | |
| 4.000%, due 3/15/37 | | | | $ | 400,000 | | | | | $ | 477,586 | | |
| New York Transportation Development Corp., Revenue Bonds Series C | | | | | | | | | | | | | |
| 5.000%, due 12/1/27 | | | | | 150,000 | | | | | | 187,745 | | |
| Port Authority of New York & New Jersey, Revenue Bonds | | | | | | | | | | | | | |
| 4.000%, due 9/1/43 | | | | | 400,000 | | | | | | 461,701 | | |
| Town of Oyster Bay NY, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 11/1/23 | | | | | 500,000 | | | | | | 545,794 | | |
| Triborough Bridge & Tunnel Authority, Revenue Bonds Series A-2 | | | | | | | | | | | | | |
2.000%, due 5/15/45(b)(c) | | | | | 1,000,000 | | | | | | 1,069,871 | | |
| Series C | | | | | | | | | | | | | |
0.020%, due 1/1/32(b)(c) | | | | | 500,000 | | | | | | 500,000 | | |
| | | | | | | | | | | | 16,450,991 | | |
| North Carolina — 0.7% | |
| City of Asheville NC, Revenue Bonds | | | | | | | | | | | | | |
| 4.000%, due 10/1/21 | | | | | 215,000 | | | | | | 218,413 | | |
| North Carolina Turnpike Authority, Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 2/1/24 | | | | | 500,000 | | | | | | 563,121 | | |
| Western Carolina University, Revenue Bonds | | | | | | | | | | | | | |
| 4.000%, due 10/1/21 | | | | | 125,000 | | | | | | 126,969 | | |
| | | | | | | | | | | | 908,503 | | |
| Pennsylvania — 4.1% | |
| City of Erie PA, General Obligation Bonds Series C Insured: AGM | | | | | | | | | | | | | |
2.270%, due 11/15/37(a) | | | | | 750,000 | | | | | | 459,924 | | |
City of Philadelphia PA Airport Revenue,
Revenue Bonds Series A | | | | | | | | | | | | | |
| 4.000%, due 7/1/35 | | | | | 500,000 | | | | | | 600,280 | | |
Coatesville Area School District Building
Authority, Revenue Bonds Insured:
BAM | | | | | | | | | | | | | |
| 5.000%, due 12/1/21 | | | | | 310,000 | | | | | | 317,780 | | |
| County of Cambria PA, General Obligation Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 8/1/32 | | | | | 250,000 | | | | | | 285,226 | | |
| Forest Hills School District, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 8/15/21 | | | | | 100,000 | | | | | | 101,155 | | |
| 5.000%, due 8/15/23 | | | | | 265,000 | | | | | | 292,648 | | |
| Hazle Township Municipal Authority, Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/24 | | | | | 240,000 | | | | | | 268,998 | | |
| North Pocono School District, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/15/32 | | | | | 250,000 | | | | | | 298,346 | | |
Pennsylvania Economic Development
Financing Authority, Revenue Bonds | | | | | | | | | | | | | |
| 4.000%, due 1/1/29 | | | | | 450,000 | | | | | | 524,423 | | |
Pennsylvania Higher Educational
Facilities Authority, Revenue Bonds
Series A Insured: AGC
0.735% (3-Month LIBOR + 0.60%), due
7/1/27(b) | | | | | 185,000 | | | | | | 183,599 | | |
| Pittsburgh Water & Sewer Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 9/1/32 | | | | | 550,000 | | | | | | 708,493 | | |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Pennsylvania (continued) | |
| Spring Cove School District, General Obligation Bonds Series A Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 11/15/22 | | | | $ | 500,000 | | | | | $ | 527,833 | | |
| Warrior Run School District/Montour Northumberland Union County PA, General Obligation Bonds Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/36 | | | | | 255,000 | | | | | | 283,005 | | |
| Wilkinsburg-Penn Joint Water Authority (The), Revenue Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 9/15/23 | | | | | 250,000 | | | | | | 270,924 | | |
| | | | | | | | | | | | 5,122,634 | | |
| Puerto Rico — 0.5% | |
| Commonwealth of Puerto Rico, General Obligation Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 7/1/35 | | | | | 470,000 | | | | | | 488,800 | | |
| Puerto Rico Convention Center District Authority, Revenue Bonds Series A Insured: AGC | | | | | | | | | | | | | |
| 4.500%, due 7/1/36 | | | | | 60,000 | | | | | | 61,129 | | |
| Puerto Rico Electric Power Authority, Revenue Bonds Series PP Insured: NATL | | | | | | | | | | | | | |
| 5.000%, due 7/1/24 | | | | | 25,000 | | | | | | 25,541 | | |
| | | | | | | | | | | | 575,470 | | |
| Rhode Island — 0.7% | |
| Providence Public Building Authority, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 6/15/32 | | | | | 250,000 | | | | | | 308,629 | | |
| Rhode Island Health and Educational Building Corp., Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 5/15/25 | | | | | 500,000 | | | | | | 579,763 | | |
| | | | | | | | | | | | 888,392 | | |
| South Carolina — 0.2% | |
South Carolina Public Service Authority,
Revenue Bonds Series B | | | | | | | | | | | | | |
| 5.000%, due 12/1/36 | | | | | 100,000 | | | | | | 121,195 | | |
| Series C | | | | | | | | | | | | | |
| 5.000%, due 12/1/36 | | | | | 185,000 | | | | | | 189,694 | | |
| | | | | | | | | | | | 310,889 | | |
| Texas — 5.1% | |
Central Texas Turnpike System, Revenue
Bonds Series A Insured: BHAC-CR
AMBAC | | | | | | | | | | | | | |
0.720%, due 8/15/26(a) | | | | | 750,000 | | | | | | 722,112 | | |
| City of Houston TX Combined Utility System Revenue, Revenue Bonds Insured: AGM | | | | | | | | | | | | | |
0.610%, due 12/1/25(a) | | | | | 465,000 | | | | | | 452,222 | | |
| City of Houston TX Hotel Occupancy Tax & Special Revenue, Revenue Bonds Series B Insured: AGM | | | | | | | | | | | | | |
0.630%, due 9/1/22(a) | | | | | 140,000 | | | | | | 138,835 | | |
| City of Mission TX, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 5.000%, due 2/15/23 | | | | | 920,000 | | | | | | 995,349 | | |
| City of San Antonio TX Electric & Gas Systems Revenue, Revenue Bonds | | | |
| 4.000%, due 2/1/34 | | | | | 250,000 | | | | | | 287,323 | | |
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Intermediate ETF (continued)
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| Texas (continued) | |
| Series A | | | | | | | | | | | | | |
| 5.000%, due 2/1/37 | | | | $ | 290,000 | | | | | $ | 381,355 | | |
| Fort Bend County Municipal Utility District No 215, General Obligation Bonds Insured: BAM | | | | | | | | | | | | | |
| 4.000%, due 9/1/24 | | | | | 125,000 | | | | | | 138,754 | | |
| Greater Greenspoint Redevelopment Authority, Tax Allocation Insured: AGM | | | | | | | | | | | | | |
| 4.000%, due 9/1/32 | | | | | 350,000 | | | | | | 406,885 | | |
| 4.000%, due 9/1/33 | | | | | 370,000 | | | | | | 428,640 | | |
| Houston Higher Education Finance Corp., Revenue Bonds | | | | | | | | | | | | | |
| 1.500%, due 10/1/23 | | | | | 230,000 | | | | | | 229,725 | | |
| Texas Municipal Gas Acquisition & Supply Corp. III, Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 12/15/22 | | | | | 250,000 | | | | | | 268,681 | | |
| 5.000%, due 12/15/23 | | | | | 250,000 | | | | | | 279,612 | | |
Texas Private Activity Bond Surface
Transportation Corp., Revenue Bonds
Series A | | | | | | | | | | | | | |
| 4.000%, due 6/30/32 | | | | | 500,000 | | | | | | 595,007 | | |
| Uptown Development Authority, Tax Allocation Series A | | | | | | | | | | | | | |
| 5.000%, due 9/1/35 | | | | | 500,000 | | | | | | 576,216 | | |
Viridian Municipal Management District,
General Obligation Bonds Insured:
BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/24 | | | | | 360,000 | | | | | | 404,178 | | |
| | | | | | | | | | | | 6,304,894 | | |
| Utah — 0.7% | |
| Utah Associated Municipal Power Systems, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 9/1/31 | | | | | 500,000 | | | | | | 615,943 | | |
Utah Charter School Finance Authority,
Revenue Bonds Insured: UT CSCE | | | | | | | | | | | | | |
| 4.000%, due 4/15/40 | | | | | 250,000 | | | | | | 287,331 | | |
| | | | | | | | | | | | 903,274 | | |
| Virginia — 0.2% | |
| Norfolk Airport Authority, Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 7/1/28 | | | | | 150,000 | | | | | | 191,282 | | |
| Roanoke Economic Development Authority, Revenue Bonds Series A | | | | | | | | | | | | | |
| 5.000%, due 7/1/21 | | | | | 100,000 | | | | | | 100,761 | | |
| | | | | | | | | | | | 292,043 | | |
| Washington — 1.0% | |
| Spokane Public Facilities District, Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 12/1/35 | | | | | 535,000 | | | | | | 619,726 | | |
| Washington State Convention Center Public Facilities District, Revenue Bonds | | | | | | | | | | | | | |
| 5.000%, due 7/1/37 | | | | | 500,000 | | | | | | 591,628 | | |
| | | | | | | | | | | | 1,211,354 | | |
| |
| | | | Principal
Amount | | | Value | |
| Municipal Bonds (continued) | |
| West Virginia — 0.2% | |
Morgantown Utility Board, Inc., Revenue Bonds Series A Insured:
BAM | | | | | | | | | | | | | |
| 4.000%, due 12/1/34 | | | | $ | 200,000 | | | | | $ | 239,602 | | |
| Wisconsin — 0.4% | |
| Wisconsin Health & Educational Facilities Authority, Revenue Bonds Series A Insured: AGM | | | | | | | | | | | | | |
| 5.000%, due 2/15/33 | | | | | 425,000 | | | | | | 550,810 | | |
| Total Municipal Bonds | | | | | | | | | | | | | |
| (Cost $102,490,444) | | | | | | | | | | | 105,669,494 | | |
| |
| | | | Shares | | | | | | | |
| Short-Term Investment — 19.8% | |
| Money Market Fund — 19.8% | |
Fidelity Investments Money Market Treasury Only Class I, 0.01%(d) | | | | | | | | | | | | | |
| (Cost $24,733,422) | | | | | 24,733,422 | | | | | | 24,733,422 | | |
| Total Investments — 104.5% | | | | | | | | | | | | | |
| (Cost $127,223,866) | | | | | | | | | | | 130,402,916 | | |
Other Assets and Liabilities,
Net — (4.5)% | | | | | | | | | | | (5,703,265) | | |
| Net Assets — 100.0% | | | | | | | | | | $ | 124,699,651 | | |
(a)
The security was issued on a discount basis with no stated coupon rate. Rate shown reflects the effective yield.
(b)
Variable rate securities that may be tendered back to the issuer at any time prior to maturity at par. Rate shown is the rate in effect as of April 30, 2021.
(c)
Adjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions.
(d)
Reflects the 7-day yield at April 30, 2021.
See notes to financial statements.
Schedule of Investments — IQ MacKay Municipal Intermediate ETF (continued)
Abbreviations
| | AGC | | | — | | | Assured Guaranty Corp. | |
| | AGM | | | — | | | Assured Guaranty Municipal Corp. | |
| | AMBAC | | | — | | | Ambac Assurance Corp. | |
| | BAM | | | — | | | Build America Mutual Assurance Co. | |
| | BHAC-CR | | | — | | | Berkshire Hathaway Assurance Corp. Custodial Receipts | |
| | HUD | | | — | | | Housing and Urban Development Section 8. | |
| | LIBOR | | | — | | | London InterBank Offered Rate | |
| | NATL | | | — | | | National Public Finance Guarantee Corp. | |
| | ST INTERCEPT | | | — | | | State Tax Intercept | |
| | UT CSCE | | | — | | | Utah Charter School Credit Enhancement | |
The following is a summary of the inputs used to value the Fund’s investments as of April 30, 2021. For more information on the valuation techniques, and their aggregation into the levels used in the table below, please refer to Note 2.
| Description | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Asset Valuation Inputs | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments in Securities:(e) | | | | | | | | | | | | | | | | | | | | | | | | | |
| Municipal Bonds | | | | $ | — | | | | | $ | 105,669,494 | | | | | $ | — | | | | | $ | 105,669,494 | | |
| Short-Term Investment: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Money Market Fund | | | | | 24,733,422 | | | | | | — | | | | | | — | | | | | | 24,733,422 | | |
| Total Investments in Securities | | | | $ | 24,733,422 | | | | | $ | 105,669,494 | | | | | $ | — | | | | | $ | 130,402,916 | | |
(e)
For a complete listing of investments and their states, see the Schedule of Investments.
For the year ended April 30, 2021, the Fund did not have any transfers into or out of Level 3 within the fair value hierarchy. (See Note 2)
See notes to financial statements.
Schedule of Investments — IQ Ultra Short Duration ETF
| | | | Principal
Amount | | | Value | |
| Long-Term Bonds — 93.4% | |
| Collateralized Mortgage Obligation — 0.4% | |
| Mortgage Securities — 0.4% | |
| Fannie Mae Interest Strip(a) | | | | | | | | | | | | | |
0.000%, due 6/25/39
(Cost $1,001,994) | | | | $ | 1,058,226 | | | | | $ | 968,514 | | |
| Commercial Asset-Backed Securities — 20.1% | |
| Asset Backed Securities — 20.1% | |
| 522 Funding CLO 2019-4 Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2019-4A BR, 1.788%, (3-Month LIBOR + 1.60%) due 4/20/30(b) | | | | | 1,000,000 | | | | | | 996,840 | | |
| 522 Funding CLO 2020-6 Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2020-6A B, 1.973%, (3-Month LIBOR + 1.80%) due 10/23/33(b) | | | | | 1,000,000 | | | | | | 1,000,492 | | |
| 522 Funding CLO 2021-7 Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2021-7A A, 1.270%, (3-Month LIBOR + 1.07%) due 4/23/34(b) | | | | | 1,000,000 | | | | | | 998,766 | | |
| AIG CLO, (Cayman Islands) | | | | | | | | | | | | | |
Series 2021-1A A, 0.000%, (3-Month LIBOR + 1.10%) due 4/22/34(b) | | | | | 1,500,000 | | | | | | 1,500,141 | | |
| AIMCO CLO 10 Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2019-10A A, 1.504%, (3-Month LIBOR + 1.32%) due 7/22/32(b) | | | | | 1,000,000 | | | | | | 1,001,028 | | |
| Apidos CLO, (Cayman Islands) | | | | | | | | | | | | | |
Series 2015-20A A1RA, 1.284%,
(3-Month LIBOR + 1.10%) due 7/16/31(b) | | | | | 300,000 | | | | | | 300,152 | | |
Series 2018-XXXA A2, 1.790%, (3-Month
LIBOR + 1.60%) due 10/18/31(b) | | | | | 1,250,000 | | | | | | 1,249,998 | | |
Series 2021-35A A, 1.249%, (3-Month LIBOR + 1.05%) due 4/20/34(b) | | | | | 1,500,000 | | | | | | 1,498,879 | | |
| Aqua Finance Trust 2020-A | | | | | | | | | | | | | |
| Series 2020-AA A, 1.900%, due 7/17/46 | | | | | 795,773 | | | | | | 804,750 | | |
| ARES L CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2018-50A B, 1.884%, (3-Month LIBOR + 1.70%) due 1/15/32(b) | | | | | 500,000 | | | | | | 500,051 | | |
| Ares XLI Clo Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2016-41A AR2, 1.668%, (3-Month
LIBOR + 1.07%) due 4/15/34(b) | | | | | 1,500,000 | | | | | | 1,503,515 | | |
| Ares XXXVIII CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2015-38A BR, 1.588%, (3-Month LIBOR + 1.40%) due 4/20/30(b) | | | | | 1,000,000 | | | | | | 993,422 | | |
| Bain Capital Credit CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2017-1A A1, 1.438%, (3-Month LIBOR + 1.25%) due 7/20/30(b) | | | | | 1,000,000 | | | | | | 1,000,768 | | |
| Battalion Clo 17 Ltd. | | | | | | | | | | | | | |
Series 2021-17A A1, 1.450%, (3-Month LIBOR + 1.26%) due 3/9/34(b) | | | | | 1,000,000 | | | | | | 1,001,174 | | |
| Bean Creek CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2015-1A AR, 1.208%, (3-Month LIBOR + 1.02%) due 4/20/31(b) | | | | | 650,000 | | | | | | 648,242 | | |
| | | | Principal
Amount | | | Value | |
| Commercial Asset-Backed Securities (continued) | |
| Asset Backed Securities (continued) | |
| Benefit Street Partners CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2015-VIA A1R, 1.430%, (3-Month LIBOR + 1.24%) due 10/18/29(b) | | | | $ | 1,000,000 | | | | | $ | 1,001,053 | | |
| Carlyle Global Market Strategies CLO 2013-3 Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2013-3A A1AR, 1.284%, (3-Month
LIBOR + 1.10%) due 10/15/30(b) | | | | | 993,863 | | | | | | 993,267 | | |
Series 2013-3A A2R, 1.584%, (3-Month LIBOR + 1.40%) due 10/15/30(b) | | | | | 1,575,000 | | | | | | 1,563,281 | | |
| CARLYLE US CLO 2021-1 Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2021-1A A1, 1.331%, (3-Month LIBOR + 1.14%) due 4/15/34(b) | | | | | 1,000,000 | | | | | | 999,378 | | |
| Cedar Funding XII CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2020-12A A, 0.000%, (3-Month LIBOR + 1.27%) due 10/25/32(b) | | | | | 700,000 | | | | | | 701,010 | | |
| DB Master Finance LLC | | | | | | | | | | | | | |
| Series 2017-1A A2I, 3.629%, due 11/20/47 | | | | | 388,000 | | | | | | 394,452 | | |
| FirstKey Homes 2020-SFR2 Trust | | | | | | | | | | | | | |
| Series 2020-SFR2 A, 1.266%, due 10/19/37 | | | | | 997,793 | | | | | | 993,733 | | |
| Galaxy XIX CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2015-19A A2RR, 1.576%, (3-Month
LIBOR + 1.40%) due 7/24/30(b) | | | | | 1,000,000 | | | | | | 998,571 | | |
| Galaxy XXI CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2015-21A BR, 1.538%, (3-Month LIBOR + 1.35%) due 4/20/31(b) | | | | | 1,000,000 | | | | | | 987,511 | | |
| Greenwood Park CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2018-1A A2, 1.194%, (3-Month LIBOR + 1.01%) due 4/15/31(b) | | | | | 500,000 | | | | | | 500,700 | | |
| HPS Loan Management 15-2019 Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 15A-19 A1, 1.504%, (3-Month LIBOR + 1.32%) due 7/22/32(b) | | | | | 500,000 | | | | | | 500,833 | | |
| HPS Loan Management Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 10A-16 A2R, 1.938%, (3-Month LIBOR + 1.75%) due 1/20/28(b) | | | | | 250,000 | | | | | | 250,063 | | |
| Kayne CLO 10 Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2021-10A A, 0.000%, (3-Month LIBOR + 1.17%) due 4/23/34(b) | | | | | 1,000,000 | | | | | | 998,763 | | |
| Magnetite XXVIII Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2020-28A A, 1.446%, (3-Month LIBOR + 1.27%) due 10/25/31(b) | | | | | 1,000,000 | | | | | | 1,000,817 | | |
| Neuberger Berman CLO, (Cayman Islands) | | | | | | | | | | | | | |
Series 2013-15A BR, 1.834%, (3-Month LIBOR + 1.65%) due 10/15/29(b) | | | | | 400,000 | | | | | | 400,158 | | |
See notes to financial statements.
Schedule of Investments — IQ Ultra Short Duration ETF (continued)
| | | | Principal
Amount | | | Value | |
| Commercial Asset-Backed Securities (continued) | |
| Asset Backed Securities (continued) | |
Neuberger Berman Loan Advisers CLO 32
Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2019-32A BR, 1.590%, (3-Month LIBOR + 1.40%) due 1/20/32(b) | | | | $ | 1,500,000 | | | | | $ | 1,488,844 | | |
| Oak Hill Credit Partners, (Cayman Islands) | | | | | | | | | | | | | |
Series 2021-8A A, 1.378%, (3-Month LIBOR + 1.19%) due 1/18/34(b) | | | | | 1,250,000 | | | | | | 1,250,625 | | |
| Oaktree CLO 2015-1 Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2015-1A A2BR, 1.538%, (3-Month
LIBOR + 1.35%) due 10/20/27(b) | | | | | 500,000 | | | | | | 497,746 | | |
| Oaktree CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2020-1A A, 2.184%, (3-Month LIBOR + 2.00%) due 7/15/29(b) | | | | | 1,000,000 | | | | | | 1,001,792 | | |
| Octagon Investment Partners 31 LLC, (Cayman Islands) | | | | | | | | | | | | | |
Series 2017-1A B1R, 1.688%, (3-Month LIBOR + 1.50%) due 7/20/30(b) | | | | | 1,500,000 | | | | | | 1,500,048 | | |
| Octagon Investment Partners 51 Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2021-1A A, 0.000%, (3-Month LIBOR + 1.15%) due 7/20/34(b) | | | | | 1,000,000 | | | | | | 1,000,106 | | |
| Palmer Square CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2021-2A A, 0.000%, (3-Month LIBOR + 1.15%) due 7/15/34(b) | | | | | 1,000,000 | | | | | | 1,000,000 | | |
Palmer Square Loan Funding 2019-2 Ltd.,
(Cayman Islands) | | | | | | | | | | | | | |
Series 2019-2A A1, 1.158%, (3-Month LIBOR + 0.97%) due 4/20/27(b) | | | | | 174,885 | | | | | | 174,890 | | |
Palmer Square Loan Funding 2019-4 Ltd.,
(Cayman Islands) | | | | | | | | | | | | | |
Series 2019-4A A2, 1.776%, (3-Month LIBOR + 1.60%) due 10/24/27(b) | | | | | 1,000,000 | | | | | | 1,000,199 | | |
| Palmer Square Loan Funding Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2019-3A A2, 1.782%, (3-Month LIBOR + 1.60%) due 8/20/27(b) | | | | | 300,000 | | | | | | 300,052 | | |
| Park Avenue Institutional Advisers CLO Ltd. 2021-1, (Cayman Islands) | | | | | | | | | | | | | |
Series 2021-1A A1A, 1.595%, (3-Month LIBOR + 1.39%) due 1/20/34(b) | | | | | 1,000,000 | | | | | | 998,800 | | |
| Progress Residential Trust | | | | | | | | | | | | | |
| Series 2018-SFR3 A, 3.880%, due 10/17/35 | | | | | 1,158,014 | | | | | | 1,170,812 | | |
| Regatta Funding Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2016-1A BR, 1.638%, (3-Month LIBOR + 1.45%) due 7/20/28(b) | | | | | 1,000,000 | | | | | | 999,891 | | |
| Regatta XIV Funding Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2018-3A A, 1.366%, (3-Month LIBOR + 1.19%) due 10/25/31(b) | | | | | 1,000,000 | | | | | | 1,000,321 | | |
| Romark CLO IV Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2021-4A A1, 0.000%, (3-Month LIBOR + 1.17%) due 7/10/34(b) | | | | | 1,000,000 | | | | | | 1,000,106 | | |
| | | | Principal
Amount | | | Value | |
| Commercial Asset-Backed Securities (continued) | |
| Asset Backed Securities (continued) | |
| Silver Creek CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2014-1A AR, 1.428%, (3-Month LIBOR + 1.24%) due 7/20/30(b) | | | | $ | 1,250,000 | | | | | $ | 1,249,380 | | |
| Sixth Street CLO XVII Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2021-17A A, 1.433%, (3-Month LIBOR + 1.24%) due 1/20/34(b) | | | | | 1,500,000 | | | | | | 1,506,174 | | |
| Taco Bell Funding LLC | | | | | | | | | | | | | |
| Series 2018-1A A2I, 4.318%, due 11/25/48 | | | | | 415,438 | | | | | | 416,439 | | |
| Textainer Marine Containers VII Ltd., (China) | | | | | | | | | | | | | |
| Series 2021-1A A, 1.680%, due 2/20/46 | | | | | 1,183,953 | | | | | | 1,161,500 | | |
| TICP CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2018-10A A, 1.188%, (3-Month LIBOR + 1.00%) due 4/20/31(b) | | | | | 300,000 | | | | | | 298,991 | | |
| TICP CLO XV Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2020-15A A, 1.468%, (3-Month LIBOR + 1.28%) due 4/20/33(b) | | | | | 1,000,000 | | | | | | 1,003,000 | | |
| Treman Park CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2015-1A ARR, 1.258%, (3-Month LIBOR + 1.07%) due 10/20/28(b) | | | | | 235,564 | | | | | | 235,718 | | |
| TRESTLES CLO II Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2018-2A A2, 1.846%, (3-Month LIBOR + 1.67%) due 7/25/31(b) | | | | | 275,000 | | | | | | 275,044 | | |
| Triton Container Finance VIII LLC | | | | | | | | | | | | | |
| Series 2020-1A A, 2.110%, due 9/20/45 | | | | | 950,417 | | | | | | 957,157 | | |
| Vantage Data Centers LLC | | | | | | | | | | | | | |
| Series 2020-1A A2, 1.645%, due 9/15/45 | | | | | 1,260,000 | | | | | | 1,254,764 | | |
| Westcott Park CLO Ltd., (Cayman Islands) | | | | | | | | | | | | | |
Series 2016-1A AR, 1.398%, (3-Month LIBOR + 1.21%) due 7/20/28(b) | | | | | 1,000,000 | | | | | | 1,000,874 | | |
| | | | | | | | | | | | 51,025,081 | | |
Total Commercial Asset-Backed Securities
(Cost $50,972,531) | | | | | | | | | | | 51,025,081 | | |
| Commercial Mortgage-Backed Securities — 1.6% | |
| Mortgage Securities — 1.6% | |
| BWAY 2013-1515 Mortgage Trust | | | | | | | | | | | | | |
| Series 2013-1515 A2, 3.454%, due 3/10/33 | | | | | 1,400,000 | | | | | | 1,501,057 | | |
| CAMB Commercial Mortgage Trust | | | | | | | | | | | | | |
Series 2019-LIFE A, 1.185%, (1-Month LIBOR + 1.07%) due 12/15/37(b) | | | | | 500,000 | | | | | | 500,620 | | |
| GS Mortgage Securities Corp. Trust 2012-ALOHA | | | | | | | | | | | | | |
| Series 2012-ALOH A, 3.551%, due 4/10/34 | | | | | 1,000,000 | | | | | | 1,014,937 | | |
See notes to financial statements.
Schedule of Investments — IQ Ultra Short Duration ETF (continued)
| | | | Principal
Amount | | | Value | |
| Commercial Mortgage-Backed Securities (continued) | |
| Mortgage Securities (continued) | |
| Houston Galleria Mall Trust 2015-HGLR | | | | | | | | | | | | | |
| Series 2015-HGLR A1A1, 3.087%, due 3/5/37 | | | | $ | 1,000,000 | | | | | $ | 1,044,418 | | |
| | | | | | | | | | | | 4,061,032 | | |
Total Commercial Mortgage-Backed Securities
(Cost $4,058,935) | | | | | | | | | | | 4,061,032 | | |
| Corporate Bonds — 54.4% | |
| Basic Materials — 3.1% | |
| DuPont de Nemours, Inc. | | | | | | | | | | | | | |
| 2.169%, due 5/1/23 | | | | | 1,825,000 | | | | | | 1,826,699 | | |
| LYB International Finance III LLC | | | | | | | | | | | | | |
1.202%, (3-Month LIBOR + 1.00%) due 10/1/23(b) | | | | | 1,400,000 | | | | | | 1,403,479 | | |
| Nutrien Ltd., (Canada) | | | | | | | | | | | | | |
| 1.900%, due 5/13/23 | | | | | 1,375,000 | | | | | | 1,411,138 | | |
| 3.625%, due 3/15/24 | | | | | 1,125,000 | | | | | | 1,207,925 | | |
| Nutrition & Biosciences, Inc. | | | | | | | | | | | | | |
| 1.230%, due 10/1/25 | | | | | 425,000 | | | | | | 421,177 | | |
| Steel Dynamics, Inc. | | | | | | | | | | | | | |
| 2.400%, due 6/15/25 | | | | | 1,575,000 | | | | | | 1,643,906 | | |
| | | | | | | | | | | | 7,914,324 | | |
| Communications — 5.6% | |
| AT&T, Inc. | | | | | | | | | | | | | |
| 1.700%, due 3/25/26 | | | | | 1,600,000 | | | | | | 1,604,778 | | |
Charter Communications Operating LLC
/ Charter Communications Operating
Capital | | | | | | | | | | | | | |
| 4.500%, due 2/1/24 | | | | | 1,575,000 | | | | | | 1,721,735 | | |
| Discovery Communications LLC | | | | | | | | | | | | | |
| 3.800%, due 3/13/24 | | | | | 1,525,000 | | | | | | 1,642,451 | | |
| NTT Finance Corp., (Japan) | | | | | | | | | | | | | |
| 0.373%, due 3/3/23 | | | | | 2,950,000 | | | | | | 2,946,705 | | |
| Thomson Reuters Corp., (Canada) | | | | | | | | | | | | | |
| 3.850%, due 9/29/24 | | | | | 475,000 | | | | | | 515,473 | | |
| T-Mobile USA, Inc. | | | | | | | | | | | | | |
| 1.500%, due 2/15/26 | | | | | 1,950,000 | | | | | | 1,954,750 | | |
| Verizon Communications, Inc. | | | | | | | | | | | | | |
| 0.750%, due 3/22/24 | | | | | 3,750,000 | | | | | | 3,755,602 | | |
| | | | | | | | | | | | 14,141,494 | | |
| Consumer, Cyclical — 5.6% | |
| 7-Eleven, Inc. | | | | | | | | | | | | | |
| 0.800%, due 2/10/24 | | | | | 2,750,000 | | | | | | 2,745,493 | | |
| American Honda Finance Corp. | | | | | | | | | | | | | |
| 0.550%, due 7/12/24 | | | | | 2,400,000 | | | | | | 2,384,726 | | |
| 2.400%, due 6/27/24 | | | | | 1,800,000 | | | | | | 1,888,070 | | |
| Daimler Finance North America LLC, (Germany) | | | | | | | | | | | | | |
| 2.700%, due 6/14/24 | | | | | 1,575,000 | | | | | | 1,654,194 | | |
| Ford Motor Credit Co. LLC | | | | | | | | | | | | | |
| 3.087%, due 1/9/23 | | | | | 200,000 | | | | | | 203,740 | | |
| 3.664%, due 9/8/24 | | | | | 325,000 | | | | | | 338,415 | | |
| General Motors Financial Co., Inc. | | | | | | | | | | | | | |
| 1.050%, due 3/8/24 | | | | | 1,922,000 | | | | | | 1,924,491 | | |
| | | | Principal
Amount | | | Value | |
| Corporate Bonds (continued) | |
| Consumer, Cyclical (continued) | |
| Hyundai Capital America | | | | | | | | | | | | | |
| 1.300%, due 1/8/26 | | | | $ | 2,425,000 | | | | | $ | 2,376,493 | | |
| Ralph Lauren Corp. | | | | | | | | | | | | | |
| 1.700%, due 6/15/22 | | | | | 225,000 | | | | | | 228,500 | | |
| Volkswagen Group of America Finance LLC, (Germany) | | | | | | | | | | | | | |
| 1.250%, due 11/24/25 | | | | | 400,000 | | | | | | 399,183 | | |
| | | | | | | | | | | | 14,143,305 | | |
| Consumer, Non-cyclical — 5.4% | |
| AbbVie, Inc. | | | | | | | | | | | | | |
| 2.600%, due 11/21/24 | | | | | 600,000 | | | | | | 633,965 | | |
| AmerisourceBergen Corp. | | | | | | | | | | | | | |
| 0.737%, due 3/15/23 | | | | | 2,100,000 | | | | | | 2,102,822 | | |
| Bayer US Finance II LLC, (Germany) | | | | | | | | | | | | | |
| 3.875%, due 12/15/23 | | | | | 2,025,000 | | | | | | 2,174,974 | | |
| Coca-Cola European Partners PLC, (United Kingdom) | | | | | | | | | | | | | |
| 0.800%, due 5/3/24 | | | | | 2,150,000 | | | | | | 2,147,185 | | |
| CVS Health Corp. | | | | | | | | | | | | | |
| 2.625%, due 8/15/24 | | | | | 2,800,000 | | | | | | 2,959,001 | | |
| Keurig Dr Pepper, Inc. | | | | | | | | | | | | | |
| 4.057%, due 5/25/23 | | | | | 702,000 | | | | | | 751,157 | | |
| Tyson Foods, Inc. | | | | | | | | | | | | | |
| 4.500%, due 6/15/22 | | | | | 1,500,000 | | | | | | 1,555,935 | | |
| Viatris, Inc. | | | | | | | | | | | | | |
| 1.125%, due 6/22/22 | | | | | 1,550,000 | | | | | | 1,559,666 | | |
| | | | | | | | | | | | 13,884,705 | | |
| Energy — 1.8% | |
| Enterprise Products Operating LLC | | | | | | | | | | | | | |
| 3.350%, due 3/15/23 | | | | | 1,557,000 | | | | | | 1,628,823 | | |
| Kinder Morgan Energy Partners LP | | | | | | | | | | | | | |
| 4.150%, due 2/1/24 | | | | | 1,275,000 | | | | | | 1,380,241 | | |
| Valero Energy Corp. | | | | | | | | | | | | | |
| 2.850%, due 4/15/25 | | | | | 1,325,000 | | | | | | 1,396,635 | | |
| | | | | | | | | | | | 4,405,699 | | |
| Financial — 24.4% | |
| AIG Global Funding | | | | | | | | | | | | | |
| 0.800%, due 7/7/23 | | | | | 1,300,000 | | | | | | 1,308,706 | | |
| Air Lease Corp. | | | | | | | | | | | | | |
| 3.875%, due 7/3/23 | | | | | 2,400,000 | | | | | | 2,551,361 | | |
| Aircastle Ltd. | | | | | | | | | | | | | |
| 2.850%, due 1/26/28 | | | | | 1,100,000 | | | | | | 1,078,386 | | |
| American Express Co. | | | | | | | | | | | | | |
| 2.500%, due 7/30/24 | | | | | 2,432,000 | | | | | | 2,573,229 | | |
| Antares Holdings LP, (Canada) | | | | | | | | | | | | | |
| 3.950%, due 7/15/26 | | | | | 550,000 | | | | | | 565,125 | | |
| Ares Finance Co. LLC | | | | | | | | | | | | | |
| 4.000%, due 10/8/24 | | | | | 1,640,000 | | | | | | 1,765,156 | | |
| Banco Santander SA, (Spain) | | | | | | | | | | | | | |
| 2.746%, due 5/28/25 | | | | | 1,800,000 | | | | | | 1,891,346 | | |
| Bank of America Corp. | | | | | | | | | | | | | |
| 4.200%, due 8/26/24 | | | | | 2,400,000 | | | | | | 2,645,928 | | |
| BNP Paribas SA, (France) | | | | | | | | | | | | | |
| 4.250%, due 10/15/24 | | | | | 2,125,000 | | | | | | 2,359,326 | | |
See notes to financial statements.
Schedule of Investments — IQ Ultra Short Duration ETF (continued)
| | | | Principal
Amount | | | Value | |
| Corporate Bonds (continued) | |
| Financial (continued) | |
| BOC Aviation USA Corp., (Singapore) | | | | | | | | | | | | | |
| 1.625%, due 4/29/24 | | | | $ | 625,000 | | | | | $ | 627,229 | | |
| Brighthouse Financial Global Funding | | | | | | | | | | | | | |
| 1.000%, due 4/12/24 | | | | | 725,000 | | | | | | 725,768 | | |
| Citigroup, Inc. | | | | | | | | | | | | | |
0.981%, (SOFR + 0.67%) due 5/1/25(b) | | | | | 3,025,000 | | | | | | 3,032,880 | | |
| Credit Agricole SA/London, (France) | | | | | | | | | | | | | |
1.907%, (SOFR + 1.68%) due 6/16/26(b) | | | | | 1,300,000 | | | | | | 1,324,207 | | |
| Credit Suisse AG, (Switzerland) | | | | | | | | | | | | | |
| 0.495%, due 2/2/24 | | | | | 4,900,000 | | | | | | 4,858,698 | | |
| Goldman Sachs Group, Inc. (The) | | | | | | | | | | | | | |
| 0.481%, due 1/27/23 | | | | | 2,000,000 | | | | | | 1,999,684 | | |
| 3.625%, due 2/20/24 | | | | | 950,000 | | | | | | 1,023,600 | | |
| HSBC Holdings PLC, (United Kingdom) | | | | | | | | | | | | | |
| 4.250%, due 8/18/25 | | | | | 2,150,000 | | | | | | 2,380,674 | | |
| J.P. Morgan Chase & Co. | | | | | | | | | | | | | |
| 3.875%, due 9/10/24 | | | | | 2,250,000 | | | | | | 2,463,905 | | |
| Lloyds Banking Group PLC, (United Kingdom) | | | | | | | | | | | | | |
0.695%, (CMT + 0.55%) due 5/11/24(b) | | | | | 2,375,000 | | | | | | 2,371,592 | | |
| LSEGA Financing PLC, (United Kingdom) | | | | | | | | | | | | | |
| 0.650%, due 4/6/24 | | | | | 3,000,000 | | | | | | 2,992,350 | | |
| Mitsubishi UFJ Financial Group, Inc., (Japan) | | | | | | | | | | | | | |
| 3.407%, due 3/7/24 | | | | | 1,850,000 | | | | | | 1,984,889 | | |
| Morgan Stanley | | | | | | | | | | | | | |
| 4.100%, due 5/22/23 | | | | | 2,904,000 | | | | | | 3,114,226 | | |
| National Retail Properties, Inc. | | | | | | | | | | | | | |
| 3.900%, due 6/15/24 | | | | | 900,000 | | | | | | 975,632 | | |
| Protective Life Global Funding | | | | | | | | | | | | | |
| 1.082%, due 6/9/23 | | | | | 1,500,000 | | | | | | 1,517,391 | | |
| Royal Bank of Canada, (Canada) | | | | | | | | | | | | | |
| 0.425%, due 1/19/24 | | | | | 2,300,000 | | | | | | 2,290,285 | | |
| Standard Chartered PLC, (United Kingdom) | | | | | | | | | | | | | |
0.991%, (CMT + 0.78%) due 1/12/25(b) | | | | | 2,600,000 | | | | | | 2,593,529 | | |
1.319%, (CMT + 1.17%) due 10/14/23(b) | | | | | 2,100,000 | | | | | | 2,115,244 | | |
| Sumitomo Mitsui Trust Bank Ltd., (Japan) | | | | | | | | | | | | | |
| 0.850%, due 3/25/24 | | | | | 1,850,000 | | | | | | 1,848,816 | | |
| UBS AG/London, (Switzerland) | | | | | | | | | | | | | |
| 0.450%, due 2/9/24 | | | | | 2,250,000 | | | | | | 2,242,458 | | |
| Wells Fargo & Co. | | | | | | | | | | | | | |
| 3.750%, due 1/24/24 | | | | | 2,285,000 | | | | | | 2,469,985 | | |
| | | | | | | | | | | | 61,691,605 | | |
| Government — 0.6% | |
| International Bank for Reconstruction & Development, (Supranational) | | | | | | | | | | | | | |
| Series GDIF, 0.850%, due 2/10/27 | | | | | 1,500,000 | | | | | | 1,465,899 | | |
| Industrial — 4.9% | |
| Berry Global, Inc. | | | | | | | | | | | | | |
| 0.950%, due 2/15/24 | | | | | 2,350,000 | | | | | | 2,345,335 | | |
| | | | Principal
Amount | | | Value | |
| Corporate Bonds (continued) | |
| Industrial (continued) | |
| Boeing Co. (The) | | | | | | | | | | | | | |
| 1.167%, due 2/4/23 | | | | $ | 750,000 | | | | | $ | 753,169 | | |
| 1.950%, due 2/1/24 | | | | | 1,375,000 | | | | | | 1,411,300 | | |
| 2.700%, due 5/1/22 | | | | | 450,000 | | | | | | 459,173 | | |
| Flex Ltd. | | | | | | | | | | | | | |
| 3.750%, due 2/1/26 | | | | | 875,000 | | | | | | 947,384 | | |
| Flowserve Corp. | | | | | | | | | | | | | |
| 3.500%, due 9/15/22 | | | | | 1,825,000 | | | | | | 1,878,316 | | |
| Ryder System, Inc. | | | | | | | | | | | | | |
| 2.500%, due 9/1/24 | | | | | 2,075,000 | | | | | | 2,181,896 | | |
| Siemens Financieringsmaatschappij NV, (Germany) | | | | | | | | | | | | | |
| 0.650%, due 3/11/24 | | | | | 2,400,000 | | | | | | 2,403,902 | | |
| | | | | | | | | | | | 12,380,475 | | |
| Utilities — 3.0% | |
| CenterPoint Energy Resources Corp. | | | | | | | | | | | | | |
| 0.700%, due 3/2/23 | | | | | 1,000,000 | | | | | | 1,000,465 | | |
| DTE Energy Co. | | | | | | | | | | | | | |
| 2.250%, due 11/1/22 | | | | | 1,550,000 | | | | | | 1,590,759 | | |
| Series F, 1.050%, due 6/1/25 | | | | | 525,000 | | | | | | 522,996 | | |
| Entergy Louisiana LLC | | | | | | | | | | | | | |
| 0.620%, due 11/17/23 | | | | | 850,000 | | | | | | 851,072 | | |
| Pacific Gas and Electric Co. | | | | | | | | | | | | | |
| 1.750%, due 6/16/22 | | | | | 1,700,000 | | | | | | 1,701,426 | | |
| Southern California Edison Co. | | | | | | | | | | | | | |
| 1.100%, due 4/1/24 | | | | | 1,875,000 | | | | | | 1,890,870 | | |
| | | | | | | | | | | | 7,557,588 | | |
| Total Corporate Bonds | | | | | | | | | | | | | |
| (Cost $137,434,812) | | | | | | | | | | | 137,585,094 | | |
| U.S. Treasury Note — 1.1% | |
| U.S. Treasury Note, 0.375%, due 4/15/24 | | | | | | | | | | | | | |
| (Cost $2,801,747) | | | | | 2,800,000 | | | | | | 2,803,500 | | |
| United States Government Agency & Obligations — 10.3% | |
| Government — 10.3% | |
| Federal Farm Credit Banks Funding Corporation | | | | | | | | | | | | | |
| 0.680%, due 1/13/27 | | | | | 3,000,000 | | | | | | 2,925,027 | | |
| 0.840%, due 2/2/28 | | | | | 2,000,000 | | | | | | 1,930,270 | | |
| 0.950%, due 7/21/28 | | | | | 2,000,000 | | | | | | 1,929,670 | | |
| 1.030%, due 12/1/28 | | | | | 3,000,000 | | | | | | 2,888,730 | | |
| 1.050%, due 6/22/28 | | | | | 1,250,000 | | | | | | 1,213,702 | | |
| 1.240%, due 12/23/30 | | | | | 1,200,000 | | | | | | 1,139,393 | | |
| 1.990%, due 3/17/31 | | | | | 2,722,000 | | | | | | 2,716,855 | | |
| 2.020%, due 4/1/31 | | | | | 1,800,000 | | | | | | 1,799,748 | | |
| 2.040%, due 4/14/31 | | | | | 3,000,000 | | | | | | 2,995,545 | | |
| 2.125%, due 3/25/30 | | | | | 1,050,000 | | | | | | 1,051,319 | | |
| Federal Home Loan Banks | | | | | | | | | | | | | |
| 1.000%, due 7/28/28 | | | | | 2,000,000 | | | | | | 1,932,024 | | |
| 1.070%, due 1/25/30 | | | | | 2,500,000 | | | | | | 2,375,535 | | |
| Federal National Mortgage Association | | | | | | | | | | | | | |
| 0.900%, due 12/30/27 | | | | | 1,125,000 | | | | | | 1,090,617 | | |
| | | | | | | | | | | | 25,988,435 | | |
| |
See notes to financial statements.
Schedule of Investments — IQ Ultra Short Duration ETF (continued)
| | | | Principal
Amount | | | Value | |
Total United States Government Agency &
Obligations | | | | | | | | | | | | | |
| (Cost $26,633,605) | | | | | | | | | | $ | 25,988,435 | | |
United States Government Agency Mortgage-Backed
Securities — 5.5% | |
| Government — 0.8% | |
| Federal Home Loan Mortgage Corporation | | | | | | | | | | | | | |
| 0.625%, due 12/17/25 | | | | | 2,000,000 | | | | | | 1,980,374 | | |
| Mortgage Securities — 4.7% | |
| Freddie Mac Multifamily Structured Pass Through Certificates | | | | | | | | | | | | | |
Series 2020-K107, 1.708%, due 1/25/30(b)(c) | | | | | 14,987,298 | | | | | | 1,813,829 | | |
Series 2020-K108, 1.810%, due 3/25/30(b)(c) | | | | | 15,659,122 | | | | | | 2,045,902 | | |
Series 2020-K118, 1.055%, due 9/25/30(b)(c) | | | | | 19,071,264 | | | | | | 1,483,241 | | |
Series 2020-K119, 1.027%, due 9/25/30(b)(c) | | | | | 14,985,580 | | | | | | 1,124,981 | | |
Series 2020-K120, 1.134%, due 10/25/30(b)(c) | | | | | 14,738,277 | | | | | | 1,224,718 | | |
Series 2020-K122, 0.974%, due 11/25/30(b)(c) | | | | | 17,681,645 | | | | | | 1,268,980 | | |
Series 2021-K123, 0.866%, due 12/25/30(b)(c) | | | | | 28,741,022 | | | | | | 1,828,297 | | |
Series 2021-K124, 0.812%, due 12/25/30(b)(c) | | | | | 19,495,745 | | | | | | 1,182,645 | | |
| | | | | | | | | | | | 11,972,593 | | |
| Total United States Government Agency Mortgage-Backed Securities | | | | | | | | | | | | | |
| (Cost $14,031,220) | | | | | | | | | | | 13,952,967 | | |
| |
| | Short-Term Investment — 9.5% | |
| | Commercial Paper — 1.2% | | | | | | | | | | | | | |
| | Financial — 1.2% | | | | | | | | | | | | | |
| | Banco del Estado de Chile | | | | | | | | | | | | | |
| | 0.000%, due 8/3/21(a) | | | |
| | (Cost $2,995,990) | | | | | 3,000,000 | | | | | | 2,998,560 | | |
| | | | Shares | | | Value | |
| Money Market Fund — 8.3% | | | | | | | | | | | | | |
| BlackRock Liquidity T-Fund, 0.02%(d) | | | | | | | | | | | | | |
| (Cost $20,929,937) | | | | | 20,929,937 | | | | | $ | 20,929,937 | | |
| Total Investments — 102.9% | | | | | | | | | | | | | |
| (Cost $260,860,771) | | | | | | | | | | | 260,313,120 | | |
Other Assets and Liabilities,
Net — (2.9)% | | | | | | | | | | | (7,335,083) | | |
| Net Assets — 100.0% | | | | | | | | | | $ | 252,978,037 | | |
(a)
The security was issued on a discount basis with no stated coupon rate. Rate shown reflects the effective yield.
(b)
Variable rate securities that may be tendered back to the issuer at any time prior to maturity at par. Rate shown is the rate in effect as of April 30, 2021.
(c)
Adjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions.
(d)
Reflects the 7-day yield at April 30, 2021.
Abbreviations
CMT — 1 year Constant Maturity Treasury Index
LIBOR — London InterBank Offered Rate
SOFR — Secured Financing Overnight Rate
See notes to financial statements.
Schedule of Investments — IQ Ultra Short Duration ETF (continued)
Open futures contracts outstanding at April 30, 2021:
| Type | | | Broker | | | Expiration
Date | | | Number of
Contracts
Purchased
(Sold) | | | Notional
Value at
Trade
Date | | | Notional
Value at
April 30,
2021 | | | Unrealized
Appreciation
(Depreciation) | |
| U.S. 10 Year Note (CBT) | | | RBC Capital Markets | | | | | June 2021 | | | | | | (97) | | | | | $ | (12,837,172) | | | | | $ | (12,807,031) | | | | | $ | 30,141 | | |
| U.S. 10 Year Ultra Note | | | RBC Capital Markets | | | | | June 2021 | | | | | | (188) | | | | | | (27,924,010) | | | | | | (27,362,813) | | | | | | 561,197 | | |
| U.S. 5 Year Note (CBT) | | | RBC Capital Markets | | | | | June 2021 | | | | | | (13) | | | | | | (1,611,166) | | | | | | (1,611,188) | | | | | | (22) | | |
| U.S. Ultra Bond (CBT) | | | RBC Capital Markets | | | | | June 2021 | | | | | | (33) | | | | | | (6,146,532) | | | | | | (6,134,906) | | | | | | 11,626 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 602,942 | | |
CBT — Chicago Board of Trade
Cash posted as collateral to broker for futures contracts was $856,525 at April 30, 2021.
The following is a summary of the inputs used to value the Fund’s investments as of April 30, 2021. For more information on the valuation techniques, and their aggregation into the levels used in the table below, please refer to Note 2.
| Description | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Asset Valuation Inputs | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments in Securities:(e) | | | | | | | | | | | | | | | | | | | | | | | | | |
| Collateralized Mortgage Obligation | | | | $ | — | | | | | $ | 968,514 | | | | | $ | — | | | | | $ | 968,514 | | |
| Commercial Asset-Backed Securities | | | | | — | | | | | | 51,025,081 | | | | | | — | | | | | | 51,025,081 | | |
| Commercial Mortgage-Backed Securities | | | | | — | | | | | | 4,061,032 | | | | | | — | | | | | | 4,061,032 | | |
| Corporate Bonds | | | | | — | | | | | | 137,585,094 | | | | | | — | | | | | | 137,585,094 | | |
| U.S. Treasury Note | | | | | — | | | | | | 2,803,500 | | | | | | — | | | | | | 2,803,500 | | |
| United States Government Agency & Obligations | | | | | — | | | | | | 25,988,435 | | | | | | — | | | | | | 25,988,435 | | |
| United States Government Agency Mortgage-Backed Securities | | | | | — | | | | | | 13,952,967 | | | | | | — | | | | | | 13,952,967 | | |
| Short-Term Investment: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial Paper | | | | | — | | | | | | 2,998,560 | | | | | | — | | | | | | 2,998,560 | | |
| Money Market Fund | | | | | 20,929,937 | | | | | | — | | | | | | — | | | | | | 20,929,937 | | |
| Total Investments in Securities | | | | | 20,929,937 | | | | | | 239,383,183 | | | | | | — | | | | | | 260,313,120 | | |
| Other Financial Instruments:(f) | | | | | | | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | | | | 602,964 | | | | | | — | | | | | | — | | | | | | 602,964 | | |
| Total Investments in Securities and Other Financial Instruments | | | | $ | 21,532,901 | | | | | $ | 239,383,183 | | | | | $ | — | | | | | $ | 260,916,084 | | |
| Liability Valuation Inputs | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other Financial Instruments:(f) | | | | | | | | | | | | | | | | | | | | | | | | | |
| Futures Contracts | | | | $ | (22) | | | | | $ | — | | | | | $ | — | | | | | $ | (22) | | |
(e)
For a complete listing of investments and their industries, see the Schedule of Investments.
(f)
Reflects the unrealized appreciation (depreciation) of the instruments.
For the year ended April 30, 2021, the Fund did not have any transfers into or out of Level 3 within the fair value hierarchy. (See Note 2)
See notes to financial statements.
Statements of Assets and Liabilities
| | | | IQ MacKay
Municipal
Insured ETF | | | IQ MacKay
Municipal
Intermediate ETF | | | IQ Ultra
Short
Duration ETF | |
| Assets | | | | | | | | | | | | | | | | | | | |
| Investments in securities, at value | | | | $ | 459,010,041 | | | | | $ | 130,402,916 | | | | | $ | 260,313,120 | | |
| Deposits at broker for futures contracts | | | | | — | | | | | | — | | | | | | 856,525 | | |
| Receivable for investments sold | | | | | 3,941,361 | | | | | | 600,223 | | | | | | — | | |
| Interest receivable | | | | | 3,768,796 | | | | | | 1,010,796 | | | | | | 912,665 | | |
| Dividend receivable | | | | | 197 | | | | | | 181 | | | | | | 328 | | |
| Receivable for capital shares transactions | | | | | — | | | | | | 2,682,072 | | | | | | — | | |
| Due from advisor | | | | | 98,874 | | | | | | 26,855 | | | | | | 27,141 | | |
| Total assets | | | | | 466,819,269 | | | | | | 134,723,043 | | | | | | 262,109,779 | | |
| Liabilities | | | | | | | | | | | | | | | | | | | |
| Payable for investments purchased | | | | | 22,245,239 | | | | | | 9,937,037 | | | | | | 8,974,412 | | |
| Advisory fees payable | | | | | 144,460 | | | | | | 37,158 | | | | | | 51,143 | | |
| Trustee fees payable | | | | | 1,837 | | | | | | 462 | | | | | | 1,069 | | |
| Compliance fees payable | | | | | 94 | | | | | | 27 | | | | | | — | | |
| Variation margin payable | | | | | — | | | | | | — | | | | | | 38,867 | | |
| Cash due to custodian | | | | | — | | | | | | — | | | | | | 40 | | |
| Accrued expenses and other liabilities | | | | | 100,951 | | | | | | 48,708 | | | | | | 66,211 | | |
| Total liabilities | | | | | 22,492,581 | | | | | | 10,023,392 | | | | | | 9,131,742 | | |
| Net Assets | | | | $ | 444,326,688 | | | | | $ | 124,699,651 | | | | | $ | 252,978,037 | | |
| Composition of Net Assets | | | | | | | | | | | | | | | | | | | |
| Paid-in capital | | | | $ | 439,078,969 | | | | | $ | 121,143,886 | | | | | $ | 251,598,373 | | |
| Total distributable earnings | | | | | 5,247,719 | | | | | | 3,555,765 | | | | | | 1,379,664 | | |
| Net Assets | | | | $ | 444,326,688 | | | | | $ | 124,699,651 | | | | | $ | 252,978,037 | | |
| NET ASSET VALUE PER SHARE | | | | | | | | | | | | | | | | | | | |
| Shares Outstanding (no par value, unlimited shares authorized) | | | | | 16,150,000 | | | | | | 4,650,000 | | | | | | 5,100,000 | | |
| Net Asset Value Per Share | | | | $ | 27.51 | | | | | $ | 26.82 | | | | | $ | 49.60 | | |
| Investments, at cost | | | | $ | 453,514,451 | | | | | $ | 127,223,866 | | | | | $ | 260,860,771 | | |
See notes to financial statements.
Statements of Operations (continued)
For the Year Ended April 30, 2021
| | | | IQ MacKay
Municipal
Insured ETF | | | IQ MacKay
Municipal
Intermediate ETF | | | IQ Ultra
Short
Duration ETF | |
| Investment Income | | | | | | | | | | | | | | | | | | | |
| Interest income | | | | $ | 3,921,517 | | | | | $ | 1,485,868 | | | | | $ | 2,740,300 | | |
| Dividend income | | | | | 2,199 | | | | | | 940 | | | | | | 5,177 | | |
| Total investment income | | | | | 3,923,716 | | | | | | 1,486,808 | | | | | | 2,745,477 | | |
| Expenses | | | | | | | | | | | | | | | | | | | |
| Advisory fees (see Note 3) | | | | | 923,022 | | | | | | 286,264 | | | | | | 516,913 | | |
| Administrative and accounting fees | | | | | 77,836 | | | | | | 38,650 | | | | | | 80,034 | | |
| Custodian fees | | | | | 47,893 | | | | | | 24,700 | | | | | | 27,231 | | |
| Registration fees | | | | | 37,716 | | | | | | 6,259 | | | | | | 10,520 | | |
| Legal fees | | | | | 26,985 | | | | | | 10,367 | | | | | | 29,930 | | |
| Audit and tax fees | | | | | 24,486 | | | | | | 24,486 | | | | | | 22,017 | | |
| Trustee fees | | | | | 12,580 | | | | | | 3,964 | | | | | | 11,880 | | |
| Shareholder reporting fees | | | | | 11,842 | | | | | | 3,628 | | | | | | 9,043 | | |
| Listing fees | | | | | 8,708 | | | | | | 8,694 | | | | | | 6,112 | | |
| Intraday pricing fees | | | | | 1,666 | | | | | | 1,667 | | | | | | 1,166 | | |
| Compliance fees | | | | | 619 | | | | | | 198 | | | | | | 514 | | |
| Miscellaneous | | | | | 50 | | | | | | 31 | | | | | ��� | 142 | | |
| Total expenses | | | | | 1,173,403 | | | | | | 408,908 | | | | | | 715,502 | | |
| Waivers (see Note 3) | | | | | (481,070) | | | | | | (194,192) | | | | | | (198,553) | | |
| Net expenses | | | | | 692,333 | | | | | | 214,716 | | | | | | 516,949 | | |
| Net investment income | | | | | 3,231,383 | | | | | | 1,272,092 | | | | | | 2,228,528 | | |
| Realized and Unrealized Gain (Loss) | | | | | | | | | | | | | | | | | | | |
| Net realized gain (loss) from: | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | | | 1,326,301 | | | | | | 771,203 | | | | | | 263,259 | | |
| Futures contracts | | | | | — | | | | | | — | | | | | | 2,680,845 | | |
| Net realized gain | | | | | 1,326,301 | | | | | | 771,203 | | | | | | 2,944,104 | | |
| Net change in net unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | |
| Investment securities | | | | | 6,386,307 | | | | | | 3,232,459 | | | | | | (233,189) | | |
| Futures contracts | | | | | — | | | | | | — | | | | | | 598,400 | | |
| Net change in net unrealized appreciation (depreciation) | | | | | 6,386,307 | | | | | | 3,232,459 | | | | | | 365,211 | | |
| Net realized and unrealized gain | | | | | 7,712,608 | | | | | | 4,003,662 | | | | | | 3,309,315 | | |
| Net Increase in Net Assets Resulting From Operations | | | | $ | 10,943,991 | | | | | $ | 5,275,754 | | | | | $ | 5,537,843 | | |
See notes to financial statements.
Statements of Changes in Net Assets (continued)
| | | | IQ MacKay Municipal
Insured ETF | | | IQ MacKay Municipal
Intermediate ETF | |
| | | | For the Year Ended April 30, | | | For the Year Ended April 30, | |
| | | | 2021 | | | 2020 | | | 2021 | | | 2020 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | | $ | 3,231,383 | | | | | $ | 1,387,231 | | | | | $ | 1,272,092 | | | | | $ | 945,956 | | |
| Net realized gain (loss) | | | | | 1,326,301 | | | | | | (525,989) | | | | | | 771,203 | | | | | | 707,969 | | |
| Net change in net unrealized appreciation (depreciation) | | | | | 6,386,307 | | | | | | (1,706,824) | | | | | | 3,232,459 | | | | | | (862,085) | | |
| Net increase (decrease) in net assets resulting from operations | | | | | 10,943,991 | | | | | | (845,582) | | | | | | 5,275,754 | | | | | | 791,840 | | |
| Distributions to Shareholders | | | | | (3,808,446) | | | | | | (1,960,679) | | | | | | (1,545,079) | | | | | | (1,938,936) | | |
| Capital Share Transactions | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from shares created | | | | | 349,155,789 | | | | | | 74,538,555 | | | | | | 69,260,748 | | | | | | 13,009,709 | | |
| Cost of shares redeemed | | | | | — | | | | | | (27,235,568) | | | | | | — | | | | | | (3,695,540) | | |
| Increase from capital share transactions | | | | | 349,155,789 | | | | | | 47,302,987 | | | | | | 69,260,748 | | | | | | 9,314,169 | | |
| Total increase in net assets | | | | | 356,291,334 | | | | | | 44,496,726 | | | | | | 72,991,423 | | | | | | 8,167,073 | | |
| Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning of year | | | | | 88,035,354 | | | | | | 43,538,628 | | | | | | 51,708,228 | | | | | | 43,541,155 | | |
| End of year | | | | $ | 444,326,688 | | | | | $ | 88,035,354 | | | | | $ | 124,699,651 | | | | | $ | 51,708,228 | | |
| Changes in Shares Outstanding | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares outstanding, beginning of year | | | | | 3,400,000 | | | | | | 1,700,000 | | | | | | 2,050,000 | | | | | | 1,700,000 | | |
| Shares created | | | | | 12,750,000 | | | | | | 2,800,000 | | | | | | 2,600,000 | | | | | | 500,000 | | |
| Shares redeemed | | | | | — | | | | | | (1,100,000) | | | | | | — | | | | | | (150,000) | | |
| Shares outstanding, end of year | | | | | 16,150,000 | | | | | | 3,400,000 | | | | | | 4,650,000 | | | | | | 2,050,000 | | |
See notes to financial statements.
Statements of Changes in Net Assets (continued)
| | | | IQ Ultra Short
Duration ETF | |
| | | | For the Year
Ended
April 30, 2021 | | | For the Period
July 31, 2019*
to
April 30, 2020 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | | | | | | |
| Net investment income | | | | $ | 2,228,528 | | | | | $ | 825,752 | | |
| Net realized gain | | | | | 2,944,104 | | | | | | 21,786 | | |
| Net change in net unrealized appreciation (depreciation) | | | | | 365,211 | | | | | | (309,920) | | |
| Net increase in net assets resulting from operations | | | | | 5,537,843 | | | | | | 537,618 | | |
| Distributions to Shareholders | | | | | (3,352,469) | | | | | | (693,511) | | |
| Capital Share Transactions | | | | | | | | | | | | | |
| Proceeds from shares created | | | | | 213,233,109 | | | | | | 199,385,745 | | |
| Cost of shares redeemed | | | | | (111,622,801) | | | | | | (50,047,497) | | |
| Increase from capital share transactions | | | | | 101,610,308 | | | | | | 149,338,248 | | |
| Total increase in net assets | | | | | 103,795,682 | | | | | | 149,182,355 | | |
| Net Assets | | | | | | | | | | | | | |
| Beginning of period | | | | | 149,182,355 | | | | | | — | | |
| End of period | | | | $ | 252,978,037 | | | | | $ | 149,182,355 | | |
| Changes in Shares Outstanding | | | | | | | | | | | | | |
| Shares outstanding, beginning of period | | | | | 3,050,000 | | | | | | — | | |
| Shares created | | | | | 4,300,000 | | | | | | 4,050,000 | | |
| Shares redeemed | | | | | (2,250,000) | | | | | | (1,000,000) | | |
| Shares outstanding, end of period | | | | | 5,100,000 | | | | | | 3,050,000 | | |
*
Commencement of operations.
See notes to financial statements.
Selected Data for a Share of Capital Stock Outstanding
| | | | IQ MacKay Municipal Insured ETF | |
| | | | For the Year Ended April 30, | | | For the Period
October 18, 2017(a)
to
April 30, 2018 | |
| | | | 2021 | | | 2020 | | | 2019 | |
| Net asset value, beginning of period | | | | $ | 25.89 | | | | | $ | 25.61 | | | | | $ | 24.67 | | | | | $ | 25.00 | | |
| Income from Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | | | 0.38 | | | | | | 0.53 | | | | | | 0.72 | | | | | | 0.36 | | |
| Net realized and unrealized gain (loss) | | | | | 1.76 | | | | | | 0.50(c) | | | | | | 0.90 | | | | | | (0.39) | | |
| Net increase (decrease) in net assets resulting from investment operations | | | | | 2.14 | | | | | | 1.03 | | | | | | 1.62 | | | | | | (0.03) | | |
| Distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | | | (0.52) | | | | | | (0.64) | | | | | | (0.68) | | | | | | (0.30) | | |
| Net realized gain | | | | | — | | | | | | (0.11) | | | | | | — | | | | | | — | | |
| Total distributions from net investment income and realized gains | | | | | (0.52) | | | | | | (0.75) | | | | | | (0.68) | | | | | | (0.30) | | |
| Net asset value, end of period | | | | $ | 27.51 | | | | | $ | 25.89 | | | | | $ | 25.61 | | | | | $ | 24.67 | | |
| Market price, end of period | | | | $ | 27.54 | | | | | $ | 26.00 | | | | | $ | 25.64 | | | | | $ | 24.86 | | |
| Total Return | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(d) | | | | | 8.32% | | | | | | 4.05% | | | | | | 6.72% | | | | | | (0.13)% | | |
Total investment return based on market price(e) | | | | | 7.97% | | | | | | 4.36% | | | | | | 6.02% | | | | | | 0.64%(f) | | |
| Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | | | $ | 444,327 | | | | | $ | 88,035 | | | | | $ | 43,539 | | | | | $ | 14,801 | | |
| Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses net of waivers | | | | | 0.30% | | | | | | 0.30% | | | | | | 0.30% | | | | | | 0.30%(g) | | |
| Expenses excluding waivers | | | | | 0.51% | | | | | | 0.57% | | | | | | 0.77% | | | | | | 0.99%(g) | | |
| Net investment income | | | | | 1.40% | | | | | | 2.01% | | | | | | 2.89% | | | | | | 2.74%(g) | | |
Portfolio turnover rate(h) | | | | | 36% | | | | | | 71% | | | | | | 56% | | | | | | 77% | | |
(a)
Commencement of operations
(b)
Based on average shares outstanding.
(c)
Calculation of the net realized and unrealized gain (loss) per share does not correlate with the Fund’s net realized and unrealized gain (loss) presented on the Statements of Changes in Net Assets due to the timing of creation of Fund shares in relation to fluctuating market values.
(d)
Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return calculated for a period less than one year is not annualized.
(e)
The market price returns are calculated using the mean between the last bid and ask prices.
(f)
Since the Shares of the Funds did not trade in the secondary market until the day after the Fund’s inception, for the period from the inception to the first day of the secondary market trading, the NAV is used as a proxy for the secondary market trading price to calculate the market returns.
(g)
Annualized.
(h)
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions in connection with the Fund’s capital share transactions.
See notes to financial statements.
Financial Highlights (continued)
Selected Data for a Share of Capital Stock Outstanding
| | | | IQ MacKay Municipal Intermediate ETF | |
| | | | For the Year Ended April 30, | | | For the Period
October 18, 2017(a)
to
April 30, 2018 | |
| | | | 2021 | | | 2020 | | | 2019 | |
| Net asset value, beginning of period | | | | $ | 25.22 | | | | | $ | 25.61 | | | | | $ | 24.67 | | | | | $ | 25.00 | | |
| Income from Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(b) | | | | | 0.47 | | | | | | 0.53 | | | | | | 0.69 | | | | | | 0.30 | | |
| Net realized and unrealized gain (loss) | | | | | 1.73 | | | | | | 0.16(c) | | | | | | 0.91 | | | | | | (0.39) | | |
| Net increase (decrease) in net assets resulting from investment operations | | | | | 2.20 | | | | | | 0.69 | | | | | | 1.60 | | | | | | (0.09) | | |
| Distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | | | (0.58) | | | | | | (0.67) | | | | | | (0.66) | | | | | | (0.24) | | |
| Net realized gain | | | | | (0.02) | | | | | | (0.41) | | | | | | — | | | | | | — | | |
| Total distributions from net investment income and realized gains | | | | | (0.60) | | | | | | (1.08) | | | | | | (0.66) | | | | | | (0.24) | | |
| Net asset value, end of period | | | | $ | 26.82 | | | | | $ | 25.22 | | | | | $ | 25.61 | | | | | $ | 24.67 | | |
| Market price, end of period | | | | $ | 26.84 | | | | | $ | 25.22 | | | | | $ | 25.66 | | | | | $ | 24.71 | | |
| Total Return | | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment return based on net asset value(d) | | | | | 8.80% | | | | | | 2.65% | | | | | | 6.59% | | | | | | (0.34)% | | |
Total investment return based on market price(e) | | | | | 8.90% | | | | | | 2.44% | | | | | | 6.62% | | | | | | (0.18)%(f) | | |
| Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | | | $ | 124,700 | | | | | $ | 51,708 | | | | | $ | 43,541 | | | | | $ | 29,606 | | |
| Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Expenses net of waivers | | | | | 0.30% | | | | | | 0.30% | | | | | | 0.30% | | | | | | 0.30%(g) | | |
| Expenses excluding waivers | | | | | 0.57% | | | | | | 0.62% | | | | | | 0.71% | | | | | | 0.77%(g) | | |
| Net investment income | | | | | 1.78% | | | | | | 2.02% | | | | | | 2.76% | | | | | | 2.28%(g) | | |
Portfolio turnover rate(h) | | | | | 43% | | | | | | 77% | | | | | | 72% | | | | | | 80% | | |
(a)
Commencement of operations
(b)
Based on average shares outstanding.
(c)
Calculation of the net realized and unrealized gain (loss) per share does not correlate with the Fund’s net realized and unrealized gain (loss) presented on the Statements of Changes in Net Assets due to the timing of creation of Fund shares in relation to fluctuating market values.
(d)
Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return calculated for a period less than one year is not annualized.
(e)
The market price returns are calculated using the mean between the last bid and ask prices.
(f)
Since the Shares of the Funds did not trade in the secondary market until the day after the Fund’s inception, for the period from the inception to the first day of the secondary market trading, the NAV is used as a proxy for the secondary market trading price to calculate the market returns.
(g)
Annualized.
(h)
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions in connection with the Fund’s capital share transactions.
See notes to financial statements.
Financial Highlights (continued)
Selected Data for a Share of Capital Stock Outstanding
| | | | IQ Ultra Short Duration ETF | |
| | | | For the Year Ended April 30, 2021 | | | For the Period
July 31, 2019(a)
to
April 30, 2020 | |
| Net asset value, beginning of period | | | | $ | 48.91 | | | | | $ | 50.01 | | |
| Income from Investment Operations | | | | | | | | | | | | | |
Net investment income(b) | | | | | 0.51 | | | | | | 0.74 | | |
| Net realized and unrealized gain (loss) | | | | | 0.97 | | | | | | (1.07) | | |
| Net increase (decrease) in net assets resulting from investment operations | | | | | 1.48 | | | | | | (0.33) | | |
| Distributions from: | | | | | | | | | | | | | |
| Net investment income | | | | | (0.56) | | | | | | (0.75) | | |
| Net realized gain | | | | | (0.23) | | | | | | (0.02) | | |
| Total distributions from net investment income and realized gains | | | | | (0.79) | | | | | | (0.77) | | |
| Net asset value, end of period | | | | $ | 49.60 | | | | | $ | 48.91 | | |
| Market price, end of period | | | | $ | 49.60 | | | | | $ | 48.99 | | |
| Total Return | | | | | | | | | | | | | |
Total investment return based on net asset value(c) | | | | | 3.08% | | | | | | (0.68)% | | |
Total investment return based on market price(d) | | | | | 2.88% | | | | | | (0.52)%(e) | | |
| Ratios/Supplemental Data | | | | | | | | | | | | | |
| Net assets, end of period (000’s omitted) | | | | $ | 252,978 | | | | | $ | 149,182 | | |
| Ratio to average net assets of: | | | | | | | | | | | | | |
| Expenses net of waivers | | | | | 0.24% | | | | | | 0.24%(f) | | |
| Expenses excluding waivers | | | | | 0.33% | | | | | | 0.49%(f) | | |
| Net investment income | | | | | 1.03% | | | | | | 2.00%(f) | | |
Portfolio turnover rate(g) | | | | | 185% | | | | | | 292% | | |
(a)
Commencement of operations
(b)
Based on average shares outstanding.
(c)
Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Total return calculated for a period less than one year is not annualized.
(d)
The market price returns are calculated using the mean between the last bid and ask prices.
(e)
Since the Shares of the Funds did not trade in the secondary market until the day after the Fund’s inception, for the period from the inception to the first day of the secondary market trading, the NAV is used as a proxy for the secondary market trading price to calculate the market returns.
(f)
Annualized.
(g)
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions in connection with the Fund’s capital share transactions.
See notes to financial statements.
Notes to Financial Statements
1. ORGANIZATION
IndexIQ Active ETF Trust (the “Trust”) was organized as a Delaware statutory trust on January 30, 2008 and is registered with the Securities and Exchange Commission (“SEC”) as an open-end, management investment company, as defined by the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently consists of three operational funds, the IQ MacKay Municipal Insured ETF, IQ MacKay Municipal Intermediate ETF and IQ Ultra Short Duration ETF (collectively, the “Funds” and each, a “Fund”). The Funds are exchange-traded funds (“ETFs”), whose shares are listed on a stock exchange and traded like equity securities at market prices. Each Fund is classified as diversified. IQ MacKay Municipal Insured ETF and IQ MacKay Municipal Intermediate ETF commenced operations on October 18, 2017 and IQ Ultra Short Duration ETF commenced operations on July 31, 2019.
The IQ Mackay Municipal Insured ETF and IQ MacKay Municipal Intermediate ETF seek to provide current income exempt from federal income tax. The IQ Ultra Short Duration ETF seeks to provide current income while maintaining limited price volatility. There can be no assurance that a Fund’s objective will be achieved.
2. SIGNIFICANT ACCOUNTING POLICIES
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. Each Fund prepares its financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America and follows the significant accounting policies described below.
Use of Estimates
IndexIQ Advisors LLC (the “Advisor”) makes certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of increases and decreases in the net assets from operations during the reporting period. Actual results could differ from those estimates.
Indemnification
In the normal course of business, the Funds may enter into contracts that contain a variety of representations and warranties that may provide general indemnifications for certain liabilities. Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. The Advisor believes that the risk of loss in connection with these potential indemnification obligations is remote. However, there can be no assurance that material liabilities related to such obligations will not arise in the future, which could adversely impact the Funds.
Investment Valuation
Each Fund issues and redeems shares on a continuous basis at Net Asset Value (“NAV”) only in large blocks of shares called “Creation Units.” A Creation Unit consists of 50,000 shares. The NAV is determined as of the close of trading (generally, 4:00 PM Eastern Time) on each day the New York Stock Exchange (“NYSE”) is open for trading. The NAV of the shares of each Fund will be equal to each Fund’s total assets minus each Fund’s total liabilities divided by the total number of shares outstanding. The NAV that is published will be rounded to the nearest cent; however, for purposes of determining the price of Creation Units, the NAV will be calculated to five decimal places. The consideration for purchase of a Creation Unit of shares of each Fund generally consists of a basket of securities and/or cash that the Fund specifies each day.
A Fund typically values fixed-income portfolio securities using last available bid prices or current market quotations provided by dealers or prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services. Pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a Fund may hold or transact in such
Notes to Financial Statements (continued)
securities in smaller odd lot sizes. Odd lots often trade at different prices that may be above or below the price at which the pricing service has valued the security. Amortized cost is used as a method of valuation with respect to debt obligations with sixty days or less remaining to maturity unless the Advisor determines in good faith that such method does not represent fair value.
Generally, trading in U.S. government securities, money market instruments and certain fixed-income securities is substantially completed each day at various times prior to the close of business on the NYSE. The values of such securities used in computing the NAV of the Fund are determined as of such times.
Futures contracts generally are valued at the settlement or closing price determined by the applicable exchange.
When market quotations or prices are not readily available or are deemed unreliable or not representative of an investment’s fair value, investments are valued using fair value pricing as determined in good faith by the Advisor, under procedures established by and under the general supervision and responsibility of the Trust’s Board of Trustees (the “Board”). The procedures state that, subject to the oversight of the Board and unless otherwise noted, the responsibility for the day-to-day valuation of portfolio assets (including fair value measurements for the Funds’ assets and liabilities) rests with the Advisor. The Advisor may conclude that a market quotation is not readily available or is unreliable if a security or other asset or liability does not have a price source due to its lack of liquidity or other reason, if a market quotation differs significantly from recent price quotations or otherwise no longer appears to reflect fair value, where the security or other asset or liability is thinly traded, or if the trading market on which a security is listed is suspended or closed and no appropriate alternative trading market is available. The frequency with which a Fund’s investments are valued using fair value pricing is primarily a function of the types of securities and other assets in which the Fund invests pursuant to its investment objective, strategies and limitations. If a fund invests in open-end management investment companies (other than ETFs) registered under the 1940 Act, it may rely on the NAV of those companies to value the shares they hold of them. Those companies may also use fair value pricing under some circumstances.
The IQ MacKay Municipal Insured ETF and IQ MacKay Municipal Intermediate ETF sweep uninvested cash balances into the Fidelity Investments Money Market Treasury Only Class I (“Fidelity Investments”). Fidelity Investments seeks to obtain as high a level of current income as is consistent with the security of principal and liquidity. Fidelity Investments has no redemption restriction and is valued at the daily NAV. The IQ Ultra Short Duration ETF sweeps uninvested cash balances into BlackRock Liquidity Funds T-Fund. The BlackRock Liquidity Funds T-Fund seeks to obtain as high a level of current income as is consistent with liquidity and stability of principal.
Fair Value Measurement
Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and requires disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction is not orderly, and how that information must be incorporated into fair value measurement. Under ASC 820, various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in the following hierarchy:
•
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.
•
Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Notes to Financial Statements (continued)
•
Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The inputs or methodology used for valuing instruments are not necessarily an indication of the risk associated with investing in those instruments.
The availability of observable inputs can vary from security to security and are affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. With respect to the valuation of Level 3 securities, the Advisor may employ a market-based valuation approach which may use related or comparable securities, recent transactions, market multiples, book values, and other relevant information to determine fair value. The Advisor may also use an income-based valuation approach in which anticipated future cash flows of the financial instrument are discounted to calculate fair value. The Advisor representatives meet regularly to review and discuss the appropriateness of such fair values using more current information such as, recent security news, recent market transactions, updated corporate action information and/or other macro or security specific events.
All other securities and investments for which market values are not readily available, including restricted securities, and those securities for which it is inappropriate to determine prices in accordance with the aforementioned procedures, are valued at fair value as determined in good faith under procedures adopted by the Board, although the actual calculations may be done by others. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The hierarchy classification of inputs used to value each Fund’s investments on April 30, 2021 is disclosed at the end of each Fund’s Schedule of Investments.
Tax Information and Uncertain Tax Positions
Each Fund is treated as a separate entity for federal income tax purposes. Each Fund’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute all the taxable income to the shareholders of the Fund within the allowable time limits.
The Advisor evaluates each Fund’s tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Advisor has analyzed each Fund’s tax positions taken on federal, state and local income tax returns for all open tax years (for up to three tax years), and has concluded that no provisions for federal, state and local income tax are required in each Fund’s financial statements. Each Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state and local departments of revenue.
The IQ MacKay Municipal Insured ETF, IQ MacKay Municipal Intermediate ETF and IQ Ultra Short Duration ETF have concluded that there is no tax liability resulting from uncertain income tax positions taken or expected to be taken.
Notes to Financial Statements (continued)
Dividends and Distributions to Shareholders
Distributions to Shareholders are recorded on the ex-dividend date. In addition, the Funds may determine to distribute at least annually amounts representing the full dividend yield net of expenses on the underlying investment securities, as if the Funds owned the underlying investment securities for the entire dividend period in which case some portion of each distribution may result in a return of capital. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their Federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profit for tax purposes are reported as a tax return of capital. Therefore, no federal, state and local income tax provisions are required.
Cash Equivalents
Cash equivalents consist of highly liquid investments, with maturities of three months or less when acquired, and are disclosed as Short-Term Investments in the Schedules of Investments.
Security Transactions
Security transactions are recorded as of the trade date. Realized gains and losses on sales of investment securities are calculated using the identified cost method.
Investment Income and Expenses
Dividend income is recognized on the ex-date. Interest income is accrued daily. Distributions of realized capital gains by underlying funds are recorded as realized capital gains on the ex-date. Expenses of the Trust arising in connection with a specific Fund are allocated to that Fund. Other Trust expenses which cannot be directly attributed to a fund are apportioned among the Funds in the Trust based upon the relative net assets or other appropriate measures. The Funds distribute substantially all their net investment income to shareholders in the form of dividends. Net investment income is distributed monthly and capital gains are typically distributed at least annually. Dividends may be declared and paid more frequently to comply with the distribution requirements of the Internal Revenue Code. The expenses of the investment companies in which a Fund invests are not included in the amounts shown as expenses on the Statements of Operations or in the expense ratios included in the Financial Highlights.
Discounts and premiums on securities purchased, other than Short-Term Investments, for the Funds are accreted and amortized, respectively, on the effective interest rate method over the life of the respective securities. Discounts and premiums on Short-Term Investments are accreted and amortized, respectively, on the straight-line method. The straight-line method approximates the effective interest method for Short-Term Investments. Income from payment-in-kind securities is accreted daily based on the effective interest method.
3. INVESTMENT MANAGEMENT AND OTHER AGREEMENTS
Investment Advisory Agreement
The Advisor serves as the investment advisor to each series of the Trust, and is an indirect wholly-owned subsidiary of New York Life Investment Management Holdings LLC. Under an Investment Advisory Agreement (“Advisory Agreement”) between the Advisor and the Trust, on behalf of each Fund, the Advisor provides a continuous investment program for each Fund’s assets in accordance with its investment objectives, policies and limitations, and oversees the day-to-day operations of the Funds (including arranging for sub-advisory services), subject to the supervision of the Board. The Advisor is responsible for the supervision of MacKay Shields LLC (“MacKay Shields”), the sub-advisor to the IQ MacKay Municipal Insured ETF and the IQ MacKay Municipal Intermediate ETF and NYL Investors LLC, the sub-advisor to the IQ Ultra Short Duration ETF (collectively, the “Sub-Advisors” and each, a “Sub-Advisor”) and their management of the investment portfolios of each of the Funds.
Notes to Financial Statements (continued)
The Advisor also: (i) supervises all non-advisory operations of the Funds; (ii) provides personnel to perform such executive, administrative and clerical services as are reasonably necessary to provide effective administration of the Funds and the other series of the Trust. The Funds reimburse the Advisor in an amount equal to a portion of the compensation of the Chief Compliance Officer attributable to each Fund; (iii) arranges for (a) the preparation of all required tax returns, (b) the preparation and submission of reports to existing shareholders, (c) the periodic updating of prospectuses and statements of additional information and (d) the preparation of reports to be filed with the SEC and other regulatory authorities; (iv) maintains the records of the Funds and the other series of the Trust; and (v) provides office space and all necessary office equipment and services.
The Advisory Agreement will continue in effect with respect to the Funds from year to year provided such continuance is specifically approved at least annually by a majority of the Trustees that are not interested persons of the Trust (“Independent Trustees”).
Pursuant to the Advisory Agreement, the Funds pay the Advisor a fee, which is accrued daily and paid monthly, for services performed and the facilities furnished at an annual rate of each Fund’s average daily net assets per the table below.
| Fund | | | Rate | |
| IQ MacKay Municipal Insured ETF | | | | | 0.40% | | |
| IQ MacKay Municipal Intermediate ETF | | | | | 0.40% | | |
| IQ Ultra Short Duration ETF | | | | | 0.24% | | |
The Advisor has entered into an Expense Limitation Agreement with the Funds under which it has contractually agreed, until August 31, 2021, to waive a portion of its management fee and/or reimburse expenses of each Fund, if necessary, in an amount that limits total annual fund operating expenses (exclusive of interest, taxes, brokerage commissions and other expenses that are capitalized in accordance with generally accepted accounting principles dividend, interest and brokerage expenses paid on short sales, acquired fund fees and expenses, extraordinary expenses, if any, and payments, if any, under the Rule 12b-1 Plan) to not more than 0.30% of the average daily net assets of the IQ MacKay Municipal Insured ETF, IQ MacKay Municipal Intermediate ETF and 0.24% of the average daily net assets of the IQ Ultra Short Duration ETF.
As of April 30, 2021, the Advisor reimbursed expenses for IQ MacKay Municipal Insured ETF, IQ MacKay Municipal Intermediate ETF and IQ Ultra Short Duration ETF in the amounts of $481,070, $194,192 and $198,553, respectively.
The Advisor is permitted to recoup from a Fund previously waived fees or reimbursed expenses for three years from the date of such fee waiver or expense reimbursement, as long as such recoupment does not cause such Fund’s operating expenses to exceed the expense cap set forth in the Expense Limitation Agreement or any then applicable expense limit.
For the year ended April 30, 2021, there is no recoupment available.
Investment Sub-Advisory Agreements
The Sub-Advisors are registered investment advisors and indirect wholly-owned subsidiaries of New York Life. The Sub-Advisors are responsible for the day-to-day portfolio management of the Funds subject to the supervision of the Advisor and the Board. Pursuant to the terms of the respective Sub-Advisory Agreements between the Advisor and the Sub-Advisors, the Subadvisor is compensated by the Advisor. To the extent that the Advisor has agreed to waive its management fee or reimburse expenses, the Subadvisor has agreed to waive or reimburse its fee proportionately..
Distribution (12b-1 Fees)
ALPS Distributors, Inc. serves as the Funds’ distributor (the “Distributor”) pursuant to a Distribution Agreement. NYLIFE Distributors LLC has entered into a Service Agreement with the Distributor to market the Funds. The Board has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act (“Rule 12b-1
Notes to Financial Statements (continued)
Plan”). In accordance with the Rule 12b-1 Plan, the Funds are authorized to pay an amount up to 0.25% of each Fund’s average daily net assets each year for certain distribution-related activities.
As authorized by the Board, no Rule 12b-1 fees are currently paid by the Funds and there are no plans to impose these fees. However, in the event Rule 12b-1 fees are charged in the future, they will be paid out of each respective Fund’s assets. The Advisor and its affiliates may, out of their own resources, pay amounts to third parties for distribution or marketing services on behalf of the Funds.
As described in Note 4 below, the Distributor has entered into Participant Agreements with certain broker-dealers and others that allow those parties to be Authorized Participants and to subscribe for and redeem shares of the Funds. Also as described in Note 4 below, such Authorized Participants may from time to time hold, of record or beneficially, a substantial percentage of the Funds’ shares outstanding, act as executing or clearing broker for investment transactions on behalf of the Funds and/or serve as counterparty to derivative transactions with each Fund.
Administrator, Custodian and Transfer Agent
The Bank of New York Mellon (“BNY Mellon”) (in each capacity, the “Administrator,” “Custodian” or “Transfer Agent”) serves as the Funds’ Administrator, Custodian and Transfer Agent pursuant to the Fund Administration and Accounting Agreement, Custody Agreement and Transfer Agency Agreement. Pursuant to these agreements, BNY Mellon provides necessary administrative, custody, transfer agency, tax, accounting services and financial reporting for the maintenance and operations of the Trust and the Funds. BNY Mellon is responsible for maintaining the books and records and calculating the daily NAV of the Funds. BNY Mellon is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
4. CAPITAL SHARE TRANSACTIONS
Shares are created and redeemed on a continuous basis at NAV only in groups of 50,000 shares called Creation Units. Except when aggregated in Creation Units, shares are not redeemable. Transactions in shares of the Funds are disclosed in detail in the Statements of Changes in Net Assets. Only Authorized Participants may purchase or redeem shares directly from the Funds. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of National Securities Clearing Corporation or (ii) a Depository Trust Company (“DTC”) participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to create and redeem whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Funds. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees. Securities received or delivered in connection with in-kind creates and redeems are valued as of the close of business on the effective date of the creation or redemption.
5. FEDERAL INCOME TAX
At April 30, 2021, the cost and unrealized appreciation/depreciation of investments and other financial instruments as determined on a federal income tax basis were as follows:
| Fund | | | Cost | | | Gross
Unrealized
Appreciation | | | Gross
Unrealized
Depreciation | | | Net Unrealized
Appreciation/
(Depreciation) | |
| IQ MacKay Municipal Insured ETF | | | | $ | 454,554,538 | | | | | $ | 6,084,110 | | | | | $ | (1,628,607) | | | | | $ | 4,455,503 | | |
| IQ MacKay Municipal Intermediate ETF | | | | | 127,611,596 | | | | | | 2,898,479 | | | | | | (107,159) | | | | | | 2,791,320 | | |
| IQ Ultra Short Duration ETF | | | | | 260,854,597 | | | | | | 697,601 | | | | | | (1,239,078) | | | | | | (541,477) | | |
At April 30, 2021, the components of undistributed or accumulated earnings/loss on a tax-basis were as follows:
Notes to Financial Statements (continued)
| Fund | | | Ordinary
Income
(Loss)1 | | | Tax-Exempt
Income (Loss) | | | Net
Capital
Gain (Losses)2 | | | Net
Unrealized
Appreciation/
Depreciation | | | Total
Distributable
Earnings/
(Losses) | |
| IQ MacKay Municipal Insured ETF | | | | $ | 2,608 | | | | | $ | 617,603 | | | | | $ | 172,005 | | | | | $ | 4,455,503 | | | | | $ | 5,247,719 | | |
| IQ MacKay Municipal Intermediate ETF | | | | | 226,341 | | | | | | 151,137 | | | | | | 386,967 | | | | | | 2,791,320 | | | | | | 3,555,765 | | |
| IQ Ultra Short Duration ETF | | | | | 643,175 | | | | | | — | | | | | | 1,277,966 | | | | | | (541,477) | | | | | | 1,379,664 | | |
1
Includes late year ordinary loss, if any.
2
Amount includes the deferral of post October losses, if any.
At April 30, 2021, the effect of permanent book/tax reclassifications resulted in increases (decreases) to the components of net assets were as follows:
| Fund | | | Total distributable
earnings/
(accumulated loss) | | | Paid-In Capital | |
| IQ Mackay Municipal Insured ETF | | | | $ | — | | | | | $ | — | | |
| IQ Mackay Municipal Intermediate ETF | | | | | — | | | | | | — | | |
| IQ Ultra Short Duration ETF | | | | | (649,817) | | | | | | 649,817 | | |
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/ tax differences. Reclassifications are primarily due to distribution reclasses and nondeductible taxes paid and capital share redemptions utilized as distributions for tax purposes.
The tax character of distributions paid during the years ended April 30, 2021 and 2020 were as follows:
| | | | 2021 | | | 2020 | |
| Fund | | | Ordinary
Income | | | Tax-Exempt
Income | | | Long-Term
Capital
Gains | | | Tax Return
of Capital | | | Ordinary
Income | | | Tax-Exempt
Income | | | Long-Term
Capital
Gains | | | Tax Return
of Capital | |
| IQ MacKay Municipal Insured ETF | | | | $ | 20,321 | | | | | $ | 3,788,125 | | | | | $ | — | | | | | $ | — | | | | | $ | 173,339 | | | | | $ | 1,565,133 | | | | | $ | 222,207 | | | | | $ | — | | |
| IQ MacKay Municipal Intermediate ETF | | | | | 2,692 | | | | | | 1,486,578 | | | | | | 55,809 | | | | | | — | | | | | | 468,962 | | | | | | 1,187,490 | | | | | | 282,484 | | | | | | — | | |
| IQ Ultra Short Duration ETF | | | | | 3,256,994 | | | | | | — | | | | | | 95,475 | | | | | | — | | | | | | 693,511 | | | | | | — | | | | | | — | | | | | | — | | |
At April 30, 2021, the Funds did not have any capital losses incurred after October 31 (“Post-October Losses”) and any late year ordinary income losses within the taxable year that can arise on the first business day of the Funds’ next taxable year.
At April 30, 2021, the Funds did not have net capital loss carryforwards.
6. OTHER AFFILIATED PARTIES AND TRANSACTIONS
The Advisor and its affiliates are not beneficial owners of Fund shares greater than 5% as of April 30, 2021.
Notes to Financial Statements (continued)
7. INVESTMENT TRANSACTIONS
Purchases and sales of investments (excluding short-term investments) for the year ended April 30, 2021 are as follows:
| Fund | | | Purchases | | | Sales | |
| IQ MacKay Municipal Insured ETF | | | | $ | 404,330,701 | | | | | $ | 79,412,831 | | |
| IQ MacKay Municipal Intermediate ETF | | | | | 79,572,345 | | | | | | 28,865,677 | | |
| IQ Ultra Short Duration ETF | | | | | 486,960,579 | | | | | | 364,322,604 | | |
8. DERIVATIVE FINANCIAL INSTRUMENTS
Futures Contracts
A futures contract is an agreement to purchase or sell a specified quantity of an underlying instrument at a specified future date and price, or to make or receive a cash payment based on the value of a financial instrument (e.g., foreign currency, interest rate, security or securities index). A Fund is subject to risks such as market price risk and/or interest rate risk in the normal course of investing in these transactions. Upon entering into a futures contract, a Fund is required to pledge to the broker or futures commission merchant an amount of cash and/or U.S. government securities equal to a certain percentage of the collateral amount, known as the “initial margin.” During the period the futures contract is open, changes in the value of the contract are recognized as unrealized appreciation or depreciation by marking to market such contract on a daily basis to reflect the market value of the contract at the end of each day’s trading. A Fund agrees to receive from or pay to the broker or futures commission merchant an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin.” When the futures contract is closed, a Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract.
The use of futures contracts involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statement of Assets and Liabilities. The contract or notional amounts and variation margin reflect the extent of a Fund’s involvement in open futures positions. There are several risks associated with the use of futures contracts as hedging techniques. There can be no assurance that a liquid market will exist at the time when a Fund seeks to close out a futures contract. If no liquid market exists, the Fund would remain obligated to meet margin requirements until the position is closed. Futures may involve a small initial investment relative to the risk assumed, which could result in losses greater than if they had not been used. Futures may be more volatile than direct investments in the instrument underlying the futures and may not correlate to the underlying instrument, causing a given hedge not to achieve its objectives. A Fund’s activities in futures contracts have minimal counterparty risk as they are conducted through regulated exchanges that guarantee the futures against default by the counterparty. In the event of a bankruptcy or insolvency of a futures commission merchant that holds margin on behalf of the Fund, the Fund may not be entitled to the return of the entire margin owed to a Fund, potentially resulting in a loss. A Fund’s investment in futures contracts and other derivatives may increase the volatility of the Fund’s NAVs and may result in a loss to the Fund. As of April 30, 2021, the open futures contracts for the IQ Ultra Short Duration ETF are shown in the Schedule of Investments.
Quantitative Disclosure of Derivative Holding
The following tables show additional disclosures related to each Fund’s derivative and holding activities, including how such activities are accounted for and their effect in each Fund’s financial positions, performance and cash flows.
Notes to Financial Statements (continued)
The fair value of derivative instruments reflected on the Statements of Assets and Liabilities were as follows:
Assets Derivatives
| | | | Interest Risk | |
| IQ Ultra Short Duration ETF | | | | | | | |
Unrealized appreciation on futures contracts1 | | | | $ | 602,964 | | |
Liability Derivatives
| | | | Interest Risk | |
| IQ Ultra Short Duration ETF | | | | | | | |
Unrealized depreciation on futures contracts1 | | | | $ | 22 | | |
1
Includes cumulative appreciation (depreciation) of futures contracts as reported in the Schedules of Investments. Only unsettled variation margin is reported within the Statements of Assets and Liabilities.
Transactions in derivative instruments reflected on the Statements of Operations during the year ended April 30, 2021 were as follows:
| | | | Interest Risk | |
| Realized gain (loss) | | | | | | | |
| Futures contracts | | | | $ | 2,680,845 | | |
| Change in Unrealized appreciation (depreciation) | | | | | | | |
| Futures contracts | | | | $ | 598,400 | | |
For the year ended April 30, 2021, the monthly average notional value of the futures contracts held by IQ Ultra Short Duration ETF Fund as follows:
| | Asset Derivatives | | | | | | | |
| | Futures contracts | | | | $ | 12,239 | | |
| | Liability Derivatives | | | | | | | |
| | Futures contracts | | | | $ | (39,820,844) | | |
9. RISKS INVOLVED WITH INVESTING IN THE FUNDS
The Funds are subject to the principal risks described below, some or all of these risks may adversely affect a Fund’s NAV, trading price, yield, total return and ability to meet its investment objective. As with any investment, an investment in a Fund could result in a loss or the performance of a Fund could be inferior to that of other investments.
Bond Insurance Risk
Insured municipal bonds are covered by insurance policies that guarantee the timely payment of principal and interest. The insurance does not guarantee the market value of an insured security, or a Fund’s share price or distributions. Shares of a Fund are not insured. Market conditions or changes to ratings criteria could adversely impact municipal bond insurers, which could adversely impact the value of the insured municipal bond or the ability of the insurer to pay any claims due. Consolidation among municipal bond insurers could increase a Fund’s exposure to one or more individual municipal bond insurers and reduce the supply of municipal bonds.
Credit Risk
Debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies. The financial condition of an issuer of a debt security or other instrument may cause such issuer to default, become unable to pay interest or principal due or otherwise fail to honor its obligations or
Notes to Financial Statements (continued)
cause such issuer to be perceived (whether by market participants, rating agencies, pricing services or otherwise) as being in such situations.
Derivatives Risk
Derivative strategies may expose a Fund to greater risk than if it had invested directly in the underlying instrument and often involve leverage, which may exaggerate a loss, potentially causing a Fund to lose more money than it originally invested and would have lost had it invested directly in the underlying instrument. Derivatives may be difficult to sell, unwind or value. Derivatives may also be subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its contractual obligations to the Fund. Futures may be more volatile than direct investments in the instrument underlying the contract and may not correlate perfectly to the underlying instrument. Futures and other derivatives also may involve a small initial investment relative to the risk assumed, which could result in losses greater than if they had not been used. Due to fluctuations in the price of the underlying asset, a Fund may not be able to profitably exercise an option and may lose its entire investment in an option. Derivatives may also increase the expenses of a Fund.
Income Risk
A Fund’s income may decline when interest rates fall. This decline can occur because a Fund may subsequently invest in lower-yielding bonds when bonds in its portfolio mature or the Fund otherwise needs to purchase additional bonds.
Interest Rate Risk
An increase in interest rates may cause the value of debt securities held by a Fund to decline. Interest rates in the United States are near historic lows, which may increase a Fund’s exposure to risks associated with rising interest rates. Interest rates may rise significantly and/or rapidly. Rising interest rates or lack of market participants may lead to decreased liquidity and increased volatility in the bond markets, making it more difficult for a Fund to sell its bond holdings at a time when the Fund might wish to sell.
Large Transaction Risks
From time to time, a Fund may receive large purchase or redemption orders from affiliated or unaffiliated funds or other investors. Such large transactions could have adverse effects on a Fund’s performance if the Fund were required to sell securities or invest cash at times when it otherwise would not do so. This activity could also accelerate the realization of capital gains and increase a Fund’s transaction costs.
LIBOR Replacement Risk
A Fund may invest in certain debt securities, derivatives or other financial instruments that utilize LIBOR, as a “benchmark” or “reference rate” for various interest rate calculations. The United Kingdom Financial Conduct Authority, which regulates LIBOR, announced that after 2021 it will cease its active encouragement of banks to provide the quotations needed to sustain LIBOR. As a result, it is anticipated that LIBOR will be discontinued or will no longer be sufficiently robust to be representative of its underlying market around that time. Although financial regulators and industry working groups have suggested alternative reference rates, such as the European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), there are challenges to converting certain contracts and transactions to a new benchmark and neither the full effects of the transition process nor its ultimate outcome is known. The Advisor is currently working to assess exposure and will modify contracts as necessary.
The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund's performance and/or NAV.
Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other
Notes to Financial Statements (continued)
reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund's performance.
Accordingly, the potential effect of a transition away from LIBOR on a Fund or the debt securities or other instruments based on LIBOR in which a Fund invests cannot yet be determined. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner.
Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.
Liquidity Risk
Liquidity risk exists when particular investments are difficult to purchase or sell. This can reduce a Fund’s returns because the Funds may be unable to transact at advantageous times or prices. Decreased liquidity in the bond markets also may make it more difficult to value some or all of a Fund’s bond holdings. The market for municipal bonds may be less liquid than for taxable bonds.
Market Risk
The market price of investments owned by a Fund may go up or down, sometimes rapidly or unpredictably. Investments may decline in value due to factors affecting markets generally or particular segments of the market. Market risks include political, regulatory, market and economic developments, and geopolitical and other events, including war, terrorism, trade disputes, natural disasters, and public health crises. Such events may result in disruptions in the U.S. and world economies and markets, which may increase financial market volatility and have significant adverse direct or indirect effects on a Fund and its investments.
An outbreak of COVID-19 has developed into a global pandemic and has resulted in travel restrictions, closure of international borders, certain businesses and securities markets, restrictions on securities trading activities, prolonged quarantines, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The full effects, duration and costs of the COVID-19 pandemic are uncertain, and the circumstances surrounding the COVID-19 pandemic will continue to evolve and may adversely affect a Fund and its investments.
Mortgage-Related and Other Asset-Backed Securities Risk
Investments in mortgage-related securities (such as mortgage-backed securities) and other asset-backed securities (such as collateralized debt and loan obligations) generally involve a stream of payments based on the underlying obligations. These payments, which are often part interest and part return of principal, vary based on the rate at which the underlying borrowers repay their loans or other obligations.
Asset-backed securities are subject to the risk that borrowers may default on the underlying obligations and that, during periods of falling interest rates, these obligations may be called or prepaid and, during periods of rising interest rates, obligations may be paid more slowly than expected. Impairment of the underlying obligations or collateral, such as by non-payment, will reduce the security’s value. Enforcing rights against such collateral in events of default may be difficult or insufficient. The value of these securities may be significantly affected by changes in interest rates, the market’s perception of issuers, and the creditworthiness of the parties involved. These securities may have a structure that makes their reaction to interest rate changes and other factors difficult to predict, making their value highly volatile.
Municipal Bond Risk
A Fund may invest a substantial amount of its assets in municipal bonds whose interest is paid solely from revenues of similar projects. If a Fund concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and this may have a significant impact on a fund’s investment performance. In addition, a Fund may invest more heavily in bonds from certain cities, states, territories, or
Notes to Financial Statements (continued)
regions than others, which may increase the Funds’ exposure to losses resulting from economic, political, or regulatory occurrences impacting these particular cities, states, territories or regions. Certain of the issuers in which the Funds may invest have recently experienced, or may experience, significant financial difficulties and repeated credit rating downgrades. A Fund’s vulnerability to potential losses associated with such developments may be reduced through investing in municipal securities that feature credit enhancements (such as bond insurance).
Municipal bond proceeds could provide positive social or environmental benefits which could cause it to perform differently compared to funds that do not have such a policy. Investing in securities whose use of proceeds provide positive social or environmental benefits may result in the Fund forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so, or selling securities when it might be otherwise disadvantageous for it to do so. The positive social or environmental impact of a municipal bond’s proceeds is made at the time of purchase and the actual use of proceeds by the issuer could vary over time, which could cause the Fund to be invested in bonds that do not comply with the Fund’s approach towards considering social or environmental characteristics. The factors considered in evaluating whether a security has positive social or environmental benefits may change over time. There are significant differences in interpretations of what it means to promote positive social or environmental benefits. While its definitions are reasonable, the portfolio decisions it makes may differ with other’s views.
Municipal bonds most frequently trade in institutional round lot size transactions. Until a Fund grows significantly in size, a Fund expects to purchase a significant number of bonds in amounts less than the institutional round lot size, which are frequently referred to as “odd” lots. Odd lot size positions may have more price volatility than institutional round lot size positions. The Funds use a third-party pricing service to value bond holdings and the pricing service values bonds assuming orderly transactions of an institutional round lot size.
Trading Price Risk
Although it is expected that generally the market price of a Fund’s Shares will approximate the Fund’s NAV, there may be times when the market price in the Secondary Market and the NAV vary significantly. During periods of market stress shares of a Fund may also experience significantly wider “bid/ask” spreads and premiums and discounts between a Fund’s net asset value and market price.
U.S. Tax Treatment Risk
Income from municipal bonds held by a Fund could be declared taxable because of unfavorable changes in tax law, adverse interpretations by the U.S. Internal Revenue Service or noncompliant conduct of a bond issuer. In addition, a portion of a Fund’s otherwise tax-exempt dividends may be taxable to shareholders subject to the U.S. federal alternative minimum tax.
10. NEW ACCOUNTING PRONOUNCEMENT
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2020-04 (“ASU 2020-04”), “Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting” in response to concerns about structural risks of interbank offered rates, such as LIBOR. ASU 2020-04 provides optional guidance to ease the potential accounting burden associated with transitioning away from LIBOR and other reference rates that are expected to be discontinued. ASU 2020-04 is effective immediately upon release of the update on March 12, 2020, through December 31, 2022. At this time, the Advisor is evaluating the implications of certain other provisions of ASU 2020-04 related to new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
11. SUBSEQUENT EVENTS
In the preparation of the financial statements, the Advisor has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued and has determined that there are no material subsequent events that would require disclosure.
Report of Independent Registered Public Accounting Firm
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of IndexIQ Active ETF Trust and Shareholders of IQ MacKay Municipal Insured ETF, IQ MacKay Municipal Intermediate ETF and IQ Ultra Short Duration ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of IQ MacKay Municipal Insured ETF, IQ MacKay Municipal Intermediate ETF and IQ Ultra Short Duration ETF (three of the funds constituting IndexIQ Active ETF Trust, hereafter collectively referred to as the “Funds”) as of April 30, 2021, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of April 30, 2021, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.
Individual Fund Comprising the
IndexIQ Active ETF Trust | | | Statement of Operations | | | Statements of
Changes in Net Assets | | | Financial Highlights | |
IQ MacKay Municipal Insured ETF
IQ MacKay Municipal Intermediate ETF | | | For the year ended April 30, 2021 | | | For the years ended April 30, 2021 and 2020 | | | For the years ended April 30, 2021, 2020 and 2019, and the period from October 18, 2017 (commencement of operations) through April 30, 2018 | |
| IQ Ultra Short Duration ETF | | | For the year ended April 30, 2021 | | | For the year ended April 30, 2021 and the period from July 31, 2019 (commencement of operations) through April 30, 2020 | |
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of April 30, 2021 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
New York, New York
June 28, 2021
We have served as the auditor of one or more investment companies in the IndexIQ Complex since 2015.
Liquidity Risk Management Program (unaudited)
In compliance with Rule 22e-4 under the Investment Company Act of 1940, the funds of IndexIQ Active ETF Trust (the “Funds”) have adopted and implemented a liquidity risk management program (the “Program”), which IndexIQ Advisors LLC believes is reasonably designed to assess and manage the Funds’ liquidity risk. The Board of Trustees (the “Board”) designated IndexIQ Advisors LLC as administrator of the Program (the “Administrator”). The Program Administrator’s Portfolio Oversight Committee acts as the Liquidity Risk Management Committee to assist the Administrator in the implementation and day-to-day administration of the Program and to otherwise support the Administrator in fulfilling its responsibilities under the Program.
At a meeting of the Board held on March 31, 2021, the Administrator provided the Board with a written report addressing the Program’s operation, adequacy and effectiveness of implementation for the period from January 1, 2020 through December 31, 2020 (the “Reporting Period”), as required under the Liquidity Rule. The report noted that the Administrator concluded that: (i) the Program operated effectively to assess and manage the Funds’ liquidity risk; (ii) the Program has been adequately and effectively implemented to monitor and, as applicable, respond to the Funds’ liquidity developments; and (iii) each Fund’s investment strategy continues to be appropriate for an open-end fund.
In accordance with the Program, each Fund’s liquidity risk is assessed no less frequently than annually taking into consideration certain factors, as applicable, such as: (i) each Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions; (ii) each Fund’s short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions; (iii) each Fund’s holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources; (iv) the relationship between each Fund’s portfolio liquidity and the way in which, and the prices and spreads at which, Fund shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants; and (v) the effect of the composition of baskets on the overall liquidity of each Fund’s portfolio.
Each Fund portfolio investment is classified into one of four liquidity categories. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. The Administrator has delegated liquidity classification determinations to each Fund’s sub-adviser, subject to appropriate oversight by the Administrator, and classification determinations are made by taking into account each Fund’s reasonably anticipated trade size, various market, trading and investment-specific considerations, as well as market depth, and, in certain cases, third-party vendor data.
The Liquidity Rule requires funds that do not primarily hold assets that are highly liquid investments to adopt a minimum amount of net assets that must be invested in highly liquid investments that are assets (“HLIM”). In addition, the Liquidity Rule limits a fund’s investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if doing so would result in a fund holding more than 15% of its net assets in illiquid investments that are assets. The Program includes provisions reasonably designed to determine, periodically review and comply with the HLIM requirement, as applicable, and to comply with the 15% limit on illiquid investments.
There were no material changes to the Program during the Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
Supplemental Information (unaudited)
For Federal individual income tax purposes, certain dividends paid for the fiscal year ended April 30, 2021 are attributable to interest income from Tax Exempt Municipal Bonds. Such dividends are currently exempt from Federal income taxes under Section 103(a) of the Internal Revenue Code.
| | IQ MacKay Municipal Insured ETF | | | | | 99.74% | | |
| | IQ MacKay Municipal Intermediate ETF | | | | | 87.05% | | |
In January 2022, you will be advised on IRS Form 1099 DIV as to the Federal tax status of the distributions received by you in calendar year 2021.
Board Review of Investment Advisory Agreements (unaudited)
Approval Relating To Annual Continuation of the Advisory Agreement and Sub-Advisory Agreements
The Board (the members of which are referred to as “Trustees”) met by videoconference on March 31, 2021, pursuant to an order issued by the U.S. Securities and Exchange Commission’s Division of Investment Management temporarily exempting fund boards from the in-person approval requirements of certain provisions of the Investment Company Act of 1940, as amended (“1940 Act”), in light of the impact of COVID-19. The Board met to consider the approval of the continuation, for an additional year, of the Advisory Agreement with respect to the series of the Trust for which the agreement applies (the “Funds”). The Board noted that the Advisory Agreement was between the Trust and IndexIQ Advisors LLC (the “Advisor”). In addition, the Board considered the continuation of the Sub-Advisory Agreement between the Advisor and MacKay Shields LLC (“MacKay”), with respect to the IQ MacKay Municipal Insured ETF, IQ MacKay Municipal Intermediate ETF and IQ MacKay Municipal Short Duration ETF and the Sub-Advisory Agreement between the Advisor and NYL Investors LLC (“NYL Investors”), with respect to the IQ Ultra Short Duration ETF (MacKay and NYL Investors, collectively, the “Sub-Advisors” and each a “Sub-Advisor”).
In accordance with Section 15(c) of the 1940 Act, the Board requested, reviewed and considered materials furnished by the Advisor relevant to the Board’s consideration of whether to approve the continuation of the Advisory Agreement with respect to the Funds, and from the Sub-Advisors and the Advisor relevant to the Board’s consideration of whether to approve the continuation of each Sub-Advisory Agreement as it relates to IQ MacKay Municipal Insured ETF, IQ MacKay Municipal Intermediate ETF, IQ MacKay Municipal Short Duration ETF and IQ Ultra Short Duration ETF (each a “Sub-Advised Fund” and collectively, the “Sub-Advised Funds”). In connection with considering approval of the continuation of the Advisory Agreement and Sub-Advisory Agreements, the Trustees who are not “interested persons” of the Trust, as that term is defined in the 1940 Act (the “Independent Trustees”), met in executive session with counsel to the Trust and counsel to the Independent Trustees, who provided assistance and advice. The consideration of the continuation of the Advisory Agreement and Sub-Advisory Agreements was conducted by both the full Board and the Independent Trustees, who also voted separately.
During their review and consideration, the Board and the Independent Trustees focused on and analyzed the factors they deemed relevant, including: (1) the nature, extent and quality of the services provided by the Advisor to the Funds and by MacKay and NYL Investors with respect to the Sub-Advised Funds, and the fees charged by the Advisor and each Sub-Advisor; (2) information concerning the business and operations, compliance program and portfolio management team of the Advisor and each Sub-Advisor; (3) the expense levels of each Fund; (4) the investment performance of the Funds; (5) the costs of the services provided and profits realized by the Advisor and its affiliates from the relationship with the Trust, including expense limitation agreements and fee waiver agreements between the Advisor and certain Funds; (6) the extent to which economies of scale would be realized as each Fund grows; (7) any “fall-out” benefits derived or to be derived by the Advisor or each Sub-Advisor from their relationships with the Trust; and (8) potential conflicts of interest. The Board considered that the Funds were actively managed exchange-traded funds (“ETFs”).
In reviewing such factors, the Board relied on certain information, including (1) a copy of the Advisory Agreement; (2) a copy of each Sub-Advisory Agreement; (3) information about applicable expense limitation and fee waiver agreements; (4) information describing the Advisor, MacKay and NYL Investors and the services provided thereby; (5) information regarding the respective compliance program and portfolio management teams of the Advisor and each Sub-Advisor; (6) copies of the Form ADV for each of the Advisor and each Sub-Advisor; (7) memoranda and guidance from legal counsel to the Independent Trustees on the fiduciary responsibilities of trustees, including Independent Trustees, in considering advisory and distribution agreements under the 1940 Act; (8) materials provided by each of the Advisor and each Sub-Advisor in response to a 15(c) request for information from legal counsel to the Independent Trustees; and (9) a presentation, via videoconference, by personnel of the Advisor. In addition, the Board was provided data comparing the advisory fees and operating expenses (including acquired fund fees and expenses, as applicable) of the Funds with expenses and performance of other registered investment companies with similar investment objectives and policies. The Trustees also considered their personal experiences as Trustees and participants in the ETF and mutual fund industry, as applicable, including their experiences with the Advisor in respect of series of the Trust and IndexIQ ETF Trust.
In particular, the Trustees including the Independent Trustees, considered and discussed the following with respect to the Funds:
1.
The nature, extent and quality of the facilities and services provided by the Advisor and each Sub-Advisor. The
Board Review of Investment Advisory Agreements (unaudited) (continued)
Board reviewed the services that the Advisor and each Sub-Advisor provide to the respective Funds, noting that they had continually reviewed and overseen such services throughout the past year. The Board noted the responsibilities that the Advisor and the Sub-Advisors have as the investment advisor and sub-advisors to the respective Funds, including overall supervisory responsibility for the general management and investment of each Fund’s securities portfolio, monitoring fund compliance with regulatory requirements and Fund objectives and policies, daily monitoring of the portfolio, overseeing Fund service providers, providing officers for the Funds, ongoing reporting to the Board, and the implementation of Board directives as they relate to the Funds. For the Fund that is not yet operational, the Board considered the services rendered in respect of the existing Funds in assessing services expected to be provided to the non-operational Fund.
The Board reviewed the Advisor’s and each Sub-Advisors’ experience, resources, and strengths in managing mutual funds and ETFs, including the Advisor’s management of the Funds and the funds of the IndexIQ ETF Trust. The Board also considered the experience of each Sub-Advisor’s team in managing strategies and asset classes similar to the Sub-Advised Funds, and their tenure in managing the portfolios of the operational Sub-Advised Funds. The Board also noted and discussed with the Advisor the resources and additional support and personnel from its affiliate New York Life Investment Management LLC (“NYLIM”), which resources enhance and support the work of the Advisor’s officers and staff. The Board also considered the tenure and experience of the personnel at the Advisor providing management and administrative services to the Funds. The Board also considered the Advisor’s marketing and distribution strategy, including the various services engaged by the Advisor in seeking to market and grow assets in the Funds.
Based on their consideration and review of the foregoing information, the Board concluded that each Fund was likely to continue to benefit from the nature, quality, and extent of these services, as well as the Advisor’s and each Sub-Advisor’s ability to render such services based on its personnel, experience, operations, and resources.
2.
Comparison of services provided and fees charged by the Advisor and each Sub-Advisor and other investment advisors to similar clients, and the cost of the services provided and profits realized by the Advisor and each Sub-Advisor from their relationships with the respective Funds. The Board then compared both the services rendered and the fees paid with respect to the Funds pursuant to the Advisory Agreement and each Sub-Advisory Agreement to contracts of other registered investment advisors providing services to similar ETFs. The Board also considered that the Advisor is responsible for payment of the sub-advisory fee to the Sub-Advisors pursuant to each Sub-Advisory Agreement, and that shareholders of the Sub-Advised Funds do not directly pay the sub-advisory fee.
In particular, the Board compared each Fund’s advisory fee and expense ratio (including acquired fund fees and expenses, as applicable) to other investment companies considered to be in each such Fund’s peer group. The Advisor presented information on how peer groups were selected for the Funds and explained that peer groups were selected using an objective methodology by a NYLIM team.
The Board noted that certain Funds had peer groups of limited size and, in certain cases, with substantial differences in portfolio management and operational costs. The Board was presented with information describing the Funds’ performance and fees, with information relative to peer groups. The Board considered unique characteristics of certain Funds relative to peer groups, particularly where such Funds had fee or total expense ratios that diverged from the median levels of the applicable peer group. The Board also discussed price pressure in the general ETF marketplace and the impact of market pressures on the price levels for actively managed ETFs such as the Funds. The Board considered the level of each of the fees under the Advisory Agreement in the context of the services being provided.
Additionally, the Trustees considered that the Advisor had put in place expense limitation agreements whereby the Advisor reimburses expenses and/or waives fees to limit the impact above set thresholds of certain expenses on shareholders of the Funds. The Board noted that such expense limitation agreements were reflected in the peer group analysis provided by the Advisor.
After comparing each Fund’s fees with those of other investment companies in the Fund’s peer group, and in light of the nature, quality, and extent of services provided by the Advisor and each Sub-Advisor and the costs incurred by the Advisor and each Sub-Advisors in rendering those services, the Board concluded that
Board Review of Investment Advisory Agreements (unaudited) (continued)
the level of fees paid (or proposed to be paid) to the Advisor with respect to each Fund and to the Sub-Advisors with respect to each Sub-Advised Fund, is fair and reasonable.
3.
The Advisor’s, MacKay’s and NYL Investors’ profitability and the extent to which economies of scale would be realized as the Funds grow and whether fee levels would reflect such economies of scale. The Board discussed with the Advisor the costs and profitability of the Advisor in connection with its serving as investment advisor to each Fund, including operational costs. The Board also discussed additional resources available to the Advisor as part of a larger organization, including the investment of financial and human resources into the Advisor and additional support to market and distribute the Funds.
The Board considered information regarding the strategy of the Advisor to grow assets in the Funds during the calendar year, including details that were provided in the Board materials. The Board reviewed the net asset levels of the Funds and the impact of both high and low asset levels on such Funds. The Advisor presented to the Board information on the operating profits on a year over year basis. The Board also considered the impact of future asset growth on the services required and fees paid to each Sub-Advisor, noting again that such fees were paid by the Advisor out of its management fees. The Board considered whether the continued operation of certain Funds that had not attracted significant assets under management would be profitable to the Advisor and determined to continue to review the asset levels of the Funds in relation to the Advisor’s profitability. The Board also noted the existence of the Expense Limitation Agreement, and its respective impact on costs to shareholders and profitability of the Advisor.
The Board noted that IQ MacKay Municipal Short Duration ETF had not yet commenced operations, and therefore no direct historical profitability data was available for consideration for such Fund.
The Board concluded that the fees paid to the Advisor and the Sub-Advisors, respectively, were reasonable when considering the relative asset levels and profitability of the Funds to the Advisor.
4.
Investment performance of the Funds. The Board considered the investment performance of the existing Funds. In particular, the Board considered the investment performance of the Funds relative to their stated objectives and the success of the Advisor and each Sub-Advisor in reaching such objectives. The Board considered each Fund’s investment performance compared to its benchmark and peer group. The Board also considered that IQ MacKay Municipal Short Duration ETF had not yet commenced operations, and therefore had no performance or operational history to consider.
The Board concluded that the investment performance of the Funds supported the approval of the Advisory Agreement and each Sub-Advisory Agreement.
The Board agreed that it had been furnished with sufficient information, both at the meeting and in its ongoing oversight of the Funds, to make an informed business decision with respect to the Advisory Agreement for the Funds and, with respect to the Sub-Advised Funds, the Sub-Advisory Agreements. Based on the foregoing and such other matters as were deemed relevant, and while no single factor was determinative in the decision, the Independent Trustees concluded that the terms of the Advisory Agreement with the Advisor and the Sub-Advisory Agreements between the Advisor and each Sub-Advisor were reasonable and fair to the Funds and to recommend to the Board the approval of the Advisory Agreement and Sub-Advisory Agreements. As a result, all of the Board members, including the Independent Trustees, determined that the continuation of the Advisory Agreement with the Advisor and continuation of each Sub-Advisory Agreement was in the best interests of each applicable Fund and its shareholders. The Board and the Independent Trustees, voting separately, approved the continuation of the Advisory Agreement and Sub-Advisory Agreements for an additional one-year period.
Board of Trustees and Officers (unaudited)
The Board oversees the IndexIQ ETF Trust, IndexIQ Active ETF Trust, the Advisor and the Subadvisors. Information pertaining to the Trustees and Officers of the Funds is set below. The report includes additional information about the Funds’ Trustees and Officers and is available without charge, upon request by calling 1-888-474-7725.
Independent Trustees
| | Name and
Year of Birth(1) | | | Position(s)
Held with
Trust | | | Term of
Office and
Length of
Time Served(2) | | | Principal Occupation(s) During Past 5 Years | | | Number of
Portfolios
in Fund
Complex
Overseen
by Trustee(3) | | | Other
Directorships
Held by
Trustee
During Past 5 Years | |
| | Reena Aggarwal, 1957 | | | Trustee Chair | | | Since August 2008 Since January 2018 | | | Vice Provost of Faculty (2016 to present), Georgetown University, Robert E. McDonough Professor (2003 to present) and Professor of Finance, McDonough School of Business, Georgetown University (2000 to present); Director, Georgetown Center for Financial Markets and Policy (2010 to present); Co-Chair of Board, Social Innovations and Public Service Fund, Georgetown University (2012 to 2014). | | | 20 | | | FBR & Co. (investment banking) (2011 to 2017); Cohen & Steers (asset management) (2017 to present); Director, Brightwood Capital Advisors, L.P. (private equity investment) (2013 to present); Nuveen Churchill BDC (2019 to present).). | |
| | Michael A. Pignataro, 1959 | | | Trustee | | | Since April 2015 | | | Retired; formerly, Director, Credit Suisse Asset Management (2001 to 2012); and Chief Financial Officer, Credit Suisse Funds (1996 to 2013). | | | 20 | | | The New Ireland Fund, Inc. (closed-end fund) (2015 to present). | |
| | Paul D. Schaeffer, 1951 | | | Trustee | | | Since April 2015 | | | President, ASP (dba Aspiring Solution Partners) (financial services consulting) (2013 to present); Executive Advisor, Aquiline Capital Partners LLC (private equity investment) (2014 to present). | | | 20 | | | Management Board Member, RIA in a Box LLC (financial services consulting) (2018 to present); Context Capital Funds (mutual fund trust) (2 Portfolios) (2014 to 2018); Management Board Member, Altegris Investments, LLC (registered broker-dealer) (2016 to 2018); Management Board Member, AssetMark Inc. (financial services consulting) (2016 to 2017); PopTech! (conference operator) (2012 to 2016); Board Member, Pathways Core Training (non-profit) (2019 to present). | |
Board of Trustees and Officers (unaudited) (continued)
Interest Trustee
| | Name and
Year of Birth(1) | | | Position(s)
Held with
Trust | | | Term of
Office and
Length of
Time Served(2) | | | Principal Occupation(s) During Past 5 Years | | | Number of
Portfolios
in Fund
Complex
Overseen
by Trustee(3) | | | Other
Directorships
Held by
Trustee
During past 5 Years | |
| | Kirk C. Lehneis, 1974(4) | | | Trustee, President and Principal | | | Since January 2018 | | | Chief Operating Officer and Senior Managing Director, New York Life Investment Management LLC (since 2016); Chairman of the Board, NYLIM Service Company LLC (since September 2017); President, MainStay MacKay DefinedTerm Municipal Opportunities Fund, MainStay Funds, MainStay Funds Trust, and MainStay VP Funds Trust (since 2017). | | | 20 | | | None. | |
Officers
| | Names and
Year of Birth(1) | | | Position(s)
Held with
Trust | | | Term of
Office and
Length of
Time Served(2) | | | Principal Occupation(s) During Past 5 Years | |
| | Jonathan Zimmerman, 1982 | | | Executive Vice President | | | Since April 2018 | | | Chief Operating Officer, IndexIQ Advisors (2018 to present); Managing Director, New York Life Investments LLC (2018 to present); Director, New York Life Investment Management LLC (2015 to 2018); Vice President, Morgan Stanley (2007 to 2015). | |
| | Adefolahan Oyefeso, 1974 | | | Treasurer, Principal Financial Officer and Principal Accounting Officer | | | Since April 2018 | | | Vice President of Operations & Finance, IndexIQ Advisors (2015 to present); Director of the Fund Administration Client Service Department at The Bank of New York Mellon (2007 to 2015) | |
| | Matthew V. Curtin, 1982 | | | Secretary and Chief Legal Officer | | | Since June 2015 | | | Secretary and Chief Legal Officer, IndexIQ Advisors, IndexIQ Trust, IndexIQ ETF Trust and IndexIQ Active ETF Trust (June 2015 to January 2017); Associate General Counsel, New York Life Insurance Company (since February 2015); Associate, Dechert LLP (2007 to 2015). | |
| | Kevin M. Bopp, 1969 | | | Chief Compliance Officer | | | Since June 2021 | | | Chief Compliance Officer, IndexIQ ETF Trust and IndexIQ Active ETF Trust (since 2021); Head of Investments Compliance, New York Life Investments (since 2019); Chief Compliance Officer, IndexIQ Advisors (since 2017); Chief Compliance Officer, IndexIQ ETF Trust and IndexIQ Active ETF Trust (2017 to 2019) Vice President and Chief Compliance Officer, The MainStay Funds, MainStay Funds Trust, MainStay MacKay DefinedTerm Municipal Opportunities Fund and MainStay VP Funds Trust (2014 to 2019). | |
(1)
The address of each Trustee or officer is c/o IndexIQ Advisors, 51 Madison Avenue, New York, New York 10010.
(2)
Trustees and Officers serve until their successors are duly elected and qualified.
(3)
The Fund is part of a “fund complex” as defined in the 1940 Act. The fund complex includes all open-end funds (including all of their portfolios) advised by the Advisor and any funds that have an investment advisor that is an affiliated person the Advisor
(4)
Mr. Lehneis is an “interested person” of the Trust (as that term is defined in the 1940 Act) because of his affiliations with the Advisor.
IndexIQ Active ETF Trust
Annual Report | April 30, 2021
IQ MacKay Municipal Insured ETF (MMIN)
IQ MacKay Municipal Intermediate ETF (MMIT)
IQ Ultra Short Duration ETF (ULTR)
Investment Advisor
IndexIQ Advisors LLC
51 Madison Avenue
New York, NY 10010
Distributor
ALPS Distributors, Inc.
1290 Broadway, Suite 1100
Denver, CO 80203
Custodian/Fund Administrator/Transfer Agent
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
Legal Counsel
Chapman and Cutler LLP
1717 Rhode Island Avenue
Washington, DC 20036
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
300 Madison Avenue
New York, NY 10017
The Report to Shareholders is attached herewith.
Item 2. Code of Ethics.
| (a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
| (c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
| (d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Trustees has two audit committee financial experts serving on its Audit Committee, each an “independent” Trustee, Reena Aggarwal and Michael Pignataro. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the Audit Committee and Board of Trustees in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services.
Audit Fees
| (a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $60,000 for 2021 and $49,500 for 2020. |
Audit-Related Fees
| (b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 for 2021 and $0 for 2020. |
Tax Fees
| (c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $0 for 2021 and $0 for 2020. |
All Other Fees
| (d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2021 and $0 for 2020. |
| (e)(1) | Per Rule 2-01(c)(7)(A), the Audit Committee pre-approves all of the Audit, Audit-Related, Tax and Other Fees of the Registrant. |
| (e)(2) | With respect to the services described in each of Items 4(b) through (d), no amount was approved by the audit committee pursuant to paragraph (c)(7)(A) of Rule 2-01 of Regulation S-X. |
| (f) | The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent. |
| (g) | The aggregate non-audit fees billed by the principal accountant for services rendered to the registrant’s investment adviser (not including any subadvisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant were (i) approximately $10,306,000 for the fiscal year ended April 30, 2021, and (ii) $10,322,000 for the fiscal year ended April 30, 2020. |
| (h) | The registrant’s Audit Committee has determined that the non-audit services rendered by the principal accountant for the fiscal year ended April 30, 2021 to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the registrant’s investment adviser that provides ongoing services to the registrant that were not required to be pre-approved by the Audit Committee because they did not relate directly to the operations and financial reporting of the registrant were compatible with maintaining the respective independence of the principal accountant during the relevant time period. |
Item 5. Audit Committee of Listed Registrants.
| (a) | The Fund has a designated Audit Committee in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934 (the “Exchange Act”) and the members of such committee are Reena Aggarwal, Michael Pignataro and Paul Schaeffer. |
Item 6. Investments.
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(a) of this form. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) | IndexIQ Active ETF Trust |
| By (Signature and Title) | /s/ Kirk C. Lehneis |
| | Kirk C. Lehneis |
| | (Principal Executive Officer) |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title) | /s/ Kirk C. Lehneis |
| | Kirk C. Lehneis |
| | (Principal Executive Officer) |
| By (Signature and Title) | /s/ Adefolahan O. Oyefeso |
| | Adefolahan O. Oyefeso |
| | (Principal Financial Officer) |
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