

IQSM offers exposure to 220 mid-cap stocks that have passed a proprietary ESG screening system. Its expense ratio is 0.15% and the ETF has $234 million in assets under management. IQSM has a slight growth lean, evidenced by higher estimated sales and earnings growth rates and higher valuation ratios. The ETF currently trades at 17.75x forward earnings. However, IQSM has consistently experienced larger drawdowns than SPMD, a broad-based ETF tracking the S&P MidCap 400 Index.

Good news for the fund industry: Investors are willing to incur higher expense ratios when it comes to accessing environmental, social, and governance (ESG) products. Good news for investors: They don't have to do that.

Equity, debt funds tap into rising demand for sustainable investments.

IndexIQ has launched two new ESG-focused exchange-traded funds on the NYSE Arca today: the IQ MacKay ESG High Income ETF (NYSE Arca: IQHI) and the IQ Candriam ESG U.S. Mid Cap Equity ETF (IQSM).
SEC filings for IQSM aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.