IndexIQ adds two ESG ETFs

The products are a partnership with Candriam and MacKay Shields

New York Life’s IndexIQ has added two more ESG ETFs to its line, the company announced Tuesday.

Those products include a high yield bond fund subadvised by MacKay Shields and a midcap US equity ETF that tracks a Candriam index.

The actively managed IndexIQ MacKay ESG High Income ETF, which commenced operations Tuesday, invests in US and non-US corporate debt, convertible corporate securities, loans and loan participation interests that are rated below investment grade, according to the prospectus.

At least 80% of the ETF’s assets will be invested in debt instruments that meet ESG criteria determined by MacKay Shields.

That ETF has net expenses of 40 basis points. The MacKay Shields global credit team subadvising it is led by Eric Gold.

Meanwhile, the passively managed IQ Candriam ESG US Mid Cap Equity ETF went live last month. The ETF invests in mid-cap securities that meet certain ESG criteria determined by Candriam. Net expenses for that product are 15 basis points.

IndexIQ’s Greg Barrato and James Harrison are portfolio managers on the fund.

The company had already provided several other ESG ETFs in partnerships with Candriam and MacKay Shields, and IndexIQ also has a suite of four “dual impact” ETFs.