IQ Candriam ESG U.S. Large Cap Equity ETF

IQ Candriam ESG U.S. Large Cap Equity ETF (IQSU) is a New York Life index fund. It holds about 264 large U.S. companies chosen and screened using ESG (environmental, social and governance) criteria developed by Candriam. Its 0.09% expense ratio is below the 0.13% average of similar funds. It is small, with $327.5 million in assets as of July 31, 2026, and it leans heavily on technology stocks.

• Over the year to Oct 27, 2026, IQSU returned +15.9%, 1st of 9 among similar funds.
• Its 5-year annualized return was +11.1%.
• In the 2020 COVID crash it fell 31.3% and regained its old high 3.6 months after the low.
• Its worst full calendar year was 2022 (-22.1%); its best was 2023 (+33.0%).
• The deepest fall in its price history was 31.3% (Feb 19, 2020 to Mar 23, 2020), recovered by Jul 10, 2020.

As of Jul 31, 2026, the fund held 264 securities; the ten largest made up 42.71% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $6.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +7.20%, +1.03%, -2.11%.

IQSU is a passive fund. It does not pick stocks itself. Instead it tracks the NYLIM Candriam U.S. Large Cap Equity Index. The fund's advisor, part of New York Life, is also the index provider, and Candriam serves as its index consultant. The process starts with stocks making up about 85% of the U.S. market's value. Each company is scored against others in its own industry. The scores cover how it treats customers and employees, its environmental record, its governance, and its impact on society. They also cover its exposure to trends such as climate change, digitalization and aging populations. Companies ranked in the top 70% of each sector move on to the next step.

The second step removes companies with continued, significant breaches of the UN Global Compact principles on human rights, labor, environment and corruption. It also removes companies above set thresholds in alcohol, tobacco, gambling, armaments, nuclear and adult content, and companies that use animal testing or genetic modification in research. The companies that remain are weighted by market capitalization, so bigger companies get bigger weights. That is why Apple was 9.9% of assets as of July 31, 2026.

The index is rebalanced quarterly. A company whose rank slips to between the top 70% and 80% can stay in at a reduced weight for two more rebalances, which limits trading. Portfolio turnover was 31%.

• IQSU charges 0.09% a year, versus an average of 0.13% for the similar funds below (3rd of 9, cheapest first).
• The fee includes a 0.01% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $9 in the first year and $115 over 10 years (assuming a 5% annual return).

A market-cap-weighted basket of about 264 large U.S. companies with ESG screens, at 0.09% a year, could serve as a main U.S. stock holding for investors who want those screens.

IQSU offers broad large-cap U.S. stock exposure with ESG screens at a low cost. In the SEC's standard example, $10,000 invested would cost about $115 over 10 years. It provides little income: the trailing 12-month yield was 0.89% as of October 27, 2026, paid quarterly.

It falls when the stock market falls. The fund launched in December 2019, so it has no 2008 record. It dropped 31.3% in the 2020 COVID crash and recovered in about 3.6 months. In the 2022 bear market it fell 26.4% and needed about 14 months, until December 12, 2023, to recover. Its worst calendar year was 2022, at -22.02%. Selling shares to cover expenses in a slump like that would lock in losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.