IndexIQ, a New York Life Investments company, has launched the IQ Chaikin US Large Cap ETF (CLRG US) on Nasdaq Exchange. The fund is the second ETF from the firm to use the Chaikin Power Gauge, a proprietary quantitative stock rating model, after the launch of the IQ Chaikin US Small Cap ETF (CSML US) in May this year.
IndexIQ’s chief investment officer Salvatore Bruno.
CLRG tracks the NASDAQ Chaikin Power US Large Cap Index, which comprises approximately 45-65 large-cap US equities that have been identified by the Chaikin model as being likely to outperform the market, with the overall resulting portfolio having the potential to outperform both market-weighted and active strategies, according to IndexIQ.
To construct the index, members of the NASDAQ US 300 Index are scored based on value (35%), technical (15%), growth (20%) and sentiment (30%). Stocks with a score in the top 14% of all securities are included in the index and equally weighted.
IndexIQ states that, unlike many other US large cap ETFs, CLRG is not tied to the performance of the S&P 500, giving investors the opportunity to add differentiated large-cap exposure to their core equity holdings.
“The addition of CLRG to our product suite provides investors and advisors with a powerful tool as they contemplate their domestic equity holdings,” said Salvatore Bruno, CIO of IndexIQ. “Having the ability to add domestic large cap exposure that combines a high conviction, multi-factor approach with the lower costs, transparency and tax efficiency of ETFs is a great opportunity for advisors to help build better portfolios for their clients.”
Marc Chaikin, founder and CEO of Chaikin Analytics, added, “IndexIQ is known for bringing thoughtful, innovative products to market. Our entire suite of NASDAQ Chaikin indices is built on a proprietary research process and provides the basis for differentiated exposures, a task to which I’ve dedicated my career. We look forward to continuing our partnership with IndexIQ and bringing more multi-factor solutions to investors.”
CLRG comes with an annual charge of 0.25%. The small-cap version, CSML, has amassed $305 million in assets since its launch and comes with an annual fee of 0.35%.