Bridging active and passive

clrg csml

IQ Chaikin U.S. Large Cap ETF | IQ Chaikin U.S. Small Cap ETF

Looking for smarter smart beta? Bridge the gap between active and passive management with the IQ Chaikin ETFs — the only ETFs that use the multi-factor stock selection approach of the Chaikin Power Gauge™ model.

Try the Chaikin Power Gauge™ now

About the Chaikin Power Gauge™

The Chaikin Power Gauge™ is built from the factors active managers use to diversify portfolios and seek enhanced returns across market cycles. Marc Chaikin, stock market expert and inventor of the Chaikin Power Gauge™, discusses how and why he constructed the model.

Why Multi-Factor Investing?

Single factors have been highly cyclical from year to year, and timing can be a difficult endeavor. Combining multiple factors creates a more diversified solution to potentially enhance returns over time.

single factors are highly cyclical

Source: Morningstar, as of 12/31/17. The quality factor is represented by the Russell 1000 Quality Factor Index, which is a benchmark designed to capture exposure to quality factors. The dividend factor is represented by the S&P 500 Dividend Aristocrats Index, which measures the performance of S&P 500 companies that have increased dividends every year for the last 25 consecutive years. The high beta factor is represented by the S&P 500 High Beta Index, which measures the performance of 100 constituents in the S&P 500 that are most sensitive to changes in market returns. The low volatility factor is represented by the S&P 500 Low Volatility Index, which measures performance of the 100 least volatile stocks in the S&P 500. The momentum factor is represented by the S&P 500 Momentum Index, which is designed to measure the performance of securities in the S&P 500 universe that exhibit persistence in their relative performance. The value factor is represented by the S&P 500 Value Index, which measures value stocks using three factors: the ratios of book value, earnings, and sales to price. The size factor is represented by the S&P 600 Index, which measures the small-cap segment of the U.S. equity market. Past performance is not a guarantee of future results. It is not possible to invest directly in an index. Diversification does not guarantee a profit or protect against a loss. There is no assurance that multi-factor investing will be profitable.

Combining multiple factors may help create a more diversified solution, as factor returns generally are not highly correlated with one another.

multi-factor chart

Source: Morningstar, as of 12/31/17. Analysis conducted from 12/31/04-12/31/17. Optimum Factor Weights (max. 25%) apply a 25% maximum weight to any one factor when forming an optimized portfolio. Equal Factor Weights apply an equal weight to each factor when forming an optimized portfolio. The Market is represented by the S&P 500 Index. Standard deviation is a measure of the dispersion of a set of data from its mean. Past performance is no guarantee of future results, which will vary. It is not possible to invest directly in an index.

Constructing ETFs with the Chaikin Power Gauge™

contructing-etfs-funnel
  1. 1. Liquid universe is established

    CLRG NASDAQ U.S. 300 Index
    CSML NASDAQ U.S. 1500 Index

    Liquidity filter applied - Over $1MM 3-mo average dollar volume.

  2. 2. Chaikin Power Gauge screening

    Chaikin Power Gauge™ Rating rules are applied to form a diversified basket of securities.

    Only securities with the highest Chaikin Power Gauge™ Rating are included.

  3. 3. Equally weighted end portfolio

    CLRG 45-65 Stocks
    CSML 200-350 Stocks

    Portfolios made up of very bullish and bullish stocks.

Explore the IndexIQ Chaikin ETFs

CLRG IQ Chaikin U.S. Large Cap ETF

ETF facts

  • Index: NASDAQ Chaikin Power US Large Cap Index (NQULCHKT)
  • ETF inception date: December 13, 2017
  • Total annual fund operating expenses after fee waiver: 0.25%1,2

Growth of $10k investment

Source: Morningstar, 4/1/14-3/31/18. The NASDAQ Chaikin Power US Large Cap Index is a rules-based, quantitative index designed to augment an existing Index (NASDAQ US 300 Index) by selecting stocks with the highest Chaikin Power Gauge rating. The Standard & Poor's 500 Index (S&P 500) is an index of 500 stocks, seen as a leading indicator of U.S. equities and a reflection of the performance of the large-cap universe. Past performance is not a guarantee of future results. It is not possible to invest directly in an index.

CSMLIQ Chaikin U.S. Small Cap ETF

ETF facts

  • Index: NASDAQ Chaikin Power US Small Cap Index (NQUSCHKT)
  • ETF inception date: May 16, 2017
  • Total annual fund operating expenses after fee waiver: 0.35%1,2

Growth of $10k investment

Source: Morningstar, 4/1/14-3/31/18. The NASDAQ Chaikin Power US Small Cap Index is a rules-based, quantitative index, designed to augment an existing Index (NASDAQ US 1500 Index) by selecting stocks with the highest Chaikin Power Gauge rating.The Russell 2000 Index is an index measuring the performance of approximately 2,000 small-cap companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. Past performance is not a guarantee of future results. It is not possible to invest directly in an index.

About IndexIQ

IndexIQ, a New York Life Investments Company, is a trusted provider of innovative financial solutions.

IndexIQ ETFs are built and delivered in a way that provides exposures that investors can rely on. A subsidiary of one of the oldest and largest life insurance companies in the world, we have a solid foundation and the resources to continue our culture of innovation. IndexIQ has established a long track record of demonstrating the value of innovation. From offering the first liquid alternative ETF, to leveraging our multi-boutique platform, each ETF is thoughtfully constructed. Our specialized investment solutions help our clients meet the increasingly complex challenges they face in their portfolios today.

With coverage across all broad asset classes, IndexIQ offers smart solutions for building better portfolios within:

  • Fixed Income: Core, municipal, investment grade, high yield
  • Equities: Domestic large and small cap, global/international
  • Alternatives: Hedge fund replication
  • Specialty: Merger arbitrage, commodity, real estate
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