IndexIQ has followed up on its popular IQ Chaikin U.S. Small Cap ETF (NasdaqGM: CSML) with the launch of large-cap exchange traded fund tracking the same smart beta Chaikin Power Gauge strategy.
On Wednesday, IndexIQ rolled out the IQ Chaikin U.S. Large Cap ETF (NasdaqGM: CLRG), which has a 0.25% expense ratio.
Salvatore Bruno, Chief Investment Officer with IndexIQ, explained that the idea of a large-cap version of CSML came about as more financial advisors asked about the strategy behind the small-cap ETF and wondered if the same Chaikin Power Gauge methodology would translate into a large-cap ETF.
“The addition of CLRG to our product suite provides investors and advisors with a powerful tool as they contemplate their domestic equity holdings,” Bruno said in a note. “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.”
CLRG is the second ETF designed to leverage the Chaikin Power Gauge (CPG), a proprietary quantitative stock rating model developed by Marc Chaikin, an investment strategist with 50 years of market experience.
“The Chaikin Power Gauge has proven the test of time and extends across all market caps,” Marc Chaikin, Founder and CEO of Chaikin Analytics, told ETF Trends in a call.