To help investors better access potential opportunities in the U.S., IndexIQ has partnered up with Chaikin Analytics to launch the multi-factor IQ Chaikin U.S. Small Cap ETF (NasdaqGM: CSML) and IQ Chaikin U.S. Large Cap ETF (NasdaqGM: CLRG). The smart beta ETFs incorporate the so-called Chaikin Power Gauge that combines four primary factors, including value, growth, technical and sentiment.
The value factor includes screens like LT debt to equity ratio, price to book value, return on equity, price to sales ratio and free cash flow. Technical factors cover price trend, price trend rate of change, relative strength vs. market and volume trend. Growth factors include earnings growth, earnings surprise, earnings trend, projected P/E ratio and earnings consistency. Lastly, the sentiment factor screens for earnings estimate trend, short interest, insider activity, analyst ratings and industry relative strength.
“It basically draws on my 30 years experience working with active, successful portfolio managers on the mutual fund side and on the hedge fund side,” Chaikin said.
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