There are numerous market factor premiums that enhance investments over the long haul, and investors who are interested in factors may consider smart beta ETFs that can capitalize on these premiums.
For example, investors can look to the Chaikin Power Gauge, a multi-factor stock selection tool that may help create a more diversified solution to potentially enhance returns over time. ETF investors may gain exposure to a diversified multi-factor approach through the IQ Chaikin U.S. Small Cap ETF (NasdaqGM: CSML) and the large-cap version tracking the same smart beta Chaikin Power Gauge strategy, the IQ Chaikin U.S. Large Cap ETF (NasdaqGM: CLRG).
“What’s great about the Chaikin Power Gauge tool is that it allows you to access a lot of detailed transparency on all three thousand securities that make up the Russell 3000,” Salvatore Bruno, Chief Investment Officer & Managing Director for IndexIQ, said at the 2018 Morningstar Invest Conference.
As a way to diversify and potentially enhance returns, the Chaikin Analytics approach found under CSML and CLRG combine various proven factors, notably value, growth, technical and sentiment.