When investing in strategic beta exchange traded fund strategies, are you evaluating a multi-factor investment approach?
On the upcoming webcast Thursday, Jan. 25 (available live and on demand for CE Credit), Power Up Your Portfolio with Multi-Factor Investing, Salvatore Bruno, Chief Investment Officer and Managing Director of IndexIQ, and Marc Chaikin, CEO of Chaikin Analytics, will dive into the strategic beta space and look to the Chaikin Power Gauge, a multi-factor stock selection tool that may help advisors create a more diversified solution to potentially enhance returns over time.
Specifically, IndexIQ recently followed up on its popular IQ Chaikin U.S. Small Cap ETF (NasdaqGM: CSML) with the launch of large-cap version tracking the same smart beta Chaikin Power Gauge strategy, the IQ Chaikin U.S. Large Cap ETF (NasdaqGM: CLRG).
CLRG provides investors and advisors with a powerful tool as they consider their domestic equity positions for the year. CLRG is the second ETF designed to leverage the Chaikin Power Gauge, a proprietary quantitative stock rating model developed by Marc Chaikin, an investment strategist with 50 years of market experience.
The underlying index takes 45 to 65 components from the market cap-weighted Nasdaq US 300 and incorporates 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.
Similarly, CSML tries to reflect the performance of the Nasdaq Chaikin Power US Small Cap Index, which applies a shareholder yield screen and the Chaikin Power Gauge to select components from the Nasdaq US 1500 Index.
“The Chaikin Power Gauge stock rating gives you a directional edge. It uses a proven algorithm that uniquely combines fundamental data with technical factors,” according to Chaikin Analytics. “It distills that complex data into simple ratings — green for bullish, red for bearish — so you can make smarter investment decisions quickly and easily.”
Financial advisors who are interested in learning more about multi-factor investments can register for the Thursday, January 25 webcast here.