When investing in strategic beta or smart beta exchange traded fund strategies, are you evaluating a multi-factor investment approach?
On the upcoming webcast (available live and on demand for CE Credit), Harness the Power of 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 approach that may help advisors create a more diversified solution to potentially enhance returns over time.
Specifically, the IQ Chaikin U.S. Small Cap ETF (NasdaqGM: CSML) tries to reflect the performance of the Nasdaq Chaikin Power US Small Cap Index, which applies a shareholder yield screen and the so-called Chaikin Power Gauge, a quantitative multi-factor model that tries to identify securities that are expected to outperform their peers, to select components from the Nasdaq US 1500 Index. The target focus will include small capitalization stocks.
“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.”
The Chaikin Power Gauge is a 20-multi-factor model that screens for value, growth, technical and sentiment factors, such as price-to-book value, return-on-equity, free cash flow, price trends, relative strength, volume trend, earnings growth, earnings trends, projected price/earnings ratio, insider activity, short interest and earnings estimate trends. The gauge will identify each security’s ability to outperform market-weighted products and active strategies.
“The Chaikin Power Gauge stock rating is an unbiased 20-factor model based on financial metrics, earnings performance, price/volume activity and expert opinions,” according to Chaikin Analytics. “The Power Gauge Rating is the centerpiece of Chaikin Analytics. A remarkably accurate indicator of where a stock is headed over the next three to six months. Investors depend on the Power Gauge to find the winners and drop the losers ahead of price moves.”
Financial advisors who are interested in learning more about multi-factor, smart beta strategies can register for the Tuesday, September 19 webcast here.