Meanwhile, IndexIQ, part of New York Life Investment Management, launched two multi-factor equity ETFs in 2017. The large-cap offering, IQ Chaikin US Large Cap ETF (CLRG), came to market last December and has approximately $300 million in assets.
According to Sal Bruno, chief investment officer of IndexIQ, CLRG includes traditional value factors and growth factors along with technical and sentiment factors to give a 360-degree view of a security. These attributes include price-to-book, earnings consistency, volume trends and insider activity. Bruno also spoke to CFRA about the firm’s smart beta ETFs at Inside ETFs in a video, which can be seen at https://newpublic.cfraresearch.com/indexiq_fixed_income_smart_beta_etfs/.
CLRG’s holdings are different than other large-cap multi-factor ETFs. For example, the ETF has more exposure to financials (36% of assets vs. 11% and 7% for DEUS and JPUS, respectively) and less exposure to consumer staples (3% vs. 6% and 11%, respectively).
Other multi-factor ETFs that came to market in the last three years include Goldman Sachs ActiveBeta US Large Cap Equity (GSLC), iShares Edge MultiFactor USA (LRGF) and John Hancock MultiFactor Large Cap (JHML). Each takes a distinct approach and, as such, holds different securities.