Should IQ Chaikin U.S. Large Cap ETF (CLRG) Be on Your Investing Radar?
Style Box ETF report for CLRG
The IQ Chaikin U.S. Large Cap ETF (CLRG) was launched on 12/13/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by New York Life Investments. It has amassed assets over $332.85 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.07%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 25.90% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Zscaler Inc (ZS) accounts for about 1.64% of total assets, followed by Intuit Inc (INTU) and West Pharmaceutical Servi (WST).
The top 10 holdings account for about 13.06% of total assets under management.
Performance and Risk
CLRG seeks to match the performance of the NASDAQ CHAIKIN POWER US LARGE CAP INDEX before fees and expenses. The NASDAQ Chaikin Power US Large Cap Index applies a quantitative multi-factor model that seeks to identify securities that are expected to outperform peers by selecting securities from the Nasdaq US 300 Index.
The ETF has added about 23.53% so far this year and it's up approximately 25.22% in the last one year (as of 12/20/2021). In the past 52-week period, it has traded between $28.58 and $35.78.
The ETF has a beta of 1.10 and standard deviation of 23.70% for the trailing three-year period. With about 104 holdings, it effectively diversifies company-specific risk.
IQ Chaikin U.S. Large Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, CLRG is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $321.20 billion in assets, SPDR S&P 500 ETF has $436.81 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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IQ Chaikin U.S. Large Cap ETF (CLRG): ETF Research Reports
Intuit Inc. (INTU): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report
iShares Core S&P 500 ETF (IVV): ETF Research Reports
Zscaler, Inc. (ZS): Free Stock Analysis Report
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