IndexIQ Launches the IQ Chaikin U.S. Large Cap ETF (CLRG)
Fund joins CSML as IndexIQ builds a suite of multi-factor solutions leveraging the Chaikin Power Gauge
RYE BROOK, New York, December 13, 2017 – IndexIQ, a New York Life Investments company, and a leading provider of innovative ETF solutions, today announced the launch of the IQ Chaikin U.S. Large Cap ETF (NASDAQ: CLRG).
CLRG is the second ETF brought to market by the IndexIQ team designed to leverage the Chaikin Power Gauge® (CPG), a proprietary quantitative stock rating model developed by Marc Chaikin, an investment strategist with 50 years of market experience.
CLRG is designed to track the price and yield performance of the NASDAQ Chaikin Power U.S. Large Cap Index (the Index), which is made up of approximately 45-65 large cap domestic equities that have been identified by the Chaikin Power Gauge as being likely to outperform the market, with the overall resulting portfolio having the potential to outperform both market-weighted and active strategies.
Unlike other large cap domestic equity ETFs, CLRG is not closely tied to the performance of the S&P 500,1 giving investors the opportunity to add differentiated domestic large cap exposure to their core equity holdings.
CLRG joins the IQ Chaikin U.S. Small Cap ETF (NASDAQ: CSML), which leverages the Chaikin Power Gauge’s multi-factor approach in building a portfolio of domestic small-cap equities. CSML began trading on May 16, 2017, has more than $300 million in assets and has outperformed the Russell 2000 index since its inception.2
In addition to CSML, CLRG joins a host of other first-of-their-kind factor-based ETF approaches from IndexIQ, including fixed income funds such as the IQ Enhanced Core Bond U.S. ETF (NYSE Arca: AGGE) and IQ Enhanced Core Plus Bond U.S. ETF (NYSE Arca: AGGP), which were launched in May of 2016, and the IQ S&P High Yield Low Volatility Bond ETF (NYSE Arca: HYLV), the first high yield low volatility fixed income ETF, which launched in February of 2017.
Salvatore Bruno, Chief Investment Officer with IndexIQ said:
"The addition of CLRG to our product suite provides investors and advisors with a powerful tool as they contemplate their domestic equity holdings. Having the ability to add domestic large cap exposure that combines a high conviction, multi-factor approach with the lower costs, transparency and tax efficiency of ETFs is a great opportunity for advisors to help build better portfolios for their clients."
Marc Chaikin, Founder and CEO of Chaikin Analytics, LLC said:
"IndexIQ is known for bringing thoughtful, innovative products to market. Our entire suite of NASDAQ Chaikin indices is built on a proprietary research process and provides the basis for differentiated exposures, a task to which I've dedicated my career. We look forward to continuing our partnership with IndexIQ and bringing more multi-factor solutions to investors."
IndexIQ is a pioneer and leading provider of innovative investment solutions focused on absolute return, real assets, international and fixed income strategies. IndexIQ's solutions are offered as ETFs, mutual funds, separately managed accounts, and ETF model portfolios. The company's philosophy is to democratize investment management by providing all investors with cost-effective access to the types of high-quality, sophisticated investment products that typically have been reserved for institutional and ultra-high-net-worth investors. IndexIQ's mission is to take indexing to the next level by combining the best attributes of both passive and active investing, and make strategies available to investors in low cost, liquid, and transparent products. IndexIQ is an indirect, wholly-owned subsidiary of New York Life Insurance Company. Additional information about IndexIQ and its products can be found at IQetfs.com.
About Chaikin Analytics, LLC
Marc Chaikin created Chaikin Analytics to put the power of proven stock research tools and analytics in the hands of professional and individual investors and traders. A Wall Street analyst, stock broker and options expert for 50 years, Chaikin created the Chaikin Power Gauge, a proven 20-factor model that uniquely combines fundamental, technical and sentiment factors to provide alpha. With the Chaikin Power Gauge stock rating model as its centerpiece, Chaikin Analytics offers powerful decision-making tools in an easy-to-use desktop and iPad application. Chaikin also created three technical trading indicators, the widely-used Chaikin Oscillator, the Chaikin Accumulation/Distribution Indicator and the Chaikin Persistency of Money Flow. Chaikin's indicators are industry standards, found on most trading platforms in the world. He also pioneered the first real-time analytics workstation for institutional money managers and trading desks, now part of Thomson Reuters' institutional workstation. For more information on Chaikin Analytics, LLC please visit www.chaikinanalytics.com.
For additional information about IndexIQ, please contact:
New York Life Insurance
Chris Sullivan/Mike MacMillan
For information about Chaikin Analytics, please contact:
1. Source: Morningstar Direct 11/30/17; Performance of Nasdaq Chaikin US Large Cap TR USD from inception 4/1/14–11/30/17 relative to S&P 500.
2. Source: Morningstar Direct 12/11/17-From inception on May 16, 2017 through December 5th, CSML has returned 11.27 percent, compared to a 9.61 percent return for the Russell 2000 Index over that same time frame.
Nasdaq®, NASDAQ Chaikin Power U.S. Large Cap Index, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by IndexIQ. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).
As with all investments, there are certain risks of investing in the Fund. The Fund’s shares will change in value, and you could lose money by investing in the Fund. There can be no assurance that investment objectives will be met.
The Underlying Index may not be successful in replicating the performance of its target strategies. The Underlying Index seeks to provide exposure to large-cap equity securities that are expected to outperform peers, based upon a quantitative multi-factor model. There is no guarantee that the construction methodology of the Underlying Index will accurately provide exposure to equity securities that outperform their peers. Furthermore, an investment in a security that outperforms its peers may still lose money.
Investments in common stocks and other equity securities are particularly subject to the risk of changing economic, stock market, industry and company conditions and the risks inherent in the portfolio managers’ ability to anticipate such changes that can adversely affect the value of the Fund’s holdings. Opportunity for greater gain often comes with greater risk of loss.
Marc Chaikin, Chaikin Analytics and Chaikin Power Gauge are not owned, operated or affiliated with New York Life Investments LLC or any of its affiliates.
The Fund is a new fund. As a new fund, there can be no assurance that it will grow to or maintain an economically viable size, in which case, it may experience greater tracking error to its Underlying Index than it otherwise would at higher asset levels, or it could ultimately liquidate.
Consider the Fund's investment objectives, risks, and charges and expenses carefully before investing. The prospectus and the statement of additional information include this and other relevant information about the Fund and are available by visiting IQetfs.com or calling 1-888-474-7725. Read the prospectus carefully before investing.
MainStay Investments® is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. IndexIQ® is an indirect wholly owned subsidiary of New York Life Investment Management Holdings LLC. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs. NYLIFE Distributors LLC is a distributor of the ETFs and the principal underwriter of the IQ Multi-Strategy Plus Fund. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC. Marc Chaikin and Chaikin Analytics are not affiliated with New York Life Investment Management LLC.