IndexIQ Launches New Small Cap Factor-Based ETF

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May 16, 2017 10:39am NASDAQ: CSML


ETF issuer IndexIQ today announced the launch of IQ Chaikin U.S. Small Cap ETF (NASDAQ:CSML), a factor-based fund focused on smaller stocks that selects holdings based on a unique combination of value, growth, technical and sentiment.

According to fund literature:

CSML is designed to track the price and yield performance of the NASDAQ Chaikin Power U.S. Small Cap Index (the Index), which leverages the Chaikin Power Gauge® (CPG), a proprietary 20-factor quantitative stock rating model, in the security selection process. The Index is comprised of highly rated stocks derived using the CPG, and has the potential to outperform market-weighted products and active strategies. CPG was developed by Marc Chaikin, an investment strategist with 50 years of experience.

IndexIQ commented via press release:

“We’re very excited to be using the approach pioneered by Marc Chaikin and his colleagues in bringing CSML to market as our first domestic equity, strategic beta ETF,” said IndexIQ’s Chief Executive Officer Adam Patti.

Added IndexIQ’s Chief Investment Officer Salvatore Bruno, “Small-cap stocks have historically outperformed their large-cap counterparts over the long-term, and rebounded from market downturns at a quicker pace. Small-caps also tend to be more domestically focused when compared to their multi-national large-cap counterparts, allowing them to be insulated from issues that impact revenues from overseas, such as a rising dollar. Therefore, we believe CSML will fit well as a core U.S. small-cap equity position, as part of the science behind building smarter portfolios for investors.”

Once CSML gets some solid trading history under its belt, we’ll be sure to issue a SMART Grade for it. Until then, you can visit IndexIQ’s site for more info on this exciting new issue.

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