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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the IQ Chaikin U.S. Large Cap ETF (CLRG), a passively managed exchange traded fund launched on 12/13/2017.
The fund is sponsored by New York Life Investments. It has amassed assets over $306.47 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
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 1.15%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, 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 24.60% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Eog Resources Inc (EOG) accounts for about 1.52% of total assets, followed by Arista Networks Inc (ANET) and Mckesson Corp (MCK).
The top 10 holdings account for about 13.49% 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 lost about -10.63% so far this year and is down about -0.34% in the last one year (as of 05/02/2022). In the past 52-week period, it has traded between $31.72 and $36.15.
The ETF has a beta of 1.09 and standard deviation of 23.94% for the trailing three-year period. With about 104 holdings, it effectively diversifies company-specific risk.
Alternatives
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.