Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the IQ Chaikin U.S. Large Cap ETF (CLRG) is 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 $271.79 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 find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 1.35%.

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 22.60% of the portfolio. Healthcare and Financials round out the top three.

Looking at individual holdings, Gilead Sciences Inc (GILD) accounts for about 1.62% of total assets, followed by Cigna Corp (CI) and Exxon Mobil Corp (XOM).

The top 10 holdings account for about 13.61% 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 -0.83% so far this year and is down about -3.33% in the last one year (as of 03/13/2023). In the past 52-week period, it has traded between $28.38 and $35.25.

The ETF has a beta of 1.04 and standard deviation of 24.63% for the trailing three-year period. With about 101 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.

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 $289.49 billion in assets, SPDR S&P 500 ETF has $350.47 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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

Exxon Mobil Corporation (XOM) : Free Stock Analysis Report

Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report

Cigna Group (CI) : Free Stock Analysis Report

SPDR S&P 500 ETF (SPY): ETF Research Reports

iShares Core S&P 500 ETF (IVV): ETF Research Reports

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