The IQ Chaikin U.S. Small Cap ETF (
CSML Quick Quote CSML - Free Report) was launched on 05/16/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.
The fund is sponsored by New York Life Investments. It has amassed assets over $229.53 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.35%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.34%.
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 Financials sector--about 27.40% of the portfolio. Industrials and Information Technology round out the top three.
Looking at individual holdings, Turning Point Therapeutic accounts for about 0.64% of total assets, followed by H&r Block Inc (
HRB Quick Quote HRB - Free Report) and Grid Dynamics Holdings In ( GDYN Quick Quote GDYN - Free Report) .
The top 10 holdings account for about 3.28% of total assets under management.
Performance and Risk
CSML seeks to match the performance of the NASDAQ Chaikin Power US Small Cap Index before fees and expenses. The NASDAQ Chaikin Power US Small Cap Index is a rules-based, quantitative index designed to enhance the NASDAQ US 1500 Index, by selecting stocks with the highest Chaikin Power Gauge rating.
The ETF has lost about -10.61% so far this year and is down about -4.76% in the last one year (as of 08/01/2022). In the past 52-week period, it has traded between $29.20 and $38.36.
The ETF has a beta of 1.24 and standard deviation of 31.56% for the trailing three-year period. With about 501 holdings, it effectively diversifies company-specific risk.
IQ Chaikin U.S. Small 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, CSML is a sufficient option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 ETF (
IWM Quick Quote IWM - Free Report) and the iShares Core S&P SmallCap ETF ( IJR Quick Quote IJR - Free Report) track a similar index. While iShares Russell 2000 ETF has $53.62 billion in assets, iShares Core S&P SmallCap ETF has $68.07 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%. Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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.