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Is NYLIM U.S. Large Cap R&D Leaders ETF (LRND) a Strong ETF Right Now?

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The NYLIM U.S. Large Cap R&D Leaders ETF (LRND - Free Report) made its debut on 02/08/2022, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Blend category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is sponsored by New York Life Investment Management. It has amassed assets over $476.18 million, making it one of the average sized ETFs in the Style Box - Large Cap Blend. This particular fund, before fees and expenses, seeks to match the performance of the NYLIM U.S. LARGE CAP R&D LEADERS INDEX .

The NYLIM U.S. Large Cap R&D Leaders Index seeks to provide exposure to innovative companies by investing in U.S. large-cap equity securities of companies that demonstrate consistent and effective use of R&D investment.

Cost & Other Expenses

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.

Operating expenses on an annual basis are 0.14% for LRND, making it one of the cheaper products in the space.

LRND's 12-month trailing dividend yield is 0.31%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

LRND's heaviest allocation is in the Information Technology sector, which is about 59.3% of the portfolio. Its Telecom and Healthcare round out the top three.

Looking at individual holdings, Nvidia Corporation (NVDA) accounts for about 17.4% of total assets, followed by Alphabet Inc. Class A (GOOGL) and Apple Inc. (AAPL).

Its top 10 holdings account for approximately 69.64% of LRND's total assets under management.

Performance and Risk

Year-to-date, the NYLIM U.S. Large Cap R&D Leaders ETF has added about 18.87% so far, and it's up approximately 20.7% over the last 12 months (as of 10/05/2026). LRND has traded between $35.87 $48.33 in this past 52-week period.

LRND has a beta of 1.10 and standard deviation of 17.49% for the trailing three-year period. With about 108 holdings, it effectively diversifies company-specific risk .

Alternatives

NYLIM U.S. Large Cap R&D Leaders ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.

iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard 500 Index Fund ETF Shares (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $889.75 billion in assets, Vanguard 500 Index Fund ETF Shares has $1052.76 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend

Bottom Line

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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