Nasdaq-Chaikin Stock Indices

In April 2014, Chaikin collaborated with Nasdaq to overlay the Chaikin Power Gauge stock rating on three popular Nasdaq stock indexes: Large Cap, Small Cap, and Dividend Achievers.

Since inception all three indices, which are rebalanced annually, have significantly outperformed their benchmarks, validating the Chaikin Power Gauge model. The indexes continue to outperform their benchmarks today!

These indices are available to fund managers, advisors, and investors for licensing and implementation through separately managed accounts and ETFs.

Nasdaq-Chaikin Stock Indices Success:

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Large Cap Performance Difference

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Small Cap Performance Difference

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Dividends Performance Difference

Each index has significantly outperformed its benchmark since inception, valadating the long-term predictive value of the Chaikin Power Gauge rating.

Chaikin Indices vs. Nasdaq Benchmarks

Life-to-date performance 4/1/14 thru 12/27/16

Nasdaq/Chaikin Index
Nasdaq Benchmark
Excess Return
Large Cap +26.52% +20.77% +575 basis points
Small Cap +42.29% +19.58% +2271 basis points
Dividends +33.37% +15.37% +1800 basis points

The Nasdaq-Chaikin indexes:

  • Filter the NASDAQ US 300 Index, NASDAQ US 1500 Index and NASDAQ US Broad Dividend Achievers Index to their most promising constituents
  • Are rules-based, quantitatively enabled indices designed, and proven, to outperform
    their respective benchmarks
  • Are based on the Chaikin Power Gauge, a multi-factor quantitative model developed by long-time stock analyst Marc Chaikin

Q&A with Marc Chaikin: A Wall Street Pioneer in Equity Analytics

Excerpts from an April 03, 2014 article by Nasdaq.com News

Q. How did you get into the industry?
I have always had a passion for evaluating stocks. I started out as a stockbroker and ended up spending over forty years on Wall Street as a trader, stock broker, technical and quantitative analyst.
Q: Please describe Chaikin Analytics
Chaikin Analytics helps people who manage money make money. We distill a massive amount of data into actionable ideas based on an alpha generating quantitative model which helps investors make better investment decisions.
Q: The Chaikin Power Gauge is at the heart of the NASDAQ Chaikin Power Indexes. Please explain the Power Gauge methodology and what makes it unique.
The Chaikin Power Gauge is a remarkably accurate indicator of where a stock is headed over the next 3-6 months. It’s based on an unbiased, proprietary 20-factor model that combines fundamental, technical and sentiment factors into a rating that indicates a stock’s probability to over- or under-perform the market in the intermediate term. This methodology, coupled with a defined set of rules and criteria applied in a systematic and consistent manner, creates the NASDAQ Chaikin enhanced alpha indexes.
Q: What is most significant or noteworthy about each of the new indexes that you would like both asset managers and investors to know?
A: The NASDAQ Chaikin Power Indexes are equal weighted and represent the most promising constituents culled from the parent NASDAQ indexes. Because the Chaikin Power Gauge identifies the most promising constituents within the NASDAQ indexes, the expectation is that these new indexes will deliver enhanced performance.

For licensing inquiries about NASDAQ Chaikin Power Indices for separately managed accounts or for registered products to be offered by ETF providers or mutual fund advisors, please call +301.978.8050 or email indexlicensing@nasdaq.com.