Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the NYLI U.S. Large Cap R&D Leaders ETF (LRND) is a smart beta exchange traded fund launched on 02/08/2022.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
LRND is managed by New York Life Investments, and this fund has amassed over $335.93 million, which makes 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 NYLI U.S. LARGE CAP R&D LEADERS INDEX .
The NYLI U.S. Large Cap R&D Leaders Index provides exposure to innovative companies by investing in U.S. large-cap equity securities of companies that have high research and development spending.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.14% for LRND, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.49%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
LRND's heaviest allocation is in the Information Technology sector, which is about 59.6% of the portfolio. Its Telecom and Healthcare round out the top three.
Looking at individual holdings, Nvidia Corporation (NVDA) accounts for about 14.37% of total assets, followed by Apple Inc. (AAPL) and Microsoft Corporation (MSFT).
LRND's top 10 holdings account for about 68.08% of its total assets under management.
Performance and Risk
The ETF return is roughly 9.91% so far this year and was up about 35.39% in the last one year (as of 05/26/2026). In the past 52-week period, it has traded between $33.74 and $45.02
The ETF has a beta of 1.09 and standard deviation of 17.09% for the trailing three-year period. With about 108 holdings, it effectively diversifies company-specific risk .
Alternatives
NYLI U.S. Large Cap R&D Leaders ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
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 $832.72 billion in assets, Vanguard 500 Index Fund ETF Shares has $962.68 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.Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NYLI U.S. Large Cap R&D Leaders ETF (LRND): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).