It is a passive ETF that applies a long/short strategy to US large-cap stocks based on a multi-factor model. It buys more of the stocks it favors and sells short those it does not, building enlarged exposure compared with a pure long-only strategy.

It suits investors who want enlarged long/short exposure rather than simple large-cap index tracking, and who are willing to accept the risks that come with it.

It is an ETF managed by ProShares using a passive (index-tracking) approach.

It tracks a long/short strategy that evaluates US large-cap stocks with a multi-factor model, buying additional shares of favored stocks and selling short those that are not favored. It raises its long weighting above net assets and shorts a portion of the portfolio to create enlarged exposure, and it rebalances its weightings on a regular basis. It seeks risk and return characteristics that differ from a pure long-only strategy.

• Multi-factor long/short strategy
• Enlarged exposure through short selling

Assets under management (AUM) stand at $521.7M, and the total expense ratio is 0.45% per year.

The main points of comparison with long-only large-cap ETFs are the long/short strategy and the enlarged exposure.

US large-cap stocks move with interest rates, earnings seasons, and market risk appetite. A long/short strategy tends to deliver outperformance versus the market when the multi-factor model's calls on favored and unfavored stocks prove right, and weakness when they miss. Because of the enlarged exposure, volatility is somewhat high.

Fund flows into long/short products diverge depending on market risk appetite and factor rotation, and money sometimes shifts toward this product group when interest in differentiated exposure rises. It is also worth noting that performance varies with factor returns and the market environment.

Its strength is the differentiated exposure of a multi-factor long/short approach, while volatility from enlarged exposure, short-selling risk, and tracking differences are considerations.

For long-only large-cap exposure, direct substitutes include SPY and VOO, which track the S&P 500. For an equal-weight approach that reduces concentration in the largest stocks, products such as RSP are also worth comparing. Products like IVV, which also tracks the S&P 500, can be reviewed as well. What differentiates this ETF is that it pursues enlarged exposure through a multi-factor long/short strategy.

Here are the points to review before investing in CSM. The enlarged long/short exposure is appealing, but volatility, short-selling risk, and tracking differences should be checked in advance. It is also advisable to compare it with long-only large-cap products.

The main variables for long-term performance are cases where the multi-factor model's favored and unfavored calls miss, and the volatility that comes with enlarged exposure. Losses can also occur if a stock that has been sold short rises. Because of the long/short structure, performance can diverge from a simple large-cap index.

It is a suitable candidate for investors who want differentiated large-cap exposure through a long/short approach. If long-only exposure is the priority, products such as SPY and VOO fit better. If you want a multi-factor long/short strategy, it is advisable to choose this product after understanding its structure.