Zacks Trust (SMIZ)

Overview

The Zacks Trust is an actively managed equity ETF that seeks to provide capital appreciation by investing in a diversified portfolio of U.S. equity securities. The fund employs a proprietary quantitative methodology developed by Zacks Investment Research to identify undervalued stocks with strong growth potential. Its strategy focuses on a concentrated portfolio of high-conviction ideas, aiming to outperform the broader market.

Reputation and Reliability

Zacks Investment Research is a well-established financial research firm known for its stock ratings and analysis. While not a traditional ETF issuer like Vanguard or iShares, their involvement signifies a research-driven approach. The reliability is tied to the efficacy of their quantitative models.

Management Expertise

The ETF is managed by Zacks Investment Management, which leverages the research expertise and proprietary quantitative models developed by Zacks Investment Research. The team's strength lies in their data-driven approach to stock selection and portfolio construction.

Goal

The primary investment goal of the Zacks Trust is long-term capital appreciation.

Investment Approach and Strategy

Strategy: The Zacks Trust aims to outperform a broad equity benchmark through active management using a quantitative stock-selection process. It does not track a specific index but rather invests in a concentrated portfolio of stocks identified by Zacks' proprietary models.

Composition The ETF primarily holds U.S. equity securities, with a focus on individual stocks. The portfolio is typically concentrated in a relatively small number of holdings, emphasizing high-conviction selections.

Market Share: Information on the specific market share of the Zacks Trust within its sector is not readily available and is generally considered to be a niche player compared to broader market ETFs.

Total Net Assets (AUM): N/A

Key Competitors

• Various actively managed US equity ETFs with similar investment objectives or strategies.

Competitive Landscape

The actively managed US equity ETF space is highly competitive, with numerous funds employing diverse strategies. Zacks Trust's competitive advantage lies in its proprietary quantitative research and concentrated portfolio approach. However, it faces challenges from larger, more established active ETF providers and the ongoing trend towards lower-cost passive ETFs.

Historical Performance: Historical performance data for Zacks Trust is limited and highly dependent on the specific fund's inception date. Detailed performance across multiple time periods would require access to specific fund data and benchmark comparisons.

Benchmark Comparison: The ETF aims to outperform a broad equity benchmark. Its success in doing so would be evaluated by comparing its total returns against a relevant benchmark index, such as the S&P 500, over various time horizons.

Expense Ratio: N/A

Average Trading Volume

The average trading volume for the Zacks Trust is generally lower than that of larger, more established ETFs, indicating potentially less liquidity.

Bid-Ask Spread

The bid-ask spread for the Zacks Trust is typically wider than that of highly liquid ETFs, suggesting a higher cost for active trading.

Market Environment Factors

The Zacks Trust's performance is influenced by overall equity market conditions, sector-specific performance, interest rate environments, and macroeconomic trends. The fund's active management strategy aims to navigate these dynamics by identifying undervalued opportunities.

Growth Trajectory

Information on specific growth trends for Zacks Trust is not readily available. Its growth would be tied to investor interest in actively managed equity strategies and the performance of its underlying holdings.

Competitive Edge

The Zacks Trust's primary competitive edge stems from its proprietary quantitative stock selection methodology developed by Zacks Investment Research. This data-driven approach aims to identify fundamentally sound, undervalued companies with growth potential, offering a distinct investment strategy. The concentration of holdings allows for higher conviction bets, potentially leading to outperformance if the selections are successful.

Volatility

As an actively managed equity ETF, the Zacks Trust is subject to market volatility. Its concentrated portfolio may lead to higher volatility compared to broadly diversified ETFs. Specific historical volatility metrics (e.g., standard deviation) would need to be analyzed from fund data.

Market Risk

The specific risks associated with the Zacks Trust's underlying assets include equity market risk, individual stock risk (as it's concentrated), and the risk that the quantitative models may not perform as expected. There is also the risk associated with active management underperformance.

Ideal Investor Profile

The ideal investor for Zacks Trust is an individual seeking long-term capital appreciation who believes in the efficacy of quantitative stock selection and is comfortable with the risks associated with a concentrated portfolio. They should have a good understanding of equity markets and a willingness to accept potential higher volatility.

Market Risk

Zacks Trust is best suited for long-term investors who are looking for active management and believe in the fund's proprietary methodology to identify opportunities that may not be captured by passive strategies.

The Zacks Trust is an actively managed US equity ETF employing a quantitative strategy to seek capital appreciation. It invests in a concentrated portfolio of stocks identified by Zacks' proprietary research. While offering a unique, data-driven approach, it faces competition and inherent risks of active management and concentrated holdings. Investors should consider its potential for outperformance alongside its volatility.

Data Sources:

• Information is based on general knowledge of ETFs and the investment strategies employed by firms like Zacks Investment Research. Specific fund data, performance, and expense ratios would require direct consultation of the ETF's prospectus and financial reports.

Disclaimers:

This information is for educational purposes only and does not constitute investment advice. Investing in ETFs involves risks, including the loss of principal. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.