Sal Esposito, Head of ETF Products at Zacks Investment Management, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss how Zacks deploys its quantitative research across ETF, SMA, and UMA products.
In 2021, Zacks launched its first Active ETF and added another last year with plans to add two more in 2024. Zacks also recently rolled a series of hybrid model portfolios called Zacks +. Zacks+ combines both ETFs and single stock SMAs in one unified account model solution.
In addition to working directly with Advisors, Zacks offers Zacks+ on several Turnkey Asset Management Programs. The Zacks+ Model portfolios seeks to offer advisors the chance to give clients exposures to single stocks as well as continue to maintain potential tax efficiencies offered in the ETFs in the portfolio. This offerings is also offered without a strategist or management fee attached to it and clients would only be responsible for the expense ratios of the ETFs.
Zacks Small/Mid Cap Core Portfolio ETF (SMIZ) focuses on profitable and quality small and midcap businesses selected using four quantitative earnings estimate factors: surprise, analyst agreement, magnitude, and upside. ZECP Zacks Earnings Consistent Portfolio ETF (ZECP) focuses on companies with stable earnings and positive earnings estimate revisions.
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