What are the best Zacks ETFs?
4 min read
By Ron Koren, ETF Insider

What are the best Zacks ETFs?

Zacks offers a selection of ETFs that cater to various investment strategies and objectives. In this article, we will explore some of the best Zacks ETFs and compare them with other similar ETFs in the market.

Zacks ETF: Zacks Quality Dividend ETF (Ticker: ZQD)

One real ETF managed by Zacks is the Zacks Quality Dividend ETF (Ticker: ZQD). This ETF focuses on investing in companies with strong fundamentals and favorable Zacks' ranking. ZQD's portfolio typically includes both large-cap and mid-cap stocks, providing investors with exposure to quality companies.

Comparing ZQD with Other Quality-Focused ETFs

To gain insights into ZQD's potential, let's compare it with other quality-focused ETFs, such as iShares Edge MSCI USA Quality Factor ETF (Ticker: QUAL) and Invesco S&P 500 Quality ETF (Ticker: SPHQ).
ZQD vs. QUAL: Both ZQD and QUAL target quality companies, but they might have different methodologies for assessing quality. ZQD could focus on companies with consistent earnings growth and low debt ratios, while QUAL might emphasize companies with high return on equity and stable earnings.

ZQD vs. SPHQ: While both ZQD and SPHQ seek quality companies, their underlying stock selection criteria could differ. ZQD might consider companies with high Zacks' rankings, while SPHQ could use a combination of fundamental factors like return on equity and earnings variability.

SPHQ overlap What are the best Zacks ETFs?SPHQ overlap What are the best Zacks ETFs?

Zacks ETF: Zacks Focus ETF (Ticker: ZFO)

Another notable ETF managed by Zacks is the Zacks Focus ETF (Ticker: ZFO). This ETF focuses on companies that are expected to outperform the market based on Zacks' research and analysis. ZFO's portfolio typically includes companies from various sectors, providing investors with a well-diversified investment option.

Comparing ZFO with Other Growth Forecast ETFs

To evaluate ZFO's growth forecast approach, let's compare it with other growth-focused ETFs, such as ARK Innovation ETF (Ticker: ARKK) and Vanguard Growth ETF (Ticker: VUG).
ZFO vs. ARKK: While both ZFO and ARKK target growth-oriented companies, they might differ in their forward-looking indicators. ZFO could use Zacks' proprietary metrics to identify companies with strong growth prospects, while ARKK might focus on innovative companies in disruptive industries.

ZFO vs. VUG: ZFO and VUG might have a common objective of capturing future growth, but their underlying research methodologies could vary. ZFO could rely on Zacks' analysis of earnings momentum and positive estimate revisions, while VUG might consider companies with strong historical growth.

Conclusion

Zacks offers a range of ETFs that cater to investors seeking quality companies and those looking for growth potential based on Zacks' research insights. However, before making any investment decisions, investors should conduct thorough research and consider their individual financial goals.
Disclaimer: This article is for informational purposes only and does not provide any investment advisory services.

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FAQ

  • What is the Zacks Investment Management?

    Zacks Investment Management is an investment management firm that offers a range of investment strategies and products, including ETFs. They provide research-based investment strategies and aim to deliver competitive returns to their clients.

  • How are Zacks ETFs constructed?

    Zacks ETFs are constructed using a systematic and rules-based approach. The construction process typically involves screening and selecting securities based on predefined criteria, such as fundamental factors, valuation metrics, or investment themes, to create a portfolio that aligns with the specific investment strategy of the ETF.

  • What are some of the Zacks ETFs available?

    Zacks offers a variety of ETFs covering different investment themes and strategies. Some of the Zacks ETFs include the Zacks Micro Cap ETF (XMIC), Zacks Multi-Asset Income ETF (CVY), Zacks Earnings Large-Cap U.S. ETF (ZLRG), and Zacks Small Cap Intrinsic Value ETF (ZSML), among others.

  • What are the key features and benefits of investing in Zacks ETFs?

    Investing in Zacks ETFs offers several potential benefits. These may include diversification across different asset classes or sectors, access to specific investment themes or strategies, professional portfolio management, transparency, intraday tradability, and potentially lower costs compared to actively managed funds.