Zacks Investment Research launched a new mid-cap core index that can be used for exchange traded funds (ETFs). The press release states that over years of academic research and practical experience Zacks has found stocks with little short selling tend to outperform the market. They created the Zacks Mid Cap Core Index to outperform passive benchmarks and aim to target stocks with potential to outperform the Russell MidCap Index, and other benchmark indices on a risk-adjusted basis.
The index constituents include all U.S. equities and domestic ADRs that have a market cap of $2 billion through $11 billion. The index is based on short interest and will identify companies with superior risk/return profiles using multi-factor proprietary selection rules. The index is adjusted quarterly for timely stock selections. The question now is when will the ETF follow?
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.