ETF spotlight on the ETFS Zacks Earnings Small-Cap U.S. Index Fund (NYSEArca: ZSML), part of an ongoing series.

Assets: $2.8 million

Objective: The Zacks Earnings Small-Cap U.S. Index Fund tries to reflect the performance of the Zacks Earnings Small-Cap U.S. Index, which selects stocks based on the analysis of their earnings through a quantitative model, Zacks Rank, a qualitative approach and Zacks Quality screens.

Holdings: Top holdings include Goodyear Tire & Rubber (NasdaqGS: GT) 6.6%, B/E Aerospace (NasdaqGS: BEAV) 6.8%, Spirit AeroSystems Holdings (NYSE: SPR) 6.7%, Dynegy (NYSE: DYN) 2.3% and TECO Energy (NYSE: TE) 2.3%.

What You Should Know:

  • ETF Securities sponsors the fund.
  • ZSML has a 0.66% expense ratio.
  • The ETF has 148 holdings, and the top ten components make up 31.2% of the overall portfolio.
  • The fund began trading January 20, 2015.
  • ZSML is up 6.8% since inception.
  • The fund follows a customized, smart-beta index that targets small U.S. stocks and equally weights both component holdings and sectors tilts.
  • The ETF has about a 6.5% to 6.9% tilt toward 15 sectors, including oil/energy, consumer staples, basic materials, finance, utilities, retail/wholesale, construction, aerospace, industrial products, consumer discretionary, medical, computer & technology, business services, autos/tires/trucks and transportation.
  • The fund also includes a earnings focus, which tilts toward more attractively valued stocks.
  • ZSML picks components based on quantitative model, Zacks Rank, a qualitative approach and Zacks Quality screens.
  • The Zacks Rank refers to earnings estimates by sell-side analysts and holdings the highest ranking to stocks that have the most significant positive changes in earnings estimates.
  • Zacks Quality refers to the amount of non-cash components, or accruals, in each company’s reported earnings, and only 10% of firms with the lowest sector-adjusted accruals are eligible for inclusion.
  • Potential investors should be aware that the fund is relatively new, so one should utilize limit orders to better control trades.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.