ZSML, the small-cap offering, is benchmarked to the Zacks Earnings Small-Cap U.S. Index, which uses the same quantitative then qualitative approach as its large-cap counterpart. That index is home to 139 stocks.
Since coming to market in January, ZSML is up 7.7%, easily ahead of the most widely followed small-cap benchmarks over that period. Home to 142 stocks, ZLRG’s underlying index, the Zacks Earnings Large-Cap U.S. Index, “selects stocks based on the analysis of their earnings first using a quantitative model, Zacks Rank, then a qualitative approach, Zacks Quality,” according to ETF Securities.
Then Zacks “reviews the amount of non-cash components, known as accruals, included in each company’s reported earnings. Only the 10% of firms with the lowest sector-adjusted accruals are eligible.”
ZLRG is up 2.4% since inceptiom.
Advisors interested in attending the Tuesday May 19 webcast at 2PM Eastern time can register here.