ETF Securities has launched two new exchange traded funds (ETFs) based on Zacks proprietary earnings investment strategies covering US equities.
The new ETFs are ETFS Zacks Earnings Large-Cap US Index Fund (ZLRG) and ETFS Zacks Earnings Small-Cap US Index Fund (ZSML). Both products are listed on the New York Stock Exchange (NYSE).
ETF Securities and Zacks developed the new ETFs to capture Zacks’ proprietary investment ranking strategy based on earnings estimate revisions and earnings quality, which have been shown to greatly impact stock prices. While offering the potential for enhanced returns, key steps have been taken to help mitigate risk. These steps include high liquidity and capacity screens, and a focus on high diversification across sectors and stocks. The combination of the investment strategies with the risk management overlay aims to deliver more consistent total returns at a lower cost.
The two new products will expand the investment options currently offered to the growing ETF Securities customer base in the United States. An innovative pioneer in specialist investments, ETF Securities developed the world’s first gold exchange traded commodity1 and has built its reputation in the US around a core offering of precious metal products. Using that pioneering spirit, industry expertise and by working with best in class third parties, ETF Securities has positioned itself as a leading specialist multi-asset provider and is now bringing this unique know-how to the US investor base.
Mike McGlone, Director of Research at ETF Securities US, says: “We are delighted to be the first ETF provider to bring to market what Zacks is known for: expertise in earnings analysis. Investors can now access Zacks’ unique proprietary strategies in a simple and transparent manner. Developing these solutions with Zacks has been a privilege, and we were impressed by their ability to incorporate their models into indices that provide a high level of transparency, liquidity and diversification.”
Mitch Zacks, Director of Quantitative Modeling, Zacks Investment Research, adds: “Zacks is excited to leverage our years of investment research and quantitative modeling experience to create these new indexes that harnesses the power of the Zacks Earnings model – a concept we originated over 20 years ago. We look forward to working with ETF Securities to provide a greater number of investors with exposure to the Zacks Rank Earnings strategy which we believe has the ability to identify companies positioned to potentially outperform.”
