Zacks Investment Management has introduced its third ETF, an actively managed fund focused on US large-cap equities with higher growth potential than the market.
Mitch Zacks, President of Zacks Investment Management.
The Zacks Focus Growth ETF (GROZ US) is now trading on the Cboe BZX Exchange with an expense ratio of 0.56%.
Leveraging the expertise of parent company, Zacks Investment Research, renowned for its quantitative stock-rating system, GROZ selects between 40 and 120 stocks from the Russell 1000 Growth Index, prioritizing companies with strong fundamentals and significant earnings growth potential.
Zacks’ investment framework begins by narrowing the universe to 500 stocks based on four key earnings-related criteria: earnings estimate agreement, revision magnitude, upside potential, and earnings surprises. It then applies the Zacks Multi-Factor Alpha Model, which emphasizes financial strength, robust growth potential, attractive valuations, and upward earnings estimate revisions.
To further enhance growth potential, Zacks incorporates its AI Exposure Index, which identifies companies well-positioned to thrive in an AI-driven economy. This screen ensures the portfolio aligns with firms that exhibit minimal risk of technological disruption.
The resulting portfolio is designed to provide access to high-growth stocks with the ability to sustain performance over the medium to long term.
Mitch Zacks, President of Zacks Investment Management, commented: “GROZ is built upon our longstanding commitment to data-driven investment solutions. Grounded in our firm’s legacy of independent research, GROZ provides access to companies with a proven track record of delivering consistent growth and value across market cycles.”
Salvatore Esposito, Head of ETF Products, added: “Investor demand for high-quality growth solutions remains strong, especially in a rapidly changing economic environment. GROZ leverages our proven selection process, focusing on resilient companies that are not only growing but also positioned to sustain that growth over the long term.”
GROZ builds on Zacks’ growing ETF lineup, which includes the $210 million Zacks Earnings Consistent Portfolio ETF (ZECP US) and the $100 million Zacks Small and Mid Cap ETF (SMIZ US). ZECP, launched in August 2021, focuses on US equities with consistent earnings growth during recessionary periods, while SMIZ, introduced in October 2023, targets small and mid-cap stocks scoring highly on Zacks’ quantitative analysis.