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About Zacks Performance
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We are very proud of the returns generated by the Zacks Rank, our model portfolios, Premium Screens and our Research Wizard strategies. We also are committed as a firm to the concept of transparency and to providing you with accurate and transparent explanation of our performance metrics. You will find this information below. Just click on "details" to see the specifics in the Model Portfolios, Zacks Method for Trading & Research Wizard strategies and Trading Services. Some of the performance numbers we show are based on backtests while others are based on the actual trades delivered to clients via our web sites. To effectively use our services you should understand the difference between returns of a backtest.
Questions or comments can be forwarded to support@zacks.com. Or call us 800.767.3771 x9339. (Outside the U.S., call 312.265.9339).
Return data displayed on this page has been updated as of Sep 30, 2011 unless specifically noted otherwise.
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Model Portfolios |
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*The time period used in the calculation of the annualized returns vary by portfolio and are displayed below. Comparable annualized returns for the S&P 500 are also shown below. |
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Zacks Rank Disclosure
Annualized returns are for January 1, 1988 through Dec 31, 2011. Comparable annualized returns for the S&P 500 are 9.43%
During the first 6 months of 2009 , the small cap stocks have dramatically outperformed the market weighted S&P index. Even within the S&P 500, the 50 stocks with the smallest market cap have dramatically outperformed the S&P index. Consequently during the first half of 2009 all of the 5 Zacks Rank portfolios as well as the 4100 company Zacks equal weighted
Universe have outperformed the S&P Index
The performance of the Zacks Rank portfolios for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Rank, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from January 1988 forward based on the values of the Zacks Rank available to Zacks' clients before the beginning of each month. The universe of companies for which Zacks Rank performance is reported has changed over time. The portfolios of Zacks #1 Ranked stocks created monthly from 1988 through 1995 exclude ADRs, exclude Canadian companies trading only on Canadian Exchanges, exclude companies trading on the OTC Bulletin Board and exclude companies followed by only one analyst. From 1996 through 2007 the portfolios exclude ADRs, exclude Canadian companies trading only on Canadian exchanges and exclude companies trading on the OTC Bulletin Board, but include companies followed by only one analyst. From 2008 and going forward the portfolios are comprised of all stocks with the indicated Zacks Rank which is more reflective of the list of stocks that customers will find on the Zacks web sites. The Zacks #1 Rank performance numbers have been independently audited from 1996 through 2007 by Virchow, Krause & Company, LLP.
Zacks Equity Research Buys Disclosure
Annualized returns are for January 1, 2000 through Dec 31, 2011. Comparable annualized returns for the S&P 500 over this period are TBD.
The performance of the Zacks Equity Research Reports for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks with the indicated Zacks Equity Research recommendation, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from January 2003 forward based on the the Zacks Equity Research recommendations available to Zacks' clients before the beginning of each month.
Focus List Disclosure
Annualized returns are for February 1, 1996 through Dec 31, 2011. Comparable annualized returns for the S&P 500 over this time period are TBD.
The performance of the Focus List for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, rebalanced at the time a trade is made and assuming zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios and changes to these portfolios are available to Zacks Premium subscribers on the Zacks web site.
All Star List Disclosure
Annualized returns are for July 1, 2002 through Dec 31, 2011. Comparable annualized returns for the S&P 500 over this time period are 4.62%.
The performance of the All Star List for annual and year-to-date periods are the linked monthly total returns (price changes + dividends) of equal weighted hypothetical portfolios, consisting of those stocks listed in the All Star List, assuming monthly rebalancing and zero transaction costs. These are not the returns of actual portfolios. The hypothetical portfolios were created at the beginning of each month from July 2002 forward based on the All Star Analyst ratings available to Zacks' clients before the beginning of each month.
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Zacks Method for Trading & Research Wizard
Zacks Research Wizard contains numerous predefined stock screens and strategies designed to help the individual investor beat the market on a consistent basis. An investor could also create their own strategy and test its performance over time. The results of a few of the predefined strategies are highlighted below.
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Zacks Method for Trading & Research Wizard |
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* 2011 returns are through June 30.
^^ indicates 12 week holding period.
** indicates 4 week holding period.
‘’ indicates 1 week holding period.
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Zacks Anomaly
Zacks Anomaly Screens, which are available in Research Wizard, implement popular and profitable stock market anomaly strategies to deliver market-beating returns in an easy to manage format. Each screen is based on proven research developed by academics as well as professional practitioners. Much of the research used in Zacks Anomaly Screens is discussed in the book, Handbook of Equity Market Anomalies.
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Zacks Anomaly Screens |
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*2011 returns are through June 30.
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The performance calculations for the Research Wizard strategies were produced through the backtesting feature of the Research Wizard using the DBCMHIST database and consist of the total return (price changes + dividends) of an equal weighted portfolio. Returns are calculated on a specified periodic basis (most often one or four weeks) and assume no transaction costs. The portfolio is rebalanced at the start of each new period. Returns can be stated as either annualized or compounded.
Stock trading/investing involves risk and you can lose some or all of your investment. Hypothetical or backtested results may not always be duplicated in the real world. Backtesting can at times produce an unintended look-ahead bias. Results can also at times be over or understated due to the exclusion of inactive companies. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading, not the least of which is the ability to withstand losses or to adhere to a particular trading strategy in spite of trading losses. These are material points which can also adversely affect actual trading results. The backtested results prepared for the Zacks Method were done using the DBCMHIST database and consisted of only active companies. The Research Wizard program has been aligned, to the extent possible, to eliminate look-ahead bias. Zacks however cannot make any guarantees in regard to this or any other possible limitations.
Potential Limitations in Backtesting
There are four types of biases that can distort your backtest results.
1. Look Ahead bias - this occurs when the stocks selected on a rank date use financial information that was not available on that rank date. For example if a company reports its financials for the quarter ending Mar 2006 on Apr 20, 2006, the rank that is created at the end of the March 2006 quarter should not use the financials for that quarter, since they were not available at the end of the quarter. We have eliminated to the best of our ability all of the look ahead bias from backtesting using the DBCMHIST database.
2. Restatement bias - this occurs when a company restates its historical financials. For example if a company reports its 3/06 results and restates its Dec 2005 results; a rank done as of end of Dec 2005 should use the originally reported financials for Dec 2005, not the restated financials for Dec 2005 which were not available until March 2003. We have eliminated to the best of our ability all of the restatement bias from backtesting using the DBCMHIST database.
3. Survivor bias - this occurs when stocks that have been delisted or acquired are not included in the backtest results. Depending on your strategy, the impact of survivor bias on your backtest may be significant. As of May, 2010, we have eliminated to the best of our ability the survivorship bias from from Dec 17, 1999 to the present in the DBCMHIST database.
4. Split bias - this can occur if your screen uses price as a qualifier, e.g., Price > $5.00. The DBCMHIST database is split adjusted. So using the example above, if the company had a stock split between the screened date and the date of your backtest, the company may not be included in your backtest results if the split adjustment caused the historical price at the date of the backtest to be below that $5.00 threshold. Typically, stock splits occur at higher prices. If a stock?s price is an important part of your screen definition (and backtesting), we suggest that you test your screen and vary the price limit to see the impact on your results.
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Trading Services
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Returns are through December 30, 2011
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Zacks Whisper Trader Stats |
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Number of Trades since inception (10/7/10)* |
200 |
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Average Gain Per Trade %* |
0.80% |
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Average Holding Period* |
8.1 Days |
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*The Whisper Trader stock picking service is a great addition to virtually anyone's portfolio. Because trading activity is at its heaviest during earnings season (4 times a year), and less so during non-earnings season, the above statistics provide the best insight into its performance. On the surface it may seem that it only produces a modest return on each trade. However, when you realize the average holding period is only about a week, then the attractiveness of the market beating compounded annual return becomes very evident. Returns are through January 16, 2012 |
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