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Is Guggenheim Mid-Cap Core ETF (CZA) a Hot ETF Right Now?
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Making its debut on 04/02/2007, smart beta exchange traded fund Guggenheim Mid-Cap Core ETF (CZA - Free Report) provides investors broad exposure to the Mid Cap ETFs category of the U.S. equity market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
CZA is managed by Invesco Powershares, and this fund has amassed over $253.11 M, which makes it one of the average sized ETFs in the Mid Cap ETFs. This particular fund, before fees and expenses, seeks to match the performance of the Zacks Mid-Cap Core Index.
The Zacks Mid-Cap Core Index is comprised of 100 securities selected, based on investment and other criteria, from a universe of mid-capitalization securities including master limited partnerships and American depositary receipts.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.65% for this ETF, which makes it on par with most peer products in the space.
CZA's 12-month trailing dividend yield is 1.11%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 32.60% of the portfolio, the fund has heaviest allocation to the Financials sector; Industrials and Information Technology round out the top three.
Taking into account individual holdings, Keycorp (KEY - Free Report) accounts for about 2.14% of the fund's total assets, followed by Ingersoll-Rand Plc (IR - Free Report) and Regions Financial Corp (RF - Free Report) .
CZA's top 10 holdings account for about 19.92% of its total assets under management.
Performance and Risk
The fund's year-to-date return has lost about -1.02%, and was up about 11.66% in the last one year (as of 05/05/2018). CZA has traded between $57.99 and $68.99 in the past 52-week period.
CZA has a beta of 0.92 and standard deviation of 13.09% for the trailing three-year period. With about 100 holdings, it effectively diversifies company-specific risk.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Guggenheim Mid-Cap Core ETF (CZA) a Hot ETF Right Now?
Making its debut on 04/02/2007, smart beta exchange traded fund Guggenheim Mid-Cap Core ETF (CZA - Free Report) provides investors broad exposure to the Mid Cap ETFs category of the U.S. equity market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
CZA is managed by Invesco Powershares, and this fund has amassed over $253.11 M, which makes it one of the average sized ETFs in the Mid Cap ETFs. This particular fund, before fees and expenses, seeks to match the performance of the Zacks Mid-Cap Core Index.
The Zacks Mid-Cap Core Index is comprised of 100 securities selected, based on investment and other criteria, from a universe of mid-capitalization securities including master limited partnerships and American depositary receipts.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.65% for this ETF, which makes it on par with most peer products in the space.
CZA's 12-month trailing dividend yield is 1.11%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 32.60% of the portfolio, the fund has heaviest allocation to the Financials sector; Industrials and Information Technology round out the top three.
Taking into account individual holdings, Keycorp (KEY - Free Report) accounts for about 2.14% of the fund's total assets, followed by Ingersoll-Rand Plc (IR - Free Report) and Regions Financial Corp (RF - Free Report) .
CZA's top 10 holdings account for about 19.92% of its total assets under management.
Performance and Risk
The fund's year-to-date return has lost about -1.02%, and was up about 11.66% in the last one year (as of 05/05/2018). CZA has traded between $57.99 and $68.99 in the past 52-week period.
CZA has a beta of 0.92 and standard deviation of 13.09% for the trailing three-year period. With about 100 holdings, it effectively diversifies company-specific risk.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.