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Is Invesco Zacks Mid-Cap ETF (CZA) a Hot ETF Right Now?
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Making its debut on 04/02/2007, smart beta exchange traded fund Invesco Zacks Mid-Cap ETF (CZA - Free Report) provides investors broad exposure to the Mid Cap ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $264.07 M, making 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.65% for CZA, making it one of the most expensive products in the space.
CZA's 12-month trailing dividend yield is 1.06%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector - about 27.80% of the portfolio. Industrials and Information Technology round out the top three.
When you look at individual holdings, Blackstone Group Lp/the (BX - Free Report) accounts for about 2.08% of the fund's total assets, followed by Energy Transfer Partners Lp and Welltower Inc (WELL - Free Report) .
The top 10 holdings account for about 19.36% of total assets under management.
Performance and Risk
The fund's year-to-date return has gained about 3.26%, and is up roughly 11.78% in the last one year (as of 07/27/2018). CZA has traded between $60.75 and $68.99 in the past 52-week period.
The fund has a beta of 0.93 and standard deviation of 13.02% 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 Invesco Zacks Mid-Cap ETF (CZA) a Hot ETF Right Now?
Making its debut on 04/02/2007, smart beta exchange traded fund Invesco Zacks Mid-Cap ETF (CZA - Free Report) provides investors broad exposure to the Mid Cap ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $264.07 M, making 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.65% for CZA, making it one of the most expensive products in the space.
CZA's 12-month trailing dividend yield is 1.06%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector - about 27.80% of the portfolio. Industrials and Information Technology round out the top three.
When you look at individual holdings, Blackstone Group Lp/the (BX - Free Report) accounts for about 2.08% of the fund's total assets, followed by Energy Transfer Partners Lp and Welltower Inc (WELL - Free Report) .
The top 10 holdings account for about 19.36% of total assets under management.
Performance and Risk
The fund's year-to-date return has gained about 3.26%, and is up roughly 11.78% in the last one year (as of 07/27/2018). CZA has traded between $60.75 and $68.99 in the past 52-week period.
The fund has a beta of 0.93 and standard deviation of 13.02% 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.