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Is Invesco Zacks Mid-Cap ETF (CZA) a Hot ETF Right Now?
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A smart beta exchange traded fund, the Invesco Zacks Mid-Cap ETF (CZA - Free Report) debuted on 04/02/2007, and offers 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.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
CZA is managed by Invesco, and this fund has amassed over $263.76 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With one of the most expensive products in the space, this ETF has annual operating expenses of 0.65%.
It has a 12-month trailing dividend yield of 1.05%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
CZA's heaviest allocation is in the Financials sector, which is about 27.10% of the portfolio. Its Industrials and Information Technology round out the top three.
Taking into account individual holdings, Energy Transfer Partners Lp accounts for about 2.19% of the fund's total assets, followed by Ingersoll-Rand Plc (IR - Free Report) and Blackstone Group Lp/the (BX - Free Report) .
Its top 10 holdings account for approximately 19.73% of CZA's total assets under management.
Performance and Risk
CZA has added roughly 4.48% so far this year, and as of 09/12/2018, was up about 11.68% in the last one year. In the past 52-week period, the fund has traded between $61.88 and $69.14.
CZA has a beta of 0.93 and standard deviation of 12.29% 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?
A smart beta exchange traded fund, the Invesco Zacks Mid-Cap ETF (CZA - Free Report) debuted on 04/02/2007, and offers 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.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
CZA is managed by Invesco, and this fund has amassed over $263.76 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With one of the most expensive products in the space, this ETF has annual operating expenses of 0.65%.
It has a 12-month trailing dividend yield of 1.05%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
CZA's heaviest allocation is in the Financials sector, which is about 27.10% of the portfolio. Its Industrials and Information Technology round out the top three.
Taking into account individual holdings, Energy Transfer Partners Lp accounts for about 2.19% of the fund's total assets, followed by Ingersoll-Rand Plc (IR - Free Report) and Blackstone Group Lp/the (BX - Free Report) .
Its top 10 holdings account for approximately 19.73% of CZA's total assets under management.
Performance and Risk
CZA has added roughly 4.48% so far this year, and as of 09/12/2018, was up about 11.68% in the last one year. In the past 52-week period, the fund has traded between $61.88 and $69.14.
CZA has a beta of 0.93 and standard deviation of 12.29% 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.