About the Zacks Mutual Fund Rank

As you saw on US News, the Zacks Mutual Fund Rank rates mutual funds on a five point scale. But what does this rating mean and how can you use it to improve your investing performance? We'll answer that below.

The goal of the Zacks Mutual Fund Rank is to finally help investors select funds that will outperform the market in the future. Yet the most popular fund rating systems to date have been focused on past performance. And as we all know "Past Performance is Not a Guarantee of Future Results". Not surprisingly these other rating systems have not benefited investors.

It's time for a change. It's time for the Zacks Mutual Fund Rank to help you know which funds are likely to outperform the market in the months ahead.

The innovative spirit behind the Zacks Mutual Fund Rank is well established at Zacks.

Let's take a step back. In the 1970s, Len Zacks worked as the head of quantitative research for a major brokerage firm. Holding a PhD from MIT, Len created models designed to help investors beat the market.

After extensive research and testing, Len discovered that:

Earnings estimate revisions are the most powerful force impacting stock prices.

From that discovery, the Zacks Rank was born.  By using four factors about earnings estimate revisions, the Zacks Rank can accurately predict which stocks are most likely to beat the market over the next three months.  And conversely, which are most likely to underperform the market.

The result: Zacks #1 Ranked stocks have gained 26% on average each year compared to only 9% by the S&P 500 for the same time.

It's easy to learn more about the Zacks Rank for mutual funds and stocks to use it in your investing to outperform the market. Get all of these daily resources for free:

  • "Best of Funds" recommendations
  • Mutual Fund Rank on over 19,000 funds
  • Timely market commentary
  • Investment education

All of this and more is free with no obligation to buy.

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Zacks.com provides investment resources and informs you of these resources,which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit www.zacks.com/performance for information about the performance numbers displayed above.