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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