2 New ETFs Tracking Zacks

Two new ETFs hit the market January 20 that aim to capture proprietary investment strategy of research giant Zacks. The two ETFs will be managed by ETF Securities and will cover U.S. equities; one being solely large-cap stocks, while the other is made up of only smaller capitalization stocks.

The two ETFs will mark the first equity-based funds the London-based ETF issuer will launch in the U.S. In the past, ETF Securities was known for their commodity-related funds.

Related Link: Hedging Market Selloffs With ETFs

Highlighted below are the two new ETFs that will aim to track Zacks’ propriety research strategy.

ETFS Zacks Earnings Large Cap U.S. Index ETF

The ETFS Zacks Earnings Large-Cap U.S. Index Fund ZLRG is made up of 142 large-cap stocks across 16 sectors with all sectors being similarly weighted. The weighting for the sectors ranges between 6.1 percent and 6.4 percent.

The top holdings include:

• Weyerhaeuser Co WY
• Rockwell Collins. Inc. COL
• Danaher Corporation DHR

All three accounting for 1.6 percent. Since its inception on January 20, the ETF is up 2 percent. ZLRG has an expense ratio of 0.66 percent.

ETFS Zacks Earnings Small Cap U.S. Stock Fund

The ETFS Zacks Earnings Small-Cap U.S. Index Fund ZSML provides investors with exposure to 139 small-cap stocks across 15 sectors, with all sectors having near-equal weightings.

The top individual holdings include:

• B/E Aerospace Inc BEAV at 3.5 percent
• Spirit AeroSystems Holdings, Inc. SPR with a 3.4 percent allocation
• TECO Energy, Inc. TE coming in at 2.3 percent

Since its inception on January 20, the ETF is up 2 percent. ZSML has an expense ratio of 0.66 percent.

The new entrants into the ever-growing world of ETFs give followers of Zacks’ investment strategies the ability to track the stock ideas with a one-stop investment vehicle. It will be interesting to see if the well-known name in market research will be able to parlay years of brand recognition into assets under management and more importantly strong investment returns.