Zacks Investment Management Expands ETF Suite with the Launch of SMIZ

Utilizing data-driven strategies, the Zacks Small/Mid-Cap ETF (NYSE Arca: SMIZ) aims to generate returns with minimal capital loss

Zacks Investment Management, a wholly-owned subsidiary of Zacks Investment Research with $15.1 billion in assets under management, on Oct. 3, 2023, announces the launch of its second actively-managed ETF — the Zacks Small and Mid Cap ETF (NYSE Arca: SMIZ). SMIZ seeks to generate positive risk-adjusted returns by investing in small and mid-cap companies.

“The current market climate presents both challenges and opportunities for investors. SMIZ is our response to an increasingly complex investment landscape, providing a meticulously researched solution that aims to outperform a 50/50 blend of the Russell 2000 Index and Russell Mid Cap Index,” notes Mitch Zacks, President of Zacks Investment Management.

The fund is constructed utilizing comprehensive quantitative screening and qualitative analysis, resulting in a portfolio of approximately 150-250 companies that best meet the criteria for providing risk-adjusted returns and diversification benefits to the Russell 2500 Index.

Employing the Zacks proprietary Multi-Factor Alpha Model, the portfolio manager selects stocks from the constituents of the Russell Mid Cap Index and Russell 2000 Index universe. The factors focus on the percentage of earnings estimate revisions that are revised upward and the size of the earnings estimate revisions, while also considering where the most accurate or recent earnings estimates are in relation to consensus and the magnitude and frequency of earnings surprises. Zacks then determines the allocation between the small and mid-cap asset classes.

“SMIZ is a testament to Zacks Investment Management’s commitment to create innovative, research-driven investment solutions,” says Salvatore Esposito, Head of ETF Products. “Thanks to our proprietary methodology, we’re able to offer investors access to products built on data, not feelings.”

The Zacks Small/Mid-Cap ETF seeks to combine the strengths of two of the firm's existing small- and mid-cap separately managed accounts (SMAs). This strategic blend allows investors to enjoy the combined benefits of both asset classes in a tax-efficient structure.

SMIZ follows the launch of Zacks Investment Management’s first ETF, the Zacks Earnings Consistent Portfolio ETF (CBOE: ZECP). Companies in the ZECP portfolio exhibit a track record of moving through recessionary periods with little to minimal impact on aggregate earnings growth relative to the overall equity market.

Zacks Investment Management, Inc. is the advisor to the Zacks Small/Mid-Cap ETF. For more information, please visit https://www.zacksetfs.com/.

About Zacks Investment Management

Zacks Investment Management is built on a foundation of rigorous research and a desire to outperform benchmarks over time, with a focus on financial intermediaries and institutions. We have been providing wealth management services since 1992, and have been a leading expert on earnings and using earnings estimates as a part of our investment process. We are a wholly owned subsidiary of our parent company, Zacks Investment Research, one of the largest providers of independent research in the U.S.

*SMIZ’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company and can be found at www.zacksetfs.com. Please read carefully before investing. A hard copy of the prospectuses can also be requested by calling 855-813-3507.

SMIZ Specific Fund Risk

Investing involves risk. Principal loss is possible. As an ETF, the funds may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Transactions in shares of ETFs will result in brokerage commissions, which will reduce returns. The Fund is subject to management risk because it is an actively managed portfolio. The Advisor’s judgments about the attractiveness, value, and stability of particular stocks in which the Fund invests may prove to be incorrect, and there is no guarantee that the Advisor’s judgment will produce the desired results. Equity securities are subject to changes in value, and their values may be more volatile than those of other asset classes. The earnings and prospects of small and medium sized companies are more volatile than larger companies and may experience higher failure rates than larger companies. Small and medium sized companies normally have a lower trading volume than larger companies, which may tend to make their market price fall more disproportionately than larger companies in response to selling pressures and may have limited markets, product lines, or financial resources and lack management experience. Investments selected using quantitative methods may perform differently from the market as a whole.

Given the significant differences between separately managed accounts and mutual funds, investors should consider the differences in expenses, tax implications, and the overall objectives between separately managed accounts and mutual funds before investing. Past performance of the strategy/separately managed account is not indicative of future performance of the fund.

Zacks Investment Management does not provide tax advice. Please consult your tax advisor before making any decisions or taking any action based on this information.

Diversification does not ensure a profit or guarantee against loss.

The Russell MidCap Index is a well-known, unmanaged index of the prices of 800 mid-cap company common stocks, selected by Russell. The Russell MidCap Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

The Russell 2000 Index is a well-known, unmanaged index of the prices of 2000 small-cap company common stocks selected by Russell. The Russell 2000 index assumes reinvestment of dividends but does not reflect advisory fees. An investor can not directly invest in an index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.

17420885-NLD-09/28/2023

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