Zacks Investment Management has launched two actively managed income-focused ETFs: the Zacks Income ETF (NYSE:ZINC) and the Zacks Preferred Income ETF (NYSE:PRIZ). The new offerings mark the firm's first dedicated income strategies and are designed to provide investors with consistent distributions through Zacks' proprietary research-driven investment process.
The launch comes as income-oriented products continue to attract investor interest amid elevated market volatility and demand for portfolio diversification. According to CEO Mitch Zacks, the new funds extend the firm's earnings-based investment methodology into income-generating portfolios, emphasizing fundamental analysis and disciplined security selection.
Key Features Of The New ETFs
ZINC
- Seeks to provide current income alongside long-term capital appreciation.
- Uses a proprietary strategy to identify companies with potentially high income and attractive risk-return characteristics.
- Evaluates factors including:
- Dividend yield
- Valuation
- Price momentum
- Earnings momentum
- Earnings quality
PRIZ
- Seeks to generate current income.
- Invests primarily in preferred securities, including:
- Preferred stock
- Junior subordinated debt
- Employs quantitative and qualitative analysis to identify high-quality preferred securities with elevated levels of tax-advantaged income.
- Expense ratio: 0.45%
Shared Strategy Characteristics
- Both funds target an 8% annual distribution yield.
- Distributions are supported through:
- Dividend income
- Interest income
- Return of capital, when necessary, to help maintain distribution levels across market environments.
- Avoid the use of options-based income strategies and other complex yield-enhancing structures.
The launches further expand Zacks Investment Management's active ETF platform, which includes the Zacks Earnings Consistent Portfolio ETF (BATS:ZECP) launched in 2021, the Zacks Small and Mid Cap ETF (NYSE:SMIZ) in 2023, the Zacks Focus Growth ETF (BATS:GROZ) in 2024, and the Zacks Quality International ETF (NYSE:QUIZ) in 2025.
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