The episode of "Behind the Ticker" features Sal Esposito from Zacks, focusing on two of their ETFs: ZECP (Earnings Consistent Portfolio) and SMIZ (Small Mid Cap Core ETF). Sal's journey began at UBS, transitioning from various roles to Zacks, where he embraced the ETF space. Zacks, starting in 1978, specializes in earnings estimate revisions and surprises, crafting strategies around quality and consistency.
ZECP, designed as a core portfolio piece, invests in large cap, quality companies demonstrating consistent earnings and resilience through market cycles. It typically includes 50-65 names, chosen through a rigorous screening process emphasizing historic and forecasted EPS stability.
SMIZ targets opportunities in the small and mid-cap space, focusing on earnings estimate revisions and market anomalies, holding around 198 names. Unlike ZECP, it does not prioritize earnings consistency but rather seeks to exploit less covered market segments for alpha.
Zacks also offers "Zacks Plus," a unique product combining ETFs and SMAs into holistic solutions, tailored across risk spectrums without strategist fees. It allows advisors to deliver more sophisticated, efficient portfolio options, focusing primarily on domestic equities.
Sal suggests ZECP can complement large cap equity exposures like SPY, offering downside protection through its focus on quality. SMIZ serves as a dynamic small to mid-cap exposure, aimed at capturing alpha in less scrutinized market segments. For more information on Zacks and their ETF products, Sal recommends visiting zacksetfs.com or contacting
[email protected].