Invesco Zacks Mid-Cap ETF

Invesco Zacks Mid-Cap ETF (CZA) is an index fund that tracks the Zacks Mid-Cap Core Index. The index holds about 100 mid-sized companies that Zacks picks using factors such as earnings growth, price-to-earnings ratio and short interest. Cost sets it apart: its 0.69% expense ratio is the highest among six similar mid-cap funds, which average 0.29%. It also trades heavily, with 140% portfolio turnover, and leans toward financial stocks.

• Over the year to Oct 27, 2026, CZA returned +14.0%, 4th of 7 among similar funds.
• Its 5-year annualized return was +7.4% and its 10-year +10.7%.
• In the 2020 COVID crash it fell 46.2% and regained its old high 9.7 months after the low.
• Its worst full calendar year was 2008 (-36.0%); its best was 2009 (+44.4%).
• The deepest fall in its price history was 53.2% (Jul 17, 2007 to Mar 6, 2009), recovered by Nov 2, 2010.

As of Jul 31, 2026, the fund held 100 securities; the ten largest made up 19.31% of assets, and 2.98% sat in cash and money-market holdings.

• Over the three months to Jul 31, 2026, investors withdrew a net $9.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.15%, +4.55%, +2.61%.

Zacks Investment Research builds the Zacks Mid-Cap Core Index from a pool of mid-sized companies. That pool can include ordinary stocks, master limited partnerships (MLPs), American depositary receipts (ADRs, which are US-traded certificates for foreign shares), real estate investment trusts (REITs) and business development companies (BDCs). Zacks picks 100 of them using its own screen. The screen weighs long-term earnings growth, the price-to-earnings ratio (share price divided by earnings per share) and short interest (shares borrowed and sold by investors betting on a fall). As of June 30, 2026, the index held 101 companies valued at $5.2 billion to $59.4 billion.

Invesco uses full replication. That means the fund generally owns every stock in the index, in the same proportions as the index. It must keep at least 80% of net assets in index stocks or similar investments. As of July 31, 2026, the largest holding, Becton, Dickinson and Co., was 2.14% of assets, and the top 10 made up 19.31%. The fund held no derivatives and uses no leverage.

The fund drops a stock only when the index does, even if that stock is lagging. The index changes often. Turnover was 140%, which means the fund traded the equivalent of its whole portfolio about 1.4 times in a year. Those trading costs are not included in the 0.69% expense ratio. Sector weights follow the index, and financials were a significant exposure as of April 30, 2026.

• CZA charges 0.69% a year, versus an average of 0.29% for the similar funds below (7th of 7, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $70 in the first year and $858 over 10 years (assuming a 5% annual return).

Its 0.69% expense ratio, heavy trading and steep past drops make it better suited to a small slice next to broader, cheaper core funds.

CZA could add a factor-screened set of mid-sized companies, tilted toward financials, to a portfolio built mostly on large-company funds. Its downturns have been steep. It fell 52.5% in the 2008 financial crisis and did not get back to its old peak until October 2010. It lost 46.2% in the 2020 COVID crash and recovered by January 2021. It fell 17.5% in the 2022 bear market and recovered by February 2023. Its worst calendar year was 2008, a 36% loss. Someone who needed to cash out shares in a year like that would be doing so near the bottom.

It is not an income fund. The trailing 12-month yield was 1.39% as of October 27, 2026, paid once a year. In the SEC's standard example of $10,000 invested, costs come to about $70 in the first year and $858 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).