Zacks Small/Mid Cap ETF

Zacks Small/Mid Cap ETF (SMIZ) is an actively managed fund. It picks 150 to 250 small and midsize U.S. stocks from the Russell 2000 and Russell Midcap indexes, using Zacks's data on analysts' earnings-estimate revisions. Its 0.55% expense ratio is about double the 0.26% average of similar funds. It spreads its money widely: as of August 31, 2026, it held 200 stocks, and none made up more than 1.5% of the fund.

• Over the year to Oct 27, 2026, SMIZ returned +9.2%, 7th of 7 among similar funds.
• Its worst full calendar year was 2025 (+12.2%); its best was 2024 (+17.9%).
• The deepest fall in its price history was 25% (Dec 4, 2024 to Apr 8, 2025), recovered by Aug 22, 2025.

As of Aug 31, 2026, the fund held 200 securities; the ten largest made up 10.94% of assets.

• Over the three months to Aug 31, 2026, investors added a net $21.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.71%, -6.09%, -0.10%.

SMIZ does not track an index. Its adviser, Zacks, picks stocks from two lists. The Russell 2000 Index covers smaller companies, and the Russell Midcap Index covers midsize ones. The goal is to beat a 50/50 mix of the two indexes over the long term. At least 80% of net assets go into U.S.-listed small and midsize stocks, and each group makes up about 30% to 70% of the fund.

Stock picking starts with a computer model fed by data from Zacks Investment Research, a related company. The model scores four things. Agreement is the share of analysts raising their earnings estimates. Magnitude is how big those changes are. Upside compares the most accurate or recent estimates with the consensus, meaning the average forecast. Surprise measures how often and by how much a company's reported earnings differ from forecasts. The portfolio manager then uses judgment to choose 150 to 250 stocks. A stock can stay in the fund after it drops out of the Russell indexes.

The portfolio is usually rebalanced monthly. Portfolio turnover was 105%, which means the fund traded about as much stock as it held over a year. It may keep up to 20% in cash or other funds. As of August 31, 2026, it held 200 stocks, with about 2% in cash and no derivatives. The 10 largest holdings made up about 11% of assets.

• SMIZ charges 0.55% a year, versus an average of 0.26% for the similar funds below (6th of 7, cheapest first).
• Of that, 0.44% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.05% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $745 over 10 years (assuming a 5% annual return).

It is an actively managed small- and mid-cap fund with a short record, a beta of 1.18 and a cost well above similar funds, so it fits better as a smaller add-on than a foundation.

SMIZ adds small and midsize companies, which large-company funds hold little of. Its record is short. It launched on October 3, 2023, so it was not around for the 2008, 2020 or 2022 downturns. Both of its full calendar years were gains: 18.09% in 2024 and 12.19% in 2025. Its deepest drop was 25%, from December 4, 2024, to April 8, 2025. It recovered by August 22, 2025, about 4.5 months later. Anyone who sold shares for spending money in spring 2025 would have sold near the low. The yield was 0.56% as of October 27, 2026, paid once a year, so this is not an income fund. On cost, the SEC's standard example puts the expenses on $10,000 at $745 over 10 years. Past results don't predict future ones, 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).