Zacks Investment Management Expands ETF Suite with the Launch of GROZ

The Zacks Focus Growth ETF (Cboe: GROZ) employs a data-driven approach to capturing large-cap growth potential

Zacks Investment Management, a wholly-owned subsidiary of Zacks Investment Research with $20 billion in assets under management, announces the launch of its third actively-managed exchange-traded fund (ETF), the Zacks Focus Growth ETF (Cboe: GROZ). GROZ aims to invest in large-cap companies that exhibit sound fundamentals and growth potential relative to the overall U.S. equity market.

The ETF employs a multi-factor quantitative and qualitative analysis to build a portfolio of 40-120 positions, focusing on companies within the Russell 1000 Growth Index that demonstrate strong earnings growth potential.* These screens ensure the investments are well-positioned to potentially generate alpha across various market conditions.**

The selection process begins with the proprietary Zacks Performance Framework***, evaluates 500 stocks based on four key criteria: earnings estimate agreement, revision magnitude, upside, and earnings surprises. The portfolio management team then employs the Zacks Multi-Factor Alpha Model****, a framework identifying companies that demonstrate what the portfolio management team believes to have strong financial health, robust growth potential, favorable valuations, as well as upward revisions in earnings estimates by analysts.

Lastly, Zacks applies the AI Exposure Index*****, which identifies companies well-positioned to thrive in an AI-driven economy. This proprietary tool provides a focused perspective on how companies and industries are positioned in an AI-driven economy. By assessing the susceptibility of companies to AI technologies, this screen seeks to ensure the portfolio is aligned with companies that are well-positioned for growth as well as less impacted by technological disruptions.

“GROZ is built upon our longstanding commitment to data-driven investment solutions,” said Mitch Zacks, President of Zacks Investment Management. “Grounded in our firm’s legacy of independent research, GROZ provides access to companies with a proven track record of delivering consistent growth and value across market cycles.”

GROZ is based on the firm’s Focus Growth Strategy SMA, which identifies high-growth companies through a comprehensive analytical approach.

“Investor demand for high-quality growth solutions remains strong, especially in a rapidly-changing economic environment. GROZ leverages our proven selection process, focusing on resilient companies that are not only growing, but also positioned to sustain that growth over the long term,” says Salvatore Esposito, Head of ETF Products.

GROZ is the third fund in Zacks Investment Management’s suite of actively-managed ETFs. It succeeds the launch of the Zacks Earnings Consistent Portfolio ETF (CBOE: ZECP) in August 2021 and the launch of the Zacks Small and Mid Cap ETF (NYSE Arca: SMIZ) in October 2023.

Zacks Investment Management, Inc. is the advisor to the Zacks Focus Growth ETF, Zacks Earnings Consistent Portfolio ETF, and the Zacks Earnings Consistent Portfolio 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 specialist 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.

The Fund'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.

Investing involves risk, including loss of principal. There is no guarantee that the fund's investment strategy will be successful. The value of a fund's shares, when redeemed, may be more or less than their original cost. Investments in underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations.

The adviser’s judgments about the growth, value or potential appreciation of an investment may prove to be incorrect or fail to have the intended results, which could adversely impact the Fund’s performance and cause it to underperform relative to other funds with similar investment goals or relative to its benchmark, or not to achieve its investment goal.

ETFs are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few.

*The Russell 1000 Growth Index is a well-known, unmanaged index of the prices of 1000 large-company growth common stocks selected by Russell. The Russell 1000 Growth 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. Benchmark returns are not covered by the report of independent verifiers.

**Alpha: A measure of the excess return on an investment relative to the return of a benchmark index. It is used to evaluate an investment manager's ability to generate returns above the benchmark after adjusting for risk.

***The Zacks Performance framework is a proprietary stock-ranking model based on earnings estimate revisions research. It is part of the foundation of the investment process at Zacks. EPS ("Earnings-Per-Share") surprise, now widely used throughout the industry, is a tool used by Zacks Investment Management to help predict stock price movements. An EPS surprise occurs when a company's reported earnings are different from what industry analysts have projected.

****Zacks Proprietary Multi-Factor Alpha Model targets companies that demonstrate what we believe to be strong financial health, robust growth potential, favorable valuations, and upward revisions in earnings estimates by analysts.

*****The AI Exposure Index is a proprietary tool that provides a forward-looking perspective on how companies and industries are positioned in an AI-driven economy. By assessing the susceptibility of companies to AI technologies, this screen ensures the portfolio is aligned with companies that are well-positioned for growth as well as resilient to technological disruptions.

Zacks ETFs are distributed by Northern Lights Distributors, LLC. Northern Lights Distributors, LLC is not affiliated with Zacks Investment Research or Zacks Investment Management.

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