ZECP: Expensive And Lacking Firepower
Source: SeekingAlpha
2025-01-10 00:43:27 ET
Summary
- ZECP selects 50–120 stocks with a long history of posting consistent earnings results. The strategy might appeal to defensive investors looking for positive performance even in down markets.
- Unfortunately, the Fund's earnings consistency mandate also means fast-growing companies are excluded. While acceptable to risk-averse investors, its valuation ratios are barely better than S&P 500 Index ETFs like SPY.
- Zacks Earnings Consistent Portfolio ETF's fundamental problems come against the backdrop of an excessive 0.55% expense ratio, which is net of a 0.34% waiver that can be terminated with 60 days notice.
- While unique at the company level, ZECP is hardly a standout from a factor exposure perspective. I'll highlight three below with better overall fundamentals, superior track records, and lower fees.
- ZECP is an easy 'Sell'.
Investment Thesis
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ZECP: Expensive And Lacking Firepower
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