Invesco Zacks Mid-Cap ETF (CZA)

CZA: Zacks Core Mid-Cap ETF Not What I Expected

Zacks Investment Research seeks to leverage the expertise of thousands of Wall Street researchers, reasoning that its clients can gain a competitive edge by following analyst upgrades and downgrades. CZA aims to fully replicate the Zacks Mid Cap Core Index. However, I was surprised to find the Index does a poor job selecting stocks with strong earnings sentiment. My analysis revealed passive mid-cap funds like IWR, IJH, IMCB, and VO had stronger earnings momentum, and that CZA's constituents barely beat sales expectations last quarter.