Zacks Investment Management has launched two actively managed income-focused ETFs: the Zacks Income ETF (NYSE:ZINC) and the Zacks Preferred Income ETF (NYSE:PRIZ). The new offerings mark the firm's first dedicated income strategies and are designed to provide investors with consistent distributions through Zacks' proprietary research-driven investment process.

The launch comes as income-oriented products continue to attract investor interest amid elevated market volatility and demand for portfolio diversification. According to CEO Mitch Zacks, the new funds extend the firm's earnings-based investment methodology into income-generating portfolios, emphasizing fundamental analysis and disciplined security selection.

Key Features Of The New ETFs

ZINC

  • Seeks to provide current income alongside long-term capital appreciation.
  • Uses a proprietary strategy to identify companies with potentially high income and attractive risk-return characteristics.
  • Evaluates factors including:
    • Dividend yield
    • Valuation
    • Price momentum
    • Earnings momentum
    • Earnings quality

PRIZ

  • Seeks to generate current income.
  • Invests primarily in preferred securities, including:
    • Preferred stock
    • Junior subordinated debt
  • Employs quantitative and qualitative analysis to identify high-quality preferred securities with elevated levels of tax-advantaged income.
  • Expense ratio: 0.45%

Shared Strategy Characteristics

  • Both funds target an 8% annual distribution yield.
  • Distributions are supported through:
    • Dividend income
    • Interest income
    • Return of capital, when necessary, to help maintain distribution levels across market environments.
  • Avoid the use of options-based income strategies and other complex yield-enhancing structures.

The launches further expand Zacks Investment Management's active ETF platform, which includes the Zacks Earnings Consistent Portfolio ETF (BATS:ZECP) launched in 2021, the Zacks Small and Mid Cap ETF (NYSE:SMIZ) in 2023, the Zacks Focus Growth ETF (BATS:GROZ) in 2024, and the Zacks Quality International ETF (NYSE:QUIZ) in 2025.

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