Zacks Funds, a Chicago-based financial research firm and mutual fund manager, on June 20 plans to roll out through Exchange Traded Concepts’ ETF platform a pair of ETFs-one focused on dividend-paying stocks and the other serving up exposure to master limited partnerships.
At heart, both the Zacks Sustainable Dividend ETF (NasdaqGM:ZDIV) and the Zacks MLP ETF (NasdaqGM:ZMLP) are designed to serve up yield potential. ZDIV, costing 0.70 percent a year, invests in 100 U.S. dividend-paying stocks selected from a universe of 1,500 large-cap securities. ZMLP invests in 25 to 50 U.S.-listed MLPs and costs 0.75 percent.
Both funds track proprietary benchmarks that apply a quantitative rules-based multifactor methodology to pick and weight only the securities that show the highest yield potential from their respective market segments.
The two funds will be listed on Nasdaq, the No. 2 U.S. stock exchange that has a growing presence in the world of ETF primary listings.