CZA ETF: What Is It? — Returns, Expense Ratio, Holdings & Alternative ETFs Compared
The Invesco Zacks Mid-Cap ETF (CZA) is a rules-based U.S. mid-cap ETF that tracks the Zacks Mid-Cap Core Index, providing diversified exposure to roughly 100 stocks selected through a quantitative methodology. Key comparison points versus broad mid-cap ETFs such as IJH and VO include expense ratio, dividends, and stock selection methodology.
SubscribeWhat Is the Invesco Zacks Mid-Cap ETF?
It is a U.S. mid-cap ETF that tracks the Zacks Mid-Cap Core Index. The fund holds roughly 100 securities selected using Zacks' proprietary methodology, and its eligible universe extends beyond common stocks to include REITs, MLPs, business development companies (BDCs), and ADRs.
Rather than tilting toward large caps, it offers diversified exposure to U.S. mid caps and is well-suited for investors who prefer rules-based security selection.
The ETF is managed by Invesco on a passive (index-tracking) basis.
How Does the Invesco Zacks Mid-Cap ETF Work?
| Item | Details |
|---|---|
| Tracking Index | Zacks Mid-Cap Core Index |
| Management Style | Passive (rules-based index tracking) |
| Rebalancing Frequency | Periodic (per index rules) |
| Dividend Frequency | Annual |
| Issuer | Invesco |
| Total Expense Ratio | 0.69% |
The ETF tracks an index that Zacks constructs by filtering the mid-cap universe down to roughly 100 names using its proprietary selection criteria. Because holdings are screened and compressed based on quantitative factors rather than purely market-cap weighting, the resulting portfolio can differ meaningfully from broad-market mid-cap ETFs even within the same asset class.
- Rules-based stock compression using Zacks' proprietary methodology
- Inclusion of diverse security types such as REITs, MLPs, and BDCs
Invesco Zacks Mid-Cap ETF: Size and Cost (AUM & Expense Ratio)
Assets under management (AUM) stand at $181.9M, and the total expense ratio is 0.69% annually.
Compared with broad mid-cap index ETFs such as IJH and VO, the fund may differ in both expense ratio and liquidity profile.
Invesco Zacks Mid-Cap ETF: Performance and Fund Flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeU.S. mid caps tend to be more sensitive to the economic cycle and interest-rate environment, and they generally exhibit higher volatility than large caps. Short-term performance fluctuates with earnings season and broader macro conditions.
Mid-cap ETFs sit in a smaller asset category than large-cap core ETFs, and fund flows tend to track shifts in risk appetite. Demand for rules-based selection ETFs is typically narrower than for plain index-tracking products.
Invesco Zacks Mid-Cap ETF: Strengths and Weaknesses
Its rules-based mid-cap selection and diversification are key strengths, while a higher expense burden and limited liquidity relative to broad index ETFs are the main drawbacks.
Key Strengths
Points to Consider
Invesco Zacks Mid-Cap ETF: Alternatives and Related Products
IJH, VO, and IWR are broad-market mid-cap index ETFs in the same category and are typically the most direct comparisons, generally offering lower expense ratios. For plain market-cap-weighted mid-cap exposure, MDY is another option, while investors seeking broader U.S. market coverage may also consider total-market core ETFs such as VTI.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 IJH | iShares Core S&P Mid-Cap ETF | $73.33 | -1.2% | $124.7B | 0.05% | 1.23% | +13.6% |
 VO | Vanguard Morningstar Mid-Cap ETF | $81.46 | -0.9% | $108.4B | 0.03% | 1.35% | +12.5% |
 IWR | iShares Russell Mid-Cap ETF | $110.03 | -1.4% | $58.8B | 0.18% | 1.16% | +15.7% |
 MDY | State Street SPDR S&P MIDCAP 400 ETF Trust | $668.88 | -1.2% | $26.2B | 0.23% | 1.05% | +13.5% |
 SPMD | State Street SPDR Portfolio S&P 400TM Mid Cap ETF | $64.24 | -1.2% | $18.9B | 0.03% | 1.31% | +13.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| BDX | Becton Dickinson & Co | 0.02% | $197.88 | -0.2% | $53.9B | 59.7 | 2.03% |
| PRU | Prudential Financial Inc | 0.02% | $116.45 | -0.4% | $40.2B | 10.6 | 4.81% |
| STT | State Street Corp | 0.02% | $169.77 | -2.3% | $46.2B | 13.9 | 2.07% |
| AIG | American International Group Inc | 0.04% | $81.90 | +0.6% | $42.8B | 15.0 | 2.37% |
| PEG | Public Service Enterprise Group Inc | 0.02% | $74.29 | +0.9% | $37.0B | 18.5 | 3.61% |
| SYY | Sysco Corp | 0.02% | $82.90 | +0.5% | $40.8B | 22.7 | 2.67% |
| WCN | Waste Connections Inc | 0.02% | $184.08 | +1.2% | $46.1B | 41.3 | 0.77% |
| HIG | Hartford Insurance Group Inc | 0.02% | $132.59 | +0.4% | $35.5B | 8.0 | 1.85% |
| BAP | Credicorp Ltd | 0.02% | $348.96 | -3.4% | $27.7B | 12.9 | 4.53% |
Investor Checklist for the Invesco Zacks Mid-Cap ETF
Key items to review before investing in CZA. Because it is a rules-based mid-cap ETF, it is important to understand up front how its expense ratio, liquidity, and selection methodology differ from those of plain index products.
| Checkpoint | What to Verify | Current Status |
|---|---|---|
| 💵 Expense Ratio | Assess the impact of cumulative costs over a long holding period | Tends to be higher than broad index ETFs |
| 💧 Liquidity | Check average daily trading volume and bid-ask spreads | Requires review |
| 📊 Selection Methodology | Understand the Zacks rules-based construction | Quantitative selection applied |
| 💱 Currency | Effect on KRW-denominated returns | No currency hedging |
Mid-cap-specific volatility and tracking deviation from the rules-based selection process are the primary risks. During market drawdowns, mid caps can decline more sharply than large caps, and limited liquidity means trading costs should also be factored in.
For investors seeking rules-based, diversified exposure to U.S. mid caps, CZA is a worthwhile option to consider. If cost and liquidity are the top priorities, broad-market index ETFs such as IJH or VO may serve as alternatives.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 19, 2026.
Today's 5 AI picks, all free