This is an actively managed ETF that invests most of its net assets in small- and mid-sized companies listed on U.S. exchanges. It selects stocks using Zacks' proprietary quantitative model, which reflects changes in earnings estimates and earnings trends.

It suits investors who want active, quantitative model-based stock selection in small and mid caps rather than simple index tracking.

It is an ETF managed by Zacks using an active (actively managed) approach.

The fund selects U.S. small- and mid-cap stocks based on the quantitative methodology of Zacks Investment Research. It scores multiple factors, such as upward earnings estimate revisions, earnings surprises, financial soundness, and valuation, to build its portfolio, and it adjusts weightings actively rather than simply replicating an index.

• Quantitative stock selection based on Zacks Rank
• Active management focused on small and mid caps

Assets under management (AUM) stand at $275.1M, and the expense ratio is 0.55% per year.

Unlike passive index ETFs, holdings and weightings are determined actively by the management model, so the fee level is somewhat higher.

Small and mid caps tend to be more sensitive to the economy and more volatile than large caps, and their performance varies with interest rates and the economic cycle. Because of its active selection approach, the fund may move differently from the broader market.

Active small- and mid-cap ETFs tend to see large swings in fund flows depending on market conditions. Money tends to flow into small and mid caps when risk appetite rises, while in risk-off phases it tends to shift toward large caps.

Its strength is active, quantitative model-based selection of small and mid caps, while the fee burden and volatility that come with active management are its drawbacks.

HELO, FHEQ, INFO, and others shown in the same comparison table are hedged or large-cap-focused active ETFs that differ from SMIZ in management style and fee level. If you want core small- and mid-cap exposure itself, lower-cost, broad passive ETFs such as IJR and IJH are direct alternatives. For broad small-cap diversification, IWM is a comparison candidate, and for fundamentally weighted small caps, so is VBR. What sets this ETF apart is its active selection through a quantitative model.

Here are the points to review before investing in SMIZ. As an actively managed ETF, it is advisable to thoroughly check in advance its fee costs, small- and mid-cap volatility, and its model-based approach rather than index tracking.

Small- and mid-cap volatility and the performance dispersion of the active model are the main variables for short-term returns. During market corrections, drawdowns may be larger than for large-cap core assets, and the possibility that the model underperforms depending on the market phase should also be considered.

It is a suitable choice for investors who want active, quantitative model-based small- and mid-cap exposure. If cost and simple diversification are the priority, passive ETFs such as IJR and IJH are alternatives.