This is an actively managed ETF that, based on Zacks' analysis, selects US blue-chip stocks with low earnings volatility and stable profits. By concentrating on companies with consistent earnings, it pursues a defensive profile.

It suits investors who want to invest in US blue-chip stocks with stable earnings, aiming to lower volatility while seeking steady performance.

It is an ETF run with an active management approach by Zacks.

Based on Zacks' analysis, the fund actively selects US blue-chip stocks with low earnings volatility and steady profits. It concentrates on companies with high earnings consistency and pursues a defensive profile that holds up relatively well during market swings. Instead of simply tracking an index, it takes an active approach that picks stocks on earnings-stability criteria.

• Selection of blue-chip stocks with steady earnings
• Defensive profile with reduced earnings volatility

Assets under management (AUM) are $391.2M, and the total expense ratio (Expense Ratio) is 0.55% per year.

Compared with simple dividend or core ETFs, the main point of comparison is active selection based on earnings stability.

Blue-chip stocks with stable earnings tend to hold up relatively well during market swings, while they tend to lag growth stocks in strong risk-on phases. Because the focus is on earnings stability, its defensive character can stand out during economic slowdowns.

Fund flows into stable-earnings blue chips diverge depending on market risk appetite and the economic cycle, and money sometimes moves into related products when interest in volatility management and defense rises. It is also worth noting that performance varies with the market environment.

Earnings-stability screening and a defensive profile are its strengths, while relative weakness in risk-on phases, reliance on active management, and fees are considerations.

For a focus on the quality factor, direct substitutes include QUAL, and for lower volatility, products such as SPLV, which follows a low-volatility strategy, are also worth comparing. For other low-volatility exposure, products such as USMV can be reviewed as well. The three products shown in the table, VIG, SCHD and DFAC, follow dividend growth, high dividend and core equity strategies respectively, which differ from earnings-stability screening. This ETF's differentiating criterion is that it actively selects blue-chip stocks with steady earnings.

Here are the points to check before investing in ZECP. Earnings-stability screening and a defensive profile are attractive, but relative weakness in risk-on phases, reliance on active management, and fees should be confirmed in advance. It is also a good idea to compare it with simple dividend and core products.

Relative weakness in strong risk-on phases and the selection results of the management team and model are the main variables for long-term performance, and an earnings-stability strategy can diverge from the market average depending on the period. Even with a blue-chip focus, losses can occur during market crashes.

It is a suitable candidate for investors who want to lower volatility by investing in US blue-chip stocks with stable earnings. If you want quality or low-volatility strategies, compare products such as QUAL and SPLV, and if you trust earnings-stability screening, compare this product alongside them before choosing.