Zacks Investment Management Launches Two Income-Focused ETFs: ZINC and PRIZ

Zacks Income ETF (ZINC) and Zacks Preferred Income ETF (PRIZ) Target Consistent 8% Income Through a Research-Driven Approach

CHICAGO--(BUSINESS WIRE)--Zacks Investment Management, a wholly-owned subsidiary of Zacks Investment Research with $26.5 billion in assets under management, today announces the launch of the Zacks Income ETF (NYSE Arca: ZINC) and the Zacks Preferred Income ETF (NYSE Arca: PRIZ). The new funds expand the firm’s actively-managed ETF lineup and mark its first dedicated income-focused strategies, designed to deliver consistent distributions supported by Zacks’ disciplined research process.

“As investors continue to search for additional avenues to generate income in their portfolios, we see a significant opportunity to apply our research-driven approach in new ways,” says Mitch Zacks, CEO of Zacks Investment Management. “These strategies extend our time-tested, earnings-driven investment process into income-focused portfolios, emphasizing a disciplined, fundamentals-based approach to income generation.”

The Zacks Income ETF (ZINC) seeks to provide current income as well as long-term capital appreciation. ZINC seeks to identify companies with potentially high income and superior risk-return profiles through a proprietary strategy. The strategy evaluates multiple factors, including dividend yield, valuation, price and earnings momentum, and earnings quality.

The Zacks Preferred Income ETF (PRIZ) aims to provide current income. PRIZ invests primarily in preferred securities, including preferred stock and junior subordinated debt. The portfolio is constructed using both quantitative and qualitative analysis to identify high-quality preferred securities offering high levels of tax-advantaged income.

Both strategies are designed to provide investors with consistent income potential without relying on options-based strategies or more complex yield-enhancing structures. Each fund targets an 8% annual distribution yield, generated through a combination of income derived from dividends and interest earned within the portfolio, along with return of capital to help support distribution levels across varying market conditions. The portfolios are constructed using Zacks’ proprietary research framework, combining quantitative screening and fundamental analysis to identify securities with strong income potential and sound fundamentals.

Sal Esposito, Head of ETFs at Zacks Investment Management, adds, “Demand for income strategies continues to grow, but many approaches rely on complexity to generate yield. With ZINC and PRIZ, we’re taking a different approach, focusing on fundamentally driven portfolios designed to generate potential income in a more straightforward way. That simplicity, combined with our research process, is what we believe sets these strategies apart.”

ZINC and PRIZ expand Zacks Investment Management’s suite of actively-managed ETFs, following the launches of the Zacks Earnings Consistent Portfolio ETF (CBOE: ZECP) in August 2021, the Zacks Small and Mid Cap ETF (NYSE Arca: SMIZ) in October 2023, the Zacks Focus Growth ETF (CBOE: GROZ) in December 2024, and the Zacks Quality International ETF (NYSE Arca: QUIZ) in August 2025.

Zacks Investment Management, Inc. is the advisor to the Zacks Income ETF, Zacks Preferred Income ETF, Zacks Quality International ETF, Zacks Focus Growth ETF, Zacks Small and Mid Cap ETF, and the Zacks Earnings Consistent Portfolio ETF. For more information, please visit https://www.zacksetfs.com/.

About Zacks Investment Management

Zacks Investment Management is built on a foundation of rigorous research and a desire to outperform benchmarks over time, with a focus on financial intermediaries and institutions. We have been providing wealth management services since 1992, and have been a leading specialist on earnings and using earnings estimates as a part of our investment process. We are a wholly owned subsidiary of our parent company, Zacks Investment Research, one of the largest providers of independent research in the U.S.

Investors should consider the investment objectives, risks, and charges and expenses of the Fund(s) before investing. The prospectus contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained at www.sec.gov.

Risk Considerations

While the shares of ETFs are tradeable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF's net asset value. Brokerage commissions and ETF expenses will reduce returns. There is no guarantee that the Fund will achieve its objective.

Investing involves risk, including loss of principal. The value of the fund's shares, when redeemed, may be worth more or less than their original cost.

The Fund pays quarterly income and managed distributions on Fund shares at a target rate that seeks to represent an annualized payout of approximately 8.0% on the Fund’s per-share NAV on the date of a distribution’s declaration (this rate is a target only and actual distributions may reflect a higher or lower annualized rate at the time of any given distribution, and further the target rate may be changed (raised or lowered) without prior notice from time to time depending on the market environment). Shareholders receiving periodic payments from the Fund may be under the impression that they are receiving net profits. However, all or a portion of a distribution may consist of a return of capital. Return of capital is the portion of distribution that is a return of your original investment dollars in the Fund. Shareholders should not assume that the source of a distribution from the Fund is net profit. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. The Fund will provide disclosures, with each quarterly distribution, that estimate the percentages of the current and year-to-date distributions that represent (1) net investment income, (2) capital gains, and (3) return of capital. At the end of the year, the Fund may be required under applicable law to re-characterize distributions made previously during that year among (1) ordinary income, (2) capital gains, and (3) return of capital for tax purposes.

The Zacks Income ETF and The Zacks Preferred Income ETF is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC.