SMIZ Zacks Small/Mid Cap ETF

Zacks Small/Mid Cap ETF (SMIZ) currently reports 200 stock positions (subject to change), placing it in the broadly constructed range by holdings breadth. The top line-up is NA (2.26%), EME (1.67%), FIX (1.27%), with NA as the largest single weight at 2.26%. Together, the top three holdings account for 5.20%, which suggests the fund is not overly reliant on its largest positions to generate returns. The fund's architecture positions it to benefit from strength in its top holdings while the broader basket provides a degree of insulation against single-name shocks.

Looking at how effectively the underlying holdings deploy capital, ROIC is 22.31%, WACC is 9.46%, and the economic spread is 12.85%. On balance, returns on invested capital exceed the cost of funding by a comfortable margin, which over time compounds favorably for long-term holders. Supporting metrics show ROE at 20.66% and ROA at 6.66%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a portfolio with credible compounding capacity if current operating execution persists.

On an earnings multiple basis, trailing P/E of 18.83, forward P/E of 15.44, PEG of 1.84. The gap between trailing and forward multiples is not especially wide, suggesting the market is pricing a steadier earnings path rather than a sharp near-term re-rating. The PEG ratio sits in a range that most investors would consider fair — neither cheap nor obviously stretched relative to anticipated earnings. A current ratio reading of 2.80 suggests the portfolio's businesses are well-capitalized for near-term needs. Combining multiples and liquidity, the portfolio appears adequately priced for its current earnings trajectory, with balance sheet health providing a degree of downside resilience.

Across the three margin layers, gross margin sits at 44.92%, operating margin at 11.81%, and free cash flow margin at 18.63%. Gross margins sit in a healthy range, consistent with businesses that manage input costs effectively. At this level, operating margins reflect holdings where operational leverage has not yet fully materialized. At this level, free cash flow margins suggest businesses that are building financial strength alongside revenue growth. Read together, these margin levels suggest a portfolio where earnings durability is present in parts but not consistent across the full holding set.

On a forward-looking basis, TTM revenue growth of 20.32% a signal of strong operational momentum across the holding set, while the estimated 12-month price change of 15.50%, where the target distribution indicates incremental upside rather than outsized repricing. Revenue growth and price targets are correlated but not the same — strong operations do not always translate to strong price appreciation, and vice versa. The forward return case rests on whether the businesses can sustain their operating trajectory long enough for analyst price targets to be reached or exceeded. The estimated 12-month price change is a weighted composite of analyst price target estimates adjusted by each holding's ETF weight, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The full scorecard here is hard to argue with: capital efficiency is strong, margins are healthy, and growth is being priced constructively.

The views expressed above are derived from quantitative data only and should not be relied upon as financial advice. Investment decisions should be based on your own research and risk tolerance.