Zacks Small-Cap Core Fund (ZSCCX) primarily invests in small-cap U.S. equities with a focus on undervalued stocks that exhibit strong growth potential. The fund leverages Zacks Investment Research's proprietary ranking system to identify investment opportunities, aiming to capitalize on market inefficiencies in the small-cap segment.
ZSCCX generates revenue primarily through management fees based on the assets it manages. The fund's investment strategy focuses on identifying undervalued small-cap stocks with strong growth prospects, leveraging Zacks' proprietary research and analytics to enhance investment decisions.
Changes in AUM driven by market performance and investor inflows/outflows
Performance relative to benchmark indices (e.g., Russell 2000)
Market sentiment towards small-cap equities
Interest rate movements affecting investor appetite for equities
Regulatory changes affecting asset management fees and practices
Market volatility impacting small-cap stock valuations
Increased competition from other small-cap funds and ETFs
Pressure on fees from passive investment strategies
Limited financial leverage, but potential liquidity risks if AUM declines significantly
Operational risks associated with managing a diverse portfolio of small-cap stocks
high - Small-cap stocks tend to be more sensitive to economic cycles as they often rely on domestic consumer spending and economic growth.
Rising interest rates can impact the fund's performance as they may lead to higher borrowing costs for small-cap companies, potentially reducing their growth prospects and attractiveness to investors.
minimal - The fund is not directly dependent on credit markets, but broader credit conditions can influence investor sentiment and capital flows.
growth - The fund appeals to growth-oriented investors seeking exposure to small-cap equities with high upside potential.
high - Small-cap stocks generally exhibit higher volatility compared to large-cap stocks, reflecting their sensitivity to market movements.