Created by Zacks Investment Research, the Zacks Small Cap Index is a semi-active approach to indexing aimed at providing superior results to passive small cap strategies. The index's objective is to outperform passive small cap benchmarks using a proprietary model based on earnings surprises, analyst coverage and liquidity.
The Zacks Small Cap Index has been licensed by Zacks Investment Research to PowerShares Capital Management, which created the PowerShares Zacks Small Cap Portfolio. This ETF is targeted at investors looking to generate returns in the small cap universe.