Zacks Trust is set to reorganize its two mutual funds, the Zacks All-Cap Core Fund and the Zacks Small-Cap Core Fund, into exchange-traded funds (ETFs). This strategic move is designed to lower expenses and enhance transparency for shareholders, reflecting a growing trend in the investment industry towards ETFs.
The reorganization, which will take effect on or about November 20, 2026, is approved by the Board of Trustees and does not require shareholder approval. However, direct shareholders must take action to ensure they receive their new ETF shares.
Background
Zacks Trust, incorporated in Delaware, is an investment entity that focuses on providing various investment products. The company has recently filed several forms with the SEC, including a 497 form on November 2, 2026, detailing the reorganization of its funds. The trust operates under the Central Index Key (CIK) 0001760588.
What the Filing Says
The recent filing outlines the details of the reorganization, stating, "Zacks Investment Management, Inc., the Existing Funds’ investment adviser, recommended, and the Board of Trustees approved, the reorganization of the Existing Funds into the corresponding new series of the Trust, each an Exchange Traded Fund (ETF)." This transition aims to provide shareholders with lower expenses and a more transparent investment structure.
Impact
This reorganization will affect shareholders of the existing mutual funds, as their shares will be exchanged for shares of the corresponding new ETFs. The filing indicates that the new funds will have lower expenses and a more transparent structure, with portfolio holdings published daily. Shareholders will also benefit from the ability to buy and sell shares throughout the trading day at market prices, a significant shift from the traditional mutual fund model.
What's Next
The reorganization is expected to take place on or about November 20, 2026. Shareholders can continue to buy and redeem shares of the Existing Funds until the last business day before the closing of the reorganization. Direct shareholders must take action to transfer their shares to a brokerage account to avoid automatic redemption at net asset value.
Overall, this reorganization marks a significant step for Zacks Trust as it adapts to the evolving landscape of investment products, aiming to provide enhanced value and flexibility for its shareholders.
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