ETF Evaluator: Hotchkis & Wiley Opportunities ETF Class (HWO) Follow This ETF

Hotchkis & Wiley Opportunities ETF Class Overview

Hotchkis & Wiley Opportunities ETF Class (HWO) is an actively managed U.S. Equity Mid-Cap Value exchange-traded fund (ETF). Hotchkis & Wiley launched the ETF in 2026.

The investment seeks capital appreciation. The fund normally invests in equity securities, such as common stock, preferred stock and convertible securities, of any size market capitalization, and investment grade and high yield ("junk bonds") fixed income securities. It seeks to invest in companies whose future prospects are misunderstood or not fully recognized by the market. The fund employs a fundamental value investing approach which seeks to exploit market inefficiencies created by irrational investor behavior. It is non-diversified.

About Hotchkis & Wiley Opportunities ETF Class (HWO)

There are 2 members of the management team with an average tenure of 23.60 years: George Davis (2002) and David Green (2002). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 3000 Value TR USD index with a weighting of 100%. Hotchkis & Wiley Opportunities ETF Class has 66 securities in its portfolio. The top 10 holdings constitute 45.8% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Hotchkis & Wiley Opportunities ETF Class is part of the Equity global asset class and is within the U.S. Equity ETF group. Hotchkis & Wiley Opportunities ETF Class has 19.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 78.6% There is 19.4% allocated to foreign stock, and 0.2% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 1.7% (1.7% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Hotchkis & Wiley Opportunities ETF Class has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $514 million in total assets, which is below the $2 billion average for the Mid-Cap Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

HWO Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Hotchkis & Wiley Opportunities ETF Class expense ratio is high compared to funds in the Mid-Cap Value category. Hotchkis & Wiley Opportunities ETF Class has an expense ratio of 0.90%, which is 92% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Hotchkis & Wiley Opportunities ETF Class has a portfolio turnover rate of 78%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 72% for the Mid-Cap Value category.

Recently, in the month of July 2026, Hotchkis & Wiley Opportunities ETF Class returned 5.9%, which earned it a grade of A, as the Mid-Cap Value category had an average return of 3.5%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Hotchkis & Wiley Opportunities ETF Class has a trailing yield of 0.00%, which is below the 2.05% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Hotchkis & Wiley Opportunities ETF Class Grades

Year to date, the ETF has returned 12.5%, 2.9 percentage points worse than the category, which translates into a grade of F. The fund has returned 19.9% over the past year (grade of D), 15.6% over the past three years (grade of B) and 12.7% per year over the past five years (grade of A) and 13.4% per year over the past 10 years (grade of A).

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