ETF Evaluator: Hotchkis & Wiley SMID Cap Divers Val Fd () Follow This ETF

Hotchkis & Wiley SMID Cap Divers Val Fd Overview

Hotchkis & Wiley SMID Cap Divers Val Fd (HWSM) is an actively managed U.S. Equity Mid-Cap Value exchange-traded fund (ETF). Hotchkis & Wiley launched the ETF in 2025.

The investment seeks capital appreciation. Under normal circumstances, the fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of small to mid capitalization companies the fund’s advisor believes to be undervalued. The equity securities in which the fund may invest include common and preferred stocks. The fund may invest in foreign (non-U.S.) securities.

About Hotchkis & Wiley SMID Cap Divers Val Fd (HWSM)

There are 2 members of the management team with an average tenure of 1.34 years: Judd Peters (2025) and Ryan Thomes (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

Hotchkis & Wiley SMID Cap Divers Val Fd has 166 securities in its portfolio. The top 10 holdings constitute 16.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Hotchkis & Wiley SMID Cap Divers Val Fd is part of the Equity global asset class and is within the U.S. Equity ETF group. Hotchkis & Wiley SMID Cap Divers Val Fd has 3.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 95.9% There is 3.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Hotchkis & Wiley SMID Cap Divers Val Fd has 1.0% of the portfolio in cash.

Assets Under Management

The fund has $2 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.

HWSM 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 SMID Cap Divers Val Fd expense ratio is average compared to funds in the Mid-Cap Value category. Hotchkis & Wiley SMID Cap Divers Val Fd has an expense ratio of 0.55%, which is 17% higher than its category average, making the fund expense ratio grade a D. 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 SMID Cap Divers Val Fd has a portfolio turnover rate of 0%, which indicates that it holds its assets around /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 SMID Cap Divers Val Fd returned 2.7%, which earned it a grade of C, 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 SMID Cap Divers Val Fd has a trailing yield of 1.15%, 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 SMID Cap Divers Val Fd Grades

Year to date, the ETF has returned 15.7%, 0.3 percentage points better than the category, which translates into a grade of C. The fund has returned 24.8% over the past year (grade of B).

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