ETF Evaluator:
Sterling Capital Hedged Eq Prm Inc ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Equity Hedged Over the Last Year
| 39.1% | Defiance Oil Enhanced Options Income ETF (USOY) |
| 28.0% | Alpha Architect Global Factor Equity ETF (AAVM) |
| 26.2% | Innovator U.S. Small Cp Mgd Flr ETF (RFLR) |
| 23.7% | Rareview Systematic Equity ETF (RSEE) |
| 20.9% | Hull Tactical US ETF (HTUS) |
Risk
Index
Risk
Index
ETF Details
Sterling Capital Hedged Eq Prm Inc ETF Overview
Sterling Capital Hedged Eq Prm Inc ETF (SCEP) is an actively managed Nontraditional Equity Equity Hedged exchange-traded fund (ETF). Sterling Capital Funds launched the ETF in 2025.
The investment seeks to provide long-term capital growth, income and preservation of capital.
The fund is an actively managed exchange traded fund (“ETF”). The fund advisor will pursue fund's investment objective by investing primarily in U.S. large- and mid-cap equity and equity-related securities. Under normal circumstances, the fund will invest at least 80% of its net assets plus borrowings for investment purposes in equity and equity-related securities. The fund is non-diversified.
About Sterling Capital Hedged Eq Prm Inc ETF (SCEP)
There are 2 members of the management team with an average tenure of 0.64 years: Srikanth Iyer (2025) and Constantinos Dino Bourdos (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
Sterling Capital Hedged Eq Prm Inc ETF has 119 securities in its portfolio. The top 10 holdings constitute 43.3% 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.
Sterling Capital Hedged Eq Prm Inc ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. Sterling Capital Hedged Eq Prm Inc ETF has 1.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 97.2% There is 1.6% 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). Sterling Capital Hedged Eq Prm Inc ETF has 1.2% of the portfolio in cash.
Assets Under Management
The fund has $235 million in total assets, which is below the $294 million average for the Equity Hedged 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.
SCEP 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 Sterling Capital Hedged Eq Prm Inc ETF expense ratio is above average compared to funds in the Equity Hedged category. Sterling Capital Hedged Eq Prm Inc ETF has an expense ratio of 0.65%, which is 15% lower than its category average, making the fund expense ratio grade a B. 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. Sterling Capital Hedged Eq Prm Inc ETF 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 97% for the Equity Hedged category.
Recently, in the month of July 2026, Sterling Capital Hedged Eq Prm Inc ETF returned 0.2%, which earned it a grade of B, as the Equity Hedged category had an average return of -1.4%. 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.
Sterling Capital Hedged Eq Prm Inc ETF has a trailing yield of 0.00%, which is below the 3.45% category average.
The fund normally distributes its income monthly 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.
Sterling Capital Hedged Eq Prm Inc ETF Grades
Year to date, the ETF has returned 4.0%, 3.1 percentage points worse than the category, which translates into a grade of D.
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Sterling Capital Hedged Eq Prm Inc ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
SCEP Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| SCEP Return (NAV) | 0.2% | 1.7% | na | na | na | na |
| SCEP Return (Price) | 0.1% | 1.8% | na | na | na | na |
| NAV +/- Price Return | 0.161% | -0.121% | na | na | na | na |
| Equity Hedged Avg | -1.4% | 1.7% | 13.6% | 12.0% | 6.6% | 7.6% |
| SCEP Grade (NAV) | B | D | na | na | na | na |
| +/- Category (NAV) | 1.6% | 0.0% | na | na | na | na |
| SCEP Tax-Cost Ratio | na | na | na | na | na | na |
SCEP Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SCEP Return (NAV) | 4.0% | na | na | na | na | na | na | na | na | na | na |
| SCEP Return (Price) | 3.3% | na | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | -0.177% | na | na | na | na | na | na | na | na | na | na |
| Equity Hedged Avg | 7.1% | 12.6% | 14.6% | 14.8% | -12.9% | 15.6% | 10.2% | 9.9% | -6.3% | 12.2% | 3.0% |
| SCEP Grade (NAV) | D | na | na | na | na | na | na | na | na | na | na |
| +/- Category | -3.1% | na | na | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | na |
| R-Squared: | na |
| Standard Deviation: | na |
| Category Risk Index: | na |
| Category Risk Rating: | |
| Total Risk Index: | na |
| Total Risk Rating: | |
| Portfolio Characteristics | |
| Yield: | -- |
| Total Assets: | $ 236 Mil |
| Share Class Assets: | $ 236 Mil |
| Turnover: | na |
| Expense Ratio: | 0.65% |
| Index Fund: | No |
| Index Tracked: | N/A |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 0.6 years | |||
| Average Tenure: 0.6 years | |||
| Managers (Year): Iyer Srikanth (2025), Bourdos Constantinos Dino (2025) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 119 |
| % in Top 10 Holdings: | 43.3% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 1.6% |
Portfolio Allocation |
|
| Domestic Stock: | 97.2% |
| Foreign Stock: | 1.6% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.2% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Sterling Capital Funds |
| Phone Number: | 888-637-7798 |
| Website: | www.sterlingcapitalfunds.com |
| Inception Date: | December 10, 2025 |
Expenses and Fees
| Expense Ratio (%): | 0.65% (Rating: Above Avg) |
| Category Average Expense Ratio (%): | 0.76% |
