ETF Evaluator:
Soundwatch Hedged Equity ETF ()
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(as of Aug 26)
Best Performing in Equity Hedged Over the Last Year
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ETF Details
Soundwatch Hedged Equity ETF Overview
Soundwatch Hedged Equity ETF (SHDG) is an actively managed Nontraditional Equity Equity Hedged exchange-traded fund (ETF). Soundwatch Capital launched the ETF in 2016.
The investment seeks to provide long-term capital appreciation.
The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in a portfolio of equity securities and investments that have economic characteristics similar to equity securities. These equity securities and investments may include U.S. exchange-listed common stocks, equity index futures, and/or exchange-traded funds (“ETFs”) that track U.S. large-capitalization (“large-cap”) indices, such as the S&P 500® Index.
About Soundwatch Hedged Equity ETF (SHDG)
There are 2 members of the management team with an average tenure of 5.13 years: Jan Bos (2016) and Dimitris Markopoulos (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and CBOE S&P 500 BuyWrite BXM TR USD index with a weighting of 100%. Soundwatch Hedged Equity ETF has 9 securities in its portfolio. The top 10 holdings constitute 103.8% 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.
Soundwatch Hedged Equity ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. Soundwatch Hedged Equity ETF has 0.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.9% There is 0.5% 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). Soundwatch Hedged Equity ETF has 2.4% of the portfolio in cash.
Assets Under Management
The fund has $161 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.
SHDG 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 Soundwatch Hedged Equity ETF expense ratio is high compared to funds in the Equity Hedged category. Soundwatch Hedged Equity ETF has an expense ratio of 0.91%, which is 19% 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. Soundwatch Hedged Equity ETF has a portfolio turnover rate of 1%, which indicates that it holds its assets around / 1.0 years. By way of comparison, the average portfolio turnover is 97% for the Equity Hedged category.
Recently, in the month of July 2026, Soundwatch Hedged Equity ETF returned 0.3%, 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.
Soundwatch Hedged Equity ETF has a trailing yield of 0.49%, which is below the 3.45% 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.
Soundwatch Hedged Equity ETF Grades
Year to date, the ETF has returned 1.5%, 5.6 percentage points worse than the category, which translates into a grade of F. The fund has returned 8.4% over the past year (grade of F), 10.9% over the past three years (grade of D) and 7.9% per year over the past five years (grade of B).
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SHDG 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 |
|
| SHDG Return (NAV) | 0.3% | 1.9% | 8.4% | 10.9% | 7.9% | na |
| SHDG Return (Price) | 0.1% | 1.8% | 8.3% | 10.9% | 7.9% | na |
| NAV +/- Price Return | 0.176% | 0.097% | 0.152% | -0.004% | 0.023% | na |
| Equity Hedged Avg | -1.4% | 1.7% | 13.6% | 12.0% | 6.6% | 7.6% |
| SHDG Grade (NAV) | B | D | F | D | B | na |
| +/- Category (NAV) | 1.7% | 0.2% | -5.1% | -1.2% | 1.4% | na |
| SHDG Tax-Cost Ratio | na | na | 0.2% | 0.3% | 0.3% | na |
SHDG Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SHDG Return (NAV) | 1.5% | 11.3% | 19.8% | 17.7% | -11.9% | 18.5% | 11.6% | 16.2% | -8.1% | 18.2% | na |
| SHDG Return (Price) | 1.3% | 11.5% | 19.7% | 17.8% | -11.9% | 18.5% | 11.6% | 16.2% | -8.1% | 18.2% | na |
| NAV +/- Price Ret | -0.115% | 0.013% | -0.008% | 0.008% | 0.003% | 0.000% | 0.000% | 0.0% | 0.0% | 0.0% | 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% |
| SHDG Grade (NAV) | F | D | B | B | C | B | C | B | D | A | na |
| +/- Category | -5.6% | -1.3% | 5.2% | 2.9% | 0.9% | 2.9% | 1.4% | 6.4% | -1.7% | 6.0% | na |
| Risk Measures | |
| Beta: | 0.72 |
| R-Squared: | 90% |
| Standard Deviation: | 10.0% |
| Category Risk Index: | 0.95 |
| Category Risk Rating: | Average |
| Total Risk Index: | 0.81 |
| Total Risk Rating: | Below Average |
| Portfolio Characteristics | |
| Yield: | 0.5% |
| Total Assets: | $ 161 Mil |
| Share Class Assets: | $ 161 Mil |
| Turnover: | 1.0% |
| Expense Ratio: | 0.91% |
| Index Fund: | No |
| Index Tracked: | S&P 500 (TR) (1970) |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Annually |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 9.7 years | |||
| Average Tenure: 5.1 years | |||
| Managers (Year): Bos Jan (2016), Markopoulos Dimitris (2026) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 9 |
| % in Top 10 Holdings: | 103.8% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.5% |
Portfolio Allocation |
|
| Domestic Stock: | 96.9% |
| Foreign Stock: | 0.5% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.2% |
| Cash: | 2.4% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Soundwatch Capital |
| Phone Number: | 888-244-4601 |
| Website: | www.zcmfunds.com |
| Inception Date: | November 30, 2016 |
Expenses and Fees
| Expense Ratio (%): | 0.91% (Rating: High) |
| Category Average Expense Ratio (%): | 0.76% |
