ETC 6 Meridian Hedged Equity Index Option ETF

ETC 6 Meridian Hedged Equity Index Option ETF (SIXH) is an actively managed fund. It holds about 48 mostly large US stocks, leaning toward consumer staples like Altria and PepsiCo, and sells call options on broad stock indices against roughly the full portfolio. That options overlay has kept swings small: it gained 7.13% in 2022. But it caps gains in strong markets, and its 0.69% expense ratio is the highest of nine similar funds.

• Over the year to Oct 27, 2026, SIXH returned +19.6%, 6th of 9 among similar funds.
• Its 5-year annualized return was +10.4%.
• Its worst full calendar year was 2023 (+4.9%); its best was 2024 (+12.1%).
• The deepest fall in its price history was 11.7% (Apr 20, 2022 to Sep 30, 2022), recovered by Nov 17, 2022.

As of Aug 31, 2026, the fund held 48 securities; the ten largest made up 36.3% of assets.

By sector

• Over the three months to Aug 31, 2026, investors added a net $26.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.34%, +1.58%, +2.46%.

SIXH does not track an index. Its sub-adviser, Madison Avenue Financial Solutions, picks stocks by formula and favors high-quality large companies. First it drops companies that rank lowest on profitability, growth and ability to pay their debts, plus stocks with weak 12-month price momentum. It then ranks what is left on five factors: beta (how much a stock moves with the market, where lower scores better), momentum, yield, value and quality, measured as gross profitability. The top-ranked stocks make the cut. A stock gets more weight when it ranks highly on more factors. As of August 31, 2026, the fund held 48 holdings, and the top ten made up 36.3%. Turnover was 214%, so the portfolio changes often.

The second layer is an options overlay. The fund sells (writes) call options on broad indices, usually covering the full value of the stock portfolio. A call option gives the buyer the right to any rise in the index above a set level, called the strike, before expiration. The fund collects a cash premium up front. In return, it gives up gains above the strike but still takes the full hit when stocks fall. As of August 31, 2026, it had sold S&P 500 calls expiring in September and October 2026. The fund may also hedge with inverse ETFs, which are built to rise when a market falls.

• SIXH charges 0.69% a year, versus an average of 0.27% for the similar funds below (9th of 9, cheapest first).
• Of that, 0.31% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $70 in the first year and $859 over 10 years (assuming a 5% annual return).

It holds stocks but sells index call options on nearly the full portfolio, which has kept its swings and drawdowns small compared with its own equity holdings.

SIXH could soften the stock side of a portfolio. Its history does not cover 2008, and it launched in May 2020, after the COVID crash. In the 2022 bear market it fell 11.7% from April 20 to September 30, 2022, its deepest drop. It recovered that loss by November 17, 2022, about 1.6 months later. Its weakest calendar year, 2023, was still a 4.9% gain. That matters for anyone who may have to sell shares in a bad year, though there is no guarantee of the same result next time. As of October 27, 2026, it paid monthly with a 1.73% trailing yield. Option income is usually taxed as ordinary income. The drawbacks are cost (0.69% a year, or $859 over 10 years on $10,000 in the SEC example) and capped gains in rallies. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.