Hilton Small-MidCap Opportunity ETF

Hilton Small-MidCap Opportunity ETF (SMCO) is an actively managed fund. Hilton Capital Management picks 50 to 75 stocks of small and mid-sized US companies one at a time, and the fund tracks no index. It held 62 stocks as of July 31, 2026, and none was much above 3% of the fund. Its 0.55% expense ratio is above the 0.46% average for similar funds, and its record only goes back to November 2023.

• Over the year to Oct 27, 2026, SMCO returned +3.1%, 5th of 7 among similar funds.
• Its worst full calendar year was 2025 (+6.5%); its best was 2024 (+17.8%).
• The deepest fall in its price history was 22.7% (Jan 21, 2025 to Apr 8, 2025), recovered by Oct 6, 2025.

As of Jul 31, 2026, the fund held 62 securities; the ten largest made up 24.81% of assets.

• Over the three months to Jul 31, 2026, investors added a net $13.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.50%, +2.91%, -4.38%.

SMCO follows no index. Its sub-adviser, Hilton Capital Management, picks stocks with its own "SMCO Process." It starts with US companies worth between $750 million and $30 billion at the time of first purchase. It then studies each company on its own (a "bottom-up" approach) using measures such as price-to-earnings ratios and earnings per share. The goal is to find mispriced stocks, meaning shares whose price doesn't reflect the manager's estimate of the company's earnings potential. It can buy value, growth or in-between "core" stocks. It also weighs the stage of the economic cycle, industry trends and the quality of each management team.

The portfolio usually holds 50 to 75 stocks. A new position typically starts at 1% to 2% of the fund, and no stock can be more than 5% when it is bought. There is no fixed rebalancing schedule. The manager resizes positions after periodic reviews. It sells a stock completely when the stock looks fully valued, the company misses expectations or a better idea comes along. Turnover was 26% in the latest prospectus year.

At least 80% of net assets must be in small- and mid-cap stocks. The board can change that rule with 60 days' notice to shareholders. As of July 31, 2026, about 99% of the fund was in stocks and 0.44% in cash, with no derivatives. The 10 largest holdings made up about 25% of the fund, led by Cullen/Frost Bankers, Clean Harbors and Dycom Industries.

• SMCO charges 0.55% a year, versus an average of 0.46% for the similar funds below (4th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $689 over 10 years (assuming a 5% annual return).

It is a small, actively managed bet on smaller US companies with a short record, so it fits better next to a broad core fund than in place of one.

SMCO could add one manager's picks among smaller US companies next to a broad core fund. Its history is short. It launched in November 2023, so it was not around for the 2008, 2020 or 2022 downturns. Its deepest drop was 22.7%, from January 21 to April 8, 2025. It took about six months to recover, getting back to its old high on October 6, 2025. Anyone who had to sell during that spring would have sold at a loss. Its weakest calendar year was 2025, when it still gained 6.43%. Income is small: the yield was 0.96% as of October 27, 2026, paid once a year. In the SEC's standard example, $10,000 invested would cost $56 over one year and $689 over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).