Bahl & Gaynor Small/Mid Cap Income Growth ETF

Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG) is an actively managed fund. As of June 30, 2026, it held 41 U.S.-listed small- and mid-sized companies with growing dividends. No index guides it. Its manager aims for rising income and for smaller losses than the broader small- and mid-cap market. The trade-off is cost: 0.60% a year, against a 0.36% average for the funds with the most similar holdings.

• Over the year to Oct 27, 2026, SMIG returned +11.2%, 4th of 7 among similar funds.
• Its 5-year annualized return was +7.1%.
• Its worst full calendar year was 2022 (-11.8%); its best was 2024 (+17.6%).
• The deepest fall in its price history was 19.7% (Jan 4, 2022 to Sep 30, 2022), recovered by Jan 22, 2024.

As of Jun 30, 2026, the fund held 41 securities; the ten largest made up 42.29% of assets.

• Over the three months to Jun 30, 2026, investors added a net $64.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +7.23%, +0.57%, +4.14%.

SMIG does not track an index. Its adviser, Bahl & Gaynor, picks every stock. Under normal conditions, at least 80% of net assets go into small- and mid-sized companies. The fund defines these as companies worth between $200 million and the size of the largest company in the Russell 2500 Index over the prior 12 months, measured when the fund buys them. Because it holds stocks for the long term, it may keep companies that grow past that limit. It can also own REITs (companies that own property and pass most of their income to shareholders) and ADRs (U.S.-listed shares of foreign companies).

The manager studies one company at a time. It looks at past earnings and dividend growth, debt, cash flow, competitive position and the chances of future dividend growth. Position sizes reflect the manager's view of each business, its valuation and the economy, not company size. That leaves a concentrated fund. As of June 30, 2026, the top 10 holdings made up 42.3% of assets, led by Taiwan-based Silicon Motion Technology at 6.7%, Targa Resources at 4.9% and Snap-on at 4.7%. As of March 31, 2026, much of the fund was in industrials and financials.

There is no set rebalancing schedule. The manager sells a stock when its dividend is cut too far, its business or management weakens, its position grows too large, or a better opportunity appears. Portfolio turnover was 17%, which points to little trading. The fund held no derivatives as of June 30, 2026.

• SMIG charges 0.6% a year, versus an average of 0.36% for the similar funds below (6th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).

It adds a concentrated group of smaller dividend-growing companies to portfolios that usually lean on large-company funds, though its yield is too modest to make it mainly an income fund.

SMIG launched in August 2021, so it has no record from the 2008 crisis or the 2020 crash. In the 2022 bear market, it fell 19.7% between January 4 and September 30, 2022. It then took about 15.7 months to recover, getting back to its old high on January 22, 2024. Its worst calendar year was 2022, at -11.74%. Anyone who sold shares for spending money during that stretch would have sold at a loss. Its income is modest: the yield was 1.76% for the 12 months to October 27, 2026, paid monthly. Costs are on the high side. In the SEC's standard $10,000 example, fees come to $61 after one year and $750 after 10 years. Past results don't predict future returns, and a retirement 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).