SRH U.S. Quality GARP ETF

SRH U.S. Quality GARP ETF (SRHQ) is an index fund that tracks the SRH U.S. Quality GARP Index. The index holds an equal-weighted basket of U.S. stocks with steady, moderate revenue growth at reasonable valuations. GARP stands for "growth at a reasonable price." Equal weighting gives mid-size companies far more weight than a typical market-value-weighted fund, and SRHQ shares little with other quality ETFs. The trade-off is cost: 0.35% a year, against a 0.23% average for similar funds.

• Over the year to Oct 27, 2026, SRHQ returned +26.5%, 1st of 4 among similar funds.
• Its worst full calendar year was 2025 (+7.3%); its best was 2023 (+21.8%).
• The deepest fall in its price history was 18.5% (Nov 11, 2024 to Apr 8, 2025), recovered by Sep 11, 2025.

As of Jul 31, 2026, the fund held 80 securities; the ten largest made up 18.18% of assets.

• Over the three months to Jul 31, 2026, investors added a net $2.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.55%, +3.24%, +3.90%.

SRHQ is passively managed. It tries to match the SRH U.S. Quality GARP Index, built by SRH Advisors, LLC. The index starts with the 1,000 largest U.S. companies listed on a major U.S. exchange. It drops stocks that trade less than $1 million a day (median over 30 days) and excludes REITs, master limited partnerships, foreign-company ADRs, preferred stocks, SPACs and other investment vehicles. Three screens follow. Value: it removes companies whose enterprise value (market value plus debt, minus cash) is too high compared with trailing 12-month free cash flow. Growth: it removes companies without at least moderate five-year average revenue growth. Quality: it removes companies whose revenue grew faster than a set limit in any of the past five years, because growth that fast may not last.

Every company that passes gets an equal weight. The index is rebalanced and reconstituted once a year. Time buffers on the value and growth tests keep names from cycling in and out, and the prospectus lists portfolio turnover of 35%. As of July 31, 2026, the fund held 80 stocks. The largest was Humana, at 2.3%.

Paralel Advisors LLC is the adviser. Sub-adviser Vident Asset Management generally holds every stock in the index. One disclosure to know: the index provider has an indirect, non-controlling interest in the adviser's parent company.

• SRHQ charges 0.35% a year, versus an average of 0.23% for the similar funds below (4th of 4, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $443 over 10 years (assuming a 5% annual return).

Its equal-weighted, mid-cap-heavy mix overlaps only 5–6% with other quality ETFs, so it could complement a market-value-weighted core.

SRHQ could add a slice of U.S. stocks that leans away from the largest companies. Its record is short. It launched October 5, 2022, a week before the 2022 bear-market low, so it has no history through 2008, 2020 or 2022. Its deepest drop was 18.5%, from November 11, 2024 to April 8, 2025. It recovered by September 11, 2025, about five months later. Its weakest calendar year, 2025, still returned 7.25%, according to the prospectus. Someone who had to sell during that drop would have locked in losses. Income is small: the trailing yield was 0.69% as of October 27, 2026, paid quarterly. Costs are 0.35% a year, or $36 in the first year on $10,000 in the SEC's standard example. Past results don't predict the future, 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).