HWSM - ETF AI Analysis

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Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM)

Rating:67Neutral

Price Target:

$29.00

The ETF HWSM has a solid overall rating, reflecting a balanced mix of strong and weaker holdings. Universal Health Services (UHS) and Magna International (TSE:MG) stand out as key contributors due to their strong financial performance, efficient debt management, and positive earnings call insights. However, holdings like Ally Financial (ALLY) and Stanley Black & Decker (SWK) have faced challenges such as declining revenue and bearish technical indicators, which may have slightly weighed on the fund's overall rating. A potential risk factor is the ETF's exposure to companies with high leverage or operational challenges, which could impact performance during periods of economic uncertainty.

Positive Factors

Sector Diversification

The ETF is spread across multiple sectors, including financials, industrials, and technology, reducing the risk of overexposure to one industry.

Reasonable Expense Ratio

With an expense ratio of 0.55%, the fund offers relatively low costs compared to many actively managed ETFs.

Steady Long-Term Performance

The fund has shown positive performance over the year-to-date and three-month periods, indicating resilience in its strategy.

Negative Factors

Weak Top Holdings

Several of the largest positions, such as Centene and Stanley Black & Decker, have underperformed year-to-date, dragging on overall returns.

High U.S. Concentration

With over 96% exposure to U.S. companies, the fund lacks significant global diversification, making it sensitive to domestic market conditions.

Financial Sector Overweight

The fund allocates nearly 28% to financials, which could increase vulnerability to sector-specific risks.

HWSM vs. SPDR S&P 500 ETF (SPY)

AUM2.09M

RegionGlobal

Expense Ratio0.55%

Beta0.76

IssuerHotchkis & Wiley

Inception DateMar 31, 2025

Dividend YieldN/A

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume6

30 Day Avg. Volume34

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

30.49

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering166

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

HWSM Summary

The Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) is an ETF that focuses on mid-sized and small companies, aiming to find undervalued businesses with strong growth potential. It includes companies like Centene and Ally Financial, and covers sectors such as financials, industrials, and technology. This fund is a good choice for investors looking to diversify their portfolio and benefit from the potential upside of lesser-known companies. However, new investors should be aware that small and mid-cap stocks can be more volatile than larger companies, meaning their prices can go up and down more dramatically.

How much will it cost me?The expense ratio for the Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) is 0.55%, which means you’ll pay $5.50 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on identifying undervalued mid-cap and small-cap companies with growth potential.

What would affect this ETF?HWSM could benefit from economic recovery and increased investor interest in undervalued mid-cap and small-cap companies, especially in sectors like Financials and Industrials, which make up a significant portion of its holdings. However, rising interest rates or global economic slowdowns could negatively impact its value-focused strategy and sectors like Consumer Cyclical and Real Estate. Regulatory changes or sector-specific challenges in healthcare and energy could also influence the ETF's performance.

HWSM Top 10 Holdings

The Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM) leans heavily into financials, which make up over a quarter of its portfolio, but recent struggles from Zions Bancorporation and Ally Financial have weighed on performance. Industrials and consumer cyclical stocks add diversity, with Magna International showing steady growth despite sales challenges. Health care names like Jazz Pharmaceuticals are rising, buoyed by strong technicals and regulatory milestones. However, real estate exposure, including Vornado Realty, has been a drag due to declining revenues. Overall, the fund’s global mix offers opportunities but faces headwinds in key sectors.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
CNC	Centene	1.20%	$26.04K	$18.46B	-37.56%	61 Neutral
APA	APA	1.15%	$24.92K	$8.45B	9.46%	73 Outperform
UHS	Universal Health	1.09%	$23.58K	$14.59B	10.47%	78 Outperform
VNO	Vornado Realty	1.08%	$23.50K	$7.77B	-18.68%	57 Neutral
ZION	Zions Bancorporation National Association	1.08%	$23.37K	$7.71B	-10.13%	70 Outperform
HST	Host Hotels & Resorts	1.07%	$23.18K	$12.27B	-0.94%	68 Neutral
ALLY	Ally Financial	1.06%	$23.01K	$12.10B	4.55%	56 Neutral
SWK	Stanley Black & Decker	1.05%	$22.65K	$10.57B	-24.29%	64 Neutral
JAZZ	Jazz Pharmaceuticals	1.04%	$22.58K	$7.97B	6.11%	58 Neutral
MG	Magna International	1.04%	$22.54K	C$19.72B	14.91%	76 Outperform

HWSM Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

26.77

Negative

100DMA

26.24

Positive

200DMA

Market Momentum

MACD

-0.10

Positive

RSI

46.12

Neutral

STOCH

20.17

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For HWSM, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 26.53, equal to the 50-day MA of 26.77, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 20.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HWSM.

HWSM Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
HWSM	―	―	$2.09M	0.55%	67 Neutral
MVPA	―	―	$64.53M	0.60%	66 Neutral
DIVL	―	―	$59.23M	0.65%	73 Outperform
WBIF	―	―	$26.47M	1.65%	71 Outperform
PJFV	―	―	$19.28M	0.75%	73 Outperform
FFLV	―	―	$11.66M	0.38%	72 Outperform

Performance Comparison

HWSM

Hotchkis & Wiley SMID Cap Diversified Value Fund

26.38

1.72

6.97%

MVPA

Miller Value Partners Appreciation ETF

―

DIVL

Madison Dividend Value ETF

―

WBIF

WBI BullBear Value 3000 ETF

―

PJFV

PGIM Jennison Focused Value ETF

―

FFLV

Fidelity Fundamental Large Cap Value ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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