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HWSM - ETF AI Analysis

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HWSM

Hotchkis & Wiley SMID Cap Diversified Value Fund (HWSM)

Rating:67Neutral
Price Target:
HWSM’s rating suggests it is a generally solid but not top-tier fund, supported by strong holdings like Host Hotels & Resorts and Magna International, which both show healthy financial performance, attractive valuations, and positive growth outlooks. Additional strength comes from names like APA and Universal Health Services, which add profitability and cash flow support, though some holdings such as Vornado Realty and Centene face issues like high leverage, negative cash flow trends, and profitability challenges that weigh on the overall assessment. The main risk factor is the presence of several holdings with leverage, cash flow, or legal and operational pressures, which could add volatility even though the fund is diversified across companies.
Positive Factors
Strong Recent Performance
The fund has delivered strong gains so far this year and in recent months, showing solid momentum.
Broad Sector Diversification
Holdings are spread across many sectors, which helps reduce the impact if any one industry runs into trouble.
Several Strong Top Holdings
Many of the largest positions, such as Centene, APA, and Jazz Pharmaceuticals, have shown strong performance, supporting the fund’s overall results.
Negative Factors
Heavy U.S. Concentration
The fund is invested almost entirely in U.S. companies, offering very little geographic diversification.
High Exposure to Financials
A large share of the portfolio is in financial stocks, which can make the fund more sensitive to problems in that sector.
Some Lagging Top Holdings
A few key positions, such as Universal Health and Ally Financial, have shown weak or negative performance, which can drag on returns if the trend continues.

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

HWSM Summary

HWSM, the Hotchkis & Wiley SMID Cap Diversified Value Fund, is an ETF that focuses on smaller and mid-sized U.S. companies that the managers believe are undervalued. It does not track a specific index, but instead follows a value-investing approach across many sectors like financials, industrials, and health care. Well-known holdings include Centene and Stanley Black & Decker. Someone might invest in this ETF to seek long-term growth by diversifying into lesser-known companies that could have room to rebound. A key risk is that smaller and value-focused stocks can be more volatile and may go up and down more than the overall market.
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

HWSM leans heavily into financials and real assets, with names like Zions Bancorporation and Vornado Realty helping to power recent gains as sentiment around banks and commercial property has improved. Host Hotels & Resorts and Magna International add steady, cyclical exposure that’s been quietly rising, while Jazz Pharmaceuticals brings a more defensive, health care tilt with strong momentum. On the flip side, Ally Financial has been lagging and Universal Health Services is losing steam, reminding investors that this global, value-focused mix of smaller companies can be a bit bumpy even when the overall story is constructive.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Centene1.20%$26.04K$32.49B163.64%
58
Neutral
APA1.15%$24.92K$13.18B105.92%
73
Outperform
Universal Health1.09%$23.58K$10.50B0.63%
74
Outperform
Vornado Realty1.08%$23.50K$8.03B8.30%
57
Neutral
Zions Bancorporation National Association1.08%$23.37K$10.26B36.38%
74
Outperform
Host Hotels & Resorts1.07%$23.18K$15.95B48.07%
77
Outperform
Ally Financial1.06%$23.01K$13.30B17.65%
67
Neutral
Stanley Black & Decker1.05%$22.65K$15.69B49.10%
68
Neutral
Jazz Pharmaceuticals1.04%$22.58K$16.65B131.62%
64
Neutral
Magna International1.04%$22.54K$18.68B65.34%
77
Outperform

HWSM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
31.00
Positive
100DMA
29.80
Positive
200DMA
28.66
Positive
Market Momentum
MACD
0.37
Negative
RSI
66.08
Neutral
STOCH
93.94
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For HWSM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 31.72, equal to the 50-day MA of 31.00, and equal to the 200-day MA of 28.66, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 66.08 is Neutral, neither overbought nor oversold. The STOCH value of 93.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HWSM.

HWSM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.91M0.55%
67
Neutral
$73.15M0.60%
66
Neutral
$63.52M0.65%
71
Outperform
$23.32M1.65%
70
Outperform
$17.43M0.38%
74
Outperform
$3.23M0.85%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HWSM
Hotchkis & Wiley SMID Cap Diversified Value Fund
32.36
6.55
25.38%
MVPA
Miller Value Partners Appreciation ETF
DIVL
Madison Dividend Value ETF
WBIF
WBI BullBear Value 3000 ETF
FFLV
Fidelity Fundamental Large Cap Value ETF
WCMG
First Trust WCM Global Equity 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.
DisclaimerThis 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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