SIXS - ETF AI Analysis

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ETC 6 Meridian Small Cap Equity ETF (SIXS)

Rating:70Outperform

Price Target:―

SIXS, the ETC 6 Meridian Small Cap Equity ETF, has a solid overall rating driven mainly by strong holdings like Enact Holdings (ACT), EZCORP (EZPW), and Photronics (PLAB), which benefit from robust financial performance, attractive valuations, and generally positive technical trends. The fund’s rating is held back somewhat by weaker names such as Madison Square Garden Sports (MSGS), which faces negative profitability and high leverage, and by some holdings with overbought signals or profitability and valuation concerns. The main risk factor is its focus on smaller companies, where individual stocks can be volatile and issues like revenue declines, high leverage, or overvaluation can have a bigger impact on the fund.

Positive Factors

Broad Sector Diversification

The fund spreads its investments across many different sectors, which can help reduce the impact if any one industry struggles.

Generally Positive Recent Performance

The ETF has shown steady gains over the past month, three months, and year-to-date, suggesting its strategy has been working in the current market.

Several Strong Top Holdings

Some of the largest positions, such as International Seaways, EZCORP, Photronics, and Madison Square Garden Sports, have delivered strong year-to-date results that support the fund’s overall performance.

Negative Factors

Higher Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees.

Heavy U.S. Concentration

With almost all assets invested in U.S. companies, the ETF offers little geographic diversification and is highly tied to the U.S. market.

Mixed Results Among Top Holdings

Several key positions, including Enact Holdings, HCI Group, Innoviva, Teradata, and Protagonist Therapeutics, have shown weak year-to-date performance, which could drag on future returns if the trend continues.

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

AUM113.71M

RegionNorth America

Expense Ratio0.52%

Beta0.66

IssuerMeridian

Inception DateMay 11, 2020

Dividend Yield1.81%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume5,760

30 Day Avg. Volume4,061

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

60.98

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering83

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

SIXS Summary

SIXS, the ETC 6 Meridian Small Cap Equity ETF, focuses on smaller U.S. companies, mainly in financials, health care, and consumer sectors. It does not track a set index, but instead builds a broad mix of small-cap stocks, aiming to capture the growth potential of younger, more agile businesses. Well-known names in the fund include Madison Square Garden Sports and Teradata. An investor might choose SIXS to seek long-term growth and diversify beyond large, familiar brands. A key risk is that small-cap stocks can be more volatile and may go up and down more sharply than the overall market.

How much will it cost me?The ETC 6 Meridian Small Cap Equity ETF (SIXS) has an expense ratio of 0.52%, which means you’ll pay $5.20 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on small-cap stocks that require more research and oversight compared to passively managed funds tracking broad indexes.

What would affect this ETF?The ETC 6 Meridian Small Cap Equity ETF (SIXS) could benefit from economic growth and innovation in the U.S., as small-cap companies often thrive in expanding markets and emerging industries. However, it may face challenges from rising interest rates, which can increase borrowing costs for smaller firms, and economic slowdowns, which tend to impact small-cap stocks more significantly due to their higher volatility. Additionally, sector-specific risks, such as regulatory changes in health care or financial sectors, could influence performance.

SIXS Top 10 Holdings

This small-cap U.S. fund leans heavily into financials and health care, and its story is all about a tug-of-war between winners and laggards. Shipping player International Seaways and pawn lender EZCORP are doing the heavy lifting, with steadily rising share prices that help power overall returns. Health names Dynavax and Photronics add extra spark, riding strong momentum and upbeat fundamentals. On the other side, insurance-focused HCI Group and biotech Protagonist Therapeutics are losing steam, acting as small anchors on an otherwise improving small-cap mix.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
INSW	International Seaways	2.88%	$3.28M	$2.95B	52.14%	72 Outperform
EZPW	EZCORP	2.76%	$3.15M	$1.28B	72.44%	75 Outperform
ACT	Enact Holdings	2.27%	$2.59M	$5.68B	18.20%	82 Outperform
INVA	Innoviva	2.07%	$2.37M	$1.46B	4.50%	61 Neutral
HCI	HCI Group	1.98%	$2.26M	$2.02B	31.11%	73 Outperform
PLAB	Photronics	1.79%	$2.04M	$2.12B	52.99%	74 Outperform
DVAX	Dynavax	1.71%	$1.96M	$1.82B	18.98%	70 Outperform
MATX	Matson	1.68%	$1.92M	$4.96B	14.10%	77 Outperform
MSGS	Madison Square Garden Sports	1.61%	$1.84M	$6.88B	29.48%	45 Neutral
CALM	Cal-Maine Foods	1.60%	$1.82M	$3.88B	-28.76%	84 Outperform

SIXS Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

50.92

Positive

100DMA

49.94

Positive

200DMA

48.27

Positive

Market Momentum

MACD

0.40

Positive

RSI

57.67

Neutral

STOCH

38.23

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SIXS, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 51.89, equal to the 50-day MA of 50.92, and equal to the 200-day MA of 48.27, indicating a bullish trend. The MACD of 0.40 indicates Positive momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 38.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIXS.

SIXS Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SIXS	―	―	$113.71M	0.52%	―
OSCV	―	―	$671.60M	0.79%	―
SEIS	―	―	$416.38M	0.55%	―
JSML	―	―	$299.11M	0.30%	―
SCDV	―	―	$133.57M	0.70%	―
FSCC	―	―	$118.81M	0.36%	―

Performance Comparison

SIXS

ETC 6 Meridian Small Cap Equity ETF

52.42

3.21

6.52%

OSCV

Opus Small Cap Value ETF

―

SEIS

SEI Select Small Cap ETF

―

JSML

Janus Henderson Small Cap Growth Alpha ETF

―

SCDV

Bahl & Gaynor Small Cap Dividend ETF

―

FSCC

Federated Hermes MDT Small Cap Core 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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