SMCO - ETF AI Analysis

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Hilton Small-MidCap Opportunity ETF (SMCO)

Rating:66Neutral

Price Target:―

The Hilton Small-MidCap Opportunity ETF (SMCO) has a solid overall rating, driven by strong contributions from holdings like EQT, which benefits from operational efficiency, strategic achievements, and a bullish technical trend. Dycom also adds positively to the fund with its strong financial performance and growth potential, despite some valuation concerns. However, weaker holdings such as Planet Fitness and Kyndryl Holdings, which face challenges like high leverage and declining revenue, slightly temper the ETF’s overall rating. Investors should note the fund’s exposure to valuation risks across several holdings.

Positive Factors

Strong Top Holdings

Several top positions, such as Ciena and Dycom, have delivered strong year-to-date gains, supporting the ETF's overall performance.

Sector Diversification

The ETF spreads its investments across 11 sectors, reducing the risk of being overly exposed to one industry.

Healthy Performance

The ETF has shown steady gains year-to-date and over the past three months, indicating solid momentum.

Negative Factors

High Geographic Concentration

With over 96% of its assets in U.S. companies, the ETF lacks exposure to international markets, limiting diversification.

Underperforming Holding

Kyndryl Holdings has posted negative year-to-date returns, dragging slightly on the fund's overall performance.

Moderate Expense Ratio

The ETF's expense ratio of 0.55% is higher than some low-cost alternatives, which could eat into long-term returns.

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

AUM136.98M

RegionNorth America

Expense Ratio0.55%

Beta0.94

IssuerHilton

Inception DateNov 29, 2023

Dividend YieldN/A

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume7,526

30 Day Avg. Volume10,537

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

31.92

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering64

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

SMCO Summary

The Hilton Small-MidCap Opportunity ETF (Ticker: SMCO) focuses on investing in smaller and mid-sized companies, offering a chance to diversify beyond large-cap stocks. It includes businesses across various sectors, such as technology, industrials, and healthcare, with top holdings like nVent Electric and Ciena. This ETF is ideal for investors seeking growth potential from emerging companies while maintaining diversification. However, new investors should note that smaller companies can be more volatile, meaning their stock prices may rise or fall more dramatically than larger, established firms.

How much will it cost me?The Hilton Small-MidCap Opportunity ETF (SMCO) has an expense ratio of 0.55%, which means you’ll pay $5.50 per year for every $1,000 invested. This is higher than average for ETFs because it is actively managed, requiring more research and oversight to select and maintain its portfolio of small and mid-sized companies.

What would affect this ETF?The Hilton Small-MidCap Opportunity ETF (SMCO) could benefit from economic growth and innovation in sectors like Industrials and Technology, which make up a significant portion of its holdings. However, it may face challenges if interest rates rise, as smaller companies often have higher borrowing costs, or if economic conditions weaken, which could impact consumer spending and cyclical industries. Its focus on U.S.-based small and mid-sized companies also makes it sensitive to domestic regulatory changes and market trends.

SMCO Top 10 Holdings

The Hilton Small-MidCap Opportunity ETF (SMCO) leans heavily into Industrials and Technology, with names like Dycom and Yeti Holdings driving recent gains thanks to strong financial performance and bullish momentum. Clean Harbors also adds steady growth to the mix, though valuation concerns linger. On the flip side, Kyndryl Holdings is dragging the fund with declining revenue and weak technicals, while Radnet struggles with profitability issues despite record-breaking revenue. With its U.S.-focused portfolio, SMCO offers a dynamic but concentrated play on smaller companies poised for growth, though some holdings may test investors' patience.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
DY	Dycom	2.96%	$4.08M	$10.05B	98.83%	80 Outperform
PLNT	Planet Fitness	2.46%	$3.39M	$9.28B	10.46%	70 Outperform
RDNT	Radnet	2.45%	$3.37M	$5.77B	-0.82%	63 Neutral
EQT	EQT	2.43%	$3.34M	$33.39B	22.30%	76 Outperform
CIEN	Ciena	2.40%	$3.31M	$33.35B	173.27%	70 Outperform
KD	Kyndryl Holdings Incorporation	2.35%	$3.24M	$6.21B	-22.38%	64 Neutral
YETI	Yeti Holdings	2.35%	$3.24M	$3.51B	14.30%	78 Outperform
CLH	Clean Harbors	2.33%	$3.20M	$12.77B	3.84%	78 Outperform
TDY	Teledyne Technologies	2.28%	$3.14M	$24.33B	9.24%	71 Outperform
NVT	nVent Electric	2.27%	$3.13M	$16.59B	48.91%	76 Outperform

SMCO Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

26.96

Positive

100DMA

26.81

Positive

200DMA

25.62

Positive

Market Momentum

MACD

0.15

Positive

RSI

55.83

Neutral

STOCH

40.18

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SMCO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 27.25, equal to the 50-day MA of 26.96, and equal to the 200-day MA of 25.62, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 40.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMCO.

SMCO Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SMCO	―	―	$136.98M	0.55%	―
RSMC	―	―	$715.66M	0.75%	―
MSSM	―	―	$678.04M	0.57%	―
NBSM	―	―	$199.22M	0.65%	―
SMIZ	―	―	$168.53M	0.56%	―
MGMT	―	―	$155.87M	1.10%	―

Performance Comparison

SMCO

Hilton Small-MidCap Opportunity ETF

27.42

1.56

6.03%

RSMC

Rockefeller U.S. Small-Mid Cap ETF

―

MSSM

Morgan Stanley Pathway Small-Mid Cap Equity ETF

―

NBSM

Neuberger Berman Small-Mid Cap ETF

―

SMIZ

Zacks Small/Mid Cap ETF

―

MGMT

Ballast Small/Mid Cap 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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