LOS ANGELES--(BUSINESS WIRE)-- Hotchkis & Wiley, a global investment manager specializing in value equity and high yield strategies, today announced the launch of its first exchange-traded fund (ETF), the Hotchkis & Wiley SMID-Cap Diversified Value Fund (Nasdaq: HWSM).

HWSM, which began trading on March 31, 2025, leverages Hotchkis & Wiley's proven approach to value investing, combining robust quantitative models with deep human insights. The ETF aims to exploit valuation anomalies in the small and mid-cap equity market, an area often underfollowed by Wall Street research.

“The launch of our first ETF reflects our commitment to meet the evolving needs of our clients, bringing our time-tested active approach to a broader audience and offering the opportunity to benefit from our deep research platform and disciplined investment process," said Scott McBride, Chief Executive Officer of Hotchkis & Wiley.

“Our approach is built on identifying undervalued companies with strong fundamentals that are often overlooked. By combining our proprietary quantitative tools with the expertise of our research team, we aim to deliver a portfolio that captures the intrinsic value of these businesses, providing investors with a unique opportunity for long-term growth," said Ryan Thomes, Co-Portfolio Manager of HWSM.

HWSM is managed by a deep and experienced investment team, led by Portfolio Managers Judd Peters and Ryan Thomes. The fund leverages proprietary valuation models and the judgment of Hotchkis & Wiley's experienced research team to build a diversified portfolio of undervalued small- and medium-sized companies with strong businesses, robust balance sheets, and prudent governance.

Key features of the Hotchkis & Wiley SMID-Cap Diversified Value ETF include:

• A diversified portfolio of 150-200 stocks, rebalanced monthly
• Target market capitalization range of approximately $2 billion to $50 billion
• Analyst-driven stock selection
• Strict risk controls at both the stock and portfolio levels

The Hotchkis & Wiley SMID-Cap Diversified Value ETF is designed for investors seeking diversified exposure to small and mid-cap value equities, with the simplicity, transparency and liquidity of an ETF.

For more information on, please click here: https://www.hwcm.com/etfs/hw-smid-cap-diversified-value-fund/summary/.

About Hotchkis & Wiley:

Hotchkis & Wiley Capital Management, based in Los Angeles, was founded in 1980. The firm oversees $33 billion in actively managed equity and fixed income portfolios. More information about Hotchkis & Wiley is available here: https://www.hwcm.com/who-we-are/history/.

Disclosures

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Hotchkis & Wiley SMID Cap Diversified Value ETF please visit at www.hwcm.com OR call 1-800-796-5606. Read the prospectus or summary prospectus carefully before investing.

Investing involves risk. Principal loss is possible. Investing in small- and medium-sized companies involves greater risks than those associated with investing in larger companies. Please read the fund prospectus for a full list of fund risks. Diversification does not assure a profit nor protect against loss in a declining market.

ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a premium or discount to its net asset value (NAV), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF’s ability to sell its shares. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. Brokerage commissions will reduce returns.

New funds have limited operating histories for investors to evaluate and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies.

The Hotchkis & Wiley ETF is distributed by Quasar Distributors, LLC

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