HSMV: FIRST TRUST HORIZON MANAGED VOLATILITY SMALL/MID ETF
ETF Report: First Trust Horizon Managed Volatility Small/Mid ETF (HSMV)
The First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is designed to provide exposure to small and mid-sized companies while managing volatility. It currently offers a distribution yield of approximately 4.59%, combining a strategy of stock ownership with regular cash payments to investors.
What this ETF is trying to do
HSMV invests in a diversified group of small and medium-sized companies. Its goal is to manage the "volatility" (the speed and size of price swings) typically associated with smaller stocks. As of October 12, 2026, the fund held 152 different assets.
Top Holdings
The portfolio is spread across many companies. Some of the largest holdings include:
• Ingredion Inc (2.27%)
• Dolby Laboratories Inc Class A (2.06%)
• Antero Midstream Corp (1.63%)
• Balchem Corp (1.56%)
• Graco Inc (1.48%)
These holdings can change over time.
What the numbers show
When looking at performance, it is important to distinguish between price return (the change in the share price) and total return (which includes the share price change plus distributions).
• Year-to-Date: The price return is -0.59%, but the total return is 3.08%.
• One Year: The price return is -0.31%, while the total return is 4.26%.
• Three Year: The price return is 20.79%, and the total return is 30.32%.
• Five Year: The total return is 20.52%.
The current price is $35.44. An estimated price from roughly one year ago was $35.55.
Income and distribution explanation
HSMV pays distributions usually every quarter. Over the last 12 months, it has made 4 payments totaling $1.63 per share. This results in a distribution yield of 4.59%.
For new investors, it is important to remember that a high distribution yield alone does not guarantee a profit. In the short term (one year), the share price declined slightly, but the total return remained positive because of these distributions.
NAV erosion explanation
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, based on price-based evidence, the fund has an erosion-risk score of 94, which is labeled as "Stable / sideways" with "good" severity. There is no severe erosion-risk flag for this ETF.
Pros
• Positive Total Returns: While the share price has been flat or slightly down recently, the total returns over one, three, and five years have remained positive.
• Stable Price Trend: The erosion-risk score suggests the price has been relatively stable.
• Regular Income: The fund provides consistent quarterly distributions.
Cons
• Recent Price Decline: The one-year price return is slightly negative (-0.31%).
• Small/Mid-Cap Risk: Investing in smaller companies can be more volatile than investing in very large companies.
Beginner takeaway
HSMV is an ETF for investors who want exposure to smaller companies but prefer a managed approach to volatility. While the share price has seen a minor decline over the past year, the distributions have helped keep the total return positive. This shows why it is important to look at total return rather than just the share price when an ETF pays regular income.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | INGREDION INC | INGR | 2.27% |
| 2 | DOLBY LABORATORIES INC CLASS A | DLB | 2.06% |
| 3 | n/a | PECO | 1.64% |
| 4 | ANTERO MIDSTREAM CORP | AM | 1.63% |
| 5 | BALCHEM CORP | BCPC | 1.56% |
| 6 | GRACO INC | GGG | 1.48% |
| 7 | ELLINGTON FINANCIAL INC | EFC | 1.44% |
| 8 | DT MIDSTREAM INC ORDINARY SHARES | DTM | 1.42% |
| 9 | STARWOOD PROPERTY TRUST INC | STWD | 1.37% |
| 10 | INNOSPEC INC | IOSP | 1.36% |