If You Invested in Horizon Small/Mid Cap Core Equity ETF (SMOX)

Horizon Small/Mid Cap Core Equity ETF (SMOX) is an exchange-traded fund listed on the New York Stock Exchange (NYSE). According to Horizon, the fund seeks capital appreciation through an actively managed approach that combines fundamental decision-making with quantitative models focused on the U.S. equity market. SMOX is part of Horizon’s lineup of goals-based ETF solutions designed for use by financial advisors.

The fund invests in U.S. small- and mid-cap equities and applies a multi-factor investment process. As described by Horizon, this process uses value, momentum, quality, volatility, and sentiment screens with the aim of capturing diverse sources of return within the small- and mid-cap universe. By using multiple factors, the strategy attempts to identify securities that align with the fund’s objective of capital appreciation while maintaining a systematic selection framework.

In addition to its equity selection process, SMOX tactically uses put spread options as part of its approach. A put spread is an options strategy that involves the purchase and sale of two put options on the same asset with the same expiration date but different strike prices. Horizon states that SMOX may employ put spreads to enhance total return potential, which introduces options-related risks that differ from investing directly in securities.

SMOX was launched as one of three ETFs expanding Horizon’s lineup of domestic and international strategies, alongside Horizon International Equity ETF (FRGN) and Horizon International Managed Risk ETF (SFTX). These funds are described by Horizon as outcome-oriented building blocks that financial advisors can use in portfolio construction as part of a broader goals-based investment framework.

Horizon describes itself as an industry-recognized firm that provides modern goals-based solutions to empower financial advisors. The firm emphasizes combining investment expertise, proprietary technology, and customized support to help advisors address portfolio construction challenges. SMOX fits within this approach as a tool aimed at advisors who want targeted exposure to U.S. small- and mid-cap equities through an actively managed, factor-based strategy.

Horizon is headquartered in Charlotte, North Carolina and serves financial advisors across the United States. All Horizon ETFs, including SMOX, are distributed by Quasar Distributors, LLC. Horizon highlights that investing in SMOX involves risks, including the potential loss of principal, and that there is no assurance the fund will meet its investment objective.

The risks associated with SMOX include general market risk affecting equity securities, as well as risks specific to the use of options. Horizon notes that investments in options can involve leverage risk, tracking risk, and, in the case of over-the-counter options, counterparty default risk. Option positions may expire worthless, which can expose the fund to significant losses relative to the premiums paid. While SMOX focuses on U.S. small- and mid-cap equities, Horizon’s broader product discussion also references risks related to non-U.S. markets and fixed income securities in the context of its ETF lineup.

Shares of SMOX, like other ETFs, are bought and sold on an exchange at market price rather than net asset value (NAV) and are not individually redeemed from the fund. Brokerage commissions and trading costs can reduce investor returns. Horizon advises that investors should carefully consider the investment objectives, risks, charges, and expenses of the fund and review the prospectus before investing.

Key characteristics of Horizon Small/Mid Cap Core Equity ETF (SMOX)

• Fund type: Exchange-traded fund listed on the New York Stock Exchange (NYSE).
• Objective: Seeks capital appreciation, as stated by Horizon.
• Primary focus: U.S. small- and mid-cap equities.
• Management style: Actively managed with the use of quantitative models.
• Investment process: Multi-factor approach using value, momentum, quality, volatility, and sentiment screens.
• Options usage: Tactical use of put spreads to enhance total return potential, with associated options risks.
• Sponsor: Horizon, an investment firm focused on goals-based solutions for financial advisors.
• Distribution: Horizon ETFs, including SMOX, are distributed by Quasar Distributors, LLC.

According to Horizon, SMOX is part of a broader ETF suite that was introduced to give financial advisors additional tools for constructing portfolios aligned with client goals. The fund’s combination of small- and mid-cap equity exposure, multi-factor screening, active management, and tactical options use reflects Horizon’s stated focus on targeted exposure and risk-aware portfolio design.