Steward Values-Focused Small-Mid Cap Enhanced Index Fund

Small- and mid-cap stocks have delivered healthy returns in the first half of 2026, with broader market participation signaling that gains are no longer concentrated in a handful of large companies. This rotation benefits the fund's core mandate and supports continued momentum in value-oriented small-mid cap holdings.

The fund posted a current-year performance of -2.89% with a maximum 1-year loss of -17.28% and a negative 3-year risk-adjusted return of -4.05, indicating that small- and mid-cap exposure has translated into meaningful downside risk rather than consistent, reliable gains for investors.

The fund maintains a cost advantage over competitors, priced within the second-cheapest fee quintile among peers. Its values-based screens, combined with an enhanced index approach, offer a differentiated and cost-efficient vehicle for long-term capital appreciation in the small-mid cap space.

Morningstar assigns the fund a Neutral Medalist Rating, constrained by a middling Process Pillar and a Below Average People Pillar rating. The combination of values-based screens limiting the investable universe and underwhelming management assessment raises serious doubts about the fund's ability to consistently outperform peers.

The fund's holdings reflect an average market capitalization of approximately $16.96B with strong quarterly volume growth of 111%, suggesting rising investor interest and improving liquidity. The SMR (Sales, Margin, Return on Equity) rating of 35 indicates relatively solid business fundamentals among the fund's core positions.

Fundamental analysis ratings for the fund's holdings are largely mediocre, with valuation, P/E growth, price growth, and profit risk scores all hovering around the midpoint to weak range. Additionally, the fund's principal risks include selection risk, short selling risk, and general equity market risk, compounding downside exposure.