Core Viewpoint - The ETC 6 Meridian Small Cap Equity ETF (SIXS) employs an actively managed, quantitative strategy focused on U.S. small-cap equities, aiming for capital appreciation through a focus on financially sound companies and balanced factor exposures [1] Investment Strategy - The ETF screens for persistent fundamentals and prudent leverage, ranking candidates to create a diversified portfolio that seeks to enhance risk-adjusted returns compared to broader small-cap universes [1] - The strategy is designed to provide cyclical torque during early-cycle recoveries and improving credit conditions, while emphasizing quality to mitigate typical small-cap fragility [1] Performance Considerations - The strategy may underperform during momentum-driven, high-beta advances that favor speculative profiles or during sudden risk-off phases when liquidity premiums widen [1] - In portfolio construction, SIXS serves as a satellite small-cap sleeve, a factor-completion tool to complement large-cap core holdings, or a tactical exposure when domestic expansion extends beyond mega caps [1] Target Audience - Likely adopters of the ETF include advisors constructing multi-cap blends and institutions seeking diversified factor allocation [1] Risk Factors - A specific risk to monitor is related to trading and execution in thinner small-cap names, where liquidity and costs can affect realized performance [1]