NYLI International Small-Mid Cap Equity ETF (NISM)

On our desk, we are looking closely at NISM's structural profile as a newly launched vehicle. With total assets sitting right at $25 million and a 0.70% expense ratio, it is certainly in its infancy phase. However, its July 2026 return of 1.9% earned it a respectable grade of B against the Foreign Small/Mid Blend category average of 1.2%. Market sentiment highlights that while foreign small- and mid-cap equities offer an under-researched opportunity set with attractive valuations, new funds inherently carry the liquidation risk if they do not achieve critical mass quickly.

When analyzing the top holdings inside NISM—such as Nissan Chemical, Washington H Soul Pattinson, and Terna SpA—our quantitative protocol notes a well-diversified basket across basic materials, financial services, and utilities. Because it's an actively managed non-index fund without a track record spanning multiple years (the managers feature an average tenure of roughly 0.2 years as of 2026), quantitative screening requires monitoring asset growth closely. Prospective investors must weigh the active strategy's ability to capitalize on foreign small-cap quality and value against the general market risks of holding micro-, small-, and mid-cap companies.

From a risk management standpoint, investing in NISM exposes portfolios to classic cross-border headwinds. Foreign securities involve additional risks like greater market volatility, less reliable financial information, currency risks, and foreign taxes, which are often amplified in small- and mid-cap spaces. On the operational side, the fund features a 0% portfolio turnover rate, contrasting sharply with the 17% category average. This reflects a very patient holding strategy managed by Tobias Bucks and Simon Wood since early 2026.