The First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) aims to deliver capital appreciation to its shareholders. To achieve this principal objective under typical market conditions, the Fund allocates a substantial portion—at least 80%—of its net assets (which may include borrowed capital) to specific types of investments. These consist of common stocks issued by small and/or mid-capitalization companies. These equities are publicly traded on U.S. national exchanges and are specifically chosen by Horizon Investments, LLC based on their projected low future volatility.