Sound ETFs Propose Reorganization Into Hilton-Branded Funds

Tidal Trust I has approved plans to reorganize two Sound ETFs into newly created funds under Tidal Trust II, replacing Sound Income Strategies as sub-adviser. The Sound Equity Dividend Income ETF (DIVY) would become the Hilton Dividend & Yield Equity ETF, managed by Hilton Capital Management, while the Sound Enhanced Fixed Income ETF (FXED) would transition into the Hilton NCA Enhanced Fixed Income ETF, with New Century Advisors overseeing portfolio management and Hilton handling trading. Tidal Investments will remain the investment adviser for both funds. The successor ETFs will retain the same investment objectives and fundamental policies, with substantially similar strategies. The reorganizations require separate shareholder approvals, with votes expected in late Q4 2026. If approved, shareholders will receive equivalent net asset value in the new funds, with the transactions expected to be tax-free and completed in late Q4 2026 or shortly thereafter.