Sound Income Strategies Halts Two ETF Reorganizations Into Hilton Funds

Sound Income Strategies has suspended plans to reorganize two ETFs into newly established funds under Hilton Capital Management. The Sound Equity Dividend Income ETF (DIVY) was set to become the Hilton Dividend & Yield Equity ETF, while the Sound Enhanced Fixed Income ETF (FXED) would have transitioned into the Hilton NCA Enhanced Fixed Income ETF. The reorganizations, initially approved by Tidal Trust I's board on October 2, 2026, have been put on hold at Hilton's request as the firm considers potential changes to the proposed funds' investment strategies. Hilton intends to resubmit the plans for board approval once those changes are finalized. In the meantime, both ETFs will continue operating under their existing investment objectives and strategies, with Tidal Investments remaining the investment adviser and Sound Income Strategies serving as sub-adviser. No revised timeline has been announced.