VictoryShares Short-Term Bond ETF (USTB)

Overview

The company operates as an investment fund specializing in debt securities and related financial instruments. With a strategic focus on maintaining a dollar-weighted average portfolio maturity of three years or less, the fund primarily allocates its resources to securities that promise short-term maturity. This investment strategy emphasizes flexibility, liquidity, and a conservative risk profile, catering to investors who seek relative safety and a moderate yield on their investments. The fund's commitment to investing at least 80% of its assets in debt securities and derivatives with similar economic characteristics underscores its conservative investment approach. Furthermore, the fund's allowance for up to 20% investment in foreign debt securities introduces a measured diversification strategy, tapping into both non-U.S. dollar-denominated securities and the emerging market potential while managing the associated risks.

Products and Services

• Debt Securities Investment

  The core offering involves investing in a variety of debt securities, which includes corporate bonds, government securities, and other fixed-income investments. These securities are selected based on their potential to meet the fund's maturity and security criteria, providing investors a stable and predictable income stream with a focus on preservation of capital.

• Derivatives and Similar Instruments

  In addition to direct debt securities, the fund invests in derivatives and other financial instruments that mimic the economic characteristics of such securities. This strategy enhances the fund's flexibility in managing exposure and optimizing returns through hedging and efficient market positioning.

• Foreign Debt Securities Investment

  To diversify its portfolio, the fund allocates up to 20% of its net assets in foreign debt securities. This includes investments in both non-U.S. dollar-denominated securities and those issued by entities in emerging markets. This strategy broadens the fund's investment horizon and taps into the growth potential of emerging economies, albeit with a careful approach to risk management.