VictoryShares US Small Mid Cap Value Momentum ETF (USVM)

Overview

This investment fund operates with a clear strategic focus on leveraging both value and momentum factors to guide its investments in the equity market. It primarily targets large- and mid-capitalization U.S. issuers evidenced within the framework of the MSCI USA Index, also referred to as the "parent index". The fund's objective is carefully aligned with the delivery of exposure to securities that not only show a higher propensity towards value and momentum but also demonstrate a potential for lower realized volatility compared to their traditional capitalization-weighted counterparts. A significant portion of the fund's assets, at least 80%, is committed to securities in the index, ensuring a high level of adherence to its investment strategy. This fund is particularly notable for its intention to maintain moderate index turnover, which emphasizes a balanced approach between capturing investment opportunities and managing transaction costs. By focusing on these strategic areas, the fund aims to provide a valuable investment avenue for those looking to invest in equity securities that exhibit promising value and momentum characteristics while also seeking to minimize volatility and transaction costs.

Products and Services

Listed below are the key investment focuses of the fund, each described in detail to provide a clear understanding of the opportunities offered to investors:

• Equity Securities of Large- and Mid-Capitalization U.S. Issuers: The cornerstone of the fund's investment strategy lies in its focus on large- and mid-cap companies within the United States. These companies form part of the MSCI USA Index, which serves as a broad benchmark reflecting the performance of the U.S. equity market. The fund invests in these securities to tap into the growth potential and stability offered by established companies.
• Value and Momentum Factors: A distinctive aspect of the fund's investment approach is its emphasis on securities that exhibit high value and momentum factors. Value investing targets securities that are believed to be undervalued in comparison to their intrinsic value, offering a margin of safety and potential for capital appreciation. Momentum investing, on the other hand, focuses on securities that have demonstrated strong past performance, under the assumption that they will continue to perform well. The fund strategically invests in securities that align with these factors, aiming to achieve above-market returns.
• Moderate Index Turnover: In its effort to balance investment opportunities with cost efficiency, the fund maintains a moderate index turnover. This approach underscores a strategic investment perspective, seeking to capitalize on market conditions and adjustments within the MSCI USA Index while keeping transaction costs in check. This strategy is particularly advantageous for investors looking for a stable yet responsive investment approach.
• Lower Realized Volatility: Amidst its various strategic focuses, the fund places a high priority on investments that are likely to experience lower realized volatility. This move towards stability is indicative of a cautious investment strategy that values preservation of capital and consistent returns over high-risk, high-reward investments. By prioritizing securities that demonstrate lower levels of volatility, the fund aims to provide investors with a more stable and reliable investment option.