VictoryShares WestEnd Economic Cycle Bond ETF (BMDL)

ETF VictoryShares WestEnd Economic Cycle Bond ETF (WECY)

Overview:

Profile:

WECY is an actively managed ETF that invests primarily in investment-grade bonds. It seeks to maximize total return by focusing on the economic cycle. The ETF uses a combination of duration, sector, and credit analysis to identify bonds that are likely to outperform during different stages of the economic cycle.

Objective:

The primary objective of WECY is to generate high current income and capital appreciation.

Issuer:

Victory Capital Management Inc.

• Reputation and Reliability: A reputable asset management company with over $170 billion in assets under management.
• **Management:**Experienced portfolio management team with a strong track record in fixed income investing.

Market Share:

• WECY is a relatively small ETF, accounting for a small share of the actively managed fixed income ETF market.

Total Net Assets:

• Approximately $21.24 million as of November 7, 2023.

Moat:

• Actively managed approach allows for more flexibility in identifying and capturing opportunities in the economic cycle.
• Experienced management team with a strong track record.

Financial Performance:

• YTD return: 10.33% (as of November 7, 2023)
• 1-Year return: 10.81%
• 3-Year return: 5.16%

Benchmark Comparison:

• Outperformed the Bloomberg Barclays U.S. Aggregate Bond Index over the past year.

Growth Trajectory:

• Assets under management have been growing steadily over the past year.

Liquidity:

• Average Daily Trading Volume: 1,600 shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

• Interest rate hikes may impact bond prices.
• Economic growth and inflation will influence the economic cycle.

Competitors:

• iShares Floating Rate Bond ETF (FLOT)
• Vanguard Short-Term Bond ETF (BSV)
• SPDR Bloomberg Barclays Short Term Bond ETF (BSV)

Expense Ratio:

• 0.60%

Investment Approach and Strategy:

• Actively managed
• Invests primarily in investment-grade bonds
• Uses economic cycle analysis to identify undervalued bonds

Key Points:

• Actively managed approach for potential outperformance.
• Experienced management team.
• Focus on economic cycle for opportunity identification.

Risks:

• Interest rate risk: Rising interest rates can lead to a decline in bond prices.
• Credit risk: Bonds issued by companies with lower credit ratings are more likely to default.
• Economic cycle risk: The economic cycle can be unpredictable, which may impact bond performance.

Who Should Consider Investing:

• Investors seeking high current income and capital appreciation.
• Investors with a medium- to long-term investment horizon.
• Investors who believe that the economic cycle will impact bond returns.

Fundamental Rating Based on AI:

7/10

• WECY has a strong track record and an experienced management team.
• The actively managed approach offers potential for outperformance.
• The ETF is relatively small and has a limited market share.
• Interest rate risk and economic cycle risk are important considerations for investors.

Resources:

• VictoryShares Website: https://victoryshares.com/etfs/wecy/
• Morningstar: https://www.morningstar.com/etfs/arcx/wecy/overview
• Bloomberg: https://www.bloomberg.com/quote/WECY:US

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.