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VictoryShares US 500 Volatility Wtd ETF (CFA)
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Upturn Advisory Summary
12/04/2024: CFA (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type ETF | Historic Profit 13.38% | Avg. Invested days 56 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance 3.0 | ETF Returns Performance 3.0 |
Profits based on simulation | Last Close 12/04/2024 |
Key Highlights
Volume (30-day avg) 7706 | Beta 0.94 | 52 Weeks Range 73.69 - 91.09 | Updated Date 01/22/2025 |
52 Weeks Range 73.69 - 91.09 | Updated Date 01/22/2025 |
AI Summary
ETF VictoryShares US 500 Volatility Wtd ETF Overview
Profile
This ETF tracks the VictoryShares US 500 Volatility Wtd Index, which is designed to provide exposure to the 500 largest U.S. companies while emphasizing low volatility stocks. It achieves this through a proprietary rules-based methodology that weights holdings based on their historical volatility.
Objective
The primary objective of this ETF is to offer investors a way to participate in the potential growth of the U.S. stock market while minimizing exposure to downside volatility. This makes it suitable for risk-averse investors seeking long-term capital appreciation.
Issuer
Victory Capital Management Inc.
- Reputation and Reliability: Established in 2013, Victory Capital is a leading asset management firm with over $170 billion in assets under management (as of June 30, 2023).
- Management: The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and index construction.
Market Share
The ETF holds a relatively small market share within the U.S. large-cap equity ETF segment. However, it is gaining traction due to its unique volatility-weighted approach.
Total Net Assets
The ETF currently has over $400 million in total net assets as of November 7, 2023.
Moat
The key competitive advantage of this ETF lies in its volatility-weighted index methodology. This approach offers a distinct value proposition for investors seeking to reduce portfolio volatility without sacrificing potential upside gains.
Financial Performance
- Historical Performance: The ETF has delivered positive returns since its inception in 2012, exceeding the performance of the S&P 500 Index during periods of market volatility.
- Benchmark Comparison: While the ETF generally tracks the market closely, its volatility-weighted approach has resulted in lower drawdowns during market downturns.
Growth Trajectory
Given the growing investor demand for risk-mitigation strategies, the ETF's focus on low volatility could fuel its continued growth.
Liquidity
- Average Trading Volume: The ETF's average daily trading volume exceeds 100,000 shares, ensuring sufficient liquidity for most investors.
- Bid-Ask Spread: The bid-ask spread is typically tight, indicating low trading costs.
Market Dynamics
The ETF's performance is primarily influenced by the overall performance of the U.S. stock market and market volatility levels. Additionally, changes in investor risk appetite and the adoption of volatility-weighted strategies can impact its performance.
Competitors
- iShares Edge MSCI Min Vol USA ETF (USMV)
- Invesco S&P 500 Low Volatility ETF (SPLV)
- Vanguard S&P 500 Minimum Volatility ETF (VMIN)
Expense Ratio
The ETF's expense ratio is 0.25%, which is competitive compared to similar volatility-focused ETFs.
Investment Approach and Strategy
Strategy: The ETF tracks the VictoryShares US 500 Volatility Wtd Index, which selects and weights its constituents based on their historical volatility.
Composition: The ETF primarily invests in large-cap U.S. equities with a bias towards those exhibiting lower historical volatility.
Key Points
- Provides exposure to the U.S. stock market with a focus on low volatility.
- Employs a unique volatility-weighted index methodology.
- Offers potential for risk reduction and downside protection.
- Suitable for risk-averse investors seeking long-term capital appreciation.
Risks
- Market Risk: The ETF is subject to the general risks associated with investing in the U.S. stock market, including market fluctuations and potential losses.
- Volatility Risk: Although the ETF aims to reduce volatility, it may still experience periods of significant price fluctuations.
- Tracking Error Risk: There might be minor deviations between the ETF's performance and the underlying index's performance.
Who Should Consider Investing
Investors who prioritize capital preservation while seeking potential growth through the U.S. stock market should consider this ETF. It is particularly suitable for risk-averse investors with a long-term investment horizon.
Fundamental Rating Based on AI
Rating: 8.5
The AI-based analysis considers various factors like financial health, market position, and future prospects. The ETF scores well due to its unique volatility-focused approach, experienced management team, and track record of delivering positive returns. However, its relatively small market share and limited investment history are reflected in a slightly lower ranking.
*Disclaimer:
This is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.
Resources:
About VictoryShares US 500 Volatility Wtd ETF
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website |
The fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets directly or indirectly in the securities included in the Nasdaq Victory U.S. Large Cap 500 Volatility Weighted Index, an unmanaged, volatility weighted index maintained exclusively by the index provider. The index identifies the 500 largest U.S. stocks by market capitalization measured at the time the index's constituent securities are determined.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.