VictoryShares US 500 Volatility Wtd ETF (CFA)

Overview

The VictoryShares US 500 Volatility Wtd ETF (CFA) seeks investment results that track the performance of the Nasdaq Victory US 500 Volatility Weighted Index. This index weights companies within the S&P 500 inversely proportional to their price volatility over the past year, potentially leading to a portfolio with lower overall volatility than the cap-weighted S&P 500.

Reputation and Reliability

VictoryShares is a part of Victory Capital Management, a diversified global investment management firm. They are considered a reliable issuer with a solid track record.

Management Expertise

Victory Capital has a team of experienced investment professionals managing their ETFs, leveraging expertise in quantitative and rules-based strategies.

Goal

To track the performance of the Nasdaq Victory US 500 Volatility Weighted Index.

Investment Approach and Strategy

Strategy: The ETF tracks a specific index designed to weight S&P 500 companies inversely to their volatility.

Composition The ETF holds stocks that are components of the S&P 500 Index.

Market Share: Difficult to assess precise market share without specific, up-to-date market data from all competitors; however, CFA is a relatively smaller ETF compared to broader S&P 500 index funds.

Total Net Assets (AUM): 234865799

Key Competitors

• SPY (SPDR S&P 500 ETF Trust)
• IVV (iShares Core S&P 500 ETF)
• VOO (Vanguard S&P 500 ETF)
• SPLV (Invesco S&P 500 Low Volatility ETF)

Competitive Landscape

The ETF industry is highly competitive, dominated by large, low-cost S&P 500 ETFs like SPY, IVV, and VOO. CFA's advantage lies in its volatility-weighted strategy, potentially offering lower volatility than cap-weighted alternatives. However, it may underperform in strongly rising markets. SPLV is a more direct competitor in the low-volatility space, but it uses a different methodology.

Historical Performance: Historical performance data needs to be retrieved from financial data providers.

Benchmark Comparison: The ETF's performance should be compared to the S&P 500 Index and other low volatility ETFs.

Expense Ratio: 0.29

Average Trading Volume

The ETF has a moderate average daily trading volume, and it's important for investors to consider this for large trades.

Bid-Ask Spread

The bid-ask spread is generally tight but can widen during periods of market volatility or low trading volume.

Market Environment Factors

Economic conditions, interest rates, and market volatility all impact CFA. The fund is likely to perform relatively better in uncertain or declining markets.

Growth Trajectory

Growth depends on investor demand for volatility-weighted strategies and the ETF's ability to effectively track its index.

Competitive Edge

CFA's competitive advantage is its unique volatility-weighted strategy within the S&P 500 universe. This strategy aims to reduce portfolio volatility and provide downside protection during market downturns. Unlike traditional cap-weighted ETFs, CFA rebalances its holdings based on volatility, potentially improving risk-adjusted returns. The rules-based approach offers transparency and consistency in investment selection. This targeted focus on volatility-weighting differentiates it from broad-market ETFs and some other low-volatility funds.

Volatility

The ETF is designed to exhibit lower volatility than the S&P 500, but it may still experience volatility during periods of market stress.

Market Risk

The ETF is subject to market risk, meaning that its value can decline due to overall market conditions or specific company factors.

Ideal Investor Profile

The ideal investor is someone seeking lower volatility exposure to the S&P 500. Risk-averse investors, those nearing retirement, or those looking for downside protection may find this ETF suitable.

Market Risk

The ETF may be suitable for long-term investors seeking a less volatile investment option within their portfolios, but not necessarily for active traders seeking high returns.

The VictoryShares US 500 Volatility Wtd ETF offers a volatility-weighted approach to the S&P 500, targeting lower volatility than cap-weighted alternatives. While it has a higher expense ratio than some broad index funds, it may appeal to risk-averse investors seeking downside protection. Investors should compare its performance to relevant benchmarks and understand the potential trade-offs of its volatility-weighted strategy. It's a niche product in the S&P 500 ETF space with moderate AUM and trading volume. Consider CFA if you want less volatile exposure to big US companies.

• SPLV
• USMV
• XSLV
• QUAL
• DSI

Data Sources:

• Victory Capital Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data is dynamic and subject to change. Market Share data is estimated based on most recently available information and may not be exact.