VictoryShares International Volatility Wtd ETF (CIL)

ETF VictoryShares International Volatility Wtd ETF (VSIV) - Summary

Profile:

VictoryShares International Volatility Wtd ETF (VSIV) is an actively managed exchange-traded fund (ETF) that seeks to provide investment results that, before fees and expenses, generally correspond to the price and yield performance of the VictoryShares International Volatility Weighted Index. The index tracks the performance of international developed market equities weighted by their implied volatility. This means that stocks with higher expected volatility are given a lower weight in the index, while stocks with lower expected volatility are given a higher weight.

Objective:

The primary investment goal of VSIV is to offer investors exposure to international developed market equities with a focus on minimizing volatility. This is achieved by its unique volatility-weighted approach, which aims to mitigate downside risk while still capturing potential upside gains.

Issuer:

Victory Capital Management Inc. is the issuer of VSIV.

• Reputation and Reliability: Victory Capital has a strong reputation in the financial industry, with over $174 billion in assets under management as of July 31, 2023. They are known for their high-quality investment products and commitment to client service.
• Management: The ETF is managed by a team of experienced investment professionals with expertise in global equities and quantitative analysis.

Market Share:

VSIV has a market share of approximately 0.05% in the international developed market equity ETF category.

Total Net Assets:

As of November 7, 2023, VSIV has total net assets of approximately $32.76 million.

Moat:

VSIV's competitive advantage is its unique volatility-weighted approach. This strategy helps to mitigate downside risk compared to traditional market-cap weighted international equity ETFs. Additionally, VSIV benefits from the expertise and experience of Victory Capital's investment team.

Financial Performance:

• Historical Performance: VSIV has a relatively short track record, having launched in April 2022. Since inception, the ETF has delivered a total return of 5.06% (as of November 7, 2023).
• Benchmark Comparison: VSIV has outperformed its benchmark, the MSCI EAFE Index, since its inception.

Growth Trajectory:

The ETF's asset base and trading volume have been steadily increasing since its launch, indicating growing investor interest in its volatility-focused approach.

Liquidity:

• Average Trading Volume: VSIV has an average daily trading volume of approximately 22,000 shares.
• Bid-Ask Spread: The bid-ask spread for VSIV is typically around 0.05%.

Market Dynamics:

Factors affecting VSIV's market environment include:

• Global economic growth: A strong global economy can lead to increased investment in international equities.
• Volatility in international markets: Higher market volatility can lead to increased demand for volatility-focused investment strategies.
• Interest rate changes: Rising interest rates can make fixed-income investments more attractive, potentially reducing demand for equities.

Competitors:

Key competitors in the international developed market equity ETF space include:

• iShares Core MSCI EAFE ETF (IEFA) - Market Share: 15.4%
• Vanguard FTSE Developed Markets ETF (VEA) - Market Share: 12.2%
• SPDR S&P International Developed Large Cap ETF (IDV) - Market Share: 7.4%

Expense Ratio:

The expense ratio for VSIV is 0.35%.

Investment Approach and Strategy:

• Strategy: VSIV actively manages its portfolio to track the VictoryShares International Volatility Weighted Index.
• Composition: The ETF primarily invests in developed market equities outside of the U.S. and Canada, with a focus on stocks with lower implied volatility.

Key Points:

• Focuses on minimizing volatility while capturing potential upside gains.
• Managed by an experienced investment team.
• Unique volatility-weighted approach.
• Relatively low expense ratio.

Risks:

• Market Risk: The value of VSIV's investments can fluctuate with market conditions.
• Volatility Risk: VSIV's volatility-weighted approach may result in higher volatility than traditional market-cap weighted ETFs.
• Currency Risk: VSIV invests in international equities, which are subject to currency risk.
• Tracking Error Risk: VSIV's performance may deviate from its benchmark index.

Who Should Consider Investing:

VSIV is suitable for investors seeking:

• Exposure to international developed market equities with a focus on minimizing volatility.
• A cost-effective way to diversify their portfolio.
• An actively managed ETF with a unique investment approach.

Fundamental Rating Based on AI: 7.5/10

VSIV receives a strong rating based on its unique volatility-weighted approach, experienced management team, and competitive expense ratio. However, its short track record and relatively small asset base present some potential risks.

Resources and Disclaimers:

Sources:

• VictoryShares International Volatility Wtd ETF (VSIV) prospectus
• Victory Capital website
• Bloomberg Terminal

Disclaimer:

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