VictoryShares US Small Cap Volatility Wtd ETF (CSA)

Overview

The VictoryShares US Small Cap Volatility Wtd ETF (CSA) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Nasdaq Victory US Small Cap 1600 Volatility Weighted Index. It focuses on US small-cap stocks, weighting them based on volatility.

Reputation and Reliability

Victory Capital has a solid reputation for offering a range of investment products and managing assets effectively.

Management Expertise

Victory Capital has experienced portfolio managers and research teams overseeing its ETFs.

Goal

To track the performance of the Nasdaq Victory US Small Cap 1600 Volatility Weighted Index.

Investment Approach and Strategy

Strategy: The ETF tracks an index of US small-cap stocks, weighting them based on volatility, with lower volatility stocks receiving higher weights.

Composition Primarily composed of small-cap US stocks.

Market Share: The market share for CSA within the volatility weighted small cap ETF category is modest, given competing funds and differing index methodologies.

Total Net Assets (AUM): 93568142

Key Competitors

• Invesco S&P SmallCap Low Volatility ETF (XSLV)
• Legg Mason Small-Cap Quality Value ETF (SQLV)
• SPDR MSCI USA Small Cap Value Weighted ETF (XSMO)

Competitive Landscape

The small-cap ETF market is highly competitive with numerous funds offering different strategies. CSA differentiates itself through volatility weighting, which may appeal to investors seeking lower risk. However, its AUM is relatively smaller compared to XSLV, which has a much more prominent market presence. SQLV focuses on quality and value, while XSLV is a broader low volatility fund. CSA's advantages lie in its specific volatility-weighted methodology and smaller market share, which could offer unique diversification benefits.

Historical Performance: Historical financial performance needs to be pulled from live data as this will change periodically.

Benchmark Comparison: Benchmark comparison requires live data pulled periodically.

Expense Ratio: 0.39

Average Trading Volume

The average daily trading volume for CSA is moderate, which can impact the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread for CSA can vary based on market conditions and trading volume, and it reflects the cost of immediacy for traders.

Market Environment Factors

Economic indicators, small-cap sector performance, and overall market volatility significantly affect CSA's performance. Small-cap stocks are generally more sensitive to economic cycles.

Growth Trajectory

The growth trajectory depends on small-cap market performance and investor demand for volatility-weighted strategies. Changes in strategy or holdings would be reflected in the fund's factsheet.

Competitive Edge

CSA's competitive advantage lies in its unique volatility-weighted methodology within the small-cap universe, potentially providing a smoother investment experience. This approach aims to reduce portfolio volatility and enhance risk-adjusted returns. The fund's focus on lower volatility stocks may make it appealing to risk-averse investors. The strategy could outperform cap-weighted indexes during periods of market turbulence.

Volatility

CSA aims to reduce volatility compared to a traditional small-cap index, but it still carries small-cap market risk.

Market Risk

Specific market risks include small-cap volatility, sector concentration, and macroeconomic factors affecting small businesses.

Ideal Investor Profile

The ideal investor for CSA is someone seeking exposure to US small-cap stocks with a focus on lower volatility. This may include risk-averse investors, retirees, or those seeking to diversify their portfolio.

Market Risk

CSA is more suitable for long-term investors seeking potentially smoother returns compared to traditional small-cap ETFs.

The VictoryShares US Small Cap Volatility Wtd ETF (CSA) provides exposure to US small-cap stocks using a volatility-weighted methodology, aiming to reduce overall portfolio volatility. Its expense ratio is 0.39%, and its performance is tied to the Nasdaq Victory US Small Cap 1600 Volatility Weighted Index. While the ETF is competing with similar small-cap ETFs like XSLV and SQLV, CSA's unique strategy might suit risk-averse investors. CSA would be suitable for the long-term investor who is more risk-averse but desires exposure to small-cap stocks.

• XSLV
• SQLV
• IJS
• VBR

Data Sources:

• Victory Capital Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are 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 can fluctuate, so past performance does not guarantee future results.