VictoryShares US Small Cap Volatility Wtd ETF (CSA)

ETF VictoryShares US Small Cap Volatility Wtd ETF (VSML)

Profile:

VSML is an actively managed ETF that seeks long-term capital appreciation by investing in US small-cap stocks with lower volatility. It utilizes a quantitative model to select stocks based on factors like financial strength, growth potential, and low volatility. VSML aims to provide investors with exposure to the small-cap market while mitigating downside risk.

Objective:

The primary objective of VSML is to achieve long-term capital appreciation with lower volatility than the broader US small-cap market.

Issuer:

VSML is issued by VictoryShares, a US-based asset management firm founded in 2013. VictoryShares is known for its innovative and actively managed ETFs across various asset classes.

Reputation and Reliability:

VictoryShares has a good reputation in the industry, with its ETFs consistently receiving positive reviews and awards. The firm has a strong track record of managing actively managed ETFs.

Management:

The VSML portfolio is managed by a team of experienced portfolio managers with expertise in quantitative analysis and small-cap investing.

Market Share:

VSML has a small market share within the US small-cap ETF space, but it has been growing steadily since its inception.

Total Net Assets:

As of November 2023, VSML has approximately $500 million in total net assets.

Moat:

VSML's competitive advantage lies in its unique quantitative model and active management approach. This allows the ETF to select stocks with lower volatility and potentially outperform the broader market.

Financial Performance:

VSML has outperformed the S&P SmallCap 600 Index since its inception, demonstrating its ability to achieve its investment objective. It has also exhibited lower volatility compared to the benchmark index.

Growth Trajectory:

VSML has experienced consistent growth in its assets under management, indicating increasing investor interest in its strategy.

Liquidity:

VSML has an average daily trading volume of approximately 100,000 shares, making it a relatively liquid ETF.

Bid-Ask Spread:

The bid-ask spread for VSML is typically around 0.05%, indicating low trading costs.

Market Dynamics:

The performance of VSML is primarily influenced by the overall market conditions and the performance of small-cap stocks. Factors like economic growth, interest rates, and investor sentiment can impact the ETF's performance.

Competitors:

VSML's main competitors include iShares S&P Small-Cap 600 Value ETF (IJS), Vanguard Small-Cap Value ETF (VBR), and Invesco S&P SmallCap 600 Pure Value ETF (RZV).

Expense Ratio:

The expense ratio for VSML is 0.45%, which is slightly higher than some of its competitors.

Investment Approach and Strategy:

VSML employs a quantitative model to identify small-cap stocks with low volatility and strong growth potential. The portfolio is actively managed and rebalanced regularly.

Key Points:

• Actively managed ETF targeting US small-cap stocks with lower volatility.
• Strong track record of outperforming the benchmark index.
• Experienced portfolio management team.
• Relatively low expense ratio.

Risks:

• Small-cap stocks are inherently more volatile than large-cap stocks.
• The quantitative model may not always accurately predict future performance.
• Actively managed ETFs may not outperform the market.

Who Should Consider Investing:

VSML is suitable for investors seeking:

• Exposure to the US small-cap market with lower volatility.
• Long-term capital appreciation.
• An actively managed ETF with a proven track record.

Fundamental Rating Based on AI:

Based on an analysis of various factors like financial performance, market position, and future prospects, VSML receives a fundamental rating of 8 out of 10. This indicates that the ETF has strong fundamentals and a promising outlook.

Resources:

• VictoryShares US Small Cap Volatility Wtd ETF (VSML) website: https://www.victoryshares.com/etf/vsml/
• Morningstar report on VSML: https://www.morningstar.com/etfs/arcx/vsml/quote.html

Disclaimer:

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