VictoryShares US Small Cap High Div Volatility Wtd ETF (CSB)

Overview

The VictoryShares US Small Cap High Div Volatility Wtd ETF (CSB) seeks to provide investment results that track the performance of the Nasdaq Victory US Small Cap High Dividend 100 Volatility Weighted Index. The fund invests in a portfolio of US small-cap stocks that exhibit both high dividend yields and relatively low volatility. It aims to deliver a balance of income and capital appreciation by weighting its holdings based on their volatility.

Reputation and Reliability

VictoryShares is a part of Victory Capital Management, a well-regarded asset management firm with a history of providing investment solutions. They are known for their quantitative and rules-based investment strategies.

Management Expertise

Victory Capital has a team of experienced portfolio managers and analysts dedicated to managing ETFs. They bring expertise in quantitative investing and factor-based strategies.

Goal

The primary investment goal of CSB is to track the Nasdaq Victory US Small Cap High Dividend 100 Volatility Weighted Index and to provide investment results that correspond to the price and yield performance of the index.

Investment Approach and Strategy

Strategy: CSB tracks the Nasdaq Victory US Small Cap High Dividend 100 Volatility Weighted Index, a rules-based index that selects and weights US small-cap stocks based on dividend yield and volatility.

Composition The ETF holds a diversified portfolio of small-cap stocks selected for their high dividend yields and relatively low volatility. The weighting is based on volatility, with lower-volatility stocks receiving higher allocations.

Market Share: Insufficient data available to accurately determine the exact market share of CSB in its sector.

Total Net Assets (AUM): 177530826

Key Competitors

• Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD)
• WisdomTree US SmallCap Dividend Fund (DES)
• SPDR S&P SmallCap Dividend ETF (SDIV)

Competitive Landscape

The competitive landscape consists of several ETFs focusing on small-cap dividend-paying stocks. CSB differentiates itself by weighting its holdings based on volatility, potentially offering a less volatile exposure compared to competitors. However, XSHD and DES may have different screening criteria for dividend yield and volatility, leading to varying performance characteristics. CSB's AUM is smaller, indicating less investor acceptance compared to its competitors.

Historical Performance: Insufficient data available to accurately present historical financial performance data.

Benchmark Comparison: Insufficient data available to compare the ETF's performance to its benchmark index.

Expense Ratio: 0.35

Average Trading Volume

The ETF's average trading volume provides insights into how easily shares can be bought or sold without significantly impacting the market price.

Bid-Ask Spread

The bid-ask spread offers information on the cost of trading the ETF, with a narrower spread indicating greater liquidity.

Market Environment Factors

CSB's performance is influenced by factors such as the overall health of the US economy, the performance of small-cap stocks, and interest rate movements. Changes in dividend policies of underlying companies can also impact its returns.

Growth Trajectory

The ETF's growth trajectory depends on its ability to attract investor interest in its high dividend, low volatility strategy. Changes to the underlying index methodology and adjustments to its holdings can impact the fund's performance and investor perception.

Competitive Edge

CSBu2019s competitive advantage lies in its dual focus on high dividend yields and low volatility within the small-cap universe. The volatility-weighted methodology can provide a smoother ride for investors compared to market-cap or dividend-yield weighted approaches. This approach might appeal to risk-averse investors seeking income. The fund's exposure to the small-cap segment offers diversification benefits and potential for long-term growth.

Volatility

The ETF's volatility is influenced by the volatility of its underlying holdings and the effectiveness of its volatility-weighting methodology.

Market Risk

Specific risks include small-cap risk (higher volatility), dividend risk (dividend cuts), and sector concentration risk (if the fund is heavily weighted in specific sectors).

Ideal Investor Profile

The ideal investor is a risk-averse investor seeking income and capital appreciation from small-cap stocks. It is suitable for investors looking for a less volatile approach to investing in small-cap companies.

Market Risk

CSB is best suited for long-term investors seeking a balance of income and growth, rather than active traders looking for short-term gains.

The VictoryShares US Small Cap High Div Volatility Wtd ETF offers investors exposure to US small-cap stocks with high dividend yields and relatively low volatility. Its volatility-weighted methodology aims to provide a smoother investment experience compared to traditional small-cap indices. It can be used as a component of a diversified portfolio to generate income and potentially reduce overall portfolio risk. However, investors should be aware of small-cap risk and dividend risk.

Data Sources:

• VictoryShares website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.