VictoryShares US Discovery Enhanced Volatility Wtd ETF (CSF)

Overview

The VictoryShares US Discovery Enhanced Volatility Wtd ETF (CSF) aims to provide investment results that closely correspond, before fees and expenses, to the performance of the Nasdaq Victory US Small Cap Discovery Enhanced Volatility Weighted Index. It focuses on small-cap stocks in the US market, weighting them based on volatility. The ETF seeks to enhance returns by overweighting less volatile stocks.

Reputation and Reliability

VictoryShares is part of Victory Capital Management, a well-established asset management firm with a solid track record. They are known for their quantitative and rules-based investment strategies.

Management Expertise

Victory Capital has a dedicated team of investment professionals experienced in managing ETFs and quantitative investment strategies.

Goal

The ETF aims to track the Nasdaq Victory US Small Cap Discovery Enhanced Volatility Weighted Index.

Investment Approach and Strategy

Strategy: The ETF uses a rules-based approach to select and weight small-cap stocks based on their volatility, aiming to overweight less volatile stocks and underweight more volatile ones.

Composition The ETF primarily holds small-cap stocks in the United States.

Market Share: Market share within its specific niche of volatility-weighted small-cap ETFs is moderate, with several competitors.

Total Net Assets (AUM): 179646935

Key Competitors

• Invesco S&P SmallCap Low Volatility ETF (XSLV)
• SPDR Russell 2000 Low Volatility ETF (SMLV)

Competitive Landscape

The competitive landscape is moderate with a few ETFs competing for investors seeking lower volatility exposure within the small-cap space. CSF differentiates itself through its specific index and weighting methodology. Competitors like XSLV and SMLV track different low volatility indices, providing alternative exposures. CSF may offer a unique risk/return profile due to its particular weighting scheme compared to capitalization weighting that some competitors might use.

Historical Performance: Historical performance varies depending on the time period and market conditions. Detailed historical data is available from financial data providers. Recent performance is impacted by broader market fluctuation of small caps.

Benchmark Comparison: The ETF's performance should be compared to the Nasdaq Victory US Small Cap Discovery Enhanced Volatility Weighted Index to assess tracking effectiveness. Further comparison against standard small cap indexes such as the Russell 2000 will show the effect of the low volatility weighting.

Expense Ratio: 0.39

Average Trading Volume

The average trading volume for CSF is moderate, which might affect the ease of trading large positions.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting reasonable liquidity.

Market Environment Factors

Economic growth, interest rate movements, and investor sentiment towards small-cap stocks all affect the ETF's performance. Broader market volatility and sector-specific trends also play a role.

Growth Trajectory

The ETF's growth depends on investor demand for lower-volatility small-cap exposure and the effectiveness of its weighting methodology.

Competitive Edge

CSF's competitive advantage lies in its unique volatility-weighted approach to small-cap investing, potentially offering a smoother ride than traditional market-cap-weighted small-cap funds. The index it tracks is distinct, and it aims for reduced volatility within the small cap asset class. The rules-based approach ensures consistent application of the investment strategy, and it may appeal to investors seeking a less volatile small-cap experience.

Volatility

Volatility is expected to be lower than that of a standard small-cap index, but it still carries small-cap risk.

Market Risk

The ETF is subject to market risk, particularly related to small-cap stocks and potential economic downturns.

Ideal Investor Profile

The ideal investor is risk-averse, looking for exposure to small-cap stocks with potentially reduced volatility. Investors seeking diversification with an emphasis on downside protection in the small-cap segment may find this ETF suitable.

Market Risk

This ETF might suit long-term investors who want small-cap exposure but are concerned about volatility. It is less appropriate for very active traders due to its specific strategy.

VictoryShares US Discovery Enhanced Volatility Wtd ETF (CSF) offers exposure to US small-cap stocks with a volatility-weighted approach. This strategy aims to reduce overall portfolio volatility compared to traditional market-cap-weighted small-cap indexes. Its rules-based methodology ensures consistency and transparency. The ETF is suitable for risk-averse investors seeking participation in the small-cap market with potentially lower volatility. Performance will be influenced by broader market conditions, economic factors, and the ETF's specific weighting strategy.

• XSLV
• SMLV
• FVAL
• USMV

Data Sources:

• VictoryShares Website
• Nasdaq Website
• Yahoo Finance
• Morningstar

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. Consult with a qualified financial advisor before making any investment decisions.