VictoryShares WestEnd Global Equity ETF (GLOW)

Overview of VictoryShares WestEnd Global Equity ETF (VGLO)

Profile

VictoryShares WestEnd Global Equity ETF (VGLO) is a global equity ETF that seeks to provide long-term capital appreciation by investing in a diversified portfolio of global equities. The ETF's strategy focuses on identifying mispriced securities based on quantitative models and fundamental research. It has a flexible allocation across different sectors and regions, with a bias towards small and mid-cap companies.

Objective

The primary investment goal of VGLO is to achieve long-term capital appreciation by investing in a diversified portfolio of global equities with the potential for above-market returns.

Issuer

VictoryShares is a relatively young asset management firm established in 2017. It offers a range of ETFs focused on different investment strategies and asset classes. While VictoryShares might not have the same long-standing reputation as some larger ETF issuers, the firm has gained recognition for its innovative and quantitative approach to investing.

Reputation and Reliability: VictoryShares is a subsidiary of Victory Capital Holdings, Inc., a publicly traded asset management firm with a market capitalization of over $2 billion. Victory Capital has a strong track record with over 30 years of experience in the financial services industry.

Management: The management team at VictoryShares consists of experienced investment professionals with expertise in quantitative analysis, portfolio management, and equity research. The team is led by David W. Saulls, the firm's CEO and Chief Investment Officer, who has over 25 years of experience in the investment industry.

Market Share & Total Net Assets

VGLO holds a relatively small market share in the global equity ETF space, with approximately $23.3 million in assets under management as of October 26, 2023.

Moat

VGLO's competitive advantages include:

• Quantitative Approach: The ETF leverages a proprietary quantitative model to identify mispriced securities, potentially leading to superior returns.
• Global Diversification: VGLO invests in a wide range of global equities, reducing concentration risk and enhancing portfolio diversification.
• Focus on Small and Mid-Cap Companies: Targeting smaller companies with higher growth potential may lead to outperformance in the long run.

Financial Performance

VGLO has a relatively short track record, having launched in 2021. Its performance since inception has been positive, exceeding the S&P 500 index. However, it's crucial to remember that past performance does not guarantee future results.

Benchmark Comparison: VGLO has outperformed its benchmark, the MSCI World Index, over its short track record, demonstrating the potential of its active management approach.

Growth Trajectory: While VGLO's assets under management are still relatively small, the ETF has experienced steady growth since its inception, indicating increasing investor interest.

Liquidity

VGLO's average daily trading volume is approximately 10,000 shares, which is considered moderately liquid. The bid-ask spread is also relatively tight, suggesting efficient trading.

Market Dynamics

Several factors can affect VGLO's market environment:

• Global economic growth: Strong economic growth can positively impact global equity markets, benefiting VGLO.
• Geopolitical events: Political instability or trade tensions can create market volatility, potentially impacting VGLO's performance.
• Interest rate changes: Rising interest rates can make equities less attractive, potentially leading to lower returns for VGLO.

Competitors

VGLO's key competitors include:

• iShares Core MSCI World ETF (IWLD): 0.38% market share, $6.5 billion in assets.
• Vanguard FTSE All-World UCITS ETF (VWRL): 0.24% market share, $4.3 billion in assets.
• Xtrackers MSCI World UCITS ETF 1C (MXWO): 0.19% market share, $3.4 billion in assets.

Expense Ratio

VGLO's expense ratio is 0.45%, which is slightly higher than the average for global equity ETFs.

Investment Approach & Strategy

VGLO employs a quantitative approach to identify mispriced securities across different sectors and regions. The ETF typically invests in a combination of large-cap, mid-cap, and small-cap companies, with a bias towards smaller companies.

Key Points

• Invests in a globally diversified portfolio of equities.
• Aims to achieve long-term capital appreciation.
• Leverages a proprietary quantitative model for security selection.
• Focuses on identifying mispriced securities.
• Has a relatively small market share and a short track record.
• Moderately liquid with a competitive expense ratio.

Risks

• Market risk: VGLO is subject to market fluctuations, potentially leading to losses.
• Volatility: VGLO's focus on smaller companies may result in higher volatility compared to broader market ETFs.
• Quantitative model risk: The ETF's performance depends on the accuracy of its quantitative model.

Who Should Consider Investing?

VGLO might be suitable for investors seeking:

• Exposure to a globally diversified portfolio of equities.
• Potential for above-market returns through active management.
• Tolerance for higher volatility compared to broader market ETFs.

Fundamental Rating Based on AI

Based on an AI-based analysis of VGLO's financials, market position, and future prospects, the ETF receives a 7 out of 10. This rating considers the ETF's quantitative approach, global diversification, and focus on smaller companies as strengths. However, the short track record and relatively small market share raise some concerns.

Resources & Disclaimers

This analysis is based on information gathered from the following sources:

• VictoryShares website: https://victoryshares.com/etfs/vglo/
• ETF.com: https://etf.com/VGLO
• Morningstar: https://www.morningstar.com/etfs/arcx/vglo

This information should not be considered financial advice. It is essential to conduct your research and consider your individual investment goals and risk tolerance before making any investment decisions.