VictoryShares WestEnd Global Equity ETF (GLOW)

ETF VictoryShares WestEnd Global Equity ETF (VGQE)

Profile: VGQE is an actively managed ETF that invests in a globally diversified portfolio of large-cap, high-quality, dividend-paying stocks. The fund utilizes a fundamental, bottom-up stock selection process, focusing on companies with strong financials, sustainable competitive advantages, and attractive valuations.

Objective: VGQE aims to generate long-term capital appreciation and current income through investment in global equity securities.

Issuer: Victory Capital Management (VC)

• Reputation: VC is a renowned investment firm with over 30 years of experience managing assets for individuals and institutions.
• Reliability: VC boasts a solid reputation for delivering consistent investment results.
• Management: The ETF is actively managed by a team of experienced portfolio managers with expertise in global equity investing.

Market Share: VGQE holds a small market share within the global equity ETF space.

Total Net Assets: approximately $300 million (as of October 27, 2023)

Moat:

• Active Management: VGQE offers the potential to outperform the market through active stock selection and portfolio management.
• Focus on Quality & Value: The ETF targets companies with strong fundamentals and attractive valuations, potentially mitigating downside risk.
• Global Diversification: Global exposure may dampen volatility and offer access to growth opportunities in diverse markets.

Financial Performance: VGQE has outperformed its benchmark (MSCI ACWI Index) since its inception in 2020. While past performance doesn't guarantee future results, it offers a positive historical track record.

Growth Trajectory: The global equity market, VGQE's target market, is projected to witness steady growth in the coming years.

Liquidity: VGQE's average daily trading volume is sufficient to ensure liquidity for most investors. The bid-ask spread is also relatively tight, indicating low transaction costs.

Market Dynamics: Economic growth, interest rate trends, and global events significantly influence VGQE's market environment.

Competitors: iShares Core MSCI World ETF (IWDA), Vanguard FTSE Developed World ETF (VEA), SPDR Portfolio Developed World ETF (PWLD)

Expense Ratio: 0.64%

Investment Approach and Strategy:

• Strategy: Actively managed, seeking to outperform the MSCI ACWI Index by selecting high-quality, global large-cap equities.
• Composition: Primarily invests in stocks issued by companies around the world with large market capitalizations.

Key Points:

• Focus on high-quality, dividend-paying stocks.
• Actively managed for potential outperformance.
• Globally diversified to mitigate risk.
• Attractive expense ratio.

Risks:

• Market Volatility: Global stock markets can fluctuate significantly, impacting VGQE's value.
• Dividend Risk: Dividend payments may decrease or be suspended entirely due to company performance or market conditions.
• Currency Risk: Changes in exchange rates could impact the value of VGQE's holdings.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and current income.
• Investors comfortable with active management and potential outperformance.
• Investors with a global investment perspective.

Fundamental Rating Based on AI (1-10): 7.5

VGQE exhibits strong fundamentals. AI analysis indicates its portfolio construction, active management approach, and global diversification position the ETF favorably in the long run. However, the relatively small market share and limited track record warrant a slightly lower rating.

Resources:

• VictoryShares WestEnd Global Equity ETF website: https://www.victoryetfs.com/vgqe
• Morningstar VGQE ETF report: https://www.morningstar.com/etfs/arcx/vgqe/quote
• ETF.com VGQE ETF overview: https://www.etf.com/etfanalytics/fund-profile/VGQE

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Always conduct your own research and due diligence before making any investment decisions.