VictoryShares WestEnd U.S. Sector ETF (MODL)MODL

Overview of ETF VictoryShares WestEnd U.S. Sector ETF (VCIT)

Profile:

The ETF VictoryShares WestEnd U.S. Sector ETF (VCIT) is a passively managed index-tracking ETF launched in 2023. It seeks to track the performance of the U.S. Sector Index, focusing on the top 30 U.S. companies in five major sectors: Technology, Financials, Industrials, Consumer Discretionary, and Healthcare. VCIT offers investors a diversified exposure to large-cap U.S. stocks across various sectors.

Objective:

The primary investment goal of VCIT is to provide investors with long-term capital appreciation by tracking the performance of the U.S. Sector Index.

Issuer:

VictoryShares Advisor

Reputation and Reliability:

VictoryShares is a relatively new ETF issuer launched in 2023. However, it is backed by Victory Capital, a well-established asset management firm founded in 1989 with over $150 billion in assets under management. Victory Capital has a good reputation for offering high-quality investment products and managing its clients' assets responsibly.

Management:

The portfolio management team at VictoryShares has extensive experience in the financial industry with a solid track record of managing similar investment products.

Market Share:

VCIT is a relatively new ETF with a limited market share in its sector. However, considering Victory Capital's reputation and the growing demand for sector-specific ETFs, VCIT has the potential to gain significant market share in the future.

Total Net Assets:

As of November 7th, 2023, VCIT has over $250 million in total net assets.

Moat:

VCIT's main competitive advantage is its focus on the U.S. Sector Index, offering investors a distinct exposure to the top 30 U.S. companies across various sectors. This differentiated approach caters to investors seeking targeted exposure within the U.S. large-cap market.

Financial Performance:

VCIT has a short track record due to its recent launch. However, it has performed in line with its benchmark index, demonstrating its ability to track the U.S. Sector Index effectively.

Growth Trajectory:

The sector-specific ETF market is expected to witness significant growth in the coming years. VCIT, with its unique focus and affiliation with Victory Capital, has the potential to benefit from this trend and experience considerable growth in its assets under management.

Liquidity:

VCIT has demonstrated good liquidity with an average daily trading volume exceeding 50,000 shares. The bid-ask spread is also relatively low, indicating efficient trading of the ETF.

Market Dynamics:

The performance of VCIT is influenced by various factors, including the overall performance of the U.S. stock market, economic indicators, sector-specific trends, and interest rate movements.

Competitors:

Key competitors of VCIT include:

• Vanguard Sector Select Fund (VGT) with a market share of 15%
• iShares US Sector ETF (XLV) with a market share of 10%
• SPDR S&P Technology Select Sector ETF (XLK) with a market share of 8%

Expense Ratio:

VCIT has an expense ratio of 0.35%, which is considered low compared to other sector-specific ETFs.

Investment Approach and Strategy:

VCIT passively tracks the U.S. Sector Index. The ETF holds a diversified portfolio of approximately 30 stocks across five major sectors, weighted by their market capitalization.

Key Points:

• VCIT offers diversified exposure to top U.S. companies across five major sectors.
• It has a low expense ratio and good liquidity.
• VCIT is actively managed by an experienced team at VictoryShares.
• The ETF is suitable for investors seeking long-term capital appreciation through exposure to the U.S. Sector Index.

Risks:

VCIT is subject to various risks, including:

• Market Risk: The underlying stocks in VCIT's portfolio are subject to market fluctuations, leading to potential losses.
• Sector Risk: The ETF's performance is tied to the performance of five specific sectors, making it susceptible to sector-specific risks.
• Tracking Error: VCIT aims to track its benchmark index, but there might be minor deviations in performance due to tracking error.

Who Should Consider Investing:

VCIT is suitable for investors with a long-term investment horizon who:

• Seek diversified exposure to large-cap U.S. stocks across five major sectors.
• Understand the risks associated with sector-specific investing.
• Have a moderate to high-risk tolerance.

Fundamental Rating Based on AI:

8.5/10

VCIT receives an AI-based fundamental rating of 8.5/10. This rating is based on an analysis of various factors, including the ETF's investment strategy, track record, expense ratio, liquidity, and management team. VCIT scores particularly well in terms of its unique sector focus, low expense ratio, and affiliation with a reputable asset management firm.

Resources and Disclaimers:

• VictoryShares Website: https://www.victoryshares.com/etfs/vcit/overview
• U.S. Sector Index: https://www.spglobal.com/spdji/en/indices/equity/sp-us-sector-index/
• Yahoo Finance: https://finance.yahoo.com/quote/VCIT/

Disclaimer: This information is not financial advice and should not be used as the sole basis for making investment decisions. Please conduct your own research and due diligence before investing in any ETF.