Victory Portfolios II - VictoryShares ESG Core Plus Bond ETF (UBND)

Overview

The VictoryShares ESG Core Plus Bond ETF (UBND) seeks to provide investment results that track the performance of the Bloomberg Barclays US Aggregate ESG Exclusions Select Index. It focuses on investment-grade U.S. bonds while integrating environmental, social, and governance (ESG) considerations. The ETF aims to outperform the broader bond market by selectively excluding issuers with lower ESG scores.

Reputation and Reliability

Victory Capital is a well-regarded asset manager with a growing presence in the ETF space. They are known for their actively managed and rules-based strategies.

Management Expertise

Victory Capital has a team of experienced fixed-income portfolio managers who specialize in ESG integration and active bond management.

Goal

The primary investment goal of UBND is to seek investment results that closely correspond, before fees and expenses, to the performance of the Bloomberg Barclays US Aggregate ESG Exclusions Select Index.

Investment Approach and Strategy

Strategy: The ETF aims to track a specific index, the Bloomberg Barclays US Aggregate ESG Exclusions Select Index, while employing ESG exclusions.

Composition The ETF primarily holds investment-grade U.S. bonds, including government, corporate, and securitized debt, with ESG considerations integrated into the selection process.

Market Share: Data not readily available for this specific ETF's market share.

Total Net Assets (AUM): 54700000

Key Competitors

• iShares ESG Aware USD Corporate Bond ETF (SUSC)
• Vanguard ESG U.S. Corporate Bond ETF (VCF)
• Xtrackers USD Investment Grade Corporate Bond ETF (LQD)

Competitive Landscape

The ESG bond ETF market is competitive, with major players like iShares and Vanguard offering similar products. UBND differentiates itself through its specific ESG exclusion methodology and active management potential. Competitors may have lower expense ratios, but UBND could potentially offer higher returns through active management and differentiated ESG approach.

Historical Performance: Historical performance data should be reviewed from official fund fact sheets and financial data providers for accurate returns over various time periods.

Benchmark Comparison: The ETF's performance should be compared to the Bloomberg Barclays US Aggregate ESG Exclusions Select Index to assess its tracking efficiency.

Expense Ratio: 0.15

Average Trading Volume

The average trading volume of UBND is relatively moderate, indicating decent but not exceptional liquidity.

Bid-Ask Spread

The bid-ask spread for UBND can vary, but generally, it's relatively tight, indicating reasonable trading costs.

Market Environment Factors

Economic indicators such as interest rates, inflation, and credit spreads significantly impact the performance of UBND. Market sentiment toward ESG investing also plays a crucial role.

Growth Trajectory

The growth trajectory of UBND depends on the increasing demand for ESG-focused investment products and its ability to outperform its benchmark index.

Competitive Edge

UBND's competitive advantage lies in its combination of core bond exposure with a specific ESG exclusion methodology. This allows investors to gain broad market exposure while aligning their investments with ESG principles. The active management aspect also provides the potential for outperformance compared to passively managed ESG bond ETFs. The ESG focus provides a niche market for socially conscious investors.

Volatility

UBND's volatility is expected to be similar to that of the broader investment-grade bond market. Interest rate risk and credit risk are the primary sources of volatility.

Market Risk

The ETF is subject to market risk, including interest rate risk, credit risk, and liquidity risk, all common to bond investments. Additionally, there is the risk that the ESG exclusions may negatively impact performance relative to the broader market.

Ideal Investor Profile

The ideal investor for UBND is one seeking core bond exposure with a focus on ESG considerations. This ETF is suitable for investors who want to align their investments with their values without sacrificing broad market access.

Market Risk

UBND is best suited for long-term investors who prioritize ESG factors and are looking for relatively stable returns from investment-grade bonds.

VictoryShares ESG Core Plus Bond ETF (UBND) offers exposure to the U.S. investment-grade bond market with an ESG focus. It aims to track the Bloomberg Barclays US Aggregate ESG Exclusions Select Index, offering socially conscious investors a core fixed-income allocation. The ETF's performance is subject to interest rate and credit risk, as well as the impact of its ESG exclusions. UBND is most appropriate for long-term investors seeking a relatively stable and responsible investment option.

Data Sources:

• Victory Capital Website
• Bloomberg
• ETF.com
• Morningstar

Disclaimers:

The data provided is 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.