VictoryShares Emerging Markets Value Momentum ETF (UEVM)

Overview

The VictoryShares Emerging Markets Value Momentum ETF (CEVY) focuses on emerging market equities that exhibit both value and momentum characteristics. It aims to provide investors with exposure to companies in developing economies that are believed to be undervalued and demonstrating upward price trends, seeking to capture potential growth and capital appreciation.

Reputation and Reliability

VictoryShares, the issuer, is known for its systematic, rules-based ETF strategies, aiming to provide quantitative investment solutions. They have a growing presence in the ETF market.

Management Expertise

VictoryShares employs a quantitative approach to portfolio construction, relying on algorithms and data analysis to identify investment opportunities rather than traditional discretionary management.

Goal

To seek long-term capital appreciation by investing in a portfolio of emerging market equities that exhibit both value and momentum factors.

Investment Approach and Strategy

Strategy: The ETF utilizes a quantitative methodology to screen and select securities based on proprietary value and momentum factor models. It aims to track the performance of a custom index designed to capture these factors.

Composition The ETF primarily holds common stocks of companies located in emerging market countries. The specific allocation can shift based on the quantitative model's signals for value and momentum.

Market Share: Information on the specific market share of CEVY within the broader emerging markets ETF landscape is not readily available or publicly disclosed in a granular format.

Total Net Assets (AUM): [object Object]

Key Competitors

• iShares Core MSCI Emerging Markets ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares MSCI Emerging Markets Value ETF (EVAL)
• SPDR Portfolio Emerging Markets ETF (SPEM)

Competitive Landscape

The emerging markets ETF space is highly competitive, dominated by large-cap, broad-market index ETFs. CEVY competes by offering a specific factor-based approach (value and momentum), which appeals to a niche of investors seeking to outperform broad indices. Its smaller AUM compared to giants like IEMG and VWO might indicate less liquidity and potentially higher trading costs for large institutional investors. However, its specialized strategy could be an advantage for investors specifically targeting value and momentum plays in emerging markets.

Historical Performance: Historical performance data for CEVY shows varied results. Over the past year, it has demonstrated competitive returns, often outperforming broader emerging markets benchmarks. However, longer-term performance can be more volatile due to the inherent risks of emerging markets and factor-based investing. Specific numerical data for various periods is available through financial data providers.

Benchmark Comparison: CEVY's performance is typically benchmarked against a proprietary index that captures value and momentum factors in emerging markets. Its effectiveness is gauged by its ability to outperform this specific factor-based benchmark, and often, broader emerging market indices over various time horizons.

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Average Trading Volume

The ETF's average daily trading volume is moderate, suggesting sufficient liquidity for most retail investors but potentially less so for very large institutional trades.

Bid-Ask Spread

The bid-ask spread for CEVY is generally in line with other emerging market ETFs of similar size, implying a reasonable cost for active trading.

Market Environment Factors

CEVY is influenced by global economic growth, geopolitical stability in emerging markets, currency fluctuations, interest rate policies of emerging market central banks, and investor sentiment towards riskier assets. Sector performance within emerging markets also plays a significant role.

Growth Trajectory

The ETF's growth trajectory is tied to the broader adoption of factor-based investing strategies and the performance of emerging markets. Shifts in global investment flows and economic conditions in developing countries can impact its holdings and strategy execution.

Competitive Edge

CEVY's competitive edge lies in its specific focus on the dual strategy of value and momentum in emerging markets. This quantitative, rules-based approach aims to systematically identify and invest in promising companies, potentially offering an alpha generation opportunity. By targeting a specific segment of the market, it aims to provide a differentiated exposure compared to broad-based emerging market ETFs.

Volatility

As an emerging markets ETF with a factor-based strategy, CEVY exhibits higher historical volatility compared to developed market ETFs or broad market indices. Its performance can be subject to significant swings due to economic and political risks in emerging countries and the inherent volatility of value and momentum factors.

Market Risk

Specific market risks for CEVY include currency depreciation, political instability, regulatory changes, and economic downturns within the emerging markets it invests in. The value and momentum factors themselves can also experience periods of underperformance.

Ideal Investor Profile

The ideal investor for CEVY is one seeking exposure to emerging markets with an intent to capitalize on both undervalued companies and those showing upward price trends. This investor likely has a higher risk tolerance and understands the nuances of factor-based investing.

Market Risk

CEVY is best suited for long-term investors who believe in the growth potential of emerging markets and are comfortable with the additional volatility and risk associated with factor-based strategies. It's less suitable for short-term traders or those seeking very low-volatility investments.

The VictoryShares Emerging Markets Value Momentum ETF (CEVY) offers a specialized approach to emerging market equities by focusing on companies exhibiting both value and momentum characteristics. While facing a competitive landscape dominated by broad-market ETFs, CEVY aims to provide differentiated returns through its quantitative strategy. Investors should be aware of the higher volatility associated with emerging markets and factor-based investing, making it best suited for risk-tolerant, long-term investors.

Data Sources:

• VictoryShares Official Website
• Financial Data Aggregators (e.g., Morningstar, Bloomberg)
• ETF Provider Filings

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before making investment decisions.