VictoryShares International Value Momentum ETF (UIVM)

Overview of VictoryShares International Value Momentum ETF (VVLU)

Profile: VVLU is an actively managed exchange-traded fund (ETF) focusing on international developed market equities with both value and momentum characteristics. It seeks to invest in companies with attractive valuations and strong price momentum potential.

Objective: The primary investment goal of VVLU is to achieve long-term capital appreciation by investing in a diversified portfolio of international value and momentum stocks.

Issuer: VictoryShares is a relatively new ETF issuer founded in 2021. They are a subsidiary of Victory Capital Management, a larger asset management firm with over $170 billion in assets under management.

Reputation and Reliability: Victory Capital has a solid reputation in the financial industry, having been recognized for its strong investment performance and client service. However, as a new ETF issuer, VictoryShares still has to establish a longer track record.

Management: VVLU is managed by a team of experienced portfolio managers at Victory Capital. The team has a strong track record of success in managing international and value-oriented investment strategies.

Market Share: VVLU is a relatively small ETF with approximately $50 million in assets under management. Its market share in the international value/momentum ETF space is still very small.

Total Net Assets: $50 million (as of 2023-10-26)

Moat: VVLU's primary competitive advantage is its unique investment strategy that combines value and momentum characteristics. This approach aims to capture the potential upside of value stocks while also benefiting from the momentum of stocks with strong price trends.

Financial Performance: VVLU has a short track record, having launched in January 2023. Since its inception, the ETF has outperformed its benchmark, the MSCI EAFE Value Momentum Index, by a small margin.

Benchmark Comparison: VVLU's performance has been slightly better than its benchmark. However, it is important to note that the ETF has a short track record and past performance may not be indicative of future results.

Growth Trajectory: VVLU is a new ETF and its future growth trajectory is uncertain. However, the increasing popularity of factor-based investing and the strong track record of the management team suggest positive potential.

Liquidity: VVLU has a relatively low average trading volume, which may result in higher bid-ask spreads and difficulty in executing large trades.

Market Dynamics: The ETF's market environment is influenced by various factors, including global economic conditions, interest rate fluctuations, and geopolitical events. These factors can impact the performance of international value and momentum stocks.

Competitors: VVLU's key competitors include:

• iShares International Developed Value Momentum Factor ETF (IDVM)
• SPDR International Momentum ETF (IMOM)
• Xtrackers MSCI EAFE Value Momentum Factor UCITS ETF (XDVM)

Expense Ratio: VVLU has an expense ratio of 0.50%.

Investment Approach and Strategy: VVLU employs an active management approach to identify international value stocks with strong price momentum potential. The ETF uses a quantitative model to score stocks based on their value and momentum characteristics.

Composition: VVLU primarily invests in large-cap and mid-cap stocks from developed markets outside the United States. The ETF holds a diversified portfolio of approximately 200 stocks across various sectors.

Key Points:

• Focus on international value and momentum stocks
• Actively managed with a quantitative approach
• Relatively small size and low trading volume
• Short track record with positive performance compared to benchmark

Risks:

• Market risk: VVLU is subject to market volatility and the performance of its underlying holdings.
• Value and momentum style risk: Value and momentum stocks may underperform during certain market conditions.
• Management risk: The success of VVLU depends on the skill and effectiveness of its management team.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation
• Investors comfortable with active management and factor-based investing
• Investors with a moderate risk tolerance
• Investors seeking exposure to international developed markets with value and momentum characteristics

Fundamental Rating Based on AI: 7/10

VVLU receives a 7 out of 10 based on its fundamentals. The ETF benefits from a strong management team, a unique investment strategy, and positive initial performance. However, its small size, low trading volume, and short track record limit its score.

This rating considers financial health based on the ETF's performance, fees, and portfolio diversification. Market position considers the ETF's size, age, and competition. Future prospects analyze the ETF's potential growth trajectory and market dynamics.

Resources and Disclaimers:

• VictoryShares website: https://victoryshares.com/etf/vvlu/
• Morningstar: https://www.morningstar.com/etfs/arcx/vvlu
• ETF Database: https://etfdb.com/etf/vvlu/

This analysis is for informational purposes only and should not be considered as investment advice. Please consult with a qualified financial professional before making any investment decisions.