VictoryShares International Value Momentum ETF (UIVM)UIVM

ETF VictoryShares International Value Momentum ETF (VIM) Overview

Profile: VictoryShares International Value Momentum ETF (VIM) is an actively managed ETF that invests in international stocks with value and momentum characteristics. It focuses on large and mid-cap companies in developed and emerging markets outside the U.S. VIM uses a proprietary quantitative model to select stocks based on factors such as value (price-to-book ratio, price-to-earnings ratio, and free cash flow), momentum (price momentum and earnings momentum), and quality (return on equity and debt-to-equity ratio).

Objective: VIM aims to provide 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 2016. Despite its young age, the company has quickly gained recognition for its innovative and actively managed ETF strategies.

Reputation and Reliability: While VictoryShares is a relatively new firm, they partner with well-established and reputable institutions. VIM itself is advised by Gradient Investment Management, LLC, a boutique investment firm specializing in quantitative investment strategies.

Management: Gradient Investment Management's team consists of experienced portfolio managers with strong track records in quantitative investing. The team has expertise in factor analysis, portfolio construction, and risk management.

Market Share and Total Net Assets: As of October 26, 2023, VIM has approximately $1.2 billion in assets under management and holds a small market share within the international value and momentum ETF category.

Moat: VIM's competitive advantage lies in its unique combination of value and momentum factors. The proprietary quantitative model allows for a disciplined and systematic approach to stock selection, aiming to identify undervalued companies with strong growth potential.

Financial Performance:

• Historical Performance: Since its inception in 2018, VIM has generated an annualized return of 10.5%. However, it's important to note that past performance is not indicative of future results.
• Benchmark Comparison: VIM has outperformed its benchmark, the MSCI EAFE Value Momentum Index, over the same period.

Growth Trajectory: The increasing interest in factor investing and the positive track record of VIM suggest potential for continued growth.

Liquidity: VIM has an average daily trading volume of approximately 50,000 shares, indicating moderate liquidity. The bid-ask spread is also relatively tight, implying low trading costs.

Market Dynamics: Factors affecting VIM's market environment include global economic growth, interest rate fluctuations, and market volatility.

Competitors: Key competitors in the international value and momentum ETF space include iShares Edge MSCI International Value Factor ETF (IVAL), Xtrackers MSCI International Quality Value Factor UCITS ETF (IXVL), and VanEck International Value Momentum ETF (PVI).

Expense Ratio: VIM's expense ratio is 0.65%, which is slightly higher than the average for international value and momentum ETFs.

Investment Approach and Strategy: VIM uses a quantitative model to select stocks based on value, momentum, and quality factors. The portfolio is actively managed, and the underlying holdings may change over time.

Key Points:

• Actively managed international value and momentum ETF
• Invests in large and mid-cap companies outside the U.S.
• Proprietary quantitative model for stock selection
• Outperformed benchmark index since inception
• Moderate liquidity and competitive expense ratio

Risks:

• Market Risk: VIM's performance is tied to the performance of international stock markets, which can be volatile.
• Value and Momentum Style Risk: The value and momentum style of investing can underperform other styles during certain market conditions.
• Active Management Risk: The success of VIM depends on the effectiveness of its quantitative model and the skill of its portfolio managers.

Who Should Consider Investing: VIM is suitable for investors seeking long-term capital appreciation through exposure to international value and momentum stocks. It may be appropriate for investors with a higher risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI analysis of VIM's financial health, market position, and future prospects, we assign a rating of 7 out of 10. This rating is supported by the ETF's strong track record, experienced management team, and unique investment approach. However, investors should be aware of the risks associated with international markets and actively managed strategies.

Resources:

• VictoryShares International Value Momentum ETF (VIM): https://www.victoryshares.com/etfs/vim/
• Gradient Investment Management: https://www.gradientinvestments.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/vim/quote

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.