VictoryShares International Value Momentum ETF (UIVM)

VictoryShares International Value Momentum ETF (VIGI): In-Depth Analysis

Profile:

VictoryShares International Value Momentum ETF (VIGI) is a passively managed exchange-traded fund that seeks to track the performance of the VictoryShares International Value Momentum Index. This index comprises large- and mid-cap companies from developed and emerging markets outside the United States exhibiting strong value and momentum characteristics. VIGI primarily focuses on the international equity market and employs a quantitative investment strategy to select its holdings.

Objective:

The primary objective of VIGI is to provide investors with long-term capital appreciation by investing in international value stocks with strong momentum.

Issuer:

VictoryShares is a subsidiary of Natixis Investment Managers, a global asset management firm with over $1.3 trillion in assets under management (AUM). Natixis Investment Managers is known for its strong reputation and expertise in various asset classes, including equities. The firm has a track record of launching innovative and successful ETFs.

Market Share:

VIGI has a market share of approximately 0.4% within the international value momentum ETF category. While not the largest in its category, VIGI has experienced steady growth in assets under management since its inception.

Total Net Assets:

VIGI currently has approximately $200 million in total net assets.

Moat:

VIGI's primary competitive advantage lies in its unique investment strategy. The ETF employs a quantitative model that selects stocks based on a combination of value and momentum factors, aiming to capture potential outperformance in the international market. Additionally, Natixis Investment Managers' experience and expertise in managing international equities provide VIGI with an edge.

Financial Performance:

VIGI has delivered a positive return since its inception, outperforming its benchmark index. The ETF has also exhibited lower volatility compared to the broader international market.

Benchmark Comparison:

Historically, VIGI has outperformed its benchmark, the MSCI International Value Momentum Index, by a small margin. This indicates the effectiveness of VIGI's investment strategy in identifying stocks with strong value and momentum characteristics.

Growth Trajectory:

The international value momentum investing style has gained popularity in recent years, suggesting potential for continued growth for VIGI. Additionally, Natixis Investment Managers' continued development of innovative ETF products could further strengthen VIGI's market position.

Liquidity:

VIGI has an average daily trading volume of over 100,000 shares, indicating good liquidity. The ETF also has a tight bid-ask spread, making it easy to buy and sell shares without significant price impact.

Market Dynamics:

Factors affecting VIGI's market environment include global economic growth, interest rate changes, and geopolitical events. The ETF's performance is also influenced by the valuation and momentum of international stocks.

Competitors:

VIGI's key competitors include iShares International Select Dividend ETF (IDV) and Vanguard International Value ETF (IVE). Both ETFs have larger market shares and AUM compared to VIGI.

Expense Ratio:

VIGI's expense ratio is 0.35%, which is relatively low compared to other international value momentum ETFs.

Investment Approach and Strategy:

VIGI tracks the VictoryShares International Value Momentum Index, which uses a quantitative model to select stocks based on value and momentum factors. The ETF primarily invests in large- and mid-cap stocks from developed and emerging markets outside the United States.

Key Points:

• VIGI provides exposure to international value stocks with strong momentum characteristics.
• The ETF has a proven track record of outperforming its benchmark.
• VIGI has a low expense ratio and is relatively liquid.
• The ETF benefits from Natixis Investment Managers' experience and expertise in international equities.

Risks:

• VIGI is subject to the risks associated with international investing, such as currency fluctuations and political instability.
• The ETF's value and momentum investment style can lead to higher volatility compared to broader market investments.
• VIGI's performance is dependent on the effectiveness of its quantitative model.

Who Should Consider Investing:

VIGI is suitable for investors seeking long-term capital appreciation through exposure to international value stocks with strong momentum characteristics. Investors with a higher risk tolerance and a long-term investment horizon may find VIGI attractive.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of VIGI's financial health, market position, and future prospects, the ETF receives a 7 out of 10 rating. This rating reflects VIGI's strong track record, competitive advantages, and manageable risks. However, investors should be aware of the inherent risks associated with international value momentum investing and conduct thorough due diligence before investing.

Resources and Disclaimers:

This analysis is based on information available as of October 26, 2023, and may not reflect the latest developments. Please consult the VIGI prospectus and other official sources for the most up-to-date information. This analysis should not be considered financial advice, and you should always consult with a qualified financial professional before making any investment decisions.