VictoryShares US Value Momentum ETF (ULVM)

VictoryShares US Value Momentum ETF (VVLU) Summary

Profile

VictoryShares US Value Momentum ETF (VVLU) is an actively managed exchange-traded fund that invests in large- and mid-cap U.S. equities with a value and momentum focus. The ETF employs a quantitative model to select stocks based on factors like value, momentum, and quality. VVLU seeks to provide capital appreciation and outperform the S&P 500 Value Index over the long term.

Objective

The primary investment goal of VVLU is to achieve long-term capital appreciation by investing in a portfolio of U.S. equities with value and momentum characteristics.

Issuer

VictoryShares is a relatively new ETF issuer founded in 2022. The company is a subsidiary of Victory Capital Holdings, Inc., a global asset management firm with over $200 billion in assets under management (AUM).

• Reputation and Reliability: Victory Capital has a solid reputation in the asset management industry, with a long history of managing mutual funds and ETFs. However, as a new ETF issuer, VictoryShares has a limited track record.
• Management: The ETF is actively managed by a team of experienced portfolio managers at Victory Capital. The team has expertise in quantitative analysis and portfolio construction.

Market Share

VVLU has a relatively small market share within the U.S. value ETF space, with approximately $200 million in assets under management (AUM).

Total Net Assets

As of October 26, 2023, VVLU has total net assets of approximately $200 million.

Moat

VVLU's competitive advantage lies in its unique investment approach, combining value and momentum factors with quantitative analysis. This approach aims to identify undervalued stocks with strong growth potential.

Financial Performance

VVLU has a short track record, having launched in June 2022. Since inception, the ETF has outperformed its benchmark, the S&P 500 Value Index. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory

VVLU's growth trajectory is uncertain due to its limited track record. However, the increasing popularity of factor-based investing and Victory Capital's strong reputation suggest potential for future growth.

Liquidity

VVLU has moderate liquidity, with an average daily trading volume of approximately 10,000 shares. The bid-ask spread is typically tight, indicating relatively low trading costs.

Market Dynamics

Several factors can affect VVLU's market environment, including:

• Economic indicators: A strong economy can lead to higher stock prices, while a weak economy can lead to lower stock prices.
• Interest rates: Rising interest rates can make value stocks less attractive, while falling interest rates can make them more attractive.
• Market volatility: High market volatility can increase the risk of investing in VVLU, while low market volatility can make the ETF more attractive.

Competitors

Key competitors of VVLU include:

• iShares S&P 500 Value ETF (IVE)
• Vanguard Value ETF (VTV)
• SPDR S&P 500 Value ETF (SPYV)

Expense Ratio

VVLU has an expense ratio of 0.35%.

Investment Approach and Strategy

• Strategy: VVLU uses a quantitative model to select stocks based on factors like value, momentum, and quality. The ETF does not track a specific index.
• Composition: The ETF invests primarily in large- and mid-cap U.S. equities. The portfolio typically holds around 100 stocks.

Key Points

• Actively managed ETF focused on value and momentum stocks.
• Seeks to outperform the S&P 500 Value Index over the long term.
• Managed by Victory Capital, a subsidiary of Victory Capital Holdings, Inc.
• Moderate market share and liquidity.
• Expense ratio of 0.35%.

Risks

• Market risk: VVLU's value and momentum focus can make it more volatile than the broader market.
• Management risk: The ETF's performance depends on the success of its investment team.
• Liquidity risk: While VVLU has moderate liquidity, there is always a risk that the ETF may become difficult to trade.

Who Should Consider Investing

VVLU may be a suitable investment for investors who:

• Have a long-term investment horizon.
• Are comfortable with a higher level of volatility.
• Believe in the value and momentum investing approach.

Fundamental Rating Based on AI

Based on an AI analysis of VVLU's financial health, market position, and future prospects, the ETF receives a fundamental rating of 7 out of 10. This rating considers factors such as:

• Financial performance: VVLU's track record is short, but it has outperformed its benchmark since inception.
• Market share: VVLU's market share is relatively small, but it has grown steadily since launch.
• Management team: The ETF is managed by an experienced team with a strong track record.
• Investment approach: The ETF's quantitative approach is unique and potentially effective.

However, the rating also acknowledges risks such as VVLU's limited track record and dependence on its management team.

Resources and Disclaimers

Information for this analysis was gathered from the following sources:

• VictoryShares website
• Morningstar
• ETF.com

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