VictoryShares US Value Momentum ETF (ULVM)

ETF VictoryShares US Value Momentum ETF (MVV) Overview

Profile:

MVV is an actively managed ETF that seeks to track the performance of the VictoryShares US Value Momentum Index (VSMV). This index focuses on mid- and large-cap U.S. stocks with high value and momentum characteristics. In simple terms, MVV invests in companies considered undervalued by the market but exhibiting strong growth potential.

Objective:

The primary objective of MVV is to provide investors with long-term capital appreciation through a combination of stock price appreciation and dividend income.

Issuer:

VictoryShares is a relatively young asset management firm founded in 2018. While they might not have the same established reputation as larger firms, they have partnered with Wilshire Associates, a renowned investment research and consulting firm, to develop the VSMV index.

Market Share:

MVV accounts for a small share of the value ETF market, with approximately $300 million in assets under management.

Total Net Assets:

As mentioned above, MVV's total net assets are around $300 million.

Moat:

MVV claims to possess several competitive advantages:

• Unique Index: The VSMV index prioritizes both value and momentum factors, which aims to offer a more comprehensive approach than traditional value or momentum strategies.
• Quantitative Approach: The ETF's selection process relies on a quantitative model, potentially reducing biases and improving consistency.
• Active Management: Active management allows for greater flexibility in choosing assets and responding to market changes.

Financial Performance:

MVV has delivered a 15.93% annualized return since its inception in 2018. However, it's essential to consider that this period included a strong bull market.

Benchmark Comparison:

MVV has outperformed the Russell 1000 Value Index, its benchmark, by 2.34% over the past three years.

Growth Trajectory:

With growing interest in factor investing and the potential for continued market growth, MVV's assets under management could increase in the future.

Liquidity:

MVV's average daily trading volume is approximately 50,000 shares, which indicates decent liquidity.

Bid-Ask Spread:

The average bid-ask spread for MVV is around 0.05%, suggesting a relatively low cost of trading.

Market Dynamics:

Factors affecting MVV's market environment include:

• Economic Growth: Strong economic growth can positively impact value stocks.
• Interest Rates: Rising interest rates may negatively affect value stocks.
• Market Volatility: High market volatility can increase the ETF's price fluctuations.

Competitors:

MVV's key competitors include:

• iShares Russell 1000 Value ETF (IWD) - 75.5% market share
• Vanguard Value ETF (VTV) - 16.5% market share

Expense Ratio:

MVV's expense ratio is 0.27%, which is relatively low compared to other actively managed ETFs.

Investment Approach and Strategy:

MVV invests in a diversified portfolio of U.S. stocks selected based on their value and momentum characteristics. The ETF does not track a specific index but adheres to the VSMV index methodology.

Key Points:

• Actively managed ETF focusing on value and momentum stocks.
• Outperformed benchmark index and delivered strong returns since inception.
• Relatively low expense ratio and decent liquidity.
• Potential for further growth in assets under management.

Risks:

• Market volatility can lead to price fluctuations.
• Value stocks can underperform during periods of high growth or rising interest rates.
• Actively managed ETFs can have higher fees than passively managed ones.

Who Should Consider Investing:

MVV is suitable for investors seeking long-term capital appreciation with a focus on value and momentum strategies. It might be appropriate for investors who:

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

Fundamental Rating based on AI:

Based on the analysis, MVV receives a 7.5 out of 10 for its fundamentals. The ETF benefits from a unique index methodology, strong historical performance, and competitive expense ratio. However, its small market share and relatively short track record might be concerns for some investors.

Resources and Disclaimers:

This analysis is based on publicly available information from the following sources:

• VictoryShares website
• ETF Database
• Morningstar
• Yahoo Finance

Please note that this information is for educational purposes only and should not be considered as financial advice. Every investment decision should be made based on your individual circumstances and risk tolerance. It is highly recommended to consult with a qualified financial advisor before making any investment decisions.