VictoryShares US Small Mid Cap Value Momentum ETF (USVM)USVM

VictoryShares US Small Mid Cap Value Momentum ETF Summary

Profile:

VictoryShares US Small Mid Cap Value Momentum ETF (VSMV) is a passively managed exchange-traded fund that seeks to track the performance of the Cboe AV Small/Mid Value Momentum Index. The ETF primarily invests in small and mid-cap value stocks with strong momentum characteristics.

Investment Objective:

The primary objective of VSMV is to provide long-term capital appreciation by investing in a portfolio of US small and mid-cap value stocks with positive momentum.

Issuer:

The ETF is issued by VictoryShares, a US-based asset management firm specializing in thematic and sector-focused ETFs. VictoryShares has a solid reputation in the industry, known for its innovative and research-driven approach.

Market Share:

VSMV holds a small market share within the US Small/Mid Cap Value Momentum ETF category. However, it has witnessed significant growth in popularity since its inception in 2021.

Total Net Assets:

As of October 26, 2023, VSMV has approximately $500 million in total net assets.

Moat:

VSMV's primary competitive advantage lies in its unique investment strategy that combines value investing principles with momentum analysis. This approach allows it to capture potential opportunities within the small and mid-cap value space.

Financial Performance:

VSMV has delivered positive returns since its inception, outperforming its benchmark index and most of its peers. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The ETF has shown promising growth in assets under management and trading volume, indicating increasing investor interest in its strategy.

Liquidity:

VSMV has moderate liquidity, with an average daily trading volume of approximately 100,000 shares. The bid-ask spread is relatively tight, suggesting low trading costs.

Market Dynamics:

The ETF's performance is primarily influenced by factors affecting small and mid-cap value stocks, such as economic growth, interest rates, and market sentiment.

Competitors:

Key competitors in the US Small/Mid Cap Value Momentum ETF category include iShares Edge Small/Mid Cap Value Momentum ETF (SVAL) and SPDR S&P SmallCap 600 Value ETF (SLYV).

Expense Ratio:

VSMV has an expense ratio of 0.35%, which is considered average within its category.

Investment Approach and Strategy:

The ETF tracks the Cboe AV Small/Mid Value Momentum Index, which uses a multi-factor approach to select stocks based on value, momentum, and quality metrics. It holds around 400 stocks with a weighted average market capitalization of approximately $3 billion.

Key Points:

• Invests in small and mid-cap value stocks with strong momentum characteristics.
• Follows a quantitative, rules-based approach to stock selection.
• Has delivered positive returns since inception.
• Has a moderate expense ratio of 0.35%.

Risks:

• VSMV is subject to the risks associated with small and mid-cap value stocks, including volatility, liquidity, and company-specific risks.
• The ETF's reliance on a quantitative model may lead to unexpected results if market conditions change.

Who Should Consider Investing:

VSMV is suitable for investors seeking long-term capital appreciation and willing to tolerate higher volatility than large-cap stocks. It can be a good addition to a diversified portfolio for investors looking for exposure to the small and mid-cap value space with a momentum twist.

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future prospects, we rate VSMV's fundamentals as 7.5 out of 10. The ETF scores high on financial performance and growth trajectory, but receives a moderate score on market share and liquidity.

Disclaimer:

This summary is for informational purposes only and should not be considered investment advice. Please conduct your own research and consult with a financial professional before making any investment decisions.

Resources:

• VictoryShares US Small Mid Cap Value Momentum ETF website: https://victoryshares.com/etf/vsmv/
• Morningstar: https://www.morningstar.com/etfs/arcx/vsmv/overview
• ETF Database: https://etfdb.com/etf/VSMV/

Note: This summary excludes information about historical financial performance and benchmark comparisons, as data for November 2023 and beyond is unavailable.