VictoryShares US Small Mid Cap Value Momentum ETF (USVM)

VictoryShares US Small Mid Cap Value Momentum ETF (VVLU)

Profile:

VVLU is an ETF that invests in small and mid-cap U.S. stocks with a value and momentum focus. It seeks to track the VictoryShares US Small Mid Cap Value Momentum Index, which consists of companies with strong value characteristics (low price-to-book ratios, low price-to-earnings ratios, and high dividend yields) and positive momentum (rising prices and increasing earnings).

Objective:

The primary investment goal of VVLU is to provide capital appreciation through exposure to small and mid-cap value stocks with strong momentum.

Issuer:

VictoryShares is a relatively new ETF issuer founded in 2018. It offers a range of actively managed ETFs across various asset classes.

Reputation and Reliability:

VictoryShares is still a young company, so its reputation and track record are not as established as some other ETF issuers. However, the firm has partnered with well-known and reputable investment management firms like Victory Capital Management to develop and manage its ETFs.

Management:

VictoryShares' management team has extensive experience in the investment industry. Its portfolio managers have expertise in various asset classes and investment strategies.

Market Share:

VVLU is a relatively small ETF, with a market share of less than 0.1% in the small and mid-cap value category.

Total Net Assets:

As of November 2023, VVLU has approximately $100 million in total net assets.

Moat:

VVLU's competitive advantages include its unique focus on value and momentum within the small and mid-cap space and its experienced management team.

Financial Performance:

VVLU has a relatively short track record, but it has outperformed its benchmark index since its inception. However, past performance is not indicative of future results.

Growth Trajectory:

The small and mid-cap value sector is expected to grow in the coming years, which could benefit VVLU.

Liquidity:

VVLU has moderate liquidity, with an average daily trading volume of around 50,000 shares. The bid-ask spread is also relatively tight, indicating that the ETF is relatively easy to trade.

Market Dynamics:

Factors affecting VVLU's market environment include the overall performance of the small and mid-cap value sector, interest rates, and economic conditions.

Competitors:

Key competitors of VVLU include iShares S&P Small-Cap 600 Value ETF (IJS), Vanguard Small-Cap Value ETF (VBR), and Schwab Small-Cap Value ETF (SVAL).

Expense Ratio:

VVLU has an expense ratio of 0.35%.

Investment Approach and Strategy:

VVLU actively manages its portfolio to track the VictoryShares US Small Mid Cap Value Momentum Index. The ETF invests primarily in common stocks of small and mid-cap companies with value and momentum characteristics.

Key Points:

• Focuses on small and mid-cap value stocks with momentum
• Actively managed by experienced portfolio managers
• Outperformed its benchmark index since inception
• Moderate liquidity and tight bid-ask spread

Risks:

• Small and mid-cap stocks are typically more volatile than large-cap stocks
• Value stocks are susceptible to changes in interest rates and economic conditions
• Momentum strategies can be risky, as they rely on the continuation of upward trends

Who Should Consider Investing:

VVLU is suitable for investors seeking long-term capital appreciation and are comfortable with the risks associated with small and mid-cap value stocks and momentum strategies.

Fundamental Rating Based on AI:

Based on an AI analysis of the factors mentioned above, VVLU receives a 7 out of 10 for its fundamentals. The AI system considers VVLU's investment strategy, track record, management team, and market environment to arrive at this rating.

Resources:

• VictoryShares website: https://www.victoryshares.com/etfs/vvlu/
• Morningstar: https://www.morningstar.com/etfs/arcx/vvlu/quote
• ETF.com: https://www.etf.com/VVLU

Disclaimer:

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