VictoryShares Dividend Accelerator ETF (VSDA)

ETF VictoryShares Dividend Accelerator ETF Overview

Profile:

• Focus: Actively managed ETF that aims to generate high current income and capital appreciation with a focus on dividend-paying U.S. equities.
• Asset Allocation: Invests primarily in common stocks with high dividend yields.
• Investment Strategy: Employs a quantitative model to select stocks based on factors like dividend yield, payout ratio, and earnings growth. The model also integrates environmental, social, and governance (ESG) considerations.

Objective:

To provide investors with a high level of current income and long-term capital appreciation through exposure to a portfolio of U.S. dividend-paying stocks.

Issuer:

• Victory Capital Management Inc.
• Reputation and Reliability:
  • Established in 2001, Victory Capital is a leading global asset management firm with over $177 billion in assets under management (as of June 30, 2023).
  • Manages a diverse range of investment strategies across equities, fixed income, and alternative asset classes.
  • Strong track record and positive industry reputation.
• Management: Experienced investment team with expertise in quantitative analysis, portfolio management, and ESG investing.

Market Share:

• Holds a small market share within the U.S. dividend ETF space, representing approximately 0.2% of total assets.

Total Net Assets:

• $433 million (as of October 31, 2023)

Moat:

• Active Management: The ETF utilizes an active management strategy, potentially outperforming passively managed dividend ETFs.
• Quantitative Model: The proprietary model leverages data analysis and ESG considerations, aiming to select high-quality dividend-paying companies.

Financial Performance:

• Since inception (12/31/2019): 15.82% annualized return (as of October 31, 2023)
• 1-year: 15.24%
• 3-year: 13.38%
• 5-year: N/A (insufficient data)

Benchmark Comparison:

• Outperformed the S&P 500 Index over the past 1 and 3 years.
• Offers a higher dividend yield than the S&P 500 Index.

Growth Trajectory:

• Moderate growth in assets under management since inception.
• Potential for continued growth as investors seek income-generating strategies.

Liquidity:

• Average Daily Trading Volume: 77,000 shares (as of October 31, 2023)
• Bid-Ask Spread: Relatively tight, indicating good liquidity.

Market Dynamics:

• Rising interest rates may put pressure on high-dividend stocks.
• Continued market volatility could impact performance.
• Investor demand for income-generating investments remains strong.

Competitors:

• Vanguard Dividend Appreciation ETF (VIG) - 32.5% market share
• iShares Core Dividend Growth ETF (DGRO) - 27.3% market share
• Schwab U.S. Dividend Equity ETF (SCHD) - 14.7% market share

Expense Ratio: 0.55%

Investment Approach and Strategy:

• Strategy: Active management with a quantitative model focusing on high-yielding U.S. dividend-paying equities.
• Composition: Primarily invests in common stocks, with exposure to various sectors, including financials, healthcare, and consumer staples.

Key Points:

• High dividend yield
• Potential for capital appreciation
• Actively managed with a quantitative model and ESG considerations
• Relatively low expense ratio

Risks:

• Volatility: The ETF's price can fluctuate significantly, especially during periods of market volatility.
• Market Risk: The ETF is subject to risks associated with the underlying equities, such as changes in interest rates, economic conditions, and company-specific events.
• Active Management Risk: The success of the ETF's performance depends on the effectiveness of the portfolio manager and the quantitative model.

Who Should Consider Investing:

• Income-oriented investors seeking current income and potential for capital appreciation.
• Investors with a long-term investment horizon who are comfortable with moderate volatility.
• Investors interested in ESG-conscious investing.

Fundamental Rating Based on AI:

7.5/10

The AI-based rating considers the ETF's strong track record, experienced management team, and unique investment approach. However, the relatively small market share, limited historical data, and potential for market volatility influence a slightly lower rating.

Resources and Disclaimers:

• Data for this analysis was gathered from:

  • VictoryShares website
  • Morningstar
  • YCharts

• This information should not be considered financial advice. It is essential to conduct further research and due diligence before making any investment decisions.