CSA Profile
VictoryShares US Small Cap Volatility Wtd ETF is an actively managed exchange-traded fund (ETF) designed to provide targeted exposure to small-cap U.S. stocks with an emphasis on managing volatility. To achieve its investment objective, the fund invests at least 80% of its assets, either directly or indirectly, in securities that are part of the Nasdaq Victory US Small Cap 500 Volatility Weighted Index. This index serves as the benchmark for the fund and is maintained exclusively by the index provider.
The Nasdaq Victory US Small Cap 500 Volatility Weighted Index is an unmanaged index that focuses on small-cap U.S. companies, incorporating both fundamental criteria and volatility weighting. The index includes the 500 smallest companies within the U.S. market, selected based on their size and liquidity. The volatility weighting methodology adjusts the index’s constituent securities according to their individual risk profiles, aiming to enhance stability and manage overall portfolio volatility.
The fund's investment strategy centers on balancing risk and return by applying a volatility-weighted approach. This approach adjusts the weightings of individual securities based on their historical volatility, seeking to mitigate the impact of high volatility stocks while emphasizing more stable investments. By integrating fundamental criteria with a focus on volatility management, the fund aims to offer a more refined exposure to the small-cap sector compared to traditional market-cap weighted indices.
VictoryShares US Small Cap Volatility Wtd ETF is suitable for investors seeking to gain exposure to the U.S. small-cap equity market with an emphasis on managing volatility. The fund’s strategic approach provides a balance between capturing potential growth in small-cap stocks and mitigating the risks associated with market fluctuations. The volatility-weighted index aims to deliver a more stable investment experience while maintaining the growth potential inherent in smaller, high-growth companies.
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