CSB Profile
VictoryShares US Small Cap High Div Volatility Wtd ETF is an actively managed exchange-traded fund (ETF) designed to focus on small-cap U.S. stocks with high dividend yields and to manage 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 High Dividend 100 Volatility Weighted Index. This index, maintained exclusively by the index provider, serves as the benchmark for the fund's performance.
The Nasdaq Victory US Small Cap High Dividend 100 Volatility Weighted Index is an unmanaged index that specifically targets high-dividend-paying small-cap stocks. It is derived from the Nasdaq Victory US Small Cap 500 Volatility Weighted Index, which includes the 500 smallest U.S. companies selected based on their market capitalization and liquidity. From this broader index, the High Dividend 100 Index identifies the top 100 companies with the highest dividend yields, applying a volatility weighting methodology to manage risk.
The fund’s strategy involves focusing on small-cap companies that offer attractive dividend yields while incorporating a volatility weighting approach. This means that the index and, consequently, the fund, emphasize stocks with higher dividends but adjusts their weightings based on their volatility profiles. By targeting high-dividend stocks and managing volatility, the fund aims to provide investors with a balance of income and risk management.
VictoryShares US Small Cap High Div Volatility Wtd ETF is ideal for investors seeking exposure to small-cap stocks with strong dividend yields while aiming to control volatility. The fund’s approach combines dividend income potential with a risk management strategy, offering a refined investment experience in the small-cap space. The volatility weighting applied to the index helps to mitigate the risks associated with high-volatility stocks, providing a more stable income-oriented investment in the small-cap market.
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