TPSC Profile
The Timothy Plan US Small Cap Core ETF aims to provide investors with exposure to a diversified portfolio of small-cap U.S. equities, focusing on companies with potential for growth. To achieve its investment objective, the fund invests, under normal market conditions, at least 80% of its net assets either directly or indirectly in the securities that are part of the Victory US Small Cap Volatility Weighted BRI Index. This index is specifically designed to reflect the performance of small-cap stocks while incorporating a unique risk management strategy.
The Victory US Small Cap Volatility Weighted BRI Index, developed by the fund's Sub-Advisor, is an unmanaged index that employs a volatility weighting approach rather than the traditional market capitalization weighting. By focusing on volatility, the index aims to control individual security risk more effectively, adjusting the weight of each stock based on its price stability rather than its market size. This methodology seeks to provide a more balanced risk-reward profile by mitigating the impact of highly volatile stocks.
The index combines fundamental criteria for stock selection with a sophisticated risk control mechanism. It targets small-cap companies with strong fundamentals but applies a volatility-based weighting to manage risk. This approach allows the index to focus on companies with potential for growth while reducing the influence of volatility on overall performance. The ETF’s investment strategy is designed to capture the growth potential of small-cap stocks while managing the inherent risks associated with this segment of the market.
The Timothy Plan US Small Cap Core ETF provides investors with a strategic avenue for gaining exposure to U.S. small-cap equities, leveraging a volatility-weighted index to manage risk and optimize returns. The fund's approach allows for targeted investment in smaller companies with growth potential, while the active management of the ETF ensures it remains aligned with its investment objectives. This strategy aims to offer a robust investment solution for those looking to diversify their portfolios with small-cap U.S. stocks.
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