UBND Profile
The VictoryShares ESG Core Plus Bond ETF is designed to provide investors with exposure to a diversified portfolio of debt securities while integrating Environmental, Social, and Governance (ESG) considerations into its investment process. Under normal market conditions, the fund allocates at least 80% of its net assets to debt instruments, including bonds and other securities with similar economic characteristics. This strategy aims to offer a balanced approach to fixed-income investing by focusing on securities that align with ESG principles.
The fund primarily invests in debt securities with a dollar-weighted average portfolio maturity of between three and ten years. This maturity range is chosen to capture a balance between the yield offered by longer-term bonds and the relative stability of shorter-term securities. The investment strategy emphasizes a core exposure to investment-grade securities, which are typically issued by financially stable entities and carry lower credit risk.
In addition to investment-grade securities, the fund has the flexibility to invest up to 20% of its net assets in below-investment-grade securities, commonly known as high-yield or "junk" bonds. These securities offer higher yields but come with increased credit risk. The inclusion of such securities provides the fund with the potential for enhanced returns, while still maintaining a core investment in more stable, high-quality bonds.
The VictoryShares ESG Core Plus Bond ETF's investment process integrates ESG factors into the selection and management of its portfolio, aligning with broader trends in sustainable investing. This focus on ESG criteria is designed to address environmental and social risks and opportunities, potentially leading to more sustainable long-term returns. By combining core investment-grade bonds with a selective allocation to high-yield securities, the fund aims to deliver a comprehensive fixed-income solution that balances yield with ESG considerations.
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