UCRD Profile
The VictoryShares ESG Corporate Bond ETF is strategically designed to provide investors with a portfolio of corporate bonds that meet Environmental, Social, and Governance (ESG) criteria. Under normal market conditions, the fund invests at least 80% of its net assets in corporate bonds and related financial instruments that possess economic characteristics similar to corporate bonds. This focus ensures that the ETF maintains significant exposure to corporate debt while aligning with ESG principles.
The fund's primary investment emphasis is on high-quality, investment-grade corporate bonds. These securities are selected based on their credit quality, offering lower risk and stable returns. However, the ETF retains flexibility by allowing up to 10% of its net assets to be invested in below-investment-grade corporate credit securities, commonly known as high-yield or "junk" bonds. This allocation provides an opportunity to capture higher yields, albeit with increased risk.
The ETF incorporates a rigorous ESG screening process in its investment strategy, ensuring that the selected bonds meet specific environmental, social, and governance standards. This approach not only aims to generate competitive returns but also to support companies with robust ESG practices. By integrating ESG factors into its investment process, the ETF appeals to socially conscious investors looking to align their portfolios with sustainable and ethical investing goals.
Managed by Victory Capital, the VictoryShares ESG Corporate Bond ETF leverages the firm's expertise in bond management and ESG integration. The fund's strategy combines a focus on high-quality corporate debt with a commitment to ESG principles, creating a diversified bond portfolio that aims to deliver attractive returns while promoting responsible investing practices. This dual focus on credit quality and ESG criteria positions the ETF as a compelling option for investors seeking to balance financial performance with ethical considerations.
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