UEVM Profile
The VictoryShares USAA MSCI Emerging Markets Value Momentum ETF is an actively managed exchange-traded fund that seeks to provide investors with targeted exposure to emerging market equities. The fund's investment strategy focuses on capturing value and momentum factors within the MSCI Emerging Markets Index. It achieves this by investing at least 80% of its assets in securities that are included in the index, as well as depositary receipts and other financial instruments that reflect the index's performance. This approach aims to enhance returns by emphasizing stocks with favorable valuation metrics and strong momentum characteristics.
The MSCI Emerging Markets Index, which the fund tracks, is a benchmark that represents the performance of equity markets in emerging economies around the world. The index is known for its broad coverage of emerging market stocks, offering a comprehensive view of this dynamic sector. By focusing on value and momentum factors, the fund seeks to outperform traditional capitalization-weighted indexes, which often emphasize larger, more established companies. The value factor targets undervalued stocks with low price-to-earnings ratios, while the momentum factor favors stocks with strong recent performance.
The fund's strategy involves a moderate level of index turnover, which refers to the frequency with which the fund's holdings are bought and sold. This approach helps manage trading costs and reduce market impact, while still allowing for significant exposure to value and momentum factors. The fund also aims to maintain lower realized volatility compared to traditional capitalization-weighted indexes, providing a more stable investment experience despite the inherent risks of emerging markets.
As part of its broader investment philosophy, the VictoryShares USAA MSCI Emerging Markets Value Momentum ETF seeks to offer investors a blend of growth and stability in emerging markets. The focus on value and momentum factors is designed to capture opportunities for higher returns while managing volatility. By investing in a diversified portfolio of emerging market equities and related financial instruments, the fund aims to deliver performance that aligns with its strategic objectives and provides investors with a differentiated exposure to global emerging markets.
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