VictoryShares WestEnd Economic Cycle Bond ETF (BMDL)

Overview

The VictoryShares WestEnd Economic Cycle Bond ETF (MORT) seeks to provide investment results that correspond to the total return of the WestEnd Economic Cycle Investment Grade Bond Index. It invests in investment-grade corporate bonds and U.S. government bonds, adjusting its allocation based on economic cycle indicators.

Reputation and Reliability

Victory Capital Management is a well-established asset management firm with a good track record.

Management Expertise

The management team has considerable experience in fixed-income investing and economic cycle analysis.

Goal

To provide investment results that correspond to the total return of the WestEnd Economic Cycle Investment Grade Bond Index.

Investment Approach and Strategy

Strategy: The ETF uses a rules-based approach to allocate between investment-grade corporate bonds and U.S. government bonds based on economic cycle indicators.

Composition The ETF holds a mix of investment-grade corporate bonds and U.S. government bonds.

Market Share: The ETF's market share within the fixed income ETF space is relatively small.

Total Net Assets (AUM): 27280000

Key Competitors

• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total Bond Market ETF (BND)
• Schwab U.S. Aggregate Bond ETF (SCHZ)

Competitive Landscape

The fixed-income ETF market is dominated by large, low-cost index funds. MORT differentiates itself with its active, economic cycle based allocation strategy. Advantages may include potentially higher returns during specific economic phases, while disadvantages include a higher expense ratio and reliance on the accuracy of economic cycle forecasts.

Historical Performance: Historical performance data not available. Refer to ETF provider's resources for the latest performance information.

Benchmark Comparison: Benchmark comparison not available due to the unique investment approach.

Expense Ratio: 0.34

Average Trading Volume

The ETF's average trading volume is moderate, which can impact execution costs, especially for larger trades.

Bid-Ask Spread

The ETF's bid-ask spread is relatively tight, indicating reasonable liquidity.

Market Environment Factors

Economic growth, interest rate changes, inflation, and credit spreads significantly affect the performance of MORT.

Growth Trajectory

Growth trajectory depends on investor adoption of its economic cycle based investment strategy and its ability to deliver competitive returns.

Competitive Edge

MORT's competitive edge lies in its actively managed, economic cycle-based allocation strategy. It dynamically adjusts its exposure to corporate and government bonds based on macro-economic indicators. This strategy aims to outperform traditional bond ETFs during specific economic cycles. The potential for tactical adjustments gives it a flexibility not found in passively managed peers.

Volatility

Volatility will depend on the ETF's allocation between corporate and government bonds, with higher corporate bond allocations leading to increased volatility.

Market Risk

Specific risks include interest rate risk, credit risk (especially during economic downturns), and model risk (related to the accuracy of the economic cycle predictions).

Ideal Investor Profile

The ideal investor is someone who understands and believes in the economic cycle-based investment approach and seeks potential outperformance relative to traditional bond ETFs.

Market Risk

The ETF may be suitable for long-term investors seeking a tactical approach to fixed income and willing to accept potentially higher volatility for the possibility of higher returns.

The VictoryShares WestEnd Economic Cycle Bond ETF (MORT) offers a differentiated approach to fixed-income investing by actively adjusting its allocation based on economic cycles. Its strategy involves allocating between investment-grade corporate and government bonds based on macro-economic indicators. While it offers potential outperformance during favorable economic phases, its higher expense ratio and model risk should be considered. It is best suited for investors who understand and believe in the economic cycle investment approach and who are seeking a tactical approach to fixed income.

Data Sources:

• Victory Capital Management
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including the potential loss of principal.