VictoryShares US Large Cap High Div Volatility Wtd ETF (CDL)

Overview

The VictoryShares US Large Cap High Dividend Volatility Weighted ETF (CDL) seeks to provide investment results that track the performance of the Nasdaq Victory US Large Cap High Dividend 100 Volatility Weighted Index. It focuses on U.S. large-cap stocks with high dividend yields and weights them based on volatility, aiming to reduce overall portfolio volatility. Asset allocation is primarily in equities. The investment strategy prioritizes dividend yield and low volatility.

Reputation and Reliability

Victory Capital is a well-established asset management firm with a solid reputation. Their ETFs are generally considered reliable.

Management Expertise

Victory Capital has experienced portfolio managers and analysts dedicated to managing their ETF offerings.

Goal

To track the performance of the Nasdaq Victory US Large Cap High Dividend 100 Volatility Weighted Index.

Investment Approach and Strategy

Strategy: Tracks a specific index (Nasdaq Victory US Large Cap High Dividend 100 Volatility Weighted Index).

Composition Primarily holds stocks of large-cap U.S. companies with high dividend yields.

Market Share: CDL's market share varies depending on the specific large-cap dividend ETF segment and data source.

Total Net Assets (AUM): 80570000

Key Competitors

• Schwab US Dividend Equity ETF (SCHD)
• Vanguard High Dividend Yield ETF (VYM)
• iShares Select Dividend ETF (DVY)

Competitive Landscape

The large-cap dividend ETF market is highly competitive, with several established players. CDL distinguishes itself through its volatility-weighted approach, aiming to reduce portfolio volatility compared to competitors. Advantages include potential for lower volatility and competitive dividend yield. Disadvantages may include higher expense ratio and potential for underperformance during periods of high market growth as downside protection is emphasized.

Historical Performance: Historical performance data is readily available from financial data providers. Reviewing performance over 1, 3, 5, and 10-year periods provides a comprehensive track record.

Benchmark Comparison: The ETF's performance should be compared to the Nasdaq Victory US Large Cap High Dividend 100 Volatility Weighted Index.

Expense Ratio: 0.35

Average Trading Volume

CDL's average trading volume impacts ease of trading, but it is generally liquid enough for retail investors.

Bid-Ask Spread

The bid-ask spread affects trading costs; smaller bid-ask spreads indicate more liquidity.

Market Environment Factors

Economic growth, interest rate changes, inflation, and sector-specific trends influence CDL's performance.

Growth Trajectory

Growth trends may include shifts in sector allocation, changes in the underlying index methodology, and increased investor adoption of low-volatility dividend strategies.

Competitive Edge

CDL's competitive advantage lies in its volatility-weighted methodology, which aims to provide downside protection and reduced volatility compared to traditional dividend ETFs. This appeals to investors seeking a balance between income and capital preservation. The focus on high-dividend-yielding stocks also enhances its attractiveness to income-seeking investors. However, its volatility weighting approach could limit upside potential during strong bull markets.

Volatility

Historical volatility can be assessed by analyzing the ETF's standard deviation and beta.

Market Risk

Market risk includes the potential for declines in the value of the underlying stocks due to economic downturns, sector-specific issues, or company-specific problems.

Ideal Investor Profile

The ideal investor is a risk-averse individual seeking a combination of dividend income and capital preservation, particularly those concerned about market volatility.

Market Risk

Best suited for long-term investors seeking income and downside protection.

The VictoryShares US Large Cap High Dividend Volatility Weighted ETF (CDL) offers exposure to U.S. large-cap stocks with high dividend yields, weighted by volatility to reduce risk. Its investment objective is to mirror the performance of the Nasdaq Victory US Large Cap High Dividend 100 Volatility Weighted Index. CDL appeals to risk-averse investors seeking income and downside protection, differentiating itself through its unique volatility-weighted approach compared to other dividend ETFs. While its focus on low volatility might limit potential upside in strong bull markets, it provides a compelling option for conservative income seekers.

Data Sources:

• Victory Capital website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.