VictoryShares US Small Cap High Div Volatility Wtd ETF (CSB)

Overview

The VictoryShares US Small Cap High Dividend Volatility Weighted ETF (CSA) seeks to provide investment results that track the performance of the Nasdaq Victory US Small Cap High Dividend 100 Volatility Weighted Index. It focuses on U.S. small-cap companies with high dividend yields, weighted based on their volatility.

Reputation and Reliability

Victory Capital is a well-established asset management firm with a diverse range of investment products.

Management Expertise

Victory Capital has a team of experienced investment professionals managing various ETFs and mutual funds.

Goal

To track the investment results of the Nasdaq Victory US Small Cap High Dividend 100 Volatility Weighted Index.

Investment Approach and Strategy

Strategy: The ETF tracks a specific index, which selects U.S. small-cap stocks with high dividend yields and weights them based on volatility.

Composition The ETF primarily holds stocks of small-cap U.S. companies.

Market Share: Data unavailable to assess CSA's market share directly, but it is a niche player within the broader small-cap dividend ETF market.

Total Net Assets (AUM): 69732494

Key Competitors

• Schwab US Small-Cap ETF (SCHA)
• Vanguard Small-Cap ETF (VB)
• iShares Core S&P Small-Cap ETF (IJR)

Competitive Landscape

The small-cap ETF market is highly competitive, dominated by large providers like Schwab, Vanguard and iShares. CSA differentiates itself through its high dividend and volatility weighting approach, which may appeal to income-seeking investors but might result in different performance characteristics compared to market-cap weighted competitors. Its AUM is significantly smaller than the larger competitors.

Historical Performance: Historical performance data requires direct access to financial databases and is subject to change.

Benchmark Comparison: Benchmark comparison requires direct access to financial databases and is subject to change.

Expense Ratio: 0.35

Average Trading Volume

The ETF's average trading volume is approximately 15,000 shares, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread is typically around 0.10%, reflecting a relatively low cost of trading.

Market Environment Factors

Economic growth, interest rate changes, and small-cap sector performance influence CSA. Small-cap stocks are more sensitive to economic cycles, while dividend yields can be impacted by interest rate movements.

Growth Trajectory

The growth trajectory of CSA depends on investor demand for high-dividend small-cap strategies. Changes in investment strategies and holdings are published in the fund's prospectuses and reports.

Competitive Edge

CSA's competitive advantage lies in its unique weighting methodology, which focuses on high-dividend small-cap stocks weighted by volatility. This strategy distinguishes it from broad-based small-cap ETFs. The volatility weighting seeks to reduce risk, while the high dividend focus can attract income-oriented investors. However, this niche focus may also limit its appeal to a broader investor base. Its targeted approach can lead to different performance outcomes than market-cap weighted funds.

Volatility

CSA's volatility can be influenced by the volatility of its underlying small-cap holdings and its dividend yield. It may exhibit higher volatility compared to large-cap dividend ETFs due to the nature of small-cap stocks.

Market Risk

Specific risks associated with CSA include market risk, small-cap risk, dividend risk (companies may reduce or eliminate dividends), and concentration risk within certain sectors.

Ideal Investor Profile

The ideal investor for CSA is an income-seeking investor comfortable with small-cap risk and interested in a strategy that prioritizes high dividend yields and volatility weighting.

Market Risk

CSA may be suitable for long-term investors seeking income and diversification within the small-cap space, or those looking for a specific factor tilt toward high dividends and lower volatility within the small-cap universe.

The VictoryShares US Small Cap High Dividend Volatility Weighted ETF (CSA) provides exposure to U.S. small-cap companies with high dividend yields, weighted based on volatility. Its expense ratio is relatively competitive and offers a unique strategy compared to broader small-cap funds. CSA is suitable for income-seeking investors with a tolerance for small-cap risk, who are looking for a more targeted approach to small-cap investing. However, its smaller AUM and niche strategy may not appeal to all investors.

Data Sources:

• Victory Capital Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions are subject to change, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.