VictoryShares Emerging Markets Value Momentum ETF (UEVM)

Overview

The VictoryShares Emerging Markets Value Momentum ETF (EEVM) seeks to provide investment results that track the performance of the Nasdaq Victory Emerging Markets Value Momentum Index. It focuses on emerging market equities exhibiting both value and momentum characteristics.

Reputation and Reliability

Victory Capital has a solid reputation and a long history of managing investment products. They are known for their rules-based investment strategies.

Management Expertise

Victory Capital has a team of experienced investment professionals dedicated to managing quantitative and factor-based strategies.

Goal

To track the performance of the Nasdaq Victory Emerging Markets Value Momentum Index.

Investment Approach and Strategy

Strategy: The ETF tracks a rules-based index designed to identify emerging market companies with attractive value and momentum characteristics.

Composition The ETF primarily holds emerging market equities selected based on value and momentum factors.

Market Share: The market share for EEVM is relatively small compared to broader emerging market ETFs.

Total Net Assets (AUM): 109800000

Key Competitors

• iShares Core MSCI Emerging Markets ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging market ETF space is dominated by low-cost, broad market-cap-weighted funds. EEVM differentiates itself through its value and momentum factor tilts, which can lead to periods of outperformance but also increased tracking error relative to the broad market. Competitors such as IEMG and VWO offers more diversified portfolios. EEVM has a niche, however that could outperform in specific market cycles.

Historical Performance: Historical performance data should be sourced from financial websites. Performance can vary significantly based on market conditions.

Benchmark Comparison: Benchmark comparison should be done against the Nasdaq Victory Emerging Markets Value Momentum Index.

Expense Ratio: 0.58

Average Trading Volume

The average trading volume is relatively moderate, which should be verified with current market data.

Bid-Ask Spread

The bid-ask spread should also be verified with current market data, and is generally tight due to the ETF's tradability.

Market Environment Factors

Emerging market performance is heavily influenced by global economic growth, commodity prices, currency fluctuations, and geopolitical events.

Growth Trajectory

The growth trajectory of EEVM depends on the sustained interest in factor-based investing and the continued outperformance of value and momentum strategies in emerging markets.

Competitive Edge

EEVM's competitive advantage lies in its unique factor-based approach to emerging market investing, combining value and momentum. This targeted approach seeks to capture potentially higher returns compared to broad market-cap-weighted ETFs. The rules-based index methodology provides transparency and reduces the risk of subjective portfolio management decisions. Furthermore, the ETF potentially offers diversification benefits, as value and momentum factors may perform differently under various market conditions.

Volatility

Emerging market equities are inherently more volatile than developed market equities. The ETF's value and momentum focus may amplify this volatility.

Market Risk

Market risk stems from factors such as economic downturns, political instability, and currency devaluations in emerging market countries.

Ideal Investor Profile

The ideal investor for EEVM is one seeking exposure to emerging markets with a value and momentum tilt. Investors should have a higher risk tolerance and a long-term investment horizon.

Market Risk

EEVM is best suited for long-term investors who understand factor-based investing and are willing to accept higher volatility in exchange for potentially higher returns.

The VictoryShares Emerging Markets Value Momentum ETF seeks to track the performance of the Nasdaq Victory Emerging Markets Value Momentum Index, focusing on emerging market equities with both value and momentum characteristics. While it offers a unique factor-based approach, it carries higher risk and volatility compared to broader emerging market ETFs. Its appeal lies in the potential for outperformance through targeted factor exposure. Investors should consider their risk tolerance and investment goals before investing, recognizing its niche approach.

Data Sources:

• VictoryShares Website
• Nasdaq Website
• Morningstar
• ETFdb.com

Disclaimers:

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