VictoryShares International Value Momentum ETF (UIVM)

Overview

The VictoryShares International Value Momentum ETF (IVEV) seeks to provide exposure to international equities that exhibit both value and momentum characteristics. It aims to identify companies with attractive valuations and a history of positive price trends, focusing on developed and emerging markets outside the United States. The strategy is designed to capture potential upside from undervalued companies that are also showing strong performance momentum.

Reputation and Reliability

VictoryShares is a reputable asset management firm known for its quantitative strategies and focus on factor-based investing. They have a track record of developing ETFs that aim to deliver risk-adjusted returns.

Management Expertise

VictoryShares leverages a team of experienced professionals with expertise in quantitative research, portfolio management, and risk management, employing data-driven approaches to construct and manage their ETFs.

Goal

The primary investment goal of IVEV is to seek long-term capital appreciation by investing in international equities that exhibit characteristics of both value and momentum.

Investment Approach and Strategy

Strategy: IVEV aims to identify and invest in international companies that are undervalued (value factor) and have demonstrated positive price performance over a recent period (momentum factor). It is an actively managed ETF that rebalances its portfolio based on proprietary quantitative models.

Composition The ETF primarily holds a diversified portfolio of international equities (stocks) across various market capitalizations and sectors, with a focus on companies demonstrating both value and momentum metrics.

Market Share: Information on specific market share for this niche ETF is not readily available in a standardized format for direct comparison. However, as a factor-based international ETF, it operates within a competitive segment of the broader international equity ETF market.

Total Net Assets (AUM): 189400000

Key Competitors

• iShares MSCI EAFE Value ETF (EFV)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares MSCI International Value Factor ETF (IVAL)

Competitive Landscape

The international ETF landscape is highly competitive, with numerous broad market and factor-based ETFs. IVEV competes by offering a specific combination of value and momentum factors in international markets, which may appeal to investors seeking targeted exposure. Its advantages lie in its specialized strategy, while disadvantages might include a smaller AUM compared to larger, more diversified international ETFs, potentially leading to lower liquidity.

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Benchmark Comparison: While IVEV does not strictly track a single index, its performance is often benchmarked against broad international equity indices such as the MSCI EAFE Index or MSCI World ex USA Index. Historically, its performance has shown instances of outperformance and underperformance relative to these benchmarks, reflecting the efficacy of its value and momentum strategy in different market conditions.

Expense Ratio: 0.35

Average Trading Volume

The ETF generally exhibits moderate average trading volume, which allows for relatively smooth execution of trades for most investors.

Bid-Ask Spread

The bid-ask spread for IVEV is typically within a reasonable range for an international equity ETF, indicating moderate trading costs for investors.

Market Environment Factors

IVEV is influenced by global economic growth, geopolitical events, currency fluctuations, and interest rate policies in the countries where it invests. Sector-specific performance within international markets and the overall investor sentiment towards value versus growth investing also play a significant role.

Growth Trajectory

IVEV's growth trajectory is tied to its ability to consistently deliver on its value and momentum strategy. Changes in its holdings and strategy are driven by ongoing quantitative analysis to maintain its factor exposure and adapt to evolving market conditions.

Competitive Edge

VictoryShares International Value Momentum ETF's competitive edge stems from its disciplined, quantitative approach to identifying international equities that are both undervalued and trending upwards. This dual-factor strategy aims to capture potential alpha from companies that are out of favor but showing signs of recovery and positive momentum. The ETF's focus on specific factors offers a differentiated approach within the crowded international ETF market.

Volatility

IVEV has historically exhibited moderate to high volatility, consistent with equity investments, particularly those focused on factors like momentum which can be sensitive to market shifts.

Market Risk

The ETF is subject to market risk associated with international equities, including political instability, economic downturns in foreign economies, currency exchange rate fluctuations, and regulatory changes. The value and momentum factors themselves can also be cyclical and may underperform during certain market regimes.

Ideal Investor Profile

The ideal investor for IVEV is one seeking exposure to international equity markets with a specific focus on value and momentum factors. This investor likely has a moderate to high risk tolerance and a long-term investment horizon, aiming for capital appreciation and potentially outperformance driven by these quantitative strategies.

Market Risk

IVEV is generally best suited for long-term investors who understand and believe in the efficacy of value and momentum investing strategies in international markets. It is less suitable for very short-term traders or investors solely seeking broad, passive market exposure.

The VictoryShares International Value Momentum ETF (IVEV) offers a quantitatively managed approach to international equities, targeting companies with both value and momentum characteristics. Its strategy aims to capture capital appreciation by identifying undervalued firms with positive price trends. While operating in a competitive landscape, its specialized factor focus provides a distinct proposition. Investors should be aware of its moderate to high volatility and the inherent risks associated with international markets and factor investing.

Data Sources:

• VictoryShares Official Website
• Financial Data Providers (e.g., Morningstar, ETF.com)

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions.