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Inaugural VictoryShares Volatility Weighted ETFs Achieve Three-Year Track Record And Earn 5-Star Overall Morningstar Ratings™

August 10, 2017

Inaugural VictoryShares Volatility Weighted ETFs Achieve Three-Year Track Record 
And Earn 5-Star Overall Morningstar Ratings™

Cleveland, Ohio, August 10, 2017 – Victory Capital today announced that the first three of its VictoryShares volatility weighted ETFs have achieved their three-year track records and earned 5-Star Overall Morningstar Ratings™ in their respective categories as of July 31, 2017. The ETFs, which track the firm’s proprietary CEMP volatility weighted indexes, use a rules-based approach to seek to outperform traditional market cap weighted indexing strategies. They include:  

  • VictoryShares US 500 Volatility Wtd ETF (CFA)

  • VictoryShares US 500 Enhanced Volatility Wtd ETF (CFO)            

  • VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC)

CFA and CFO ranked in the top 10% of 1,233 qualified Large Blend funds over three years as of July 31, 2017, while CDC ranked in the top 1% of the 1,100 qualified Large Value funds for that same period.

Traditional market cap weighted indexes are typically dominated by the performance and risk profile of a handful of mega-cap companies. The CEMP volatility weighted indexes address that concentration challenge by weighting the stocks in the index based on volatility (standard deviation over the past 180 trading days), thereby offering broader exposure to the entire market. Additionally, to be included in the index, a company must maintain four consecutive quarters of positive earnings.

“We’re pleased to be able to provide our clients with an alternative to traditional market cap weighting,” said Mannik Dhillon, President, VictoryShares and Solutions. “We’ve developed a rules-based approach to investing in profitable companies and weighting them based on their volatility that seeks to outperform the S&P 500 Index with less risk. The strong results that we have been able to deliver through CFA, CFO and CDC serve as solid evidence that our methodology is working.”

The VictoryShares volatility weighted approach differs from competing methodologies that invest in low volatility companies. Instead, the indexes use volatility as a weighting mechanism to seek to achieve broad-market diversification. Over the past three years, Victory Capital has extended the approach beyond the US broad market to provide investors with volatility weighted solutions that seek to provide exposure to high dividends as well as international and emerging markets.

The VictoryShares ETF platform, which has grown to approximately $1.7 billion in AUM as of July 31, 2017, is designed to provide investors with rules-based solutions that help bridge the gap between the active and traditional passive elements of their portfolios. In addition to its suite of volatility weighted ETFs, the VictoryShares platform includes two recently launched ETFs: the VictoryShares Dividend Accelerator ETF (VSDA) and the VictoryShares US Multi-Factor Minimum Volatility ETF (VSMV). Both ETFs track indexes developed in partnership with Nasdaq.   

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Victory Capital is an integrated multi-boutique asset management firm, headquartered in Cleveland, Ohio. As of June 30, 2017, the firm had approximately $57.0 billion in assets under management and advisement.

Victory Capital is comprised of 10 autonomous investment franchises, each with an independent culture and investment approach. The franchises are supported by a robust distribution and operational platform, allowing them to focus solely on investment management.

Victory Capital provides investment advisory services to institutional clients including corporations, non-profits, public funds, Taft-Hartley and sub-advisory clients through separate accounts and commingled funds. Through its intermediary channel, Victory Capital also offers retail and retirement clients mutual funds and ETFs as well as separately managed accounts through wrap fee programs and access to its investment models through unified managed accounts. For more information, please visit


Carefully consider a fund's investment objectives, risks, charges and expenses before investing. Download a prospectus or summary prospectus containing this and other important information. Read it carefully before investing.

All investing involves risk, including the potential loss of principal.

Victory Capital means Victory Capital Management Inc., the investment adviser of the Victory Capital mutual funds, USAA Mutual Funds and VictoryShares ETFs. Victory Capital mutual funds and USAA Mutual Funds are distributed by Victory Capital Services, Inc. (VCS), an affiliate of Victory Capital. VictoryShares ETFs are distributed by Foreside Fund Services, LLC (Foreside). VCS and Foreside are members of FINRA. VCS and Victory Capital are not affiliated with Foreside. USAA is not affiliated with Foreside, Victory Capital, or VCS. USAA and the USAA logos are registered trademarks and the USAA Mutual Funds and USAA Investments logos are trademarks of United Services Automobile Association and are being used by Victory Capital and its affiliates under license.

Learn more about Foreside at FINRA's BrokerCheck.

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