New ETF Seeks to Provide Risk-Aware, High Income Approach to Investing in Emerging Markets
Cleveland, Ohio, October 26, 2017 – Victory Capital announced that it has launched the VictoryShares Emerging Market High Div Volatility Wtd ETF (CEY), which began trading on the Nasdaq Stock Market® today. The new ETF offers exposure to high dividend-yielding emerging market stocks and seeks to provide investment results that track the performance of the CEMP Emerging Market High Dividend 100 Volatility Weighted Index, before fees and expenses.
The CEMP index methodology combines fundamental criteria and volatility weighting in an effort to outperform traditional cap-weighted indexing strategies. Rather than weighting stocks by size, which results in concentration in the largest companies in the index, the CEMP methodology weights stocks based on volatility (standard deviation over the past 180 trading days). The goal is to offer investors a more balanced approach to achieving broad market exposure. To be included in the index, a company must have been profitable over the past four quarters.
“Investors seeking income now have the option to further diversify their portfolios with dividend-yielding emerging market stocks,” said Mannik Dhillon, President, VictoryShares and Solutions. “With many emerging market companies currently out-yielding their U.S. counterparts, we believe it’s an appropriate time to consider a risk conscious, tax efficient approach to investing in high income-producing emerging market equities.”
The VictoryShares platform includes 14 strategic beta ETFs, 12 of which use a volatility weighted approach. VictoryShares’ three inaugural volatility weighted ETFs achieved their three-year track record in July 2017 and have earned 5-Star Overall Morningstar RatingsTM in their respective categories as of September 30, 2017. The three inaugural ETFs are:
• VictoryShares US 500 Volatility Wtd ETF (CFA)
• VictoryShares US 500 Enhanced Volatility Wtd ETF (CFO)
• VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC)
“We believe the simplicity and efficacy of our volatility weighted methodology has resonated with investors and contributed to AUM growth of approximately 107% for our VictoryShares ETF platform year-to-date,”* said Dhillon. “We are excited to offer our clients another solution designed to help them achieve their investment goals while managing risk.”
ABOUT VICTORYSHARES
VictoryShares is a specialist ETF provider with a focus on rules-based solutions that seek to bridge the gap
between active and passive. The VictoryShares ETF product line includes single- and multi-factor strategies
designed to seek a variety of outcomes, including maximum diversification, dividend income, and downside
mitigation. The VictoryShares ETF platform has grown to approximately $1.9 billion in AUM as of September 30,
2017. Visit www.victoryshares.com for more information.
ABOUT VICTORY CAPITAL
Victory Capital is an integrated multi-boutique asset management firm, headquartered in Cleveland, Ohio. As
of September 30, 2017, the firm had approximately $59 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 www.vcm.com.
Disclosure:
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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.
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