It is the first biblically/ethically responsible, smart-beta investment product aimed at delivering broad market exposure while tactically managing risk. The diversity of holdings is achieved through a proprietary volatility weighting methodology, and risk is managed through a tactical strategy that automatically shifts the ETF holdings from stocks to cash equivalents during periods of significant market declines.
ETFs trade like stocks. For more information, please contact a qualified financial professional, or ask us for assistance in locating a qualified financial professional. Call +1 (800) 846-7526 or chat online if you need any assistance.
The Fund seeks to provide investment results that track the performance of Victory US Large/Mid Cap Long/Cash Volatility Weighted BRI Index before fees and expenses. “BRI” is shorthand for Biblically Responsible Investing.
The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets directly or indirectly in the securities included in the Victory US Large/Mid Cap Long/Cash Volatility Weighted BRI Index (the “Index”), an unmanaged, volatility weighted index created by the Fund’s Sub-Adviser. A volatility weighted index assigns percentage values to each security in the Index based on the volatility of that security in the market. More volatile stocks have a lower weighting, and less volatile stocks are assigned a higher weighting.
In addition, the fund seeks to manage risk during times of significant market decline by employing a rules-based mathematical formula to reduce exposure in the equity markets by moving to cash equivalents. The fund will then reallocate to stocks when market prices have either further declined or rebounded. These tactical fund adjustments are executed following a fixed metric of allocations correlating with the market price’s decrease or increase.
The Index combines fundamental criteria with individual security risk control achieved through volatility weighting of individual securities. The Index follows a proprietary rules-based methodology, developed by the Fund's subadviser, to construct its constituent securities.
The Index universe begins with the stocks included in the Nasdaq Victory US Large Cap 500 Volatility Weighted Index, a volatility weighted index composed of the 500 largest U.S. companies by market capitalization with net positive earnings over the last four consecutive quarters.
The Index then eliminates the companies that do not satisfy the eVALUEator proprietary Biblically Responsible Investing (“BRI”) filtering criteria.
The remaining stocks are weighted based on their standard deviation (volatility) of price changes over the last 180 trading days. Stocks with lower volatility receive a higher weighting and stocks with higher volatility receive a lower weighting.
The Index is reconstituted, which includes a full screen and reweighting of each holding, every April and October (based on information as of the prior month-end) and is adjusted to limit exposure to any particular sector to 25%. The Index may include more than, or fewer than, 500 stocks depending on the number of companies meeting the Index’s criteria, including the biblical filters.
The Index follows a mathematical index construction process designed to limit risk during periods of significant (non-normal) market decline by reducing its exposure to the equity market. Market decline is measured by reference to the Victory US Large/Mid Cap Volatility Weighted BRI Index (“Reference Index”), which is composed of the same securities as in the Index but without any allocation to cash.
During a period of significant market decline, defined as a decline of 10% or more from the Reference Index’s all-time daily high closing value compared to its most recent month-end closing value, the Index’s exposure to the market may be as low as 25% depending on the magnitude and duration of such decline.
If the month-end value of the Reference Index declines 10% or more from its all-time closing high, the Index will reallocate 75% of the stocks included in the Index to cash or cash equivalents.
For more detailed construction, management or allocation details, please refer to the fund’s prospectus.
|Listing Date||July 29, 2021|
|Category||Large/Mid Cap Core|
|NAV % Change||0.13%|
|30 Day SEC Yield||N/A|
|30 Day SEC Unsubsidized Yield||N/A|
|Gross Expense Ratio||.52|
|Net Expenses Ratio||.52|
|Index||Symbol||High Date||Daily High||Current Value||Percentage Decline||Long Cash Invested*|
|Victory US Large/Mid Cap Volatility Weighted BRI Total Return Index (USD)||SNVVBXT||12/29/2021||1,747.47||1,554.61||-11.04||100%|
|Name||Symbol||Shares Held||Market Value %||Market Value $|
|JM SMUCKER CO||SJM US||2,563.00||0.61%||$375,633|
|HORMEL FOODS CORP.||HRL US||8,973.00||0.56%||$345,191|
|REPUBLIC SERVICES INC.||RSG US||2,414.00||0.56%||$340,567|
|WASTE MANAGEMENT INC.||WM US||2,052.00||0.54%||$330,947|
|O'REILLY AUTOMOTIVE INC.||ORLY US||353.00||0.53%||$325,819|
|MONSTER BEVERAGE CORP||MNST US||5,448.00||0.51%||$313,859|
|SNAP-ON INC.||SNA US||1,202.00||0.51%||$309,335|
|CAMPBELL SOUP CO||CPB U||5,933.00||0.5%||$305,609|
|AMETEK INC.||AME US||2,039.00||0.49%||$302,221|
|ROPER TECHNOLOGIES INC||ROP US||661.00||0.49%||$297,424|
Victory Capital Victory Capital is an investment management firm operating a next-generation, integrated multi-boutique business model with over $161.5 billion in assets under management as of November 30, 2022 (reflects AUM on a discretionary and non-discretionary basis. AUM figures are not adjusted for assets of proprietary funds in other funds or client accounts). As a multi-boutique asset manager, Victory Capital connects to the right talent with the right resources in the right environment. Our investment professionals are empowered to be their best. Unique talents are amplified. And our energies are focused on what really matters—helping our clients meet their goals.
Mr. Dhillon, CFA and CAIA®, is President of Victory Capital's Victory Shares. From 2015- 2017, he served as the Sub-Advisor’s Head of Investment Solutions, Product, and Strategy. From 2010 to 2015, Mr. Dhillon served as a managing director and head of manager research with Wilshire Associates, where he evaluated asset managers and led strategic consulting engagements. Mr. Dhillon is a CFA charter holder.
Mr. Foutz is the Portfolio Implementation Manager for Victory Capital Management’s Victory Shares and Solutions team, with over 17 years of industry experience. Prior to joining Victory Capital Management in 2015, Mr. Foutz managed the Sub-Advisory Oversight Team for Charles Schwab Investment Management. He was also a voting member of CSIM’s Investment Oversight Committee. Previously, Mr. Foutz worked as a Senior Institutional Investment Analyst for Schwab’s Retirement Investment Services department conducting in- depth manager research and authoring proprietary research reports. Prior to that, he worked as a Registered Representative within Schwab Retirement Plan Services, counseling plan participants on a wide array of topics including personal finance and asset allocation and gaining unique insight into investor behavior.