Protracted market drawdowns are unsettling and can incite emotional and potentially destructive decision-making. So how can investors maintain conviction in turbulent times?
One possible solution is to employ a systematic, disciplined approach that provides exposure to stocks with a built-in mechanism to shift to cash depending on market conditions.
Disciplined to buy low
VictoryShares offers a suite of enhanced ETFs that tracks the performance of the CEMP volatility weighted long/cash indexes, offering exposure to different broad segments of the stock market.
These long/cash indexes systematically adjust stock/cash allocations up and down based on market conditions.
The aim is to:
1. Combine fundamental criteria and volatility weighting in
an effort to outperform traditional passive strategies
2. Limit steep losses associated with protracted drawdowns
3. Reallocate to stocks reliably in times after prices have fallen
When the ETFs are less than 100% invested in stocks, the remaining assets are invested in cash (30-day T-bills). Reallocations are rules-based and determined based on month-end index values.
Who should consider the VictoryShares Enhanced Volatility suite of ETFs?
- Investors seeking equity exposure to stocks with downside management
- Investors looking to replace or supplement existing core equity allocation with a disciplined, cost-effective ETF solution
- Investors uncomfortable with stock valuations or elevated levels of market volatility
- Investors seeking to capture equity risk premium while managing risk by reducing exposure to stocks during periods of significant market declines
- Investors who want to eliminate emotional decision making during a protracted market downturn
- Investors who want to combine the potential benefits of fundamental criteria and volatility weighting in an effort to outperform traditional market cap-weighted indexing
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An investor should consider the Fund’s investment objectives,
risks, charges and expenses carefully before investing
or sending money. This and other important information
about the Fund can be found in the Fund’s prospectus, or, if
applicable, the summary prospectus. To obtain a copy, please
click here, call your Financial
Advisor, or call shareholder services at 866.376.7890. Read
the prospectus carefully before investing.
Investing involves risk, including the potential loss of principal. There is no guarantee the index strategies discussed will be successful. You can not invest directly in an index. The ETF’s performance may diverge from the Index. The ETFs have the same risks as the underlying securities traded on the exchange throughout the day. ETFs may trade at a premium or discount to their net asset value. The ETFs are not actively managed and may be affected by a general decline in market segments related to the Index. The Fund invests in securities included in, or representative of securities included in, the Index, regardless of their investment merits. Investments in
small and mid-size companies can involve risks such as less publicly available information, higher volatility, and less liquidity than larger companies. International investing involves special risks, which include changes in currency rates, foreign taxation, differences in auditing standards and securities regulations, political uncertainty, and greater volatility. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Dividend paying stocks may fall out of favor relative to the overall market. Dividend payments are not guaranteed.
Transactions in shares of ETFs will result in brokerage commissions. Redemptions are limited.
VictoryShares ETFS are distributed by Foreside Fund Services, LLC. Victory Capital Management Inc. is the adviser to the VictoryShares ETFs. Victory Capital is not affiliated with Foreside Fund Services, LLC.
NOT A DEPOSIT • NOT FDIC OR NCUA INSURED • MAY LOSE VALUE • NO BANK OR CREDIT UNION GUARANTEE
©2017 Victory Capital Management
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