VictoryShares Introduces High Dividend Emerging Market ETF
October 26, 2017
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.”
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.
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call the Fund at 1-866-376-7890. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. The market price used to calculate the Closing Market Price is the last trade as of the time that the Fund’s NAV is calculated. If you trade your shares at another time, your return may differ. Index performance is shown for illustrative purposes only. The CEMP Emerging Market High Dividend 100 Volatility Weighted Index is a volatility weighted index that follows a rules-based methodology. The Index consists of the highest 100 dividend-yielding stocks in the CEMP Emerging Market 500 Volatility Weighted Index, an index comprised of the 500 largest emerging market companies by market capitalization with positive earnings in each of the four most recent quarters. The stocks are weighted based on their daily standard deviation (volatility) of daily price changes over the last 180 trading days. It is not possible to invest directly in an unmanaged index.
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, click here or call 1.866.376.7890. Read the prospectus carefully before investing.
Investing involves risk, including the potential loss of principal. The fund has the same risks as the underlying securities traded on the exchange throughout the day. There is no guarantee that dividends will be paid. The value of the equity securities in which the fund invests may decline in response to developments affecting individual companies and/or general economic conditions. You may lose money by investing in the fund. There is no guarantee that the funds will achieve their objectives. Standard deviation is a statistical measure of volatility and is often used as an indicator of risk. International investing involves special risks, which include changes in currency rates, foreign taxation and differences in auditing standards and securities regulations, political uncertainty and greater volatility. The risks associated with investing in foreign securities are increased in connection with investments in emerging markets securities.
As of 09/30/2017, CFA and CFO were rated against 1218 funds in the Morningstar Large Blend Category for the Overall and 3-year periods and received 5 star ratings, respectively. CDC was rated against 1108 funds in the Morningstar Large Value category for the Overall and 3-year periods and received 5-star ratings, respectively.
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. © 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
VictoryShares ETFs are distributed by Foreside Fund Services, LLC., member FINRA and SIPC. Victory Capital Management Inc., not an affiliate of Foreside Fund Services, LLC., is the investment advisor to the Funds.