Victory Capital Launches Emerging Market Equity ETF
March 23, 2016
New Strategic Beta ETF Provides an Alternative Approach
For Investing in Emerging Markets
Cleveland, OH, March 23, 2016 – Victory Capital today announced that it has launched the Victory CEMP Emerging Market Volatility Wtd Index ETF (CEZ), which began trading on the Nasdaq Stock Market® on March 23, 2016. The new ETF is managed by Victory Capital’s CEMP investment franchise (formerly “Compass EMP”).
“Emerging markets account for a larger share of the global economy than they have in the recent past and represent a great investment opportunity,” said Stephen Hammers, Chief Investment Officer for Victory’s CEMP franchise. “We are very excited to expand our existing ETF line-up to include a fund that may offer a risk conscious and tax efficient solution for investors seeking to diversify their portfolios through exposure to emerging markets.”
The new ETF seeks to provide investment results that track the performance of the CEMP Emerging Market 500 Volatility Weighted Index before fees and expenses. The CEMP Indexes seek to improve an investor’s ability to outperform traditional indexing strategies through a strategic beta approach that combines fundamental criteria with volatility weighting of individual securities, which can lead to broader diversification than market cap weighting.
Today’s launch follows the launch in 2015 of two developed international and three domestic equity ETFs managed by CEMP:
Victory CEMP International Volatility Wtd Index ETF (CIL)
Victory CEMP International High Div Volatility Wtd Index ETF (CID)
Victory CEMP US Large Cap High Div Volatility Wtd Index ETF (CDL)
Victory CEMP US Small Cap Volatility Wtd Index ETF (CSA)
Victory CEMP US Small Cap High Div Volatility Wtd Index ETF (CSB)
The ETF platform managed by CEMP now includes 11 funds, all using CEMP’s strategic beta indexing approach.
CEMP, a Victory Capital investment franchise, provides rules-based investment strategies that combine fundamental criteria with volatility weighting to seek to improve an investor’s ability to outperform traditional indexing strategies.
Victory Capital currently offers 11 ETFs and 14 mutual funds managed by CEMP. For more information, please visit www.cempetf.com.
ABOUT VICTORY CAPITAL
Victory Capital is a multi-boutique asset management firm, headquartered in Cleveland, OH. As of December 31, 2015, the firm had approximately $33.1 billion in assets under management and advisement.
Victory Capital is comprised of nine 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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Investments involve risk including possible loss of principal. ETFs have the same risks as the underlying securities traded on the exchange throughout the day. Redemptions are limited and often commissions are charged on each trade, and ETFs may trade at a premium or discount to their net asset value. The Fund is a new exchange traded fund (“ETF”) and has a limited history of operations for investors to evaluate. The Fund is not actively managed and does not, therefore, seek returns in excess of its respective Index. The Fund’s returns may not match the returns of its respective Index for a number of reasons, including: the Fund incurs operating expenses not applicable to the Index and incurs costs in buying and selling securities; the Fund may not be fully invested at times; differences in the valuation of securities and differences between the Fund’s portfolio and the Index resulting from legal restrictions, cost, or liquidity constraints. The Victory CEMP Emerging Market Volatility Wtd Index ETF, Victory CEMP International Volatility Wtd Index ETF, and Victory CEMP International High Div Volatility Wtd Index ETF are subject to special risks associated with investments in foreign markets, which may include less liquidity, greater volatility, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. These risks are great in emerging markets. The funds’ net asset value could decline as a result of changes in the exchange rates between foreign currencies and the US dollar. Additionally, certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. The Victory CEMP US Small Cap Volatility Wtd Index ETF and Victory CEMP US Small Cap High Div Volatility Wtd Index ETF may invest in Small Cap companies. The earnings and prospects of smaller-sized companies are more volatile than larger companies. Small-sized companies may have limited markets, product lines, or financial resources and lack management experience and may experience higher failure rates than larger companies. The Victory CEMP US Large Cap High Div Volatility Wtd Index ETF and Victory CEMP US Small Cap High Div Volatility Wtd Index ETF’s high dividend strategies may not be successful. Dividend paying stocks may fall out of favor relative to the overall market. Strategic beta refers to an investment style where the manager passively follows an index designed to take advantage of perceived systematic biases or inefficiencies in the market. Strategic beta strategies attempt to deliver a better risk and return trade-off than conventional market cap weighted indices by using alternative weighting schemes based on measures such as volatility.
Please consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. This and other important information about the Victory CEMP Funds can be found in the Funds’ current prospectus. Please read the prospectus carefully before investing.
For Victory CEMP Fund ETFs, the current prospectus may be obtained by calling your Financial Advisor or shareholder services at 1-866-376-7890.
Nothing contained in this communication constitutes tax, legal, or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation.
Diversification does not assure a profit or protect against loss in a declining market.
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 and receives a fee from the Funds for its services.