Ohio-based asset manager Victory Capital is seeking to enhance its ETF presence with the launch of its new platform, VictoryShares. Under the new platform, the firm plans to launch a series of ETFs that will track indices developed in partnership with Nasdaq, due to be rolled out in Q2 2017.
David Brown, Victory’s Chairman and Chief Executive Officer.
The new product line will be classified within the smart beta space, and will contain single- and multi-factor strategies including maximum diversification, dividend income, downside mitigation, minimum volatility and targeted factor exposure.
“Investors are demanding even greater choice when seeking to diversify beyond traditional active management or to improve upon cap-weighted indexing,” said David Brown, Victory’s Chairman and Chief Executive Officer. “We are pleased to partner with Nasdaq to bring innovative solutions to market that will further support our clients in meeting their investment objectives.”
“The VictoryShares platform is designed to provide investors with rules-based solutions that bridge the gap between the active and passive elements of their portfolios,” added Mannik Dhillon, Head of Investment Solutions for Victory. “As investor behaviour continues to evolve away from style box investing into factor- and risk-based investing, VictoryShares will serve as building blocks for next-generation portfolios.”
The firm’s existing suite of Victory CEMP volatility-weighted ETFs, collectively hosting approximately $960m in assets under management, have been rebranded to reflect the VictoryShares platform. The funds ticker codes and CUSIP numbers has not been changed, nor have the ETF’s underlying indices or corresponding methodologies.
These 11 volatility-weighted ETFs fall under three general categories, given the nature of their strategies including diversified broad market equity exposure (equity); exposure to high dividend payers (equity high dividend); and a dynamic allocation strategy based on market momentum signals (equity long/cash).
Equity
VictoryShares US 500 Volatility Wtd ETF (CFA)
VictoryShares US Small Cap Volatility Wtd (CSA)
VictoryShares International Volatility Wtd ETF (CIL)
VictoryShares Emerging Market Volatility Wtd ETF (CEZ)
Equity High Dividend
VictoryShares US Large Cap High Div Volatility Wtd ETF (CDL)
VictoryShares US Small Cap High Div Volatility Wtd ETF (CSB)
VictoryShares International High Div Volatility Wtd ETF (CID)
Equity Long/Cash
VictoryShares US 500 Enhanced Volatility Wtd ETF (CFO)
VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC)
VictoryShares US Discovery Enhanced Volatility Wtd ETF (CSF)
VictoryShares Developed Enhanced Volatility Wtd ETF (CIZ)