VictoryShares has introduced a pair of thematic equity ETFs that are likely to resonate with US investors of a patriotic bent.
VictoryShares has introduced two new thematic US equity ETFs that are likely to chime with patriot investors.
Listed on Nasdaq, the funds provide exposure to companies that are notably supportive of US military veterans and to companies that contribute to the national security interests of the US.
They are the VictoryShares Top Veteran Employers ETF (VTRN US) and the VictoryShares Protect America ETF (SHLD US), both of which come with a net expense ratio of 0.60%.
Veteran Employers
The VictoryShares Top Veteran Employers ETF is linked to the Veterans Select Index, an index developed by VETS Indexes in collaboration Wilshire Associates.
The index is designed to identify companies that have demonstrated support of US military veterans, service members and their families through employment opportunities and related policies.
The universe of eligible companies is derived from various rankings, surveys and recognition schemes, such as, for example, the Department of Labor’s HIRE Vets Medallion Program and Viqtory Media’s Military Friendly Employer Awards.
To be included in the index, eligible companies must be publicly traded with a market capitalization of at least $1 billion and liquidity greater than $40 million in average daily traded volume. The index targets up to 50 companies which are equally weighted. It is reconstituted semi-annually.
As of October 31, 2020, the index had 49 constituents with market capitalizations ranging from $2.9bn to $1.5 trillion. Notable sector exposures include industrials (26.2%), financials (22.8%), and information technology (11.9%).
Protect America
The VictoryShares Protect America ETF is linked to the Nasdaq Yewno Aerospace & Defense Index, an index developed by Nasdaq and AI analytics firm, Yewno.
The index is designed to identify companies that are tied to the protection of national security interests of the US. This includes companies that are engaged in the traditional defence and aerospace industries, as well as companies that provide intellectual property to those industries or have contracts with the US security-related governmental departments (defence, homeland security, energy, NASA) to provide goods and services that contribute to the maintenance of national security-related infrastructure.
To be included in the index, eligible companies must be publicly traded with a market capitalization of at least $100 million and average daily trading volume in excess of $1m. The index targets up to 50 companies, which are weighted according to a rules-based methodology that considers a company’s revenues associated with national security, as measured by the size of signed defence-related contracts, and a factor associated with each company’s IP patent activity. The index is reconstituted semi-annually.
As of October 31, 2020, the index had a market capitalization range from $471m to $1.6tn. Notable sector exposures include industrials (71.8%) and information technology (20.2%). Major constituents include General Dynamics (7.8%), Raytheon Technologies (7.8%), Northrop Grumman (7.6%), Lockheed Martin (7.5%), and Boeing (7.2%).