(USVM) VictoryShares US Small Mid - Ratings and Ratios

The Victory Shares US Small Mid Cap Value Momentum ETF (USVM) is designed to provide exposure to small- and mid-capitalization U.S. companies, combining value and momentum factors. Under normal market conditions, the fund invests at least 80% of its assets in securities from its underlying index. This index is derived from the Nasdaq 1300 Small Mid Cap Index, focusing on companies that exhibit higher exposure to value and momentum. Value factors often include metrics like low price-to-earnings ratios and high dividend yields, while momentum factors consider elements like earnings growth and price appreciation. The fund aims to maintain moderate index turnover and lower realized volatility compared to traditional capitalization-weighted indexes, potentially offering a more stable investment experience.

With assets under management (AUM) of $864 million, the fund represents a notable presence in the small- and mid-cap ETF space. The indexs construction methodology is designed to balance value and momentum, which may appeal to investors seeking exposure to smaller companies with both undervalued potential and recent performance momentum. The future outlook for USVM could be influenced by several factors, including shifts in market preferences between value and growth stocks, as well as broader economic conditions such as interest rates and inflation. As interest rates rise, the valuation dynamics of small- and mid-cap companies may be impacted, potentially affecting the funds performance. Additionally, the balance between maintaining moderate turnover and capturing momentum could be challenging in volatile markets. Overall, the funds strategy may resonate with investors looking for a blend of value and momentum in the small- and mid-cap space, though it will be important to monitor how these factors interact in different market environments.