Victory Capital on Thursday rolled out the VictoryShares US Multi-Factor Minimum Volatility ETF (VSMV). The fund trades on Nasdaq, which is no surprise given that VSMV is the second exchange-traded fund that tracks an index developed with Nasdaq. The first fund, the VictoryShares Dividend Accelerator ETF (VSDA), launched in April and tracks the Nasdaq Victory Dividend Accelerator Index that targets companies expected to grow dividends consistently over time.
Regarding VSMV, the fund tracks the performance of the Nasdaq Victory US Multi-Factor Minimum Volatility Index that uses a two-step approach to screen for more durable companies by isolating certain characteristics such as momentum, quality, value and growth potential. It also optimizes the portfolio to ensure diversification and to help reduce overall index volatility.
“We use a multi-factor approach to select a starting universe that has the potential to enhance returns and then optimize the portfolio with the aim of reducing volatility,” Mannik Dhillon, president of VictoryShares and Solutions, said in a press statement. “Many minimum volatility strategies focus only on the latter step.”
The fund's net expense ratio is 0.35 percent.
Victory Capital is a Cleveland-based multi-boutique asset management firm that sponsors the VictoryShares ETF platform which had $1.5 billion in assets under management as of May 31. These funds are designed to provide investors with rules-based solutions that help bridge the gap between active and passive portfolio management.