SAN ANTONIO, TX–(BUSINESS WIRE)–Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital” or the “Company”) today announced that its wholly owned investment advisor, Victory Capital Management Inc., has launched a new active exchange-traded fund (ETF), VictoryShares WestEnd US Sector ETF (MODL).
WestEnd Advisors, LLC (“WestEnd”), an investment franchise of Victory Capital, has a long history of managing third-party ETF model strategies that are available on many of the largest intermediary distribution platforms. This new product offers an investment approach that mirrors WestEnd’s existing US sector strategy in a single ETF.
“We are extremely excited to offer our clients this proven approach to managing model-based strategies in an active and transparent ETF wrapper, which offers ease of trading, lower account minimums and tax efficiency, among other benefits. benefits,” said Mannik Dhillon. , CFA, CAIA, President, VictoryShares and Solutions. “By expanding our range of available vehicles, we are giving financial advisors the flexibility to choose how they access proven investment capabilities for their clients’ varied needs.”
MODL seeks to achieve favorable returns through active sector selection and avoidance, based on WestEnd’s assessment of the macroeconomic and market environment. The team’s disciplined approach, developed in 1996 and implemented with third-party ETFs since 2005, combines high-conviction active management with investment diversification in passive index sector ETFs and active avoidance of certain sectors to help mitigate risk.
“We are excited to broaden investor access to WestEnd’s US sector strategy with the launch of this ETF, which utilizes our existing approach and our belief that sector performance is directly tied to the path to economic growth.” , said Mike Goldman, managing partner of WestEnd. “In WestEnd’s view, actively allocating to sectors in economic times and avoiding those facing headwinds can provide the opportunity for outperformance throughout the economic cycle.”
WestEnd’s process begins with an in-depth analysis of the macroeconomic environment to anticipate strengths and weaknesses. Next, the investment team considers the relative economic sensitivity of each sector in conjunction with its macroeconomic outlook to make sector allocation and avoidance decisions. Finally, they use low-cost ETFs from major US providers to gain the desired sector exposures. The result is a low-turnover portfolio comprised of select sector allocations that WestEnd believes will provide superior returns given its macro outlook.
About Victory Capital
Victory Capital is a diversified global asset management firm with $147.3 billion in assets under management as of September 30, 2022. It was ranked ninth on The wealth list of the 100 fastest growing companies for 2021. The company operates a next-generation business model combining boutique investment qualities with the benefits of a fully integrated and centralized operations and distribution platform.
Victory Capital provides specialist investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 12 stand-alone investment franchises and a solutions platform, Victory Capital offers a wide range of investment products, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model, mutual trusts, private funds and a 529 Education Savings Plan.
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Past performance does not represent future results.
Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. To obtain a prospectus or a simplified prospectus containing this and other important information, go to www.victorysharesliterature.com. Read it carefully before investing.
Victory Capital Management Inc. acts as the Fund’s investment advisor. WestEnd is responsible for the day-to-day management of the Fund.
VictoryShares ETFs are distributed by Foreside Fund Services, LLC, Member FINRA. Victory Capital Management Inc. is the adviser to the VictoryShares ETFs. Victory Capital is not affiliated with Foreside Fund Services, LLC.
Investments involve risk, including possible loss of principal. ETFs carry the same risks as the underlying securities traded on exchanges throughout the day. Redemptions are limited and often commissions are charged on each trade, and ETFs can trade at a premium or discount to their net asset value.
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