VictoryShares Emerging Markets Value Momentum ETF (UEVM) Fund Overview

VictoryShares Emerging Markets Value Momentum ETF (UEVM) Financial Services Profile

The VictoryShares Emerging Markets Value Momentum ETF (UEVM) provides targeted exposure to developing economies, tracking an index that selects companies based on robust value and momentum factors. This strategy aims for lower volatility and controlled portfolio turnover, offering investors a factor-based approach to emerging market equities within the global asset management sector.

What Is the Investment Thesis for UEVM?

The VictoryShares Emerging Markets Value Momentum ETF (UEVM) offers investors a rules-based, factor-driven approach to emerging market equities, targeting companies with strong value and momentum characteristics. With a market capitalization of $0.25 billion and a Beta of 0.70, UEVM provides exposure to developing economies through a strategy designed to potentially outperform traditional market-capitalization-weighted indexes by focusing on historically robust factors. The ETF's quarterly rebalancing and liquidity filters are intended to maintain consistent factor exposure and tradability. Its emphasis on lower realized volatility aims to provide a smoother investment experience compared to broader emerging market funds. Potential growth catalysts include sustained outperformance of value and momentum factors in emerging markets, increasing investor appetite for diversified factor-based strategies, and the continued economic development of constituent emerging nations. However, inherent risks include political and economic instability in emerging markets, potential tracking error relative to its benchmark, and the impact of its expense ratio on net returns. Investors should evaluate UEVM's performance against its specific index and broader emerging market benchmarks, considering its unique factor-based methodology.

Based on FMP financials and quantitative analysis

UEVM Key Highlights

Market Capitalization: UEVM manages assets totaling $0.25 billion, indicating its current scale within the ETF market.

• Beta: The ETF exhibits a Beta of 0.70, suggesting it has historically been less volatile than the broader market.
• Dividend Policy: UEVM currently has no dividend yield, indicating its focus on capital appreciation rather than income distribution.
• Quarterly Rebalancing: The underlying Nasdaq Victory Emerging Market Value Momentum Index undergoes rebalancing adjustments every quarter, ensuring consistent factor exposure.
• Factor-Based Selection: The index selects the top 25% of securities based on equally weighted value and momentum scores, aiming for targeted factor exposure.

Who Are UEVM's Competitors?

UEVM is benchmarked below against 3 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are UEVM's Key Strengths?

Distinctive factor-based strategy combining value and momentum.

• Volatility optimization overlay aims for lower realized volatility.
• Quarterly rebalancing ensures consistent factor exposure.
• Liquidity filter enhances tradability of underlying holdings.

What Are UEVM's Weaknesses?

Emerging markets inherently carry higher political and economic risks.

• Potential for tracking error between the ETF and its benchmark index.
• Performance is reliant on the continued efficacy of value and momentum factors.
• Relatively small market capitalization ($0.25B) compared to larger ETFs.

What Are the Key Risks for UEVM?

Emerging Market Volatility and Instability: Investments in emerging markets are inherently exposed to higher political, economic, and currency risks, which can lead to significant volatility and impact the fund's performance.

• Tracking Error Risk: There is a potential for the ETF's performance to deviate from that of its underlying benchmark index due to factors such as fees, expenses, and operational inefficiencies.
• Factor Underperformance: The specific value and momentum factors targeted by UEVM's strategy may not always outperform, or could even underperform, broader market indexes over certain periods, impacting investor returns.
• Liquidity Risk in Underlying Holdings: While a liquidity filter is applied, extreme market conditions or specific events could still impact the liquidity of some emerging market securities, affecting the fund's ability to trade efficiently.

What Threats Does UEVM Face?

• Significant downturns or prolonged instability in emerging markets.
• Underperformance of value and momentum factors relative to broader market.
• Intense competition from other emerging market ETFs and active funds.
• Changes in regulatory environment impacting international investments or ETFs.

What Are UEVM's Competitive Advantages?

• Proprietary Index Methodology: The specific, rules-based methodology of the Nasdaq Victory Emerging Market Value Momentum Index, combining value, momentum, and volatility optimization, creates a unique offering.
• Brand Recognition: As part of VictoryShares, UEVM benefits from the established brand and distribution network of Victory Capital Management.
• Liquidity and Tradability: The application of a liquidity filter ensures that the underlying holdings are sufficiently tradable, enhancing the fund's operational efficiency.
• Factor-Based Expertise: Specialization in identifying and weighting companies based on proven investment factors (value and momentum) provides a differentiated strategy.

What Does UEVM Do?

The VictoryShares Emerging Markets Value Momentum ETF (UEVM) is an exchange-traded fund designed to provide investors with exposure to a specialized segment of developing economies. Headquartered in San Antonio, US, UEVM's core objective is to replicate, before the deduction of fees and expenses, the investment performance of its underlying benchmark, the Nasdaq Victory Emerging Market Value Momentum Index. This index is meticulously constructed, exclusively comprising shares from companies situated in developing economies. A distinctive feature of UEVM's strategy is its focus on identifying companies that exhibit a pronounced exposure to both value and momentum factors. The methodology involves a rigorous assessment process where each potential stock is scored for its individual value and momentum attributes, evaluated relative to its specific sector. These individual scores are then combined, with equal weight given to both value and momentum, to generate a comprehensive score for every security. From this pool, the top 25% of securities with the highest combined scores are selected for inclusion in the index. To further refine the portfolio and achieve specific investment goals, the allocation of these chosen securities within the index is optimized. This optimization process assigns greater proportional influence to those companies that have historically demonstrated lower realized volatility, aiming to achieve more controlled portfolio turnover and exhibit lower overall volatility when contrasted with typical market-capitalization-weighted indexes. The index undergoes rebalancing adjustments every quarter, ensuring that the factor exposures remain consistent and responsive to market dynamics. Furthermore, to guarantee sufficient tradability and liquidity within the fund's holdings, a stringent liquidity filter is applied. This filter excludes less liquid assets by retaining only the top 90% of securities based on their annualized trading volume over the preceding 12 months. The index's composition is broad, encompassing a range of equity instruments, including both American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), which allows for diversified access to emerging market companies regardless of their primary listing location. This structured, factor-based approach positions UEVM as a specialized offering within the global asset management industry, catering to investors seeking a refined strategy for emerging market equity exposure.

What Products and Services Does UEVM Offer?

• Manages the VictoryShares Emerging Markets Value Momentum ETF (UEVM).
• Aims to replicate the performance of the Nasdaq Victory Emerging Market Value Momentum Index.
• Invests exclusively in companies from developing economies.
• Selects companies based on their exposure to both value and momentum factors.
• Optimizes index allocation by giving greater weight to securities with lower historical volatility.
• Applies a liquidity filter, retaining the top 90% of securities by annualized trading volume.
• Rebalances the underlying index quarterly to maintain factor exposure.
• Includes American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) in its holdings.

How Does UEVM Make Money?

• Generates revenue primarily through management fees charged to investors for managing the ETF.
• Aims to attract assets under management (AUM) by delivering performance that tracks its specialized index.
• Provides a transparent, rules-based investment vehicle for accessing emerging market equities.
• Benefits from economies of scale as AUM grows, potentially leading to increased profitability for the fund manager.

What Industry Does UEVM Operate In?

UEVM operates within the global asset management industry, specifically targeting the emerging markets segment through an exchange-traded fund (ETF) structure. This industry is characterized by increasing demand for diversified, cost-effective, and rules-based investment solutions. Emerging markets, while offering significant growth potential, are also known for higher volatility and unique geopolitical risks. UEVM positions itself by offering a factor-based strategy, differentiating it from traditional market-capitalization-weighted emerging market ETFs. The competitive landscape includes numerous active and passive funds vying for investor capital in this space. Market trends indicate a growing interest in smart beta or factor-based ETFs, as investors seek to capture specific risk premia beyond traditional market exposure. UEVM's focus on value and momentum, combined with a volatility optimization overlay, aims to provide a potentially more resilient and efficient exposure to emerging economies compared to broader, undifferentiated emerging market funds.

Who Are UEVM's Key Customers?

• Institutional investors seeking targeted emerging market exposure.
• Financial advisors and wealth managers constructing diversified client portfolios.
• Retail investors looking for a factor-based approach to developing economies.
• Investors seeking lower volatility and controlled turnover in their emerging market allocations.

UEVM Financials

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VictoryShares Emerging Markets Value Momentum ETF Financials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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