VictoryShares US Small Mid Cap Value Momentum ETF (USVM) Fund Overview

VictoryShares US Small Mid Cap Value Momentum ETF (USVM) Financial Services Profile

VictoryShares US Small Mid Cap Value Momentum ETF (USVM) provides exposure to US small and mid-cap equities exhibiting value and momentum factors. The fund seeks to track the Nasdaq Victory US Small Mid Cap Value Momentum Index, emphasizing moderate turnover and lower volatility compared to traditional capitalization-weighted indexes, with a current market cap of $1.45 billion.

What Is the Investment Thesis for USVM?

USVM offers investors targeted exposure to US small and mid-cap stocks exhibiting value and momentum characteristics. With a beta of 1.12, the fund demonstrates slightly higher volatility than the broader market. The fund's strategy of combining value and momentum factors may lead to outperformance during periods when these factors are in favor. A key value driver is the potential for capital appreciation from undervalued stocks that experience positive price momentum. The fund's emphasis on moderate turnover and lower volatility may appeal to investors seeking a more stable investment experience. However, the fund's performance is subject to the risks associated with small and mid-cap stocks, as well as the potential for value and momentum factors to underperform.

Based on FMP financials and quantitative analysis

USVM Key Highlights

Market capitalization of $1.45 billion, indicating a significant presence in the small-mid cap ETF market.

• Beta of 1.12, suggesting slightly higher volatility compared to the overall market.
• Focus on value and momentum factors, potentially leading to outperformance during favorable market conditions.
• Emphasis on moderate turnover, which can help reduce transaction costs and improve tax efficiency.
• Designed to track the Nasdaq Victory US Small Mid Cap Value Momentum Index, providing transparency and predictability.

Who Are USVM's Competitors?

USVM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

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

What Are USVM's Key Strengths?

Exposure to value and momentum factors.

• Moderate turnover and lower volatility.
• Transparent and rules-based investment strategy.
• Relatively low expense ratio.

What Are USVM's Weaknesses?

Dependence on the performance of value and momentum factors.

• Potential for underperformance during unfavorable market conditions.
• Concentration in small and mid-cap stocks.
• No dividend yield.

What Are the Key Risks for USVM?

Underperformance of value and momentum factors relative to other investment styles.

• Increased competition from other factor-based ETFs and actively managed funds.
• Economic downturns and market volatility negatively impacting small and mid-cap stocks.
• Changes in investor sentiment and asset allocation decisions affecting ETF flows.

What Are USVM's Competitive Advantages?

• Established track record: USVM has a proven track record of tracking its underlying index and delivering competitive returns.
• Low cost: USVM offers a relatively low expense ratio compared to actively managed funds and other factor-based ETFs.
• Transparency: USVM's holdings are disclosed daily, providing investors with transparency into its portfolio composition.
• Liquidity: USVM is a highly liquid ETF, allowing investors to easily buy and sell shares.

What Does USVM Do?

VictoryShares US Small Mid Cap Value Momentum ETF (USVM) is designed to replicate the performance, before fees and expenses, of the Nasdaq Victory US Small Mid Cap Value Momentum Index. The fund focuses on investing in equity securities of small and mid-sized companies within the United States. The underlying index is constructed to identify companies that exhibit both value and momentum characteristics. This means the index selects companies that are considered undervalued based on fundamental metrics and also demonstrate positive price momentum. The investment strategy aims to provide a balance between capturing potential upside from value stocks and benefiting from the continuation of positive price trends. The fund also emphasizes maintaining moderate portfolio turnover, which can help reduce transaction costs and improve tax efficiency. Furthermore, the index methodology seeks to lower realized volatility compared to traditional capitalization-weighted indexes. This is achieved by incorporating factors that dampen the impact of market fluctuations. As of 2026, USVM manages approximately $1.45 billion in assets. The fund does not distribute dividends.

What Products and Services Does USVM Offer?

• Tracks the performance of the Nasdaq Victory US Small Mid Cap Value Momentum Index.
• Invests in equity securities of small and mid-capitalization companies.
• Focuses on companies exhibiting value and momentum characteristics.
• Aims to maintain moderate portfolio turnover.
• Seeks to lower realized volatility compared to traditional capitalization-weighted indexes.
• Provides investors with exposure to a diversified portfolio of US small and mid-cap stocks.

How Does USVM Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• Aims to attract and retain investors by providing competitive returns and managing risk effectively.
• Distributes shares through various channels, including brokerage firms and financial advisors.

What Industry Does USVM Operate In?

The asset management industry is characterized by intense competition and evolving investor preferences. ETFs like USVM compete with other passive and active investment strategies targeting the small and mid-cap segments. The increasing popularity of factor-based investing has fueled demand for ETFs that focus on specific investment styles, such as value and momentum. The industry is also subject to regulatory scrutiny and changing market conditions. USVM's focus on value and momentum factors positions it within a growing segment of the ETF market, but its success depends on the continued appeal of these factors and its ability to effectively track its underlying index.

Who Are USVM's Key Customers?

• Retail investors seeking exposure to US small and mid-cap stocks.
• Financial advisors looking for diversified investment solutions for their clients.
• Institutional investors seeking to implement factor-based investment strategies.
• Retirement savers seeking long-term capital appreciation.

USVM Financials

USVM Latest News

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USVM Analyst Consensus

USVM MoonshotScore

What Investors Ask About VictoryShares US Small Mid Cap Value Momentum ETF (USVM) — Financials

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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