|Bid||51.49 x 1200|
|Ask||51.54 x 1000|
|Day's Range||51.25 - 51.59|
|52 Week Range||41.31 - 52.94|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.06|
|Expense Ratio (net)||0.35%|
After a rocky end to 2018, investors are picking themselves up in 2019, but rather than deep-diving into the capital markets headfirst, they’re picking their spots and deploying capital more strategically. Where are the opportunities in ETFs given the current market landscape and how can smart beta-factor strategies work in a portfolio? A market-capitalization-weighted index provides clients with exposure to a particular market based on security prices, without considering any true company fundamental to judge its value.
In the late stage of the economy cycle, investors still want to be in the markets but want to hedge their bets. One way to still play the game but remain defensive is through a smart beta exchange traded fund strategy.
On March 17, 1990, a boxing match between Julio Cesar Chavez and Meldrick Taylor, dubbed "Thunder Meets Lighting" pitted two undefeated world champion pugilists vying to keep a loss off their unblemished records. CSA seeks to provide investment results that track the performance of the Nasdaq Victory US Small Cap 500 Volatility Weighted Index, which is an unmanaged, volatility weighted index. On the other side, CFA seeks to provide investment results that track the performance of the Nasdaq Victory US Large Cap 500 Volatility Weighted Index, which is an unmanaged, volatility weighted index.
Many investors may be exposed to unintended risks as they rely on traditional market capitalization-weighted index funds. "There is a better way to be diversified when you are investing in the market because we don't know how long the rally will last, we don't know what the dips are going to look like," Mannik Dhillon, President of Victory Shares and Solutions at Victory Capital, said at the 2018 Morningstar Investment Conference. Specifically, Dhillon pointed to the VictoryShares US 500 Volatility Wtd ETF (CFA) as an attractive alternative to diversify market exposure.
For an investor, volatility can be a friend or foe--for the short-term investor, it can offer a broad range of trading options for profitability, but for long-term investors, it can be unnerving to hold on to an investment when prices are fluxing wildly. Mannik S. Dhillon, President of VictoryShares, told ETF Trends that its ETFs "use volatility as a weighting mechanism to achieve diversification." Using volatility rather than concentrating on a specific market sector or utilizing a cap weighting strategy, which is the practice of using market price and the outstanding shares to determine the percentage weighting of a company for inclusion in an index, helps Victory Capital provide investors with solutions that can weather different market environments.