Victory Capital Launches Emerging Market Equity ETF
March 23 2016 - 9:00AM
Business Wire
New Strategic Beta ETF Provides an Alternative
Approach For Investing in Emerging Markets
Victory Capital today announced that it has launched the
Victory CEMP Emerging Market Volatility Wtd Index ETF (CEZ),
which began trading on the Nasdaq Stock Market® on March 23, 2016.
The new ETF is managed by Victory Capital’s CEMP investment
franchise (formerly “Compass EMP”).
“Emerging markets account for a larger share of the global
economy than they have in the recent past and represent a great
investment opportunity,” said Stephen Hammers, Chief Investment
Officer for Victory’s CEMP franchise. “We are very excited to
expand our existing ETF line-up to include a fund that may offer a
risk conscious and tax efficient solution for investors seeking to
diversify their portfolios through exposure to emerging
markets.”
The new ETF seeks to provide investment results that track the
performance of the CEMP Emerging Market 500 Volatility Weighted
Index before fees and expenses. The CEMP Indexes seek to
improve an investor’s ability to outperform traditional indexing
strategies through a strategic beta approach that combines
fundamental criteria with volatility weighting of individual
securities, which can lead to broader diversification than market
cap weighting.
Today’s launch follows the launch in 2015 of two developed
international and three domestic equity ETFs managed by CEMP:
- Victory CEMP International Volatility
Wtd Index ETF (CIL)
- Victory CEMP International High Div
Volatility Wtd Index ETF (CID)
- Victory CEMP US Large Cap High Div
Volatility Wtd Index ETF (CDL)
- Victory CEMP US Small Cap Volatility
Wtd Index ETF (CSA)
- Victory CEMP US Small Cap High Div
Volatility Wtd Index ETF (CSB)
The ETF platform managed by CEMP now includes 11 funds, all
using CEMP’s strategic beta indexing approach.
ABOUT CEMP
CEMP, a Victory Capital investment franchise, provides
rules-based investment strategies that combine fundamental criteria
with volatility weighting to seek to improve an investor’s ability
to outperform traditional indexing strategies.
Victory Capital currently offers 11 ETFs and 14 mutual funds
managed by CEMP. For more information, please visit
www.cempetf.com.
ABOUT VICTORY CAPITAL
Victory Capital is a multi-boutique asset management firm,
headquartered in Cleveland, OH. As of December 31, 2015, the firm
had approximately $33.1 billion in assets under management and
advisement.
Victory Capital is comprised of nine autonomous investment
franchises, each with an independent culture and investment
approach. The franchises are supported by a robust distribution and
operational platform, allowing them to focus solely on investment
management.
Victory Capital provides investment advisory services to
institutional clients including corporations, non-profits, public
funds, Taft-Hartley and sub-advisory clients through separate
accounts and commingled funds. Through its intermediary channel,
Victory Capital also offers retail and retirement clients mutual
funds and ETFs as well as separately managed accounts through wrap
fee programs and access to its investment models through unified
managed accounts. For more information, please visit
www.vcm.com.
Investments involve risk including possible loss of principal.
ETFs have the same risks as the underlying securities traded on the
exchange throughout the day. Redemptions are limited and often
commissions are charged on each trade, and ETFs may trade at a
premium or discount to their net asset value. The Fund is a new
exchange traded fund (“ETF”) and has a limited history of
operations for investors to evaluate. The Fund is not actively
managed and does not, therefore, seek returns in excess of its
respective Index. The Fund’s returns may not match the returns of
its respective Index for a number of reasons, including: the Fund
incurs operating expenses not applicable to the Index and incurs
costs in buying and selling securities; the Fund may not be fully
invested at times; differences in the valuation of securities and
differences between the Fund’s portfolio and the Index resulting
from legal restrictions, cost, or liquidity constraints. The
Victory CEMP Emerging Market Volatility Wtd Index ETF, Victory CEMP
International Volatility Wtd Index ETF, and Victory CEMP
International High Div Volatility Wtd Index ETF are subject to
special risks associated with investments in foreign markets, which
may include less liquidity, greater volatility, less developed or
less efficient trading markets, lack of comprehensive company
information, political instability and differing auditing and legal
standards. These risks are great in emerging markets. The funds’
net asset value could decline as a result of changes in the
exchange rates between foreign currencies and the US dollar.
Additionally, certain foreign countries may impose restrictions on
the ability of issuers of foreign securities to make payment of
principal and interest to investors located outside the country,
due to blockage of foreign currency exchanges or otherwise. The
Victory CEMP US Small Cap Volatility Wtd Index ETF and Victory CEMP
US Small Cap High Div Volatility Wtd Index ETF may invest in Small
Cap companies. The earnings and prospects of smaller-sized
companies are more volatile than larger companies. Small-sized
companies may have limited markets, product lines, or financial
resources and lack management experience and may experience higher
failure rates than larger companies. The Victory CEMP US Large Cap
High Div Volatility Wtd Index ETF and Victory CEMP US Small Cap
High Div Volatility Wtd Index ETF’s high dividend strategies may
not be successful. Dividend paying stocks may fall out of favor
relative to the overall market. Strategic beta refers to an
investment style where the manager passively follows an index
designed to take advantage of perceived systematic biases or
inefficiencies in the market. Strategic beta strategies attempt to
deliver a better risk and return trade-off than conventional market
cap weighted indices by using alternative weighting schemes based
on measures such as volatility.
Please consider the Fund’s investment objectives, risks,
charges, and expenses carefully before investing. This and other
important information about the Victory CEMP Funds can be found in
the Funds’ current prospectus. Please read the prospectus carefully
before investing.
For Victory CEMP Fund ETFs, the current prospectus may be
obtained by calling your Financial Advisor or shareholder services
at 1-866-376-7890.
Nothing contained in this communication constitutes tax, legal,
or investment advice. Investors must consult their tax advisor or
legal counsel for advice and information concerning their
particular situation.
Diversification does not assure a profit or protect against
loss in a declining market.
Victory CEMP Funds ETFs are distributed by Quasar Distributors,
LLC.
Victory Capital Management Inc. is the advisor to the Victory
CEMP Funds.
Neither Victory Capital nor CEMP are affiliated with Quasar
Distributors, LLC.
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Victory CapitalCaroline
Churchill303-262-3519cchurchill@vcm.com
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