VSMV: VICTORYSHARES US MULTI-FACTOR MINIMUM VOLATILITY ETF
ETF Education Report: VICTORYSHARES US MULTI-FACTOR MINIMUM VOLATILITY ETF (VSMV)
What this ETF is trying to do
The VSMV ETF is designed to follow a specific strategy involving multiple factors and minimum volatility. This means it looks for stocks that may experience less dramatic price swings. The fund holds a variety of different companies to achieve this goal.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price.
• Total Return: This includes both the share price change and any cash distributions (dividends) paid out to investors.
For VSMV, the numbers show growth in both areas:
• Year-to-Date (YTD): The price return is approximately 9.40%, while the total return is approximately 10.44%.
• One Year: The price return was approximately 14.40%, and the total return was approximately 15.98%.
• Three Year: The price return was approximately 52.07%, and the total return was approximately 58.95%.
Based on an estimated price from roughly one year ago of $52.85, the current price is $60.46.
Top Holdings
The following are the top holdings in this ETF (note that this list is partial):
• Apple Inc (11.34%)
• Lam Research Corp (4.36%)
• Salesforce Inc (4.25%)
• Johnson & Johnson (4.14%)
• Qualcomm Inc (3.87%)
• ExxonMobil Holdings Corp (3.81%)
• KLA Corp (3.59%)
• Allstate Corp (3.57%)
• Adobe Inc (3.47%)
• Walmart Inc (3.18%)
Holdings can change over time.
Income and distribution explanation
Some investors look for ETFs that pay out cash regularly. This is called the distribution yield. VSMV has a distribution yield of approximately 1.31%. The ETF usually pays these distributions monthly, having made 12 payments over the last year. While these payments provide cash, they are not the same as total return.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly. It is important to remember that a falling share price does not always mean NAV erosion is happening. For this ETF, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this fund.
Pros
• The ETF has shown positive price returns and total returns over the one-year and three-year periods.
• The erosion-risk measurement is rated as "good."
Cons
• The distribution yield (1.31%) is relatively low compared to some other types of income-focused funds.
Beginner takeaway
When studying VSMV, notice the difference between the share price movement and the total return. Because this fund pays distributions, the total return is higher than the price return alone. Always remember that a high yield can sometimes be misleading, but in this case, the fund's price has been growing alongside its distributions.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | APPLE INC | AAPL | 11.34% |
| 2 | LAM RESEARCH CORP | LRCX | 4.36% |
| 3 | SALESFORCE INC | CRM | 4.25% |
| 4 | JOHNSON & JOHNSON | JNJ | 4.14% |
| 5 | QUALCOMM INC | QCOM | 3.87% |
| 6 | EXXONMOBIL HOLDINGS CORP | XOM | 3.81% |
| 7 | KLA CORP | KLAC | 3.59% |
| 8 | ALLSTATE CORP | ALL | 3.57% |
| 9 | ADOBE INC | ADBE | 3.47% |
| 10 | WALMART INC | WMT | 3.18% |