Victory Capital, the company behind the CEMP franchise of exchange traded funds, is rebranding the CEMP under the VictoryShares name.
“In addition to its 11 existing ETFs, Victory plans to launch new ETFs that will track indexes developed in partnership with Nasdaq. Victory today filed initial registration statements for the new ETFs with the Securities and Exchange Commission with the expectation that the ETFs will begin to launch in Q2 2017,” according to a statement issued last week by Ohio-based Victory Capital.
ETFs such as the Victory CEMP US 500 Volatility Wtd Index ETF (NasdaqGM: CFA), Victory CEMP US Small Cap Volatility Wtd Index ETF (NasdaqGM: CSA), Victory CEMP US 500 Enhanced Volatility Wtd Index ETF (NasdaqGM: CFO) and the Victory CEMP US EQ Income Enhanced Volatility Wtd Index ETF (NasdaqGM: CDC) will replace Victory CEMP in their names with VictoryShares. A complete list of the name changes can be seen here.
CFA tracks the CEMP U.S. Large Cap 500 Volatility Weighted Index, which ” is a passive broad market index consisting of the common stock of the 500 largest U.S. based companies with four quarters of positive earnings weighted based on their daily standard deviation.”
CFO tracks the CEMP U.S. Large Cap 500 Long/Cash Volatility Weighted Index, which “is a passive broad market index consisting of the common stock of the 500 largest U.S. based companies with four quarters of positive earnings weighted based on their daily standard deviation.”
CFO offers investors a unique “airbag” approach in that it can move to a cash position of up to 75% in the event of a significant market pullback. As stocks rebound from that hypothetical decline, CFO’s underlying index begins reducing cash and adding equity exposure, providing investors with the advantages of dollar-cost averaging.
The VictoryShares lineup now consists of 11 ETFs with a combined $960 million in assets under mangement.
“The VictoryShares platform is designed to provide investors with rules-based solutions that bridge the gap between the active and passive elements of their portfolios,” said Mannik Dhillon, CFA, Head of Investment Solutions for Victory, in the statement. “As investor behavior continues to evolve away from style box investing into factor- and risk-based investing, VictoryShares will serve as building blocks for next-generation portfolios.”
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