A $1.9 trillion Covid-19 relief bill is putting green back into the markets, but new triggers could easily douse the markets with more volatility. Recent small cap gains are particularly susceptible. Thankfully, there are ETFs that can address small cap volatility, particularly the VictoryShares US Small Cap Volatility Weighted ETF (CSA) and the VictoryShares US Small Cap High Dividend Volatility Weighted ETF (CSB).

CSA seeks to provide investment results that track the performance of the Nasdaq Victory US Small Cap 500 Volatility Weighted Index before fees and expenses. The fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets directly or indirectly in the securities included in the Nasdaq Victory US Small Cap 500 Volatility Weighted Index, an unmanaged, volatility weighted index maintained exclusively by the index provider.

The index combines fundamental criteria with individual security risk control achieved through volatility weighting of individual securities. CSA comes with a net expense ratio of 0.35%.

CSA provides investors with:

  • An opportunity to participate in the potential benefits of U.S. small cap stocks.
  • A balanced approach to investing in small cap domestic stocks rather than a methodology in which performance tends to be dominated by the largest companies.
  • Strong Performance, as the fund is up 80% within the past year and 21% year-to-date.

CSA Chart

Easing Volatility with a Dividend Weighted Strategy

CSB seeks to provide investment results that track the performance of the Nasdaq Victory US Small Cap High Dividend 100 Volatility Weighted Index. The fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets directly or indirectly in the securities included in the Nasdaq Victory US Small Cap High Dividend 100 Volatility Weighted Index, an unmanaged, volatility weighted index maintained exclusively by the index provider.

The index identifies the 100 highest dividend yielding stocks in the Nasdaq Victory US Small Cap 500 Volatility Weighted Index. Like CSA, CSB also comes with a net expense ratio of 0.35%.

CSB Chart

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