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Should VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC) Be on Your Investing Radar?
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Launched on 07/01/2014, the VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Victory Capital. It has amassed assets over $690.38 M, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.93%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Utilities sector--about 25.60% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Duke Energy Corp. (DUK - Free Report) accounts for about 1.64% of total assets, followed by Xcel Energy Inc. (XEL - Free Report) and Consolidated Edison Inc. (ED - Free Report) .
The top 10 holdings account for about 15.05% of total assets under management.
Performance and Risk
CDC seeks to match the performance of the CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index before fees and expenses. The CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index is an unmanaged index and generally consists of the common stock of the 100 highest dividend yielding stocks of the CEMP U.S. 18 Large Cap 500 Volatility Weighted Index.
The ETF has lost about -1.40% so far this year and was up about 8.55% in the last one year (as of 05/08/2018). In the past 52-week period, it has traded between $42.21 and $48.75.
The ETF has a beta of 0.73 and standard deviation of 11.24% for the trailing three-year period, making it a medium risk choice in the space. With about 103 holdings, it effectively diversifies company-specific risk.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC) Be on Your Investing Radar?
Launched on 07/01/2014, the VictoryShares US EQ Income Enhanced Volatility Wtd ETF (CDC - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Victory Capital. It has amassed assets over $690.38 M, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.93%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Utilities sector--about 25.60% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Duke Energy Corp. (DUK - Free Report) accounts for about 1.64% of total assets, followed by Xcel Energy Inc. (XEL - Free Report) and Consolidated Edison Inc. (ED - Free Report) .
The top 10 holdings account for about 15.05% of total assets under management.
Performance and Risk
CDC seeks to match the performance of the CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index before fees and expenses. The CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index is an unmanaged index and generally consists of the common stock of the 100 highest dividend yielding stocks of the CEMP U.S. 18 Large Cap 500 Volatility Weighted Index.
The ETF has lost about -1.40% so far this year and was up about 8.55% in the last one year (as of 05/08/2018). In the past 52-week period, it has traded between $42.21 and $48.75.
The ETF has a beta of 0.73 and standard deviation of 11.24% for the trailing three-year period, making it a medium risk choice in the space. With about 103 holdings, it effectively diversifies company-specific risk.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.