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Should Victory CEMP US EQ Income Enhanced Volatility Wtd Index ETF (CDC) Be on Your Investing Radar?
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Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Victory CEMP US EQ Income Enhanced Volatility Wtd Index ETF (CDC - Free Report) is a passively managed exchange traded fund launched on 07/01/2014.
The fund is sponsored by Victory Capital. It has amassed assets over $750.90 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
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 3.15%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Utilities sector--about 25.50% 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 1.63% of total assets, followed by Xcel Energy Inc. (XEL - Free Report) and Aep Coinc. (AEP - Free Report) .
The top 10 holdings account for about 15.07% 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 return is roughly 2.02% so far this year and was up about 10.07% in the last one year (as of 07/23/2018). In the past 52-week period, it has traded between $43.23 and $48.75.
The ETF has a beta of 0.73 and standard deviation of 11.07% 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
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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 Victory CEMP US EQ Income Enhanced Volatility Wtd Index ETF (CDC) Be on Your Investing Radar?
Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Victory CEMP US EQ Income Enhanced Volatility Wtd Index ETF (CDC - Free Report) is a passively managed exchange traded fund launched on 07/01/2014.
The fund is sponsored by Victory Capital. It has amassed assets over $750.90 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
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 3.15%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Utilities sector--about 25.50% 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 1.63% of total assets, followed by Xcel Energy Inc. (XEL - Free Report) and Aep Coinc. (AEP - Free Report) .
The top 10 holdings account for about 15.07% 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 return is roughly 2.02% so far this year and was up about 10.07% in the last one year (as of 07/23/2018). In the past 52-week period, it has traded between $43.23 and $48.75.
The ETF has a beta of 0.73 and standard deviation of 11.07% 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
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.