Honoring and thanking military veterans is now no more fixed to observing Veterans Day. Gratitude is being extended in many ways. Many companies recruit U.S. veterans and deploy their skillset in profit maximization. This is because veterans possess several qualities that place them as important contributors to the workforce. Moreover, the activity of employing veterans also shows social-responsiveness.
The financial investing world is also actively taking part in highlighting the contribution of veterans. In this regard, VictoryShares launched a new fund, namely, VictoryShares Top Veteran Employers ETF in November.
Inside VTRN
The fund tracks the performance of the Veterans Select Index. It offers a way to “invest in companies that recruit, employ and develop veterans in the workplace and champion best practices for veteran employees.” The fund also “supports military veterans’ financial future and security by donating part of the revenue from VTRN to a financial readiness program for military families.” Gross expense ratio of the fund is 0.65% and net expense ratio of the fund is 0.60% annually.
The fund includes companies that meet liquidity requirements and have a market capitalization of at least $1 billion. No stock accounts for more than 2.67% of the fund. General Electric (2.67%), General Motors (2.62%) and The Charles Schwab Corp. (2.47%) are the top three stocks in the fund. Industrials (26.19%) and Financials (22.81%) are the top two sectors of the fund. Information Technology (11.91%) takes the third position. The fund holds 49 stocks in its portfolio.
How Does the Fund Fit In a Portfolio?
Veterans normally have a variety of cross-functional skills, ranging from tech expertise to experience in engineering. They sometimes possess better leadership, interpersonal and other soft skills than their private sector peers.
A 2016 study by the U.S. Chamber of Commerce Foundation's Hiring Our Heroes initiative showed that veterans are a top recruiting target for American companies. In fact, the U.S. wind industry recruits the nation’s veterans at a rate 61% above the national average. The jobless rate for the roughly 19 million veterans in the United States fell from 6.6% in 2013 to 3.1% in 2019, per a Forbes article.
Thus, investors who want to dive into the socially responsible theme may consider this fund for investment.
After all, 70% of all investors are interested in socially responsible investing, while more than 80% of millennials seek to make socially responsible investment decisions, per the data provided by Morningstar.
Is There Any Competition?
There is already an ETF on almost the same concept, namelyPacer Military Times Best Employers ETF . The underlying Military Times Best for Vets Index comprises the U.S. listed stocks of companies that have been included in the Best for Vets List for the last three consecutive years and have minimum market capitalization of $200 million. The fund charges 60 bps in fees.
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Salute U.S. Military Veterans With This New ETF
Honoring and thanking military veterans is now no more fixed to observing Veterans Day. Gratitude is being extended in many ways. Many companies recruit U.S. veterans and deploy their skillset in profit maximization. This is because veterans possess several qualities that place them as important contributors to the workforce. Moreover, the activity of employing veterans also shows social-responsiveness.
The financial investing world is also actively taking part in highlighting the contribution of veterans. In this regard, VictoryShares launched a new fund, namely, VictoryShares Top Veteran Employers ETF in November.
Inside VTRN
The fund tracks the performance of the Veterans Select Index. It offers a way to “invest in companies that recruit, employ and develop veterans in the workplace and champion best practices for veteran employees.” The fund also “supports military veterans’ financial future and security by donating part of the revenue from VTRN to a financial readiness program for military families.” Gross expense ratio of the fund is 0.65% and net expense ratio of the fund is 0.60% annually.
The fund includes companies that meet liquidity requirements and have a market capitalization of at least $1 billion. No stock accounts for more than 2.67% of the fund. General Electric (2.67%), General Motors (2.62%) and The Charles Schwab Corp. (2.47%) are the top three stocks in the fund. Industrials (26.19%) and Financials (22.81%) are the top two sectors of the fund. Information Technology (11.91%) takes the third position. The fund holds 49 stocks in its portfolio.
How Does the Fund Fit In a Portfolio?
Veterans normally have a variety of cross-functional skills, ranging from tech expertise to experience in engineering. They sometimes possess better leadership, interpersonal and other soft skills than their private sector peers.
A 2016 study by the U.S. Chamber of Commerce Foundation's Hiring Our Heroes initiative showed that veterans are a top recruiting target for American companies. In fact, the U.S. wind industry recruits the nation’s veterans at a rate 61% above the national average. The jobless rate for the roughly 19 million veterans in the United States fell from 6.6% in 2013 to 3.1% in 2019, per a Forbes article.
Thus, investors who want to dive into the socially responsible theme may consider this fund for investment.
After all, 70% of all investors are interested in socially responsible investing, while more than 80% of millennials seek to make socially responsible investment decisions, per the data provided by Morningstar.
Is There Any Competition?
There is already an ETF on almost the same concept, namelyPacer Military Times Best Employers ETF . The underlying Military Times Best for Vets Index comprises the U.S. listed stocks of companies that have been included in the Best for Vets List for the last three consecutive years and have minimum market capitalization of $200 million. The fund charges 60 bps in fees.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>