VictoryShares WestEnd Economic Cycle Bond ETF

VictoryShares WestEnd Economic Cycle Bond ETF (BMDL) is an actively managed bond fund from Victory Capital. It shifts between Treasuries and corporate bonds based on WestEnd Advisors' reading of the economy. As of December 31, 2025, about 62% of the fund was in US Treasuries and 36% in corporate debt. Its 0.40% expense ratio is far above the 0.03% charged by Vanguard Intermediate-Term Bond ETF (BIV), its closest match.

• Over the year to Oct 27, 2026, BMDL returned -0.5%, 5th of 8 among similar funds.
• Its worst full calendar year was 2025 (+6.5%); its best was 2025 (+6.5%).
• The deepest fall in its price history was 6.3% (Sep 16, 2024 to Jan 13, 2025), recovered by Sep 5, 2025.

As of Dec 31, 2025, the fund held 418 securities; the ten largest made up 50.82% of assets.

The bonds mature in 8.7 years on average (weighted by size), with an average coupon of 3.71%.

• Over the three months to Dec 31, 2025, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.59%, +0.66%, -0.47%.

BMDL does not track an index. Under normal conditions, it must keep at least 80% of its assets in debt securities. That can include government bonds, corporate bonds, mortgage- and asset-backed securities, repurchase agreements and convertible bonds. Up to 100% of assets may go into corporate debt of any credit quality, including below-investment-grade "junk" bonds. Up to 20% may go into US-dollar bonds from foreign and emerging-market issuers.

Two teams within Victory Capital share the work. WestEnd Advisors studies interest rates, inflation, economic growth, GDP and unemployment. It then decides on duration, the asset classes to own and how much credit risk to take. Duration measures how sensitive a bond is to interest rates. A bond with a three-year duration should lose about 3% if rates rise by 1 percentage point. The fund's maturity and duration change as WestEnd's views change. Victory Income then picks the actual bonds, using its own internal credit ratings to judge each issuer.

The fund may use futures, including US Treasury futures, to adjust duration, hedge risks or keep market exposure while it holds cash. It reported no derivatives as of December 31, 2025. On that date it held 418 securities, and its 10 largest positions, all US Treasuries, made up 50.82% of assets. The average maturity was 8.7 years. Portfolio turnover was 35%.

• BMDL charges 0.4% a year, versus an average of 0.04% for the similar funds below (8th of 8, cheapest first).
• Of that, 0.35% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.16% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $41 in the first year and $686 over 10 years (assuming a 5% annual return).

Its mostly Treasury portfolio barely moved with stocks in the year to October 27, 2026, but its active, junk-eligible mandate and short record make it a poor fit as a core bond holding.

BMDL launched in June 2024, so it has no record through the 2008, 2020 or 2022 downturns. Its deepest drop was 6.3%, from September 16, 2024, to January 13, 2025. It took about 7.7 months to recover, reaching its old high on September 5, 2025. Anyone drawing cash during that stretch would have been taking money out at a loss. In 2025, its only full calendar year, it returned 6.47%. Income has been modest: a trailing yield of 1.03% as of October 27, 2026, paid twice a year. Cost is a drag, at 0.40% against a 0.04% average for similar funds. Under the SEC's standard example, $10,000 invested would cost $686 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).