VictoryShares THB Mid Cap ETF

VictoryShares THB Mid Cap ETF (MDCP) is an actively managed Victory Capital fund that hand-picks about 30 mostly US mid-sized companies its adviser rates as high quality and priced below their worth. That makes it far more concentrated than mid-size index funds. Its 0.55% expense ratio (annual cost as a share of assets) is more than double the 0.25% of Invesco S&P MidCap Quality ETF (XMHQ), its closest match by holdings.

• Over the year to Oct 27, 2026, MDCP returned 0.0%.
• Its worst full calendar year was 2025 (-3.9%); its best was 2023 (+20.9%).
• The deepest fall in its price history was 19.5% (Nov 25, 2024 to Apr 8, 2025), not yet recovered.

As of Mar 31, 2025, the fund held 30 securities; the ten largest made up 41.9% of assets.

• Over the three months to Mar 31, 2025, investors withdrew a net $52.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.02%, -3.56%, -1.16%.

MDCP does not track an index. The adviser puts at least 80% of assets in mid-cap companies, meaning those whose stock market value falls within the Russell Midcap Index's range when first purchased: about $344.9 million to $82.8 billion as of September 30, 2024. Because the test applies at purchase, a holding that later outgrows the range still counts toward the 80%.

The portfolio team screens about 800 companies down to about 200, then to a watchlist of about 50, looking for value drivers such as rising cash flows or revenues. The final 30 or so are those with the highest expected return after adjusting for risk and the adviser's Quality Assessment. That assessment rates management, financial strength, industry position and, last, corporate responsibility, using environmental, social and governance (ESG) ratings from the adviser and outside providers.

The strategy sets no fixed weighting formula or rebalancing schedule; position sizes are the adviser's call. As of March 31, 2025, Brown & Brown was the largest at 5.1%, and the top 10 made up 41.9%. The fund expects significant stakes in industrials and information technology, and typically 10% or less in foreign stocks, including American Depositary Receipts (US-listed shares of foreign companies). Portfolio turnover was 20%, meaning roughly a fifth of holdings changed over the year measured.

• MDCP charges 0.55% a year, versus an average of 0.25% for the similar funds below.
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.13% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $834 over 10 years (assuming a 5% annual return).

With about 30 hand-picked mid-size stocks, no payouts in the 12 months to October 27, 2026, and a 0.55% expense ratio, it fits a smaller add-on role beside a broad stock core.

MDCP could add a concentrated slice of quality-focused mid-size stocks to a broad core. It launched October 5, 2021, missing the 2008 and 2020 crashes, and its price history starts October 18, 2022, after the 2022 bear market. The prospectus puts its worst quarter at a 14.84% loss, ending June 30, 2022. Its deepest drop since was 19.5%, from November 25, 2024 to April 8, 2025, and it had not recovered by October 27, 2026. Its weakest calendar year, 2025, lost 3.9%. Drawing money in such a slump could lock in losses.

It made no distributions in the 12 months to October 27, 2026. Its 0.55% expense ratio is more than double XMHQ's 0.25%; on $10,000, the SEC's standard example puts costs at $56 for one year and $834 over 10. Past results don't predict future ones, and planning means weighing the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).