VictoryShares US Multi-Factor Minimum Volatility ETF

VictoryShares US Multi-Factor Minimum Volatility ETF (VSMV) tracks a Nasdaq Victory index that keeps the top 20% of US large and mid-size stocks, ranked on factors like dividend yield and sales growth, and weights them to keep price swings low. It costs 0.35% a year, above the 0.29% average of similar funds. Its largest holdings as of June 30, 2026, were Apple, Lam Research and KLA, giving it a notable tech tilt.

• Over the year to Oct 27, 2026, VSMV returned +15.7%, 2nd of 5 among similar funds.
• Its 5-year annualized return was +11.3%.
• In the 2020 COVID crash it fell 31% and regained its old high 8.3 months after the low.
• Its worst full calendar year was 2022 (-7.5%); its best was 2019 (+26.8%).
• The deepest fall in its price history was 31.3% (Feb 13, 2020 to Mar 23, 2020), recovered by Dec 16, 2020.

As of Jun 30, 2026, the fund held 61 securities; the ten largest made up 48.51% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.94%, +2.45%, -0.45%.

VSMV tracks the Nasdaq Victory US Multi-Factor Minimum Volatility Index. Nasdaq runs the index, and it is not affiliated with Victory Capital. The index starts from the Nasdaq US Large Mid Cap Index, which holds the US companies that make up the top 90% of the US investable market by size. Companies incorporated abroad for tax or legal reasons can still count as US companies. That is why Ireland-based TE Connectivity is among the holdings.

Each company is ranked on proprietary fundamental factors, such as dividend yield and sales growth. A quantitative screen chose these factors. Only the top 20% are kept. An optimizer then sets the weights to keep the volatility of the whole portfolio as low as possible. Volatility means how much prices swing up and down. Limits on each stock's and each sector's weight apply. Because the goal is a calm overall mix, not calm individual stocks, weights can be uneven. Apple was about 10.4% of assets as of June 30, 2026.

The index is rebuilt every April and October. The fund tries to hold every stock in the index at its index weight, and keeps at least 80% of net assets in index securities. It is passively managed, so the adviser does not move to defensive positions when markets fall. The prospectus lists portfolio turnover of 55%, meaning the fund's trading equaled about half the portfolio in a year.

• VSMV charges 0.35% a year, versus an average of 0.29% for the similar funds below (3rd of 5, cheapest first).
• Of that, 0.3% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.06% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $512 over 10 years (assuming a 5% annual return).

The fund is built to give US stock returns with smaller price swings than the broad market, though it has still had stock-sized drops.

VSMV could serve as a lower-swing stock holding. As of October 27, 2026, its one-year volatility was 9.5% and its beta was 0.42. Beta compares a fund's moves with the market's, and below 1 means smaller moves. Its drops have still been deep. It fell about 31% in early 2020 and took about nine months to recover. In 2022 it fell about 18% from April to September and took nearly 10 months to regain its high. Its 2022 calendar-year loss was a milder 7.38%, its worst year. It launched in 2017, after the 2008 crisis. Anyone drawing cash in a bad year could still be withdrawing at depressed prices.

Income is modest: a 1.27% trailing yield, paid monthly, as of October 27, 2026. In the SEC's standard example, costs on $10,000 total $36 in year one. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.