Victory Capital has launched the VictoryShares Emerging Market High Div Volatility Wtd ETF (CEY) on the Nasdaq Stock Market.
The new ETF offers exposure to high dividend-yielding emerging market stocks and seeks to provide investment results that track the performance of the CEMP Emerging Market High Dividend 100 Volatility Weighted Index, before fees and expenses.
The CEMP index methodology combines fundamental criteria and volatility weighting in an effort to outperform traditional cap-weighted indexing strategies. Rather than weighting stocks by size, which results in concentration in the largest companies in the index, the CEMP methodology weights stocks based on volatility (standard deviation over the past 180 trading days). The goal is to offer investors a more balanced approach to achieving broad market exposure. To be included in the index, a company must have been profitable over the past four quarters.
“Investors seeking income now have the option to further diversify their portfolios with dividend-yielding emerging market stocks,” says Mannik Dhillon, President, VictoryShares and Solutions. “With many emerging market companies currently out-yielding their US counterparts, we believe it’s an appropriate time to consider a risk conscious, tax efficient approach to investing in high income-producing emerging market equities.
“We believe the simplicity and efficacy of our volatility weighted methodology has resonated with investors and contributed to AUM growth of approximately 107% for our VictoryShares ETF platform year-to-date. We are excited to offer our clients another solution designed to help them achieve their investment goals while managing risk.”