Victory Capital Holdings, has announced that its wholly owned investment adviser, Victory Capital Management Inc, has launched three new active ETFs under the VictoryShares brand, all of which integrate ESG criteria into their respective processes.
The new transparent, active strategies offer investors Victory Capital’s ESG and well-established active capabilities in core plus fixed income, corporate bonds and US mid cap equities in an ETF wrapper.
Two of the ETFs, VictoryShares ESG Corporate Bond ETF (UCRD) and VictoryShares ESG Core Plus Bond ETF (UBND), are managed by USAA Investments, a Victory Capital Investment Franchise. The third ETF, VictoryShares THB Mid Cap ESG ETF (MDCP), is managed by the Company’s THB Asset Management Franchise.
“Active ETFs continue to gain traction with investors seeking to access managers who have proven successful in mutual funds and other investment vehicles,” says Mannik Dhillon, CFA, CAIA, President, VictoryShares and Solutions. “We are thrilled to offer our clients ETF strategies that blend our deep experience in active management with an ESG lens, which today’s investors are increasingly seeking.”
UCRD and UBND seek to provide investors with above-average income through yield-focused portfolios. UCRD offers exposure to primarily investment-grade corporate bonds and UBND offers exposure to intermediate-term bonds. “These new ETFs are distinct in that they combine our bond-by-bond fundamental analysis with our sophisticated, proprietary ESG scoring system,” says James Jackson, CFA, Head of Fixed Income Portfolio Management for USAA Investments.
“MDCP invests in a focused, high-conviction portfolio of approximately 30 mid cap stocks that our team believes represent high-quality, low-risk businesses with the potential to prudently grow shareholder equity over time,” says Christopher Cuesta, CFA, Chief Investment Officer for THB Asset Management. “We are excited to bring our team’s long history of integrating ESG factors into our investment process to investors through an ETF vehicle.”