VictoryShares International Value Momentum ETF (UIVM) seeks to track an index that selects international developed market stocks exhibiting both value characteristics and positive price momentum. The strategy combines traditional value metrics like low price-to-book and price-to-earnings ratios with momentum indicators to identify undervalued international stocks showing upward price trends.
How It Works
UIVM uses a rules-based, quantitative approach that screens international developed market stocks using dual factor criteria. The fund first identifies value stocks through metrics including price-to-book, price-to-earnings, and price-to-sales ratios, then applies momentum screens based on recent price performance and earnings revisions. Holdings are weighted by market capitalization with periodic rebalancing to maintain factor exposures. The strategy excludes emerging markets, focusing on established international developed economies outside the United States.
Key Features
- Combines value and momentum factors, historically complementary strategies that can reduce single-factor risk while enhancing returns
- Focuses on international developed markets, providing geographic diversification beyond U.S. equity exposure for global portfolios
- Recently launched in late 2022 with 3.77% dividend yield, offering income potential from international value stocks
Risks
- This ETF can lose value if international markets underperform U.S. markets or if value stocks continue lagging growth stocks for extended periods
- Currency fluctuations can significantly impact returns as foreign holdings are converted to U.S. dollars, potentially adding 5-15% annual volatility
- Factor timing risk exists as value and momentum strategies can underperform for multi-year periods, testing investor patience during style rotations
Who Should Own This
Best suited as a satellite holding (10-20% of international allocation) for investors with 3+ year time horizons seeking factor-based international exposure. Medium-to-high risk tolerance required due to factor concentration and currency volatility. Appropriate for investors already holding core U.S. positions who want diversified international value exposure with momentum characteristics.