VictoryShares US Value Momentum ETF (ULVM) seeks to track an index that combines value and momentum investing strategies, selecting U.S. stocks that trade below their intrinsic value while showing positive price momentum. This dual-factor approach targets undervalued companies experiencing upward price trends across all market capitalizations.
How It Works
ULVM uses a rules-based methodology that screens U.S. stocks for value metrics like low price-to-earnings and price-to-book ratios, then applies momentum filters based on recent price performance and earnings revisions. The fund employs a modified market-cap weighting system that tilts toward stocks exhibiting the strongest combination of value and momentum characteristics. Portfolio rebalancing occurs quarterly to maintain factor exposures and capture changing market dynamics.
Key Features
- Combines value and momentum factors in single ETF, eliminating need to purchase separate factor funds
- Zero expense ratio makes it one of the most cost-effective factor investing options available
- Launched in late 2022, representing newer generation of factor ETF design and methodology
Risks
- This ETF can lose value when value stocks underperform growth stocks, as occurred during 2020-2021 tech rallies
- Factor timing risk exists as value and momentum strategies can underperform for extended periods lasting several years
- Newer fund with limited track record and minimal assets may face liquidity constraints during market stress
Who Should Own This
Best suited as a satellite holding (10-25% of equity allocation) for investors with 3-7 year time horizons seeking factor-based returns. Medium-to-high risk tolerance required due to factor concentration and style rotation volatility. Appeals to tactical investors wanting exposure to value-momentum combination without paying traditional active management fees.