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How do Long/Cash ETFs potentially mitigate downside risk?

  • Track indexes that follow a rules-based strategy that adjusts allocations between stocks and cash (see chart)
  • Unemotional, systemic and potentially tax efficient process to reduce equity exposure and reinvest as prices decline
  • Allocations are based on month-end index values relative to each index's  all-time high closing value; Reallocations are made at the close of the first trading day of the next month
Long/Cash Allocations Nasdaq Victory US Large Cap High Dividend 100 Volatility Weighted Index Nasdaq Victory US Large Cap 500 Volatility Weighted Index Nasdaq Victory US Small Cap 500 Volatility Weighted Index Nasdaq Victory International 500 Volatility Weighted Index
100% equities / 0% cash Normal Market Fluctuations
25% equities / 75% cash Down 8% Down 10% Down 11% Down 12%
50% equities / 50% cash Down 16% Down 20% Down 22% Down 24%
75% equities / 25% cash Down 24% Down 30% Down 33% Down 36%
100% equities / 0% cash Down 32% Down 40% Down 44% Down 48%
Corresponding ETF (CDC)
VictoryShares US EQ Income Enhanced Volatility Wtd ETF
(CFO)
VictoryShares US 500 Enhanced Volatility Wtd ETF
(CSF)
VictoryShares US Discovery Enhanced Volatility Wtd ETF
(CIZ)
VictoryShares Developed Enhanced Volatility Enhanced Volatility Wtd ETF

For illustrative purposes only; not indictative of any VictoryShares ETF's performance.
Reallocations are based on month-end proce relative to its all-time high daily closing value of each corresponding reference index.

 

 

Index Daily Highest Values

Daily Highest Index