The issuer of the MDCP ETF is committed to achieving the fund's investment objective by allocating at least 80% of its assets to mid-cap equity securities. These mid-cap companies fall within the market capitalization range of those included in the Russell Mid Cap Index, which, as of September 30, 2022, encompassed companies with approximate market capitalizations ranging from $0.7 billion to $46.8 billion. The issuer employs a bottom-up, fundamental research approach combined with an analysis of Environmental, Social, and Governance (ESG) factors to identify high-quality companies that can sustainably grow shareholder equity and are trading below their intrinsic value. By considering factors such as management, financial strength, industry position, and ESG ratings, the issuer seeks to construct a portfolio of approximately 30 securities that offer the highest adjusted return, with a strong focus on ESG considerations such as climate change, labor practices, and governance. Additionally, the issuer actively engages with companies to encourage positive change on ESG factors and maintains a responsible investment approach by avoiding entities involved in certain industries like tobacco, cluster munitions, thermal coal, and fossil fuels.
The MDCP Dividend ETF primarily focuses on investing in mid-cap companies, targeting those within the capitalization range of the Russell Mid Cap Index. As of September 30, 2022, this index included companies with market capitalizations ranging from $0.7 billion to $46.8 billion. While dividend income may not be the primary objective, MDCP's dividend distribution is influenced by the dividend policies and performances of its constituent mid-cap companies. The ETF typically holds approximately 30 securities and employs a bottom-up, fundamental research process integrated with Environmental, Social, and Governance (ESG) factors to identify high-quality companies that are trading below their intrinsic value. Although the fund may invest in companies with below-average ESG ratings, it actively engages with these companies to drive positive change in ESG factors. Additionally, MDCP avoids investments in entities directly involved in tobacco products, cluster munitions, thermal coal, and fossil fuels, while also maintaining a lower carbon risk level compared to a third-party index. The fund predominantly invests in common stocks but may allocate a portion of its assets to foreign securities, including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), typically keeping foreign investments at 10% or less of its total assets. As of the date of this Prospectus, MDCP expects significant investments in the financials, healthcare, industrials, and information technology sectors.
MDCP Tracking is all about following the investment objective of the ETF. The fund primarily invests at least 80% of its assets in equity securities of mid-cap companies. These mid-cap companies are defined based on market capitalization, aligning with the Russell Mid Cap Index's criteria, which typically includes companies with market capitalizations ranging from $0.7 billion to $46.8 billion, as of September 30, 2022. The ETF focuses on holding approximately 30 securities in its portfolio, selected through a bottom-up, fundamental research process that incorporates analysis of Environmental, Social, and Governance (ESG) factors. The portfolio management team uses a multifactor screening approach to narrow down the investment universe and identify high-quality companies trading below their intrinsic value. They also consider ESG ratings and proprietary ESG rating methodology to make investment decisions, emphasizing the importance of good corporate citizenship and long-term shareholder value creation. Additionally, the ETF has certain exclusion criteria, avoiding investments in entities involved in tobacco products, cluster munitions, thermal coal, and fossil fuels, while also managing its overall carbon risk relative to a third-party index. The Fund may also focus on specific economic sectors, with significant investments in financials, health care, industrials, and information technology sectors at the time of this Prospectus.
The correlation aspect of the VictoryShares THB Mid Cap ESG ETF is not widely known, and specific correlation data for this ETF is limited. Investors typically rely on fundamental and technical analysis to assess its performance. ETF Insider's web app offers a valuable tool for studying correlations with its comprehensive dataset of US ETFs. The simple visualization tool allows investors to gain deep insights into the correlations of VictoryShares THB Mid Cap ESG ETF with various assets and sectors, helping them make more informed investment decisions. Additionally, the tool highlights any overlap between VictoryShares THB Mid Cap ESG ETFand other ETFs, providing a holistic view of its market interactions.
The MDCP Sector, represented by the VictoryShares THB Mid Cap ESG ETF, is focused on mid-cap companies, typically with market capitalizations ranging from $0.7 billion to $46.8 billion, in line with the Russell Mid Cap Index. The fund's investment strategy combines bottom-up fundamental research with a strong emphasis on Environmental, Social, and Governance (ESG) factors. The portfolio management team employs a rigorous screening process to identify high-quality companies trading below their intrinsic value. ESG considerations are integrated into their investment decisions, with a proprietary ESG rating methodology covering 16 main categories across the three ESG pillars: Environment, Social, and Governance. The MDCP Sector ETF may allocate investments to various sectors, with current significant exposure in financials, healthcare, industrials, and information technology sectors, providing investors with diversified exposure to mid-cap companies while emphasizing ESG principles.
The exposure characteristics of the MDCP ETF emphasize its focus on mid-cap companies within the U.S. equity market. This ETF seeks to track the performance of the Russell Mid Cap Index, which includes companies with market capitalizations ranging from approximately $0.7 billion to $46.8 billion as of September 30, 2022. MDCP ETF typically holds a portfolio of around 30 securities, selected through a bottom-up, fundamental research investment process that incorporates analysis of Environmental, Social, and Governance (ESG) factors. This approach aims to identify high-quality companies with the potential for sustainable growth and trading below their intrinsic value. The fund may also have significant exposure to sectors such as financials, health care, industrials, and information technology.
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5 min readThe MDCP ETF is a specialized investment fund that focuses on global companies in the relevant sectors. This exchange-traded fund offers investors exposure to a diverse range of innovative and cutting-edge companies engaged in advancements in the industry. Discover the potential growth opportunities and risks associated with investing in this dynamic sector through the MDCP ETF.
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