VictoryShares US Small Mid Cap Value Momentum ETF

USVM

Market cap $1.09B

Markets may be fretting over Federal Reserve policy and economic soft landings, but a handful of momentum ETFs have quietly been stealing the show. Across the array of factor funds, momentum has performed best this year.

The ETF flow leader board tends to show many large funds getting even larger. However, when I looked last week, one more moderately sized ETF caught my eye.

Investor appetite for growth really is something to behold.  Coming into the week of the U.S. presidential inauguration, we had been talking about the importance of diversification in the face of so much uncertainty, geopolitical risk, and lofty equity valuations following massive market gains in recent years.

USVM offers exposure to U.S. small- and mid-cap names that are attractively priced and exhibit robust momentum. USVM does deliver on value and momentum, while growth and quality leave a lot to be desired. It has outperformed a few peers since the index change but nonetheless lagged the market.