VictoryShares US 500 Volatility Wtd ETF Summary
therefore, indirectly on other shareholders. Shareholder purchase and redemption activity
may affect the per share amount of the Fund’s distributions of its net investment income and
net realized capital gains, if any, thereby affecting the tax burden on the Fund’s shareholders subject
to federal income tax, and/or accelerate the realization of taxable income and cause the Fund to make
taxable distributions to its shareholders earlier than the Fund otherwise would have. In addition,
under certain circumstances, non-redeeming shareholders may be treated as receiving a disproportionately
large taxable distribution during or with respect to such tax year. To the extent
a larger shareholder is permitted to invest in the Fund, the Fund may experience large inflows or outflows
of cash from time to time. This activity could magnify these adverse effects on the Fund.
Large-Capitalization Stock Risk — The securities of large-sized companies may underperform the securities of smaller-sized companies or the market as a whole. The growth rate of
larger, more established companies may lag those of smaller companies, especially during periods
of economic expansion.
Index Risk — The Fund attempts to track the performance of the Index. The Fund’s performance
will be negatively affected by general declines in the securities and asset classes represented
in the Index. In addition, because the Fund is not actively managed, unless a specific security
is removed from the Index, the Fund generally will not sell a security because the security’s issuer was
in financial trouble. The Fund also does not attempt to take defensive positions under any market conditions,
including declining markets. Therefore, the Fund’s performance could be lower than funds that
may actively shift their portfolio assets to take advantage of market opportunities or to lessen
the impact of a market decline or a decline in the value of one or more issuers.
Passive Investment Risk — The Fund is not actively managed, and the Adviser does not take defensive positions under any market conditions, including declining markets.
Calculation Methodology Risk — The Index relies on various sources of information to assess the criteria of issuers included in the Index, including information that may be based
on assumptions and estimates. Neither the Fund, the Index Provider, nor the Adviser can offer assurances
that the Index’s calculation methodology or sources of information will provide an accurate assessment
of included issuers or correct valuation of securities, nor can they guarantee the availability
or timeliness of the production of the Index.
Tracking Error Risk — The Fund may be subject to tracking error, which is the divergence of the Fund’s performance from its index. Tracking error may occur because of, among other
reasons, differences between the securities and other instruments held in the Fund’s portfolio
and those included in the Index. This risk may be heightened during times of increased market
volatility or other unusual market conditions. Tracking error also may result because the Fund incurs
fees and expenses, while the Index does not.
Rebalancing Risk — In purchasing and selling securities to rebalance its portfolio, the Fund will
pay more in brokerage commissions than it would without a rebalancing policy. As a result
of the need to rebalance, the Fund also has less flexibility in the timing of purchases and sales
of securities than it would otherwise, and the rebalancing may result in high portfolio turnover. While
we will attempt to minimize any adverse impact to the Fund or its shareholders, the Fund may have a higher
proportion of capital gains and a lower return than a fund that does not have a rebalancing policy.
Errors in index data, index computations or the construction of the index in accordance with its methodology
may occur from time to time and may not be identified and corrected by the Index Provider
for a period of time or at all, which may have an adverse impact on the Fund and its shareholders.
Sector Focus Risk — In following its methodology, the Index from time to time may be concentrated to
a significant degree in securities of issuers located in a single industry or sector,
such as the industrial sector.. To the extent that the Index concentrates in the securities of issuers in
a particular industry or sector, the Fund also can be expected to concentrate its investments to approximately
the same extent. By concentrating its investments in an industry or sector, the Fund may face more
risks than if it were
