VictoryShares
Small Cap Free Cash Flow ETF Summary
futures,
which the Fund may use for cash management to provide for liquidity to pay
redemptions and fees (attempting to remain fully invested while maintaining
liquidity).
The Fund
will concentrate its investments (i.e., hold more than 25% of its assets) in a
particular industry or group of industries to the extent that the Index is
concentrated. As of the date of this Prospectus, the Fund is not concentrated in
any industry or group of industries. The degree to which certain sectors,
industries, or asset classes are represented in the Index may change over
time.
Principal
Risks of Investing in the Fund
The Fund’s
investments are subject to the following principal
risks:
Equity
Securities Risk — The
value of the equity securities in which the Fund invests may decline in response
to developments affecting individual companies and/or general economic
conditions in the United States or abroad. A company's earnings or dividends may
not increase as expected (or may decline) because of poor management,
competitive pressures, reliance on particular suppliers or geographical regions,
labor problems or shortages, corporate restructurings, fraudulent disclosures,
man-made or natural disasters, military confrontations or wars, terrorism,
public health crises, or other events, conditions, and factors. Price changes
may be temporary or last for extended periods.
Limited
History of Operations — The
Fund is new and, therefore, has a limited history of operations for investors to
evaluate.
Market
Risk — Overall
market risks may affect the value of the Fund. Domestic and international
factors such as political events, war, terrorism, trade disputes, inflation
rates, interest rate levels, and other fiscal and monetary policy changes;
cybersecurity incidents, pandemics, and other public health crises; sanctions
against a particular foreign country, its nationals, businesses, or industries;
and related geopolitical events, as well as environmental disasters such as
earthquakes, fires, and floods, or other catastrophes, may add to instability in
global economies and markets generally, and may lead to increased market
volatility. Global economies and financial markets are highly interconnected,
which increases the possibility that conditions in one country or region might
adversely affect issuers in another country or region. The impact of these and
other factors may be short-term or may last for extended
periods.
Small-Capitalization
Stock Risk —
Investments in small-capitalization companies involve greater risks than those
associated with larger, more established companies. These securities may be
subject to more abrupt or erratic price movements and may lack sufficient market
liquidity, making it difficult for a Fund to buy and sell them at the time and
price desired, and these issuers often face greater business risks.
Small-capitalization companies typically are less financially stable than
larger, more established companies, and may depend on a small number of key
personnel, making them vulnerable to loss of personnel. These companies also
generally have less diverse product lines than larger capitalization companies
and are more susceptible to adverse developments related to their
products.
Free
Cash Flow Risk —
Investing in companies with high free cash flows could lead to underperformance
during periods when such investments are unpopular, and fluctuations in market
conditions, industry disruptions, or company-specific factors may jeopardize the
generation of free cash flow. Moreover, anticipated increases in a company's
free cash flows may not materialize.
Value
Risk — Value
investing entails investing in securities that are inexpensive relative to other
securities based on ratios such as price to earnings or price to book. There may
be periods when value investing is out of favor, and during which the investment
performance of a fund using a value strategy may suffer. In addition, value
stocks are subject to the risk that their intrinsic value may never be realized
in the market.
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