December
31,
2023
Semi
Annual
Report
VictoryShares
US
Value
Momentum
ETF
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
VictoryShares
International
Value
Momentum
ETF
VictoryShares
Emerging
Markets
Value
Momentum
ETF
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TABLE
OF
CONTENTS
Victory
Portfolios
II
1
Investment
Objectives
and
Portfolio
Holdings
3
Schedules
of
Portfolio
Investments
VictoryShares
US
Value
Momentum
ETF
7
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
10
VictoryShares
International
Value
Momentum
ETF
16
VictoryShares
Emerging
Markets
Value
Momentum
ETF
24
Financial
Statements
Statements
of
Assets
and
Liabilities
31
Statements
of
Operations
33
Statements
of
Changes
in
Net
Assets
35
Financial
Highlights
37
Notes
to
Financial
Statements
41
Supplemental
Information
Proxy
Voting
and
Portfolio
Holdings
Information 
51
Expense
Examples
51
Advisory
Contract
Approval
52
Privacy
Policy
55
2
Call
Victory
at:
866-376-7890
Visit
our
website
at:
vcm.com
IRA
DISTRIBUTION
WITHHOLDING
DISCLOSURE
We
generally
must
withhold
federal
income
tax
at
a
rate
of
10%
of
the
taxable
portion
of
your
distribution
and,
if
you
live
in
a
state
that
requires
state
income
tax
withholding,
at
your
state’s
tax
rate.
However,
you
may
elect
not
to
have
withholding
apply
or
to
have
income
tax
withheld
at
a
higher
rate.
Any
withholding
election
that
you
make
will
apply
to
any
subsequent
distribution
unless
and
until
you
change
or
revoke
the
election.
If
you
wish
to
make
a
withholding
election,
or
change
or
revoke
a
prior
withholding
election,
call
800-539-3863
and
form
W-4P
(OMB
No.
1545-0074
withholding
certificate
for
pension
or
annuity
payments)
will
be
electronically
sent.
If
you
do
not
have
a
withholding
election
in
place
by
the
date
of
a
distribution,
federal
income
tax
will
be
withheld
from
the
taxable
portion
of
your
distribution
at
a
rate
of
10%.
If
you
must
pay
estimated
taxes,
you
may
be
subject
to
estimated
tax
penalties
if
your
estimated
tax
payments
are
not
sufficient
and
sufficient
tax
is
not
withheld
from
your
distribution.
For
more
specific
information,
please
consult
your
tax
adviser.
The
Funds
are
distributed
by
Foreside
Fund
Services,
LLC.
Victory
Capital
Management
Inc.
is
the
investment
adviser
to
the
Funds
and
receives
fees
from
the
Funds
for
performing
services
for
the
Funds.
This
report
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
a
current
prospectus
of
the
Victory
Funds.
For
additional
information
about
any
Victory
Fund,
including
fees,
expenses,
and
risks,
view
our
prospectus
online
at
vcm.com
or
call
800-539-3863.
Read
it
carefully
before
you
invest
or
send
money.
The
information
in
this
report
is
based
on
data
obtained
from
recognized
services
and
sources
and
is
believed
to
be
reliable.
Any
opinions,
projections,
or
recommendations
in
this
report
are
subject
to
change
without
notice
and
are
not
intended
as
individual
investment
advice.
Past
investment
performance
of
the
Funds,
markets
or
securities
mentioned
herein
should
not
be
considered
to
be
indicative
of
future
results.
NOT
FDIC
INSURED
NO
BANK
GUARANTEE
MAY
LOSE
VALUE
INVESTMENTS
INVOLVE
RISK
PRINCIPAL
LOSS
IS
POSSIBLE
3
Victory
Portfolios
II
VictoryShares
US
Value
Momentum
ETF
December
31,
2023
Investment
Objective
and
Portfolio
Holdings:
(Unaudited)
The
Fund
seeks
to
provide
investment
results
that
closely
correspond,
before
fees
and
expenses,
to
the
performance
of
the
Nasdaq
Victory
US
Value
Momentum
Index.
Top
10
Holdings*:
December
31,
2023
(%
of
Net
Assets)
Top
Sectors*:
December
31,
2023
(%
of
Net
Assets)
Does
not
include
futures
contracts,
money
market
instruments,
and
short-term
investments
purchased
with
cash
collateral
from
securities
loaned.
Refer
to
the
Schedule
of
Portfolio
Investments
for
a
complete
list
of
securities.
Berkshire
Hathaway,
Inc.,
Class
B
1.4%
The
TJX
Cos.,
Inc.
1.3%
Walmart,
Inc.
1.2%
International
Business
Machines
Corp.
1.2%
Cencora,
Inc.
1.2%
The
Kraft
Heinz
Co.
1.2%
Laboratory
Corp.
of
America
Holdings
1.1%
Cboe
Global
Markets,
Inc.
1.1%
CME
Group,
Inc.
1.1%
Consolidated
Edison,
Inc.
1.1%
Health
Care
16.4%
Financials
13.9%
Industrials
13.8%
Real
Estate
12.0%
Information
Technology
10.5%
Consumer
Discretionary
7.9%
Consumer
Staples
6.5%
Materials
6.3%
Utilities
5.9%
Energy
3.2%
4
Victory
Portfolios
II
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
December
31,
2023
Investment
Objective
and
Portfolio
Holdings:
(Unaudited)
The
Fund
seeks
to
provide
investment
results
that
closely
correspond,
before
fees
and
expenses,
to
the
performance
of
the
Nasdaq
Victory
US
Small
Mid Cap
Value
Momentum
Index.
Top
10
Holdings*:
December
31,
2023
(%
of
Net
Assets)
Top
Sectors*:
December
31,
2023
(%
of
Net
Assets)
Does
not
include
futures
contracts,
money
market
instruments,
and
short-term
investments
purchased
with
cash
collateral
from
securities
loaned.
Refer
to
the
Schedule
of
Portfolio
Investments
for
a
complete
list
of
securities.
Golub
Capital
BDC,
Inc.
0.7%
Old
Republic
International
Corp.
0.6%
Science
Applications
International
Corp.
0.6%
CACI
International,
Inc.,
Class
A
0.6%
MSC
Industrial
Direct
Co.,
Inc.
0.6%
Prestige
Consumer
Healthcare,
Inc.
0.6%
Graham
Holdings
Co.,
Class
B
0.6%
Henry
Schein,
Inc.
0.5%
MGIC
Investment
Corp.
0.5%
Insight
Enterprises,
Inc.
0.5%
Industrials
17.7%
Health
Care
15.3%
Financials
15.3%
Consumer
Discretionary
14.6%
Information
Technology
10.9%
Energy
6.5%
Real
Estate
6.3%
Materials
5.5%
Consumer
Staples
3.0%
Communication
Services
2.4%
5
Victory
Portfolios
II
VictoryShares
International
Value
Momentum
ETF
December
31,
2023
Investment
Objective
and
Portfolio
Holdings:
(Unaudited)
The
Fund
seeks
to
provide
investment
results
that
closely
correspond,
before
fees
and
expenses,
to
the
performance
of
the
Nasdaq
Victory
International
Value
Momentum
Index.
Top
10
Holdings*:
December
31,
2023
(%
of
Net
Assets)
Top
Sectors*:
December
31,
2023
(%
of
Net
Assets)
Does
not
include
futures
contracts,
money
market
instruments,
and
short-term
investments
purchased
with
cash
collateral
from
securities
loaned.
Refer
to
the
Schedule
of
Portfolio
Investments
for
a
complete
list
of
securities.
Henkel
AG
&
Co.
KGaA,
Preference
Shares
1.0%
Orange
SA
1.0%
Investor
AB,
Class
B
1.0%
ACS
Actividades
de
Construccion
y
Servicios
SA
0.9%
Industrivarden
AB,
Class
C
0.9%
Industrial
Bank
of
Korea
0.8%
Engie
SA
0.8%
Tesco
PLC
0.8%
Vivendi
SE
0.8%
Bollore
SE
0.8%
Financials
21.6%
Industrials
17.3%
Consumer
Discretionary
9.4%
Consumer
Staples
8.4%
Materials
8.0%
Communication
Services
8.0%
Health
Care
6.8%
Real
Estate
6.7%
Utilities
4.5%
Energy
4.3%
6
Victory
Portfolios
II
VictoryShares
Emerging
Markets
Value
Momentum
ETF
December
31,
2023
Investment
Objective
and
Portfolio
Holdings:
(Unaudited)
The
Fund
seeks
to
provide
investment
results
that
closely
correspond,
before
fees
and
expenses,
to
the
performance
of
the
Nasdaq
Victory
Emerging
Market
Value
Momentum
Index.
Top
10
Holdings*:
December
31,
2023
(%
of
Net
Assets)
Top
Sectors*:
December
31,
2023
(%
of
Net
Assets)
Does
not
include
futures
contracts,
money
market
instruments,
and
short-term
investments
purchased
with
cash
collateral
from
securities
loaned.
Refer
to
the
Schedule
of
Portfolio
Investments
for
a
complete
list
of
securities.
ITC
Ltd.
1.3%
Pou
Chen
Corp.
1.2%
Larsen
&
Toubro
Ltd.
1.2%
NTPC
Ltd.
1.2%
Powertech
Technology,
Inc.
1.1%
Catcher
Technology
Co.
Ltd.
1.1%
Coca-Cola
Femsa
SAB
de
CV
1.1%
Dr.
Reddy's
Laboratories
Ltd.
1.1%
Fomento
Economico
Mexicano
SAB
de
CV
1.1%
PT
Indofood
Sukses
Makmur
Tbk
1.0%
Financials
19.5%
Information
Technology
17.8%
Industrials
10.7%
Consumer
Discretionary
9.1%
Health
Care
8.4%
Utilities
8.0%
Consumer
Staples
7.2%
Real
Estate
6.2%
Materials
5.6%
Energy
4.1%
Schedule
of
Portfolio
Investments
December
31,
2023
Victory
Portfolios
II
VictoryShares
US
Value
Momentum
ETF
7
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Shares
Value
Common
Stocks
(99.4%)
Communication
Services
(3.0%):
Alphabet,
Inc.
,
Class
A
(a)
.................................................
8,689
$
1,213,766
Comcast
Corp.
,
Class
A
..................................................
31,530
1,382,590
Fox
Corp.
,
Class
A
......................................................
47,355
1,405,023
Meta
Platforms,
Inc.
,
Class
A
(a)
............................................
3,035
1,074,269
5,075,648
Consumer
Discretionary
(7.9%):
Best
Buy
Co.,
Inc.
......................................................
17,385
1,360,898
D.R.
Horton,
Inc.
.......................................................
8,964
1,362,349
Deckers
Outdoor
Corp.
(a)
.................................................
1,416
946,497
Ford
Motor
Co.
........................................................
91,915
1,120,444
General
Motors
Co.
.....................................................
31,556
1,133,491
Lennar
Corp.
,
Class
A
....................................................
9,273
1,382,048
NVR,
Inc.
(a)
..........................................................
225
1,575,101
PulteGroup,
Inc.
........................................................
12,434
1,283,437
Royal
Caribbean
Cruises
Ltd.
(a)
............................................
8,485
1,098,723
The
TJX
Cos.,
Inc.
......................................................
23,585
2,212,509
13,475,497
Consumer
Staples
(6.5%):
Bunge
Global
SA
.......................................................
12,339
1,245,622
Molson
Coors
Beverage
Co.
,
Class
B
.........................................
23,591
1,444,005
The
Kraft
Heinz
Co.
.....................................................
55,343
2,046,584
The
Kroger
Co.
........................................................
38,579
1,763,446
Tyson
Foods,
Inc.
,
Class
A
................................................
23,271
1,250,817
Walgreens
Boots
Alliance,
Inc.
.............................................
48,684
1,271,139
Walmart,
Inc.
..........................................................
13,218
2,083,818
11,105,431
Energy
(3.2%):
Diamondback
Energy,
Inc.
................................................
7,806
1,210,554
Marathon
Oil
Corp.
.....................................................
36,343
878,047
Marathon
Petroleum
Corp.
................................................
7,502
1,112,997
Phillips
66
............................................................
9,347
1,244,460
Valero
Energy
Corp.
.....................................................
8,380
1,089,400
5,535,458
Financials
(13.9%):
Aflac,
Inc.
............................................................
20,635
1,702,387
American
International
Group,
Inc.
..........................................
19,126
1,295,787
Arch
Capital
Group
Ltd.
(a)
................................................
15,290
1,135,588
Berkshire
Hathaway,
Inc.
,
Class
B
(a)
.........................................
6,855
2,444,904
Capital
One
Financial
Corp.
...............................................
9,588
1,257,179
Cboe
Global
Markets,
Inc.
................................................
10,396
1,856,310
Citigroup,
Inc.
.........................................................
30,024
1,544,435
CME
Group,
Inc.
.......................................................
8,800
1,853,280
Everest
Group
Ltd.
......................................................
3,222
1,139,235
First
Citizens
Bancshares,
Inc.
,
Class
A
.......................................
299
424,272
JPMorgan
Chase
&
Co.
..................................................
10,284
1,749,308
Loews
Corp.
..........................................................
25,806
1,795,840
Markel
Group,
Inc.
(a)
....................................................
960
1,363,104
Synchrony
Financial
.....................................................
34,039
1,299,949
The
Bank
of
New
York
Mellon
Corp.
.........................................
27,773
1,445,585
Wells
Fargo
&
Co.
......................................................
27,525
1,354,780
23,661,943
Health
Care
(16.4%):
Becton
Dickinson
&
Co.
..................................................
6,649
1,621,226
Cardinal
Health,
Inc.
....................................................
14,659
1,477,627
Cencora,
Inc.
..........................................................
10,029
2,059,756
Centene
Corp.
(a)
.......................................................
16,034
1,189,883
CVS
Health
Corp.
......................................................
18,441
1,456,101
Eli
Lilly
&
Co.
.........................................................
1,779
1,037,015
Victory
Portfolios
II
VictoryShares
US
Value
Momentum
ETF
8
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Gilead
Sciences,
Inc.
....................................................
21,103
$
1,709,554
Hologic,
Inc.
(a)
........................................................
22,222
1,587,762
Humana,
Inc.
..........................................................
2,342
1,072,191
Laboratory
Corp.
of
America
Holdings
........................................
8,267
1,879,007
McKesson
Corp.
.......................................................
3,329
1,541,260
Moderna,
Inc.
(a)
.......................................................
9,248
919,714
Molina
Healthcare,
Inc.
(a)
................................................
3,207
1,158,721
Pfizer,
Inc.
............................................................
48,441
1,394,616
Quest
Diagnostics,
Inc.
...................................................
12,850
1,771,758
Regeneron
Pharmaceuticals,
Inc.
(a)
..........................................
1,676
1,472,014
STERIS
PLC
..........................................................
6,809
1,496,959
The
Cigna
Group
.......................................................
4,465
1,337,044
The
Cooper
Cos.,
Inc.
....................................................
4,737
1,792,670
27,974,878
Industrials
(13.8%):
Builders
FirstSource,
Inc.
(a)
...............................................
5,464
912,160
Carrier
Global
Corp.
.....................................................
21,193
1,217,538
Copart,
Inc.
(a)
.........................................................
29,667
1,453,683
Eaton
Corp.
PLC
.......................................................
5,227
1,258,766
Expeditors
International
of
Washington,
Inc.
....................................
12,387
1,575,626
FedEx
Corp.
..........................................................
5,143
1,301,025
General
Electric
Co.
.....................................................
11,293
1,441,325
Jacobs
Solutions,
Inc.
....................................................
10,910
1,416,118
Lennox
International,
Inc.
.................................................
2,817
1,260,664
PACCAR,
Inc.
.........................................................
15,631
1,526,367
Parker-Hannifin
Corp.
...................................................
2,689
1,238,822
Snap-on,
Inc.
..........................................................
5,202
1,502,546
Stanley
Black
&
Decker,
Inc.
..............................................
10,716
1,051,240
Textron,
Inc.
..........................................................
17,395
1,398,906
Uber
Technologies,
Inc.
(a)
................................................
15,981
983,950
United
Rentals,
Inc.
.....................................................
1,826
1,047,065
Watsco,
Inc.
...........................................................
3,046
1,305,120
Westinghouse
Air
Brake
Technologies
Corp.
....................................
12,797
1,623,939
23,514,860
Information
Technology
(10.5%):
Adobe,
Inc.
(a)
.........................................................
1,684
1,004,674
Akamai
Technologies,
Inc.
(a)
..............................................
12,679
1,500,560
Broadcom,
Inc.
........................................................
1,064
1,187,690
Dell
Technologies,
Inc.
,
Class
C
............................................
11,512
880,668
Fair
Isaac
Corp.
(a)
......................................................
1,145
1,332,791
Hewlett
Packard
Enterprise
Co.
.............................................
62,191
1,056,003
HP,
Inc.
..............................................................
44,005
1,324,110
Intel
Corp.
............................................................
18,419
925,555
International
Business
Machines
Corp.
........................................
12,638
2,066,945
Jabil,
Inc.
............................................................
7,449
949,003
KLA
Corp.
...........................................................
1,731
1,006,230
Micron
Technology,
Inc.
..................................................
11,884
1,014,181
Microsoft
Corp.
........................................................
3,497
1,315,012
NVIDIA
Corp.
.........................................................
1,464
725,002
Skyworks
Solutions,
Inc.
.................................................
11,710
1,316,438
Super
Micro
Computer,
Inc.
(a)
.............................................
1,481
420,989
18,025,851
Materials
(6.3%):
Celanese
Corp.
.........................................................
7,546
1,172,422
DuPont
de
Nemours,
Inc.
.................................................
19,017
1,462,978
LyondellBasell
Industries
NV
,
Class
A
........................................
15,014
1,427,531
Nucor
Corp.
...........................................................
6,331
1,101,847
Packaging
Corp.
of
America
...............................................
7,854
1,279,495
Reliance
Steel
&
Aluminum
Co.
............................................
4,774
1,335,192
Steel
Dynamics,
Inc.
.....................................................
8,070
953,067
The
Mosaic
Co.
........................................................
24,178
863,880
Victory
Portfolios
II
VictoryShares
US
Value
Momentum
ETF
9
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Westlake
Corp.
........................................................
8,563
$
1,198,478
10,794,890
Real
Estate
(12.0%):
Alexandria
Real
Estate
Equities,
Inc.
.........................................
9,048
1,147,015
American
Homes
4
Rent
,
Class
A
...........................................
41,526
1,493,275
AvalonBay
Communities,
Inc.
..............................................
9,065
1,697,149
CBRE
Group,
Inc.
,
Class
A
(a)
..............................................
14,501
1,349,898
Digital
Realty
Trust,
Inc.
..................................................
7,067
951,077
Equity
Residential
......................................................
27,597
1,687,832
Essex
Property
Trust,
Inc.
.................................................
6,606
1,637,892
Host
Hotels
&
Resorts,
Inc.
................................................
67,101
1,306,456
Iron
Mountain,
Inc.
.....................................................
23,849
1,668,953
Simon
Property
Group,
Inc.
...............................................
10,545
1,504,139
Ventas,
Inc.
...........................................................
26,582
1,324,847
VICI
Properties,
Inc.
....................................................
54,492
1,737,205
Welltower,
Inc.
.........................................................
15,417
1,390,151
Weyerhaeuser
Co.
......................................................
47,493
1,651,332
20,547,221
Utilities
(5.9%):
Consolidated
Edison,
Inc.
.................................................
20,056
1,824,494
Edison
International
.....................................................
22,507
1,609,026
Entergy
Corp.
.........................................................
15,565
1,575,022
Evergy,
Inc.
...........................................................
30,669
1,600,922
Exelon
Corp.
..........................................................
46,013
1,651,867
PPL
Corp.
............................................................
67,040
1,816,784
10,078,115
Total
Common
Stocks
(Cost
$154,167,617)
169,789,792
Total
Investments
(Cost
$154,167,617)
—
99.4%
169,789,792
Other
assets
in
excess
of
liabilities
—
0.6%
972,905
NET
ASSETS
-
100.00%
$
170,762,697
(a)
Non-income
producing
security.
PLC
—
Public
Limited
Company
Futures
Contracts
Purchased
Number
of
Contracts
Expiration
Date
Notional
Amount
Value
Unrealized
Appreciation
(Depreciation)
E-Mini
S&P
500
Futures
..............
3
3/15/24
$
706,499
$
723,000
$
16,501
Total
unrealized
appreciation
$
16,501
Total
unrealized
depreciation
—
Total
net
unrealized
appreciation
(depreciation)
$
16,501
Schedule
of
Portfolio
Investments
December
31,
2023
Victory
Portfolios
II
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
10
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Shares
Value
Common
Stocks
(99.6%)
Communication
Services
(2.4%):
Frontier
Communications
Parent,
Inc.
(a)
......................................
16,656
$
422,063
GCI
Liberty,
Inc
(a)
(b)
....................................................
4,908
49
IAC,
Inc.
(a)
...........................................................
13,939
730,125
Liberty
Latin
America
Ltd.
,
Class
C
(a)
........................................
75,733
555,880
News
Corp.
,
Class
A
.....................................................
44,535
1,093,334
Nexstar
Media
Group,
Inc.
................................................
4,677
733,120
Sphere
Entertainment
Co.
(a)
...............................................
12,197
414,210
Yelp,
Inc.
(a)
...........................................................
18,363
869,305
Ziff
Davis,
Inc.
(a)
.......................................................
13,515
908,073
5,726,159
Consumer
Discretionary
(14.6%):
Abercrombie
&
Fitch
Co.
(a)
...............................................
5,499
485,122
Adtalem
Global
Education,
Inc.
(a)
...........................................
12,371
729,270
American
Axle
&
Manufacturing
Holdings,
Inc.
(a)
...............................
80,729
711,222
American
Eagle
Outfitters,
Inc.
.............................................
28,880
611,101
Asbury
Automotive
Group,
Inc.
(a)
...........................................
3,085
694,032
AutoNation,
Inc.
(a)
.....................................................
5,146
772,826
BorgWarner,
Inc.
.......................................................
22,347
801,140
Century
Communities,
Inc.
................................................
10,417
949,405
Dillard's,
Inc.
,
Class
A
(c)
.................................................
1,809
730,203
Foot
Locker,
Inc.
.......................................................
13,756
428,499
Graham
Holdings
Co.
,
Class
B
.............................................
1,910
1,330,353
Green
Brick
Partners,
Inc.
(a)
...............................................
10,920
567,185
Group
1
Automotive,
Inc.
.................................................
2,766
842,911
Guess?,
Inc.
...........................................................
23,653
545,438
KB
Home
............................................................
14,397
899,237
Kohl's
Corp.
..........................................................
19,035
545,924
Levi
Strauss
&
Co.
,
Class
A
...............................................
43,964
727,165
Lithia
Motors,
Inc.
......................................................
2,532
833,737
M/I
Homes,
Inc.
(a)
......................................................
7,057
972,031
Macy's,
Inc.
...........................................................
33,850
681,062
MDC
Holdings,
Inc.
.....................................................
17,482
965,880
Meritage
Homes
Corp.
...................................................
5,145
896,259
Modine
Manufacturing
Co.
(a)
..............................................
8,549
510,375
Mohawk
Industries,
Inc.
(a)
................................................
8,340
863,190
Murphy
USA,
Inc.
......................................................
3,230
1,151,689
Patrick
Industries,
Inc.
...................................................
8,836
886,693
Penske
Automotive
Group,
Inc.
.............................................
5,514
885,052
PVH
Corp.
...........................................................
5,881
718,188
Ralph
Lauren
Corp.
.....................................................
7,078
1,020,648
Signet
Jewelers
Ltd.
.....................................................
6,386
684,962
Skechers
USA,
Inc.
,
Class
A
(a)
.............................................
14,210
885,851
Sonic
Automotive,
Inc.
,
Class
A
............................................
11,364
638,770
Stride,
Inc.
(a)
..........................................................
12,418
737,257
Taylor
Morrison
Home
Corp.
(a)
............................................
17,310
923,489
The
Goodyear
Tire
&
Rubber
Co.
(a)
.........................................
36,965
529,339
The
ODP
Corp.
(a)
......................................................
17,252
971,288
Thor
Industries,
Inc.
.....................................................
6,919
818,172
Toll
Brothers,
Inc.
......................................................
9,579
984,625
Tri
Pointe
Homes,
Inc.
(a)
.................................................
24,841
879,371
Under
Armour,
Inc.
,
Class
A
(a)
.............................................
75,678
665,210
Upbound
Group,
Inc.
....................................................
23,072
783,756
Urban
Outfitters,
Inc.
(a)
..................................................
16,856
601,591
Williams-Sonoma,
Inc.
...................................................
3,526
711,476
Winnebago
Industries,
Inc.
................................................
11,702
852,842
Worthington
Enterprises,
Inc.
..............................................
9,416
541,891
34,965,727
Consumer
Staples
(3.0%):
BellRing
Brands,
Inc.
(a)
..................................................
18,149
1,005,999
Cal-Maine
Foods,
Inc.
...................................................
16,328
937,064
Victory
Portfolios
II
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
11
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
elf
Beauty,
Inc.
(a)
.......................................................
3,943
$
569,133
Inter
Parfums,
Inc.
......................................................
5,567
801,704
Spectrum
Brands
Holdings,
Inc.
............................................
13,443
1,072,348
Sprouts
Farmers
Market,
Inc.
(a)
............................................
20,722
996,935
The
Andersons,
Inc.
.....................................................
14,809
852,110
The
Vita
Coco
Co.,
Inc.
(a)
................................................
16,416
421,070
United
Natural
Foods,
Inc.
(a)
..............................................
31,936
518,321
7,174,684
Energy
(6.5%):
Archrock,
Inc.
.........................................................
53,208
819,403
California
Resources
Corp.
................................................
18,826
1,029,406
Callon
Petroleum
Co.
(a)
..................................................
18,516
599,918
Chesapeake
Energy
Corp.
.................................................
11,988
922,357
Chord
Energy
Corp.
.....................................................
5,351
889,497
Civitas
Resources,
Inc.
...................................................
9,860
674,227
CNX
Resources
Corp.
(a)
.................................................
44,542
890,840
Comstock
Resources,
Inc.
(c)
...............................................
53,905
477,059
CONSOL
Energy,
Inc.
...................................................
5,639
566,889
Dorian
LPG
Ltd.
.......................................................
13,613
597,202
Gulfport
Energy
Corp.
(a)
.................................................
5,018
668,398
Helix
Energy
Solutions
Group,
Inc.
(a)
........................................
73,349
754,028
HF
Sinclair
Corp.
.......................................................
14,193
788,705
International
Seaways,
Inc.
................................................
14,876
676,560
PBF
Energy,
Inc.
,
Class
A
.................................................
13,739
603,966
Peabody
Energy
Corp.
...................................................
31,087
756,036
Permian
Resources
Corp.
.................................................
46,506
632,482
SM
Energy
Co.
........................................................
15,403
596,404
Southwestern
Energy
Co.
(a)
...............................................
105,068
688,195
Tidewater,
Inc.
(a)
.......................................................
8,742
630,386
Transocean
Ltd.
(a)
......................................................
76,617
486,518
Weatherford
International
PLC
(a)
...........................................
7,452
729,029
15,477,505
Financials
(15.3%):
Ally
Financial,
Inc.
......................................................
23,827
832,039
Apollo
Commercial
Real
Estate
Finance,
Inc.
...................................
69,695
818,219
Associated
Banc-Corp.
...................................................
36,652
783,986
Assured
Guaranty
Ltd.
...................................................
16,393
1,226,688
B
Riley
Financial,
Inc.
...................................................
17,197
360,965
Bread
Financial
Holdings,
Inc.
.............................................
20,347
670,230
Brighthouse
Financial,
Inc.
(a)
..............................................
13,550
717,066
Chimera
Investment
Corp.
................................................
131,843
657,897
CNO
Financial
Group,
Inc.
................................................
34,491
962,299
Corebridge
Financial,
Inc.
.................................................
35,188
762,172
Customers
Bancorp,
Inc.
(a)
................................................
7,799
449,378
Donnelley
Financial
Solutions,
Inc.
(a)
........................................
15,360
958,003
Enova
International,
Inc.
(a)
................................................
15,109
836,434
Enstar
Group
Ltd.
(a)
....................................................
4,015
1,181,815
Essent
Group
Ltd.
......................................................
24,044
1,268,081
Federal
Agricultural
Mortgage
Corp.
,
Class
C
...................................
5,390
1,030,676
Genworth
Financial,
Inc.
(a)
................................................
106,026
708,254
Golub
Capital
BDC,
Inc.
..................................................
104,351
1,575,700
Invesco
Ltd.
...........................................................
57,305
1,022,321
Jackson
Financial,
Inc.
,
Class
A
.............................................
11,855
606,976
Jefferies
Financial
Group,
Inc.
..............................................
26,632
1,076,199
Lincoln
National
Corp.
...................................................
24,080
649,438
MFA
Financial,
Inc.
.....................................................
70,357
792,923
MGIC
Investment
Corp.
..................................................
66,320
1,279,313
Mr.
Cooper
Group,
Inc.
(a)
.................................................
15,278
994,903
Navient
Corp.
.........................................................
50,555
941,334
New
York
Community
Bancorp,
Inc.
.........................................
47,970
490,733
NMI
Holdings,
Inc.
,
Class
A
(a)
.............................................
36,530
1,084,210
Old
Republic
International
Corp.
............................................
48,757
1,433,456
Victory
Portfolios
II
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
12
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
OneMain
Holdings,
Inc.
..................................................
18,945
$
932,094
PennyMac
Financial
Services,
Inc.
..........................................
10,109
893,332
Primerica,
Inc.
.........................................................
5,435
1,118,306
PROG
Holdings,
Inc.
(a)
..................................................
20,381
629,977
Radian
Group,
Inc.
......................................................
43,654
1,246,322
Reinsurance
Group
of
America,
Inc.
.........................................
6,607
1,068,881
Remitly
Global,
Inc.
(a)
...................................................
19,842
385,332
Rithm
Capital
Corp.
.....................................................
102,303
1,092,596
Stewart
Information
Services
Corp.
..........................................
18,704
1,098,860
Tradeweb
Markets,
Inc.
,
Class
A
............................................
9,881
897,985
Unum
Group
..........................................................
20,876
944,013
36,479,406
Health
Care
(15.3%):
ACADIA
Pharmaceuticals,
Inc.
(a)
...........................................
21,844
683,936
AdaptHealth
Corp.
(a)
....................................................
45,869
334,385
Amphastar
Pharmaceuticals,
Inc.
(a)
..........................................
9,412
582,132
Bio-Rad
Laboratories,
Inc.
,
Class
A
(a)
........................................
2,326
751,042
Bridgebio
Pharma,
Inc.
(a)
.................................................
10,833
437,328
Chemed
Corp.
.........................................................
2,112
1,234,992
Corcept
Therapeutics,
Inc.
(a)
..............................................
21,426
695,916
CorVel
Corp.
(a)
........................................................
4,541
1,122,581
Cymabay
Therapeutics,
Inc.
(a)
.............................................
17,524
413,917
DaVita,
Inc.
(a)
.........................................................
6,225
652,131
Dynavax
Technologies
Corp.
(a)
.............................................
56,526
790,233
Encompass
Health
Corp.
..................................................
16,758
1,118,094
Enovis
Corp.
(a)
........................................................
18,558
1,039,619
Exelixis,
Inc.
(a)
........................................................
42,423
1,017,728
Glaukos
Corp.
(a)
.......................................................
9,928
789,177
Haemonetics
Corp.
(a)
....................................................
11,675
998,329
HealthEquity,
Inc.
(a)
....................................................
9,874
654,646
Henry
Schein,
Inc.
(a)
....................................................
17,214
1,303,272
Ideaya
Biosciences,
Inc.
(a)
................................................
12,155
432,475
Immunovant,
Inc.
(a)
.....................................................
7,949
334,891
Integer
Holdings
Corp.
(a)
.................................................
9,254
916,886
Krystal
Biotech,
Inc.
(a)
...................................................
4,365
541,522
Ligand
Pharmaceuticals,
Inc.
(a)
.............................................
13,096
935,316
Maravai
LifeSciences
Holdings,
Inc.
,
Class
A
(a)
.................................
73,515
481,523
Medpace
Holdings,
Inc.
(a)
................................................
2,298
704,406
MoonLake
Immunotherapeutics
(a)
(c)
........................................
7,083
427,742
NeoGenomics,
Inc.
(a)
....................................................
23,464
379,648
Nuvalent,
Inc.
,
Class
A
(a)
.................................................
5,624
413,870
Organon
&
Co.
........................................................
61,074
880,687
Owens
&
Minor,
Inc.
(a)
..................................................
17,711
341,291
Pediatrix
Medical
Group,
Inc.
(a)
............................................
79,706
741,266
Perrigo
Co.
PLC
.......................................................
28,801
926,816
Premier,
Inc.
,
Class
A
....................................................
37,013
827,611
Prestige
Consumer
Healthcare,
Inc.
(a)
........................................
21,749
1,331,474
QuidelOrtho
Corp.
(a)
....................................................
10,930
805,541
RadNet,
Inc.
(a)
........................................................
20,436
710,560
RxSight,
Inc.
(a)
........................................................
17,025
686,448
Select
Medical
Holdings
Corp.
.............................................
39,577
930,060
Sotera
Health
Co.
(a)
.....................................................
51,130
861,540
Tenet
Healthcare
Corp.
(a)
.................................................
10,131
765,600
The
Ensign
Group,
Inc.
...................................................
10,716
1,202,442
UFP
Technologies,
Inc.
(a)
.................................................
3,996
687,472
United
Therapeutics
Corp.
(a)
..............................................
4,354
957,401
Universal
Health
Services,
Inc.
,
Class
B
.......................................
7,507
1,144,367
Vericel
Corp.
(a)
........................................................
16,060
571,897
Viatris,
Inc.
...........................................................
107,425
1,163,413
Viking
Therapeutics,
Inc.
(a)
...............................................
25,451
473,643
Vir
Biotechnology,
Inc.
(a)
.................................................
38,584
388,155
36,585,421
Victory
Portfolios
II
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
13
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Industrials
(17.7%):
AAR
Corp.
(a)
.........................................................
13,419
$
837,346
Air
Lease
Corp.
........................................................
24,937
1,045,858
Air
Transport
Services
Group,
Inc.
(a)
.........................................
28,687
505,178
Allegiant
Travel
Co.
.....................................................
8,394
693,428
Allison
Transmission
Holdings,
Inc.
.........................................
17,766
1,033,093
API
Group
Corp.
(a)
.....................................................
33,168
1,147,613
ArcBest
Corp.
.........................................................
4,830
580,614
Atkore,
Inc.
(a)
.........................................................
5,166
826,560
Avis
Budget
Group,
Inc.
(c)
................................................
3,187
564,928
Beacon
Roofing
Supply,
Inc.
(a)
.............................................
11,113
967,053
Boise
Cascade
Co.
......................................................
7,245
937,213
CACI
International,
Inc.
,
Class
A
(a)
.........................................
4,269
1,382,558
Clean
Harbors,
Inc.
(a)
...................................................
5,979
1,043,395
Comfort
Systems
USA,
Inc.
...............................................
3,575
735,270
Core
&
Main,
Inc.
,
Class
A
(a)
..............................................
24,536
991,500
CSW
Industrials,
Inc.
....................................................
5,476
1,135,777
EMCOR
Group,
Inc.
....................................................
4,392
946,169
Encore
Wire
Corp.
......................................................
3,590
766,824
Esab
Corp.
............................................................
10,566
915,227
Federal
Signal
Corp.
.....................................................
13,724
1,053,180
FTAI
Aviation
Ltd.
......................................................
18,363
852,043
GMS,
Inc.
(a)
..........................................................
12,887
1,062,275
Griffon
Corp.
..........................................................
15,984
974,225
Hertz
Global
Holdings,
Inc.
(a)
.............................................
63,802
662,903
Huron
Consulting
Group,
Inc.
(a)
............................................
6,816
700,685
KBR,
Inc.
............................................................
19,157
1,061,489
Knight-Swift
Transportation
Holdings,
Inc.
....................................
14,890
858,409
Masterbrand,
Inc.
(a)
.....................................................
47,482
705,108
Matson,
Inc.
..........................................................
7,170
785,832
MDU
Resources
Group,
Inc.
...............................................
63,464
1,256,587
MillerKnoll,
Inc.
.......................................................
18,575
495,581
Moog,
Inc.
,
Class
A
.....................................................
5,532
800,923
MSC
Industrial
Direct
Co.,
Inc.
.............................................
13,444
1,361,339
Owens
Corning
........................................................
6,243
925,400
Parsons
Corp.
(a)
.......................................................
17,250
1,081,748
Primoris
Services
Corp.
..................................................
28,262
938,581
Rush
Enterprises,
Inc.
,
Class
A
.............................................
24,189
1,216,707
Ryder
System,
Inc.
......................................................
8,857
1,019,086
Schneider
National,
Inc.
,
Class
B
............................................
39,922
1,016,015
Science
Applications
International
Corp.
......................................
11,288
1,403,324
Simpson
Manufacturing
Co.,
Inc.
...........................................
4,799
950,106
SkyWest,
Inc.
(a)
........................................................
11,954
623,999
Sterling
Infrastructure,
Inc.
(a)
..............................................
8,224
723,136
Terex
Corp.
...........................................................
11,891
683,257
UFP
Industries,
Inc.
.....................................................
7,508
942,629
Vertiv
Holdings
Co.
,
Class
A
...............................................
9,993
479,964
XPO,
Inc.
(a)
..........................................................
6,403
560,839
42,250,974
Information
Technology
(10.9%):
Advanced
Energy
Industries,
Inc.
...........................................
7,782
847,615
Amkor
Technology,
Inc.
..................................................
21,040
700,001
Appfolio,
Inc.
,
Class
A
(a)
.................................................
3,507
607,553
AppLovin
Corp.
,
Class
A
(a)
...............................................
10,977
437,433
Arrow
Electronics,
Inc.
(a)
.................................................
8,447
1,032,646
Avnet,
Inc.
............................................................
21,482
1,082,693
Axcelis
Technologies,
Inc.
(a)
..............................................
4,389
569,209
Cohu,
Inc.
(a)
..........................................................
26,077
922,865
Crane
NXT
Co.
........................................................
15,968
908,100
Diodes,
Inc.
(a)
.........................................................
10,237
824,283
Dolby
Laboratories,
Inc.
,
Class
A
...........................................
11,387
981,332
Dropbox,
Inc.
,
Class
A
(a)
.................................................
34,833
1,026,877
DXC
Technology
Co.
(a)
..................................................
23,555
538,703
Victory
Portfolios
II
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
14
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Extreme
Networks,
Inc.
(a)
................................................
32,381
$
571,201
FormFactor,
Inc.
(a)
.....................................................
16,422
684,962
Insight
Enterprises,
Inc.
(a)
................................................
7,216
1,278,603
InterDigital,
Inc.
.......................................................
8,948
971,216
IonQ,
Inc.
(a)
(c)
........................................................
25,431
315,090
Manhattan
Associates,
Inc.
(a)
..............................................
4,324
931,044
NCR
Voyix
Corp.
(a)
.....................................................
42,298
715,259
NetScout
Systems,
Inc.
(a)
.................................................
38,497
845,009
Onto
Innovation,
Inc.
(a)
..................................................
4,124
630,559
Photronics,
Inc.
(a)
......................................................
31,322
982,571
Rambus,
Inc.
(a)
........................................................
7,075
482,869
Sanmina
Corp.
(a)
.......................................................
15,566
799,625
TD
SYNNEX
Corp.
.....................................................
11,162
1,201,143
Teradata
Corp.
(a)
.......................................................
16,491
717,523
TTM
Technologies,
Inc.
(a)
................................................
48,091
760,319
Veeco
Instruments,
Inc.
(a)
.................................................
26,140
811,124
Vishay
Intertechnology,
Inc.
...............................................
36,067
864,526
Vontier
Corp.
..........................................................
33,285
1,149,997
Xerox
Holdings
Corp.
...................................................
47,145
864,168
26,056,118
Materials
(5.5%):
Alpha
Metallurgical
Resources,
Inc.
..........................................
2,081
705,292
Arch
Resources,
Inc.
....................................................
4,137
686,494
Berry
Global
Group,
Inc.
.................................................
14,318
964,890
Carpenter
Technology
Corp.
...............................................
8,613
609,800
Cleveland-Cliffs,
Inc.
(a)
..................................................
36,767
750,782
Commercial
Metals
Co.
..................................................
17,895
895,466
Eagle
Materials,
Inc.
.....................................................
5,348
1,084,788
Greif,
Inc.
,
Class
A
......................................................
15,318
1,004,708
International
Paper
Co.
...................................................
27,337
988,233
Louisiana-Pacific
Corp.
..................................................
12,120
858,460
NewMarket
Corp.
......................................................
2,044
1,115,676
Ryerson
Holding
Corp.
...................................................
19,409
673,104
Summit
Materials,
Inc.
,
Class
A
(a)
..........................................
21,920
843,043
Sylvamo
Corp.
.........................................................
14,210
697,853
United
States
Steel
Corp.
.................................................
13,104
637,510
Warrior
Met
Coal,
Inc.
...................................................
11,137
679,023
13,195,122
Real
Estate
(6.4%):
Acadia
Realty
Trust
.....................................................
57,360
974,546
CareTrust
REIT,
Inc.
....................................................
51,006
1,141,514
Empire
State
Realty
Trust,
Inc.
.............................................
64,094
621,071
EPR
Properties
........................................................
22,825
1,105,871
JBG
SMITH
Properties
...................................................
46,277
787,172
Kilroy
Realty
Corp.
.....................................................
17,884
712,498
Medical
Properties
Trust,
Inc.
(c)
............................................
88,599
435,021
Omega
Healthcare
Investors,
Inc.
...........................................
32,007
981,335
Paramount
Group,
Inc.
...................................................
111,445
576,171
Phillips
Edison
&
Co.,
Inc.
................................................
31,540
1,150,579
PotlatchDeltic
Corp.
.....................................................
22,677
1,113,441
Sabra
Health
Care
REIT,
Inc.
..............................................
64,606
921,928
SL
Green
Realty
Corp.
(c)
.................................................
10,215
461,411
Tanger,
Inc.
...........................................................
37,003
1,025,723
The
Macerich
Co.
......................................................
51,035
787,470
The
St.
Joe
Co.
........................................................
14,678
883,322
Urban
Edge
Properties
...................................................
51,742
946,879
Vornado
Realty
Trust
....................................................
18,667
527,343
15,153,295
Utilities
(2.0%):
ALLETE,
Inc.
.........................................................
20,287
1,240,753
Clearway
Energy,
Inc.
,
Class
C
.............................................
29,182
800,462
Victory
Portfolios
II
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
15
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Hawaiian
Electric
Industries,
Inc.
...........................................
25,513
$
362,029
Pinnacle
West
Capital
Corp.
...............................................
16,644
1,195,705
Vistra
Corp.
...........................................................
29,740
1,145,585
4,744,534
Total
Common
Stocks
(Cost
$204,873,414)
237,808,945
Rights
(0.0%)(d)
Health
Care
(0.0%):(d)
Achillion
Pharmaceuticals,
CVR
(a)
(b)
.......................................
17,954
4,130
Total
Rights
(Cost
$–)
4,130
Collateral
for
Securities
Loaned
(1.2%)^
Goldman
Sachs
Financial
Square
Government
Fund,
Institutional
Shares
,
5
.25
%
(e)
........
737,294
737,294
HSBC
U.S.
Government
Money
Market
Fund,
Institutional
Shares
,
5
.30
%
(e)
............
737,294
737,294
Invesco
Government
&
Agency
Portfolio,
Institutional
Shares
,
5
.28
%
(e)
...............
737,294
737,294
Morgan
Stanley
Institutional
Liquidity
Government
Portfolio,
Institutional
Shares
,
5
.26
%
(e)
.
737,294
737,294
Total
Collateral
for
Securities
Loaned
(Cost
$2,949,176)
2,949,176
Total
Investments
(Cost
$207,822,590)
—
100.8%
240,762,251
Liabilities
in
excess
of
other
assets
—
(0.8)%
(
1,824,041
)
NET
ASSETS
-
100.00%
$
238,938,210
^
Purchased
with
cash
collateral
from
securities
on
loan.
(a)
Non-income
producing
security.
(b)
Security
was
fair
valued
based
upon
procedures
approved
by
the
Board
of
Trustees
and
represents
less
than
0.05%
of
net
assets
as
of
December
31,
2023.
This
security
is
classified
as
Level
3
within
the
fair
value
hierarchy.
(See
Note
2
in
the
Notes
to
Financial
Statements)
(c)
All
or
a
portion
of
this
security
is
on
loan.
(d)
Amount
represents
less
than
0.05%
of
net
assets.
(e)
Rate
disclosed
is
the
daily
yield
on
December
31,
2023.
CVR
—
Contingent
Value
Right
PLC
—
Public
Limited
Company
REIT
—
Real
Estate
Investment
Trust
Futures
Contracts
Purchased
Number
of
Contracts
Expiration
Date
Notional
Amount
Value
Unrealized
Appreciation
(Depreciation)
E-Mini
Russell
2000
Index
Futures
......
9
3/15/24
$
869,851
$
921,465
$
51,614
Total
unrealized
appreciation
$
51,614
Total
unrealized
depreciation
—
Total
net
unrealized
appreciation
(depreciation)
$
51,614
Schedule
of
Portfolio
Investments
December
31,
2023
Victory
Portfolios
II
VictoryShares
International
Value
Momentum
ETF
16
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Shares
Value
Common
Stocks
(99.1%)
Australia
(2.3%):
Industrials
(0.7%):
Seven
Group
Holdings
Ltd.
................................................
67,180
$
1,688,905
Materials
(1.6%):
BlueScope
Steel
Ltd.
....................................................
87,214
1,390,404
Fortescue
Ltd.
.........................................................
57,117
1,129,281
Rio
Tinto
Ltd.
.........................................................
15,676
1,448,859
3,968,544
5,657,449
Austria
(1.8%):
Energy
(0.5%):
OMV
AG
............................................................
32,560
1,429,325
Financials
(0.7%):
Raiffeisen
Bank
International
AG
...........................................
81,387
1,677,221
Materials
(0.6%):
voestalpine
AG
........................................................
46,072
1,452,400
4,558,946
Canada
(2.3%):
Financials
(0.6%):
Fairfax
Financial
Holdings
Ltd.
.............................................
1,787
1,648,898
Industrials
(0.6%):
Element
Fleet
Management
Corp.
...........................................
88,742
1,444,092
Materials
(1.1%):
Kinross
Gold
Corp.
.....................................................
172,631
1,044,985
West
Fraser
Timber
Co.
Ltd.
...............................................
19,220
1,644,486
2,689,471
5,782,461
Denmark
(0.9%):
Consumer
Discretionary
(0.5%):
Pandora
A/S
..........................................................
8,079
1,116,689
Industrials
(0.4%):
AP
Moller
-
Maersk
A/S
,
Class
B
...........................................
568
1,021,331
2,138,020
France
(11.5%):
Communication
Services
(3.3%):
Bollore
SE
............................................................
317,792
1,983,657
Orange
SA
............................................................
210,342
2,392,340
Publicis
Groupe
SA
.....................................................
18,006
1,669,504
Vivendi
SE
...........................................................
189,707
2,026,143
8,071,644
Consumer
Discretionary
(0.5%):
Renault
SA
...........................................................
27,952
1,138,647
Consumer
Staples
(0.7%):
Carrefour
SA
..........................................................
94,652
1,730,662
Energy
(0.6%):
TotalEnergies
SE
.......................................................
22,293
1,515,794
Financials
(2.3%):
BNP
Paribas
SA
........................................................
23,483
1,622,369
Credit
Agricole
SA
......................................................
119,887
1,700,724
SCOR
SE
............................................................
38,833
1,134,179
Victory
Portfolios
II
VictoryShares
International
Value
Momentum
ETF
17
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Societe
Generale
SA
.....................................................
49,225
$
1,305,389
5,762,661
Health
Care
(1.2%):
Ipsen
SA
.............................................................
13,525
1,610,830
Sanofi
SA
............................................................
12,406
1,229,152
2,839,982
Industrials
(1.5%):
Bouygues
SA
..........................................................
49,955
1,881,391
Eiffage
SA
............................................................
17,839
1,910,393
3,791,784
Real
Estate
(0.6%):
Klepierre
SA
..........................................................
54,995
1,498,164
Utilities
(0.8%):
Engie
SA
.............................................................
117,584
2,065,987
28,415,325
Germany
(10.6%):
Communication
Services
(0.8%):
Deutsche
Telekom
AG
...................................................
82,130
1,971,751
Consumer
Discretionary
(2.7%):
Bayerische
Motoren
Werke
AG
.............................................
14,178
1,577,176
Mercedes-Benz
Group
AG
................................................
24,375
1,682,918
Porsche
Automobil
Holding
SE
,
Preference
Shares
...............................
33,292
1,702,156
Volkswagen
AG
,
Preference
Shares
..........................................
14,910
1,839,969
6,802,219
Consumer
Staples
(1.0%):
Henkel
AG
&
Co.
KGaA
,
Preference
Shares
....................................
29,871
2,402,315
Financials
(2.3%):
Commerzbank
AG
......................................................
82,156
975,759
Deutsche
Bank
AG
,
Registered
Shares
........................................
94,120
1,284,494
Muenchener
Rueckversicherungs-Gesellschaft
AG
in
Muenchen
,
Class
R
...............
4,740
1,962,530
Talanx
AG
............................................................
20,294
1,448,195
5,670,978
Health
Care
(1.4%):
Fresenius
Medical
Care
AG
...............................................
24,354
1,020,440
Fresenius
SE
&
Co.
KGaA
................................................
39,680
1,229,433
Merck
KGaA
..........................................................
7,506
1,193,888
3,443,761
Industrials
(0.6%):
Hochtief
AG
..........................................................
13,198
1,461,168
Materials
(0.6%):
Heidelberg
Materials
AG
.................................................
17,885
1,597,876
Real
Estate
(0.4%):
LEG
Immobilien
SE
(a)
...................................................
11,456
1,003,013
Utilities
(0.8%):
E.ON
SE
.............................................................
144,923
1,943,590
26,296,671
Greece
(0.8%):
Financials
(0.4%):
National
Bank
of
Greece
SA
(a)
.............................................
132,858
922,421
Victory
Portfolios
II
VictoryShares
International
Value
Momentum
ETF
18
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Industrials
(0.4%):
Mytilineos
SA
.........................................................
27,992
$
1,133,943
2,056,364
Hong
Kong
(5.8%):
Consumer
Staples
(0.5%):
WH
Group
Ltd.
(b)
......................................................
1,953,145
1,260,707
Health
Care
(0.3%):
Sino
Biopharmaceutical
Ltd.
...............................................
1,552,000
689,716
Industrials
(1.0%):
CK
Hutchison
Holdings
Ltd.
...............................................
281,037
1,506,288
SITC
International
Holdings
Co.
Ltd.
.........................................
482,000
832,120
2,338,408
Real
Estate
(4.0%):
CK
Asset
Holdings
Ltd.
..................................................
295,063
1,481,324
Hang
Lung
Properties
Ltd.
................................................
694,596
967,855
Henderson
Land
Development
Co.
Ltd.
.......................................
388,797
1,197,532
New
World
Development
Co.
Ltd.
...........................................
607,510
942,986
Sino
Land
Co.
Ltd.
......................................................
1,158,861
1,260,051
Sun
Hung
Kai
Properties
Ltd.
..............................................
122,570
1,325,662
Swire
Pacific
Ltd.
,
Class
A
................................................
170,660
1,444,715
The
Wharf
Holdings
Ltd.
.................................................
419,297
1,350,544
9,970,669
14,259,500
Italy
(5.1%):
Communication
Services
(0.5%):
Telecom
Italia
SpA
(a)
....................................................
3,578,006
1,161,916
Energy
(0.7%):
Eni
SpA
(c)
...........................................................
100,740
1,706,651
Financials
(2.1%):
Banco
BPM
SpA
.......................................................
193,590
1,021,627
Intesa
Sanpaolo
SpA
.....................................................
507,490
1,480,805
Mediobanca
Banca
di
Credito
Finanziario
SpA
..................................
139,734
1,728,243
UniCredit
SpA
.........................................................
41,649
1,129,308
5,359,983
Industrials
(0.6%):
Leonardo
SpA
.........................................................
85,965
1,417,157
Materials
(0.6%):
Buzzi
SpA
............................................................
47,796
1,452,936
Utilities
(0.6%):
A2A
SpA
.............................................................
740,841
1,520,181
12,618,824
Japan
(26.1%):
Communication
Services
(1.0%):
Nippon
Telegraph
&
Telephone
Corp.
........................................
818,900
1,000,826
SoftBank
Corp.
........................................................
111,400
1,390,327
2,391,153
Consumer
Discretionary
(3.3%):
Aisin
Corp.
...........................................................
15,000
524,862
Asics
Corp.
...........................................................
12,400
388,588
Denso
Corp.
..........................................................
38,100
574,824
Honda
Motor
Co.
Ltd.
...................................................
59,700
620,799
Isuzu
Motors
Ltd.
.......................................................
46,500
598,978
Mazda
Motor
Corp.
.....................................................
41,200
445,228
Nissan
Motor
Co.
Ltd.
...................................................
123,800
486,664
Victory
Portfolios
II
VictoryShares
International
Value
Momentum
ETF
19
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Panasonic
Holdings
Corp.
.................................................
50,700
$
502,217
Sekisui
House
Ltd.
......................................................
46,600
1,035,262
Subaru
Corp.
..........................................................
34,600
634,669
Sumitomo
Electric
Industries
Ltd.
...........................................
50,200
639,340
Toyota
Motor
Corp.
.....................................................
31,700
582,486
Yamaha
Motor
Co.
Ltd.
..................................................
72,000
643,240
Zensho
Holdings
Co.
Ltd.
.................................................
7,100
372,123
8,049,280
Consumer
Staples
(1.9%):
Ajinomoto
Co.,
Inc.
.....................................................
16,400
632,827
Asahi
Group
Holdings
Ltd.
................................................
21,500
801,866
Japan
Tobacco,
Inc.
(c)
...................................................
43,300
1,119,510
MatsukiyoCocokara
&
Co.
................................................
37,000
655,334
MEIJI
Holdings
Co.
Ltd.
.................................................
31,238
742,063
Nissin
Foods
Holdings
Co.
Ltd.
.............................................
21,222
740,768
4,692,368
Energy
(0.6%):
ENEOS
Holdings,
Inc.
...................................................
162,200
644,750
Idemitsu
Kosan
Co.
Ltd.
..................................................
90,000
489,963
Inpex
Corp.
(c)
.........................................................
32,200
434,990
1,569,703
Financials
(4.3%):
Concordia
Financial
Group
Ltd.
............................................
130,200
595,311
Dai-ichi
Life
Holdings,
Inc.
...............................................
27,000
573,018
Daiwa
Securities
Group,
Inc.
...............................................
98,700
664,464
Japan
Post
Holdings
Co.
Ltd.
..............................................
89,600
800,477
Japan
Post
Insurance
Co.
Ltd.
..............................................
37,400
664,276
Mitsubishi
HC
Capital,
Inc.
................................................
116,000
779,038
Mitsubishi
UFJ
Financial
Group,
Inc.
.........................................
72,500
623,023
Mizuho
Financial
Group,
Inc.
..............................................
39,100
669,093
MS&AD
Insurance
Group
Holdings,
Inc.
......................................
20,100
790,712
Nomura
Holdings,
Inc.
...................................................
150,800
682,119
Resona
Holdings,
Inc.
....................................................
103,100
523,983
SBI
Holdings,
Inc.
......................................................
33,600
755,988
Sumitomo
Mitsui
Financial
Group,
Inc.
.......................................
14,100
688,098
Sumitomo
Mitsui
Trust
Holdings,
Inc.
........................................
38,000
729,380
T&D
Holdings,
Inc.
.....................................................
34,500
548,285
The
Chiba
Bank
Ltd.
....................................................
80,700
583,011
10,670,276
Health
Care
(1.6%):
Astellas
Pharma,
Inc.
....................................................
53,800
643,402
Chugai
Pharmaceutical
Co.
Ltd.
............................................
19,200
727,524
Otsuka
Holdings
Co.
Ltd.
.................................................
21,100
791,587
Shionogi
&
Co.
Ltd.
.....................................................
19,900
959,570
Takeda
Pharmaceutical
Co.
Ltd.
............................................
32,600
937,441
4,059,524
Industrials
(5.9%):
AGC,
Inc.
............................................................
28,400
1,054,777
Dai
Nippon
Printing
Co.
Ltd.
..............................................
31,600
935,358
Hitachi
Ltd.
...........................................................
9,200
663,669
ITOCHU
Corp.
........................................................
16,300
666,776
Kajima
Corp.
..........................................................
37,200
621,803
Kawasaki
Kisen
Kaisha
Ltd.
(c)
.............................................
10,300
442,013
Komatsu
Ltd.
..........................................................
24,300
635,682
Marubeni
Corp.
........................................................
35,700
564,317
Mitsubishi
Corp.
.......................................................
39,300
628,192
Mitsubishi
Electric
Corp.
.................................................
41,600
589,860
Mitsubishi
Heavy
Industries
Ltd.
............................................
8,800
514,405
Mitsui
&
Co.
Ltd.
.......................................................
15,000
563,697
Mitsui
OSK
Lines
Ltd.
...................................................
21,300
682,452
Victory
Portfolios
II
VictoryShares
International
Value
Momentum
ETF
20
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
NIPPON
EXPRESS
HOLDINGS,
Inc.
........................................
15,300
$
869,728
Nippon
Yusen
KK
......................................................
20,600
638,691
Obayashi
Corp.
........................................................
76,500
662,009
Sojitz
Corp.
...........................................................
25,700
580,611
Sumitomo
Corp.
........................................................
31,100
678,561
Taisei
Corp.
...........................................................
17,600
601,980
TOPPAN
Holdings,
Inc.
..................................................
30,300
845,726
Toyota
Industries
Corp.
...................................................
5,600
456,802
Toyota
Tsusho
Corp.
.....................................................
9,700
571,624
14,468,733
Information
Technology
(3.3%):
Canon,
Inc.
...........................................................
33,400
857,625
Disco
Corp.
...........................................................
1,800
446,617
FUJIFILM
Holdings
Corp.
................................................
13,300
799,340
Ibiden
Co.
Ltd.
.........................................................
7,600
421,294
Kyocera
Corp.
.........................................................
61,200
893,386
NEC
Corp.
...........................................................
9,700
574,514
Renesas
Electronics
Corp.
(a)
...............................................
24,100
435,742
Ricoh
Co.
Ltd.
.........................................................
74,600
573,073
Rohm
Co.
Ltd.
.........................................................
30,700
588,500
Screen
Holdings
Co.
Ltd.
.................................................
5,900
499,269
SCSK
Corp.
...........................................................
47,000
932,132
Seiko
Epson
Corp.
......................................................
44,400
664,677
TDK
Corp.
...........................................................
12,000
571,741
8,257,910
Materials
(1.3%):
JFE
Holdings,
Inc.
......................................................
35,700
553,935
Mitsubishi
Chemical
Group
Corp.
...........................................
107,700
660,043
Mitsui
Chemicals,
Inc.
...................................................
22,800
676,334
Nippon
Sanso
Holdings
Corp.
..............................................
22,600
605,317
Nippon
Steel
Corp.
(c)
....................................................
25,200
577,358
3,072,987
Real
Estate
(1.6%):
Daito
Trust
Construction
Co.
Ltd.
...........................................
7,400
858,207
Daiwa
House
Industry
Co.
Ltd.
.............................................
30,000
909,065
Hulic
Co.
Ltd.
(c)
.......................................................
92,500
968,763
Mitsui
Fudosan
Co.
Ltd.
..................................................
29,300
718,679
Sumitomo
Realty
&
Development
Co.
Ltd.
....................................
20,200
600,928
4,055,642
Utilities
(1.3%):
Chubu
Electric
Power
Co.,
Inc.
.............................................
53,900
696,403
Osaka
Gas
Co.
Ltd.
.....................................................
37,400
781,267
The
Kansai
Electric
Power
Co.,
Inc.
..........................................
43,000
570,974
Tokyo
Electric
Power
Co.
Holdings,
Inc.
(a)
....................................
114,000
597,170
Tokyo
Gas
Co.
Ltd.
.....................................................
29,200
670,660
3,316,474
64,604,050
Luxembourg
(1.1%):
Consumer
Discretionary
(0.5%):
B&M
European
Value
Retail
SA
............................................
176,401
1,259,365
Materials
(0.6%):
ArcelorMittal
SA
.......................................................
50,175
1,421,965
2,681,330
Netherlands
(1.8%):
Consumer
Staples
(0.8%):
Koninklijke
Ahold
Delhaize
NV
............................................
66,886
1,920,658
Victory
Portfolios
II
VictoryShares
International
Value
Momentum
ETF
21
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Financials
(0.5%):
ABN
AMRO
Bank
NV
(b)
.................................................
92,779
$
1,391,746
Health
Care
(0.5%):
Koninklijke
Philips
NV
(a)
................................................
54,609
1,270,951
4,583,355
Norway
(0.5%):
Energy
(0.5%):
Equinor
ASA
..........................................................
40,663
1,289,888
Singapore
(1.6%):
Industrials
(1.2%):
Jardine
Cycle
&
Carriage
Ltd.
..............................................
70,000
1,578,899
Keppel
Ltd.
...........................................................
254,200
1,362,130
2,941,029
Utilities
(0.4%):
Sembcorp
Industries
Ltd.
.................................................
244,900
985,614
3,926,643
South
Korea
(9.0%):
Communication
Services
(1.3%):
KT
Corp.
.............................................................
60,018
1,603,338
SK
Telecom
Co.
Ltd.
....................................................
43,118
1,677,574
3,280,912
Consumer
Discretionary
(1.2%):
Hyundai
Motor
Co.
.....................................................
9,895
1,563,744
Kia
Corp.
............................................................
17,918
1,391,473
2,955,217
Financials
(3.6%):
Hana
Financial
Group,
Inc.
................................................
36,692
1,236,649
Industrial
Bank
of
Korea
(a)
................................................
225,665
2,078,424
KB
Financial
Group,
Inc.
.................................................
27,752
1,165,942
Samsung
Life
Insurance
Co.
Ltd.
............................................
27,482
1,474,727
Shinhan
Financial
Group
Co.
Ltd.
...........................................
47,284
1,474,297
Woori
Financial
Group,
Inc.
...............................................
158,990
1,605,087
9,035,126
Industrials
(1.5%):
HMM
Co.
Ltd.
.........................................................
62,846
955,599
LG
Corp.
.............................................................
17,087
1,139,841
Posco
International
Corp.
.................................................
8,070
391,060
SK,
Inc.
..............................................................
8,099
1,119,532
3,606,032
Information
Technology
(0.9%):
Samsung
Electronics
Co.
Ltd.
..............................................
24,574
1,498,066
SK
Hynix,
Inc.
.........................................................
7,777
854,582
2,352,648
Materials
(0.5%):
Ecopro
Co.
Ltd.
........................................................
617
310,010
Kum
Yang
Co.
Ltd.
(a)
...................................................
3,598
305,119
POSCO
Holdings,
Inc.
...................................................
1,329
515,520
1,130,649
22,360,584
Spain
(4.2%):
Communication
Services
(0.6%):
Telefonica
SA
.........................................................
399,082
1,556,753
Victory
Portfolios
II
VictoryShares
International
Value
Momentum
ETF
22
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Consumer
Discretionary
(0.8%):
Industria
de
Diseno
Textil
SA
..............................................
42,792
$
1,862,432
Energy
(0.6%):
Repsol
SA
............................................................
98,912
1,468,460
Financials
(0.9%):
Banco
Bilbao
Vizcaya
Argentaria
SA
.........................................
142,147
1,290,676
Banco
de
Sabadell
SA
...................................................
764,513
939,228
2,229,904
Health
Care
(0.4%):
Grifols
SA
(a)
..........................................................
61,679
1,052,198
Industrials
(0.9%):
ACS
Actividades
de
Construccion
y
Servicios
SA
................................
50,057
2,218,960
10,388,707
Sweden
(3.5%):
Financials
(1.9%):
Industrivarden
AB
,
Class
C
(c)
..............................................
67,987
2,213,750
Investor
AB
,
Class
B
....................................................
102,106
2,364,666
4,578,416
Industrials
(1.2%):
Saab
AB
,
Class
B
.......................................................
24,316
1,465,351
Volvo
AB
,
Class
B
......................................................
61,931
1,607,473
3,072,824
Materials
(0.4%):
SSAB
AB
,
Class
B
......................................................
123,027
940,533
8,591,773
Switzerland
(0.8%):
Materials
(0.8%):
Holcim
AG
...........................................................
24,863
1,952,254
United
Kingdom
(9.4%):
Communication
Services
(0.5%):
Vodafone
Group
PLC
....................................................
1,473,314
1,287,282
Consumer
Staples
(3.5%):
Associated
British
Foods
PLC
..............................................
56,864
1,715,312
Haleon
PLC
...........................................................
441,638
1,810,329
J
Sainsbury
PLC
.......................................................
476,162
1,836,247
Marks
&
Spencer
Group
PLC
..............................................
359,720
1,248,760
Tesco
PLC
............................................................
555,770
2,057,542
8,668,190
Energy
(0.7%):
Shell
PLC
............................................................
50,965
1,670,190
Financials
(1.8%):
3i
Group
PLC
.........................................................
61,120
1,885,756
abrdn
PLC
............................................................
520,066
1,184,047
Barclays
PLC
.........................................................
691,482
1,355,153
4,424,956
Health
Care
(1.4%):
GSK
PLC
............................................................
106,357
1,965,628
Hikma
Pharmaceuticals
PLC
...............................................
69,737
1,589,941
3,555,569
Industrials
(0.9%):
Melrose
Industries
PLC
..................................................
164,072
1,186,400
Victory
Portfolios
II
VictoryShares
International
Value
Momentum
ETF
23
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Rolls-Royce
Holdings
PLC
(a)
..............................................
253,736
$
969,117
2,155,517
Utilities
(0.6%):
Centrica
PLC
..........................................................
786,467
1,409,703
23,171,407
Total
Common
Stocks
(Cost
$218,712,467)
245,333,551
Collateral
for
Securities
Loaned
(1.8%)^
United
States
(1.8%):
Goldman
Sachs
Financial
Square
Government
Fund,
Institutional
Shares
,
5
.25
%
(d)
........
1,094,633
1,094,633
HSBC
U.S.
Government
Money
Market
Fund,
Institutional
Shares
,
5
.30
%
(d)
............
1,094,633
1,094,633
Invesco
Government
&
Agency
Portfolio,
Institutional
Shares
,
5
.28
%
(d)
...............
1,094,633
1,094,633
Morgan
Stanley
Institutional
Liquidity
Government
Portfolio,
Institutional
Shares
,
5
.26
%
(d)
.
1,094,633
1,094,633
Total
Collateral
for
Securities
Loaned
(Cost
$4,378,532)
4,378,532
Total
Investments
(Cost
$223,090,999)
—
100.9%
249,712,083
Liabilities
in
excess
of
other
assets
—
(0.9)%
(
2,227,968
)
NET
ASSETS
-
100.00%
$
247,484,115
^
Purchased
with
cash
collateral
from
securities
on
loan.
(a)
Non-income
producing
security.
(b)
Rule
144A
security
or
other
security
that
is
restricted
as
to
resale
to
institutional
investors.
As
of
December
31,
2023,
the
fair
value
of
these
securities
was
$2,652,453
and
amounted
to
1.1%
of
net
assets.
(c)
All
or
a
portion
of
this
security
is
on
loan.
(d)
Rate
disclosed
is
the
daily
yield
on
December
31,
2023.
PLC
—
Public
Limited
Company
Futures
Contracts
Purchased
Number
of
Contracts
Expiration
Date
Notional
Amount
Value
Unrealized
Appreciation
(Depreciation)
E-Mini
MSCI
EAFE
Index
Futures
......
7
3/15/24
$
765,869
$
788,340
$
22,471
Total
unrealized
appreciation
$
22,471
Total
unrealized
depreciation
—
Total
net
unrealized
appreciation
(depreciation)
$
22,471
Schedule
of
Portfolio
Investments
December
31,
2023
Victory
Portfolios
II
VictoryShares
Emerging
Markets
Value
Momentum
ETF
24
(Unaudited)
See
notes
to
financial
statements.
Security
Description
Shares
Value
Common
Stocks
(100.4%)
Brazil
(8.3%):
Communication
Services
(1.0%):
TIM
SA
..............................................................
487,800
$
1,801,160
Consumer
Staples
(1.2%):
JBS
SA
..............................................................
214,500
1,100,351
Sao
Martinho
SA
.......................................................
170,000
1,026,113
2,126,464
Energy
(0.6%):
Petroleo
Brasileiro
SA
,
Preference
Shares
.....................................
142,200
1,090,535
Financials
(0.9%):
Banco
do
Brasil
SA
.....................................................
142,300
1,623,180
Materials
(1.3%):
Cia
Siderurgica
Nacional
SA
...............................................
263,400
1,066,423
Gerdau
SA
,
Preference
Shares
..............................................
284,420
1,391,672
2,458,095
Real
Estate
(0.7%):
Allos
SA
.............................................................
236,429
1,292,693
Utilities
(2.6%):
Cia
De
Sanena
Do
Parana
.................................................
265,500
1,595,985
Cia
Energetica
de
Minas
Gerais
,
Preference
Shares
...............................
597,500
1,412,570
Companhia
Paranaense
de
Energia
,
Preference
Shares
.............................
793,700
1,693,349
4,701,904
15,094,031
Chile
(2.3%):
Consumer
Discretionary
(0.8%):
Falabella
SA
(a)
........................................................
593,888
1,483,776
Consumer
Staples
(0.8%):
Cencosud
SA
..........................................................
792,140
1,488,816
Utilities
(0.7%):
Enel
Chile
SA
.........................................................
18,465,498
1,195,090
4,167,682
China
(28.4%):
Communication
Services
(0.8%):
China
Tower
Corp.
Ltd.
,
Class
H
(b)
..........................................
14,559,499
1,529,007
Consumer
Discretionary
(1.7%):
BYD
Co.
Ltd.
.........................................................
41,000
1,125,791
Great
Wall
Motor
Co.
Ltd.
................................................
562,992
731,121
Haier
Smart
Home
Co.
Ltd.
,
Class
H
.........................................
418,200
1,180,978
3,037,890
Energy
(3.2%):
China
Coal
Energy
Co.
Ltd.
,
Class
H
.........................................
1,326,298
1,206,004
China
Petroleum
&
Chemical
Corp.
,
Class
H
...................................
2,423,449
1,269,423
China
Shenhua
Energy
Co.
Ltd.
,
Class
H
......................................
415,875
1,424,740
PetroChina
Co.
Ltd.
,
Class
H
..............................................
1,661,469
1,097,971
Yankuang
Energy
Group
Co.
Ltd.
,
Class
H
.....................................
420,932
800,009
5,798,147
Financials
(11.6%):
Agricultural
Bank
of
China
Ltd.
,
Class
H
......................................
3,859,654
1,487,866
Bank
of
China
Ltd.
,
Class
H
...............................................
4,284,464
1,635,166
Bank
of
Communications
Co.
Ltd.
,
Class
H
....................................
2,267,789
1,414,427
China
CITIC
Bank
Corp.
Ltd.
,
Class
H
.......................................
3,163,600
1,491,003
China
Life
Insurance
Co.
Ltd.
,
Class
H
.......................................
743,467
963,588
Victory
Portfolios
II
VictoryShares
Emerging
Markets
Value
Momentum
ETF
25
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
China
Merchants
Bank
Co.
Ltd.
,
Class
H
......................................
295,500
$
1,029,379
China
Minsheng
Banking
Corp.
Ltd.
,
Class
H
...................................
3,685,298
1,250,742
China
Pacific
Insurance
Group
Co.
Ltd.
,
Class
H
................................
438,400
884,863
CITIC
Securities
Co.
Ltd.
,
Class
H
..........................................
514,501
1,050,325
GF
Securities
Co.
Ltd.
,
Class
H
.............................................
947,593
1,133,490
Haitong
Securities
Co.
Ltd.
,
Class
H
.........................................
2,552,069
1,362,943
Huatai
Securities
Co.
Ltd.
,
Class
H
(b)
........................................
962,039
1,214,839
Industrial
&
Commercial
Bank
of
China
Ltd.
,
Class
H
.............................
2,891,957
1,414,830
New
China
Life
Insurance
Co.
Ltd.
,
Class
H
....................................
510,246
994,588
PICC
Property
&
Casualty
Co.
Ltd.
,
Class
H
...................................
951,620
1,130,995
Postal
Savings
Bank
of
China
Co.
Ltd.
,
Class
H
(b)
...............................
2,677,395
1,278,999
The
People's
Insurance
Co.
Group
of
China
Ltd.
,
Class
H
..........................
4,257,777
1,308,709
21,046,752
Health
Care
(2.1%):
3SBio,
Inc.
(b)
.........................................................
1,199,000
1,154,745
China
Resources
Pharmaceutical
Group
Ltd.
(b)
.................................
1,564,084
1,027,605
Sinopharm
Group
Co.
Ltd.
,
Class
H
..........................................
378,496
991,297
WuXi
AppTec
Co.
Ltd.
,
Class
H
(b)
..........................................
66,621
677,882
3,851,529
Industrials
(2.7%):
China
Conch
Venture
Holdings
Ltd.
..........................................
1,238,000
1,027,412
China
Railway
Group
Ltd.
,
Class
H
..........................................
2,366,885
1,054,886
COSCO
SHIPPING
Holdings
Co.
Ltd.
,
Class
H
.................................
1,027,366
1,032,866
Sinotruk
Hong
Kong
Ltd.
.................................................
421,000
826,019
Weichai
Power
Co.
Ltd.
,
Class
H
............................................
546,642
912,913
4,854,096
Information
Technology
(0.9%):
Lenovo
Group
Ltd.
......................................................
661,691
925,395
ZTE
Corp.
,
Class
H
.....................................................
356,800
796,930
1,722,325
Materials
(3.6%):
Anhui
Conch
Cement
Co.
Ltd.
,
Class
H
.......................................
500,294
1,155,875
China
National
Building
Material
Co.
Ltd.
,
Class
H
..............................
1,917,628
820,276
CMOC
Group
Ltd.
,
Class
H
...............................................
1,668,198
912,272
Ganfeng
Lithium
Group
Co.
Ltd.
,
Class
H
(b)
...................................
230,800
871,981
Jiangxi
Copper
Co.
Ltd.
,
Class
H
............................................
848,000
1,198,986
Jinan
Acetate
Chemical
Co.
Ltd.
............................................
17,000
442,105
Zijin
Mining
Group
Co.
Ltd.
,
Class
H
........................................
668,128
1,088,418
6,489,913
Real
Estate
(0.7%):
China
Vanke
Co.
Ltd.
,
Class
H
.............................................
904,042
835,939
Country
Garden
Holdings
Co.
Ltd.
(a)
(c)
......................................
3,857,000
385,295
1,221,234
Utilities
(1.1%):
China
Longyuan
Power
Group
Corp.
Ltd.
,
Class
H
...............................
1,257,000
953,029
Huaneng
Power
International,
Inc.
,
Class
H
(a)
..................................
1,899,656
1,007,220
1,960,249
51,511,142
Cyprus
(0.0%):(d)
Financials
(0.0%):(d)
TCS
Group
Holding
PLC
,
GDR
(a)
(e)
........................................
15,868
6,096
Egypt
(0.6%):
Financials
(0.6%):
Commercial
International
Bank
.............................................
448,334
1,058,300
Victory
Portfolios
II
VictoryShares
Emerging
Markets
Value
Momentum
ETF
26
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Greece
(0.0%):
Consumer
Discretionary
(0.0%):
FF
Group
(a)
(e)
........................................................
14,913
$
—
Hong
Kong
(3.8%):
Consumer
Discretionary
(0.5%):
China
Education
Group
Holdings
Ltd.
........................................
1,457,000
914,334
Health
Care
(1.1%):
China
Medical
System
Holdings
Ltd.
.........................................
499,000
884,475
China
Traditional
Chinese
Medicine
Holdings
Co.
Ltd.
............................
1,946,000
979,455
1,863,930
Industrials
(0.5%):
Orient
Overseas
International
Ltd.
...........................................
62,406
871,168
Real
Estate
(0.9%):
C&D
International
Investment
Group
Ltd.
.....................................
448,000
954,730
Yuexiu
Property
Co.
Ltd.
.................................................
830,949
676,831
1,631,561
Utilities
(0.8%):
Beijing
Enterprises
Holdings
Ltd.
...........................................
431,691
1,501,039
6,782,032
Hungary
(0.7%):
Health
Care
(0.7%):
Richter
Gedeon
Nyrt
....................................................
50,502
1,276,373
India
(17.5%):
Communication
Services
(1.6%):
Sun
TV
Network
Ltd.
....................................................
178,268
1,525,832
Tata
Communications
Ltd.
................................................
61,658
1,311,800
2,837,632
Consumer
Discretionary
(2.9%):
Apollo
Tyres
Ltd.
.......................................................
290,795
1,586,799
Exide
Industries
Ltd.
....................................................
466,763
1,782,994
TVS
Motor
Co.
Ltd.
.....................................................
75,394
1,835,543
5,205,336
Consumer
Staples
(1.3%):
ITC
Ltd.
.............................................................
433,233
2,405,962
Financials
(3.3%):
IDFC
Ltd.
............................................................
986,659
1,501,770
L&T
Finance
Holdings
Ltd.
...............................................
648,928
1,287,192
Piramal
Enterprises
Ltd.
..................................................
89,988
1,007,284
Power
Finance
Corp.
Ltd.
.................................................
237,889
1,093,832
REC
Ltd.
.............................................................
233,055
1,156,331
6,046,409
Health
Care
(3.4%):
Aurobindo
Pharma
Ltd.
..................................................
104,481
1,361,124
Dr.
Reddy's
Laboratories
Ltd.
..............................................
27,965
1,948,574
Glenmark
Pharmaceuticals
Ltd.
.............................................
114,548
1,175,577
Lupin
Ltd.
............................................................
100,944
1,604,927
6,090,202
Industrials
(2.3%):
Escorts
Kubota
Ltd.
.....................................................
37,192
1,333,364
Larsen
&
Toubro
Ltd.
....................................................
51,440
2,179,790
Suzlon
Energy
Ltd.
(a)
....................................................
1,261,144
578,974
4,092,128
Victory
Portfolios
II
VictoryShares
Emerging
Markets
Value
Momentum
ETF
27
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Real
Estate
(1.6%):
DLF
Ltd.
.............................................................
177,498
$
1,549,532
Oberoi
Realty
Ltd.
......................................................
79,462
1,378,359
2,927,891
Utilities
(1.1%):
NTPC
Ltd.
............................................................
559,550
2,092,377
31,697,937
Indonesia
(2.0%):
Consumer
Staples
(1.0%):
PT
Indofood
Sukses
Makmur
Tbk
...........................................
4,491,977
1,881,991
Industrials
(1.0%):
PT
Astra
International
Tbk
................................................
4,674,305
1,715,481
3,597,472
Malaysia
(1.1%):
Utilities
(1.1%):
YTL
Corp.
BHD
.......................................................
2,364,800
973,741
YTL
Power
International
BHD
.............................................
1,784,200
987,335
1,961,076
Mexico
(4.5%):
Consumer
Staples
(2.2%):
Coca-Cola
Femsa
SAB
de
CV
..............................................
211,266
2,003,033
Fomento
Economico
Mexicano
SAB
de
CV
....................................
148,111
1,927,938
3,930,971
Financials
(0.8%):
Qualitas
Controladora
SAB
de
CV
...........................................
147,400
1,489,627
Real
Estate
(1.5%):
Corp
Inmobiliaria
Vesta
SAB
de
CV
.........................................
364,161
1,446,306
Fibra
Uno
Administracion
SA
de
CV
.........................................
727,996
1,310,804
2,757,110
8,177,708
Netherlands
(0.8%):
Real
Estate
(0.8%):
NEPI
Rockcastle
NV
....................................................
216,340
1,495,272
Poland
(0.9%):
Financials
(0.5%):
Powszechny
Zaklad
Ubezpieczen
SA
.........................................
76,872
924,075
Utilities
(0.4%):
PGE
Polska
Grupa
Energetyczna
SA
(a)
.......................................
289,555
639,005
1,563,080
Russian
Federation
(0.0%):(d)
Energy
(0.0%):(d)
Gazprom
PJSC
(a)
(e)
(f)
...................................................
324,752
8,733
Financials
(0.0%):
Sberbank
of
Russia
PJSC
(a)
(e)
(f)
...........................................
177,888
—
Materials
(0.0%):(d)
PhosAgro
PJSC
,
GDR
(a)
(e)
(f)
.............................................
35,202
273
Severstal
PAO
(a)
(e)
(f)
...................................................
37,552
—
United
Co.
RUSAL
International
PJSC
(a)
(e)
(f)
..................................
555,630
3,911
4,184
Victory
Portfolios
II
VictoryShares
Emerging
Markets
Value
Momentum
ETF
28
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Utilities
(0.0%):(d)
Inter
RAO
UES
PJSC
(a)
(e)
(f)
..............................................
23,475,472
$
7,560
20,477
South
Africa
(2.3%):
Consumer
Discretionary
(0.6%):
Woolworths
Holdings
Ltd.
................................................
297,702
1,175,504
Financials
(0.7%):
OUTsurance
Group
Ltd.
..................................................
528,998
1,220,876
Health
Care
(0.7%):
Aspen
Pharmacare
Holdings
Ltd.
............................................
115,232
1,282,456
Materials
(0.3%):
Sibanye
Stillwater
Ltd.
...................................................
411,833
560,822
4,239,658
Taiwan
(21.9%):
Consumer
Discretionary
(1.8%):
Makalot
Industrial
Co.
Ltd.
................................................
97,000
1,120,629
Pou
Chen
Corp.
........................................................
2,173,000
2,188,225
3,308,854
Health
Care
(0.5%):
Lotus
Pharmaceutical
Co.
Ltd.
.............................................
98,000
868,698
Industrials
(2.8%):
China
Airlines
Ltd.
......................................................
1,603,000
1,131,007
Eva
Airways
Corp.
......................................................
1,056,000
1,082,327
Evergreen
Marine
Corp.
Ltd.
...............................................
175,400
820,267
Teco
Electric
and
Machinery
Co.
Ltd.
........................................
612,000
933,407
Yang
Ming
Marine
Transport
Corp.
..........................................
653,000
1,091,703
5,058,711
Information
Technology
(16.8%):
Acer,
Inc.
............................................................
881,000
1,544,657
Alchip
Technologies
Ltd.
.................................................
6,000
640,378
ASE
Technology
Holding
Co.
Ltd.
...........................................
310,000
1,363,859
Asia
Vital
Components
Co.
Ltd.
............................................
63,000
690,875
AUO
Corp.
...........................................................
2,432,800
1,438,987
Catcher
Technology
Co.
Ltd.
...............................................
323,000
2,042,105
Chicony
Electronics
Co.
Ltd.
..............................................
266,000
1,517,028
Compal
Electronics,
Inc.
..................................................
1,083,000
1,406,471
Elite
Material
Co.
Ltd.
...................................................
60,000
746,945
Gigabyte
Technology
Co.
Ltd.
..............................................
79,000
684,830
Global
Unichip
Corp.
....................................................
12,000
680,463
Innolux
Corp.
(a)
.......................................................
3,040,345
1,416,879
King
Slide
Works
Co.
Ltd.
................................................
24,000
714,877
King
Yuan
Electronics
Co.
Ltd.
.............................................
346,000
957,321
Lite-On
Technology
Corp.
................................................
221,000
842,659
Micro-Star
International
Co.
Ltd.
............................................
190,000
1,263,158
Novatek
Microelectronics
Corp.
............................................
74,000
1,246,798
Pegatron
Corp.
.........................................................
567,000
1,613,137
Powertech
Technology,
Inc.
................................................
448,000
2,058,595
Qisda
Corp.
...........................................................
711,000
1,112,205
Quanta
Computer,
Inc.
...................................................
94,000
687,730
Tripod
Technology
Corp.
.................................................
130,000
826,137
Winbond
Electronics
Corp.
................................................
1,156,427
1,147,570
Wistron
Corp.
.........................................................
193,000
620,166
WPG
Holdings
Ltd.
.....................................................
609,000
1,619,501
Zhen
Ding
Technology
Holding
Ltd.
.........................................
451,000
1,602,053
30,485,384
39,721,647
Victory
Portfolios
II
VictoryShares
Emerging
Markets
Value
Momentum
ETF
29
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Description
Shares
Value
Turkey
(5.3%):
Communication
Services
(0.3%):
Turkcell
Iletisim
Hizmetleri
A/S
............................................
260,973
$
497,662
Consumer
Discretionary
(0.8%):
Arcelik
A/S
...........................................................
106,154
463,677
Ford
Otomotiv
Sanayi
A/S
................................................
19,957
501,661
Tofas
Turk
Otomobil
Fabrikasi
A/S
..........................................
61,121
436,301
1,401,639
Consumer
Staples
(0.7%):
BIM
Birlesik
Magazalar
A/S
...............................................
50,588
517,166
Coca-Cola
Icecek
AS
....................................................
41,185
735,679
1,252,845
Energy
(0.2%):
Turkiye
Petrol
Rafinerileri
A/S
.............................................
93,686
455,394
Financials
(1.1%):
Akbank
TAS
..........................................................
377,704
468,877
Haci
Omer
Sabanci
Holding
A/S
............................................
269,881
554,556
Turkiye
Is
Bankasi
A/S
...................................................
594,697
472,221
Yapi
ve
Kredi
Bankasi
AS
.................................................
718,199
477,030
1,972,684
Industrials
(1.6%):
Aselsan
Elektronik
Sanayi
Ve
Ticaret
A/S
......................................
287,780
440,004
KOC
Holding
AS
.......................................................
107,748
519,352
Pegasus
Hava
Tasimaciligi
AS
(a)
............................................
21,563
476,064
Turk
Hava
Yollari
AO
(a)
..................................................
58,620
455,511
Turk
Traktor
ve
Ziraat
Makineleri
A/S
........................................
19,972
483,368
Turkiye
Sise
ve
Cam
Fabrikalari
A/S
.........................................
315,746
491,778
2,866,077
Materials
(0.4%):
Koza
Altin
Isletmeleri
AS
.................................................
528,868
351,096
Oyak
Cimento
Fabrikalari
As
(a)
............................................
184,033
346,876
697,972
Utilities
(0.2%):
Enerjisa
Enerji
A/S
(b)
....................................................
296,255
458,601
9,602,874
United
States
(0.0%):(d)
Materials
(0.0%):(d)
Phosagro
Public
Joint
,
GDR
(a)
(e)
...........................................
227
2
Total
Common
Stocks
(Cost
$167,918,231)
181,972,859
Collateral
for
Securities
Loaned
(0.2%)^
United
States
(0.2%):
Goldman
Sachs
Financial
Square
Government
Fund,
Institutional
Shares
,
5
.25
%
(g)
........
92,098
92,098
HSBC
U.S.
Government
Money
Market
Fund,
Institutional
Shares
,
5
.30
%
(g)
............
92,098
92,098
Invesco
Government
&
Agency
Portfolio,
Institutional
Shares
,
5
.28
%
(g)
...............
92,098
92,098
Morgan
Stanley
Institutional
Liquidity
Government
Portfolio,
Institutional
Shares
,
5
.26
%
(g)
.
92,098
92,098
Total
Collateral
for
Securities
Loaned
(Cost
$368,392)
368,392
Total
Investments
(Cost
$168,286,623)
—
100.6%
182,341,251
Liabilities
in
excess
of
other
assets
—
(0.6)%
(
1,010,289
)
NET
ASSETS
-
100.00%
$
181,330,962
^
Purchased
with
cash
collateral
from
securities
on
loan.
(a)
Non-income
producing
security.
Victory
Portfolios
II
VictoryShares
Emerging
Markets
Value
Momentum
ETF
30
(Unaudited)
Schedule
of
Portfolio
Investments
—
continued
December
31,
2023
See
notes
to
financial
statements.
Security
Name
Acquisition
Date
Cost
Gazprom
PJSC
.............................................
12/8/2017
$
722,938
Inter
RAO
UES
PJSC
.........................................
5/2/2018
1,576,280
PhosAgro
PJSC
,
GDR
........................................
12/21/2021
748,678
Sberbank
of
Russia
PJSC
......................................
10/24/2017
634,243
Severstal
PAO
..............................................
5/27/2021
881,363
United
Co.
RUSAL
International
PJSC
............................
11/30/2021
516,962
(b)
Rule
144A
security
or
other
security
that
is
restricted
as
to
resale
to
institutional
investors.
As
of
December
31,
2023,
the
fair
value
of
these
securities
was
$8,213,659
and
amounted
to
4.5%
of
net
assets.
(c)
All
or
a
portion
of
this
security
is
on
loan.
(d)
Amount
represents
less
than
0.05%
of
net
assets.
(e)
Security
was
fair
valued
based
upon
procedures
approved
by
the
Board
of
Trustees
and
represents
less
than
0.05%
of
net
assets
as
of
December
31,
2023.
This
security
is
classified
as
Level
3
within
the
fair
value
hierarchy.
(See
Note
2
in
the
Notes
to
Financial
Statements)
(f)
The
following
table
details
the
earliest
acquisition
date
and
cost
of
the
Fund's
restricted
securities
due
to
trading
restrictions
at
December
31,
2023.
(g)
Rate
disclosed
is
the
daily
yield
on
December
31,
2023.
GDR
—
Global
Depositary
Receipt
PLC
—
Public
Limited
Company
Futures
Contracts
Purchased
Number
of
Contracts
Expiration
Date
Notional
Amount
Value
Unrealized
Appreciation
(Depreciation)
E-Mini
MSCI
Emerging
Markets
Index
Futures
..........................
14
3/15/24
$
691,587
$
723,590
$
32,003
Total
unrealized
appreciation
$
32,003
Total
unrealized
depreciation
—
Total
net
unrealized
appreciation
(depreciation)
$
32,003
Statements
of
Assets
and
Liabilities
December
31,
2023
31
See
notes
to
financial
statements.
Victory
Portfolios
II
(Unaudited)
VictoryShares
US
Value
Momentum
ETF
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
Assets:
Investments,
at
value
(Cost
$154,167,617
and
$207,822,590)
$
169,789,792‌
$
240,762,251‌
(a)
Cash
444,515‌
929,560‌
Deposit
with
broker
for
futures
contracts
212,249‌
334,440‌
Receivables:
Interest
and
dividends
359,863‌
298,283‌
From
Adviser
3,655‌
—‌
Prepaid
expenses
350‌
319‌
Total
Assets
170,810,424‌
242,324,853‌
Liabilities:
Payables:
Collateral
received
on
loaned
securities
—‌
2,949,176‌
Investments
purchased
—‌
359,096‌
Payable
to
Adviser
—‌
5‌
Variation
margin
on
open
futures
contracts
679‌
12,964‌
Accrued
expenses
and
other
payables:
Investment
advisory
fees
21,332‌
30,458‌
Administration
fees
5,268‌
8,799‌
Custodian
fees
1,346‌
1,424‌
Compliance
fees
117‌
185‌
Trustees'
fees
—‌
480‌
Other
accrued
expenses
18,985‌
24,056‌
Total
Liabilities
47,727‌
3,386,643‌
Commitments
and
contingencies
(Note
5
)
Net
Assets:
Capital
231,600,190‌
256,141,663‌
Total
accumulated
earnings/(loss)
(
60,837,493‌
)
(
17,203,453‌
)
Net
Assets
$
170,762,697‌
$
238,938,210‌
Shares
outstanding
(unlimited
shares
authorized,
no
par
value):
2,500,000‌
3,250,000‌
Net
asset
value:
$
68
.31‌
$
73
.52‌
(a)
Includes
$2,816,171
of
securities
on
loan.
Statements
of
Assets
and
Liabilities
December
31,
2023
32
See
notes
to
financial
statements.
Victory
Portfolios
II
(Unaudited)
VictoryShares
International
Value
Momentum
ETF
VictoryShares
Emerging
Markets
Value
Momentum
ETF
Assets:
Investments,
at
value
(Cost
$223,090,999
and
$168,286,623)
$
249,712,083‌
(a)
$
182,341,251‌
(b)
Foreign
currency,
at
value
(Cost
$122,990
and
$115,981)
123,181‌
116,362‌
Cash
469,714‌
476,686‌
Deposit
with
broker
for
futures
contracts
193,136‌
129,617‌
Unrealized
appreciation
on
foreign
currency
spot
contracts
149‌
—‌
Receivables:
Interest
and
dividends
607,635‌
237,465‌
Investments
sold
—‌
17,536‌
From
Adviser
—‌
1,010‌
Reclaims
881,729‌
14,568‌
Variation
margin
on
open
futures
contracts
371‌
700‌
Prepaid
expenses
394‌
256‌
Total
Assets
251,988,392‌
183,335,451‌
Liabilities:
Payables:
Collateral
received
on
loaned
securities
4,378,532‌
368,392‌
Payable
to
Adviser
1,886‌
—‌
Accrued
foreign
capital
gains
taxes
—‌
1,480,575‌
Accrued
expenses
and
other
payables:
Investment
advisory
fees
51,172‌
44,684‌
Administration
fees
1,489‌
1,559‌
Custodian
fees
29,352‌
41,997‌
Compliance
fees
186‌
139‌
Trustees'
fees
378‌
340‌
Other
accrued
expenses
41,282‌
66,803‌
Total
Liabilities
4,504,277‌
2,004,489‌
Commitments
and
contingencies
(Note
5
)
Net
Assets:
Capital
299,519,255‌
204,259,765‌
Total
accumulated
earnings/(loss)
(
52,035,140‌
)
(
22,928,803‌
)
Net
Assets
$
247,484,115‌
$
181,330,962‌
Shares
outstanding
(unlimited
shares
authorized,
no
par
value):
5,350,000‌
4,050,000‌
Net
asset
value:
$
46
.26‌
$
44
.77‌
(a)
Includes
$5,870,771
of
securities
on
loan.
(b)
Includes
$245,336
of
securities
on
loan.
Statements
of
Operations
For
the
Six
Months
Ended
December
31,
2023
33
See
notes
to
financial
statements.
Victory
Portfolios
II
(Unaudited)
VictoryShares
US
Value
Momentum
ETF
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
Investment
Income:
Dividends
$
1,973,887‌
$
2,243,979‌
Interest
13,987‌
19,130‌
Securities
lending
(net
of
fees)
157‌
3,720‌
Foreign
tax
withholding
(196‌)
(197‌)
Total
Income
1,987,835‌
2,266,632‌
Expenses:
Investment
advisory
fees
126,197‌
168,918‌
Administration
fees
46,744‌
62,572‌
Sub-Administration
fees
9,771‌
9,771‌
Custodian
fees
5,233‌
6,252‌
Trustees'
fees
7,175‌
8,514‌
Compliance
fees
805‌
1,032‌
Legal
and
audit
fees
10,121‌
12,265‌
Other
expenses
10,855‌
14,350‌
Recoupment
of
prior
expenses
waived/reimbursed
by
Adviser
—‌
5‌
Total
Expenses
216,901‌
283,679‌
Expenses
waived/reimbursed
by
Adviser
(48,863‌)
(2,093‌)
Net
Expenses
168,038‌
281,586‌
Net
Investment
Income
(Loss)
1,819,797‌
1,985,046‌
Realized/Unrealized
Gains
(Losses)
from
Investments:
Net
realized
gains
(losses)
from
investment
securities
814,892‌
(1,609,035‌)
Net
realized
gains
(losses)
from
futures
contracts
36,551‌
(32,793‌)
Net
realized
gains
(losses)
from
in-kind
redemptions
3,675,976‌
11,728,082‌
Net
change
in
unrealized
appreciation/depreciation
on
investment
securities
6,439,631‌
12,235,606‌
Net
change
in
unrealized
appreciation/depreciation
on
futures
contracts
(4,837‌)
44,976‌
Net
realized/unrealized
gains
(losses)
on
investments
10,962,213‌
22,366,836‌
Change
in
net
assets
resulting
from
operations
$
12,782,010‌
$
24,351,882‌
Statements
of
Operations
For
the
Six
Months
Ended
December
31,
2023
34
See
notes
to
financial
statements.
Victory
Portfolios
II
(Unaudited)
VictoryShares
International
Value
Momentum
ETF
VictoryShares
Emerging
Markets
Value
Momentum
ETF
Investment
Income:
Dividends
$
3,854,834‌
$
4,024,734‌
Interest
16,626‌
13,094‌
Securities
lending
(net
of
fees)
29,617‌
10,044‌
Foreign
tax
withholding
(481,241‌)(a)
(530,624‌)
Total
Income
3,419,836‌
3,517,248‌
Expenses:
Investment
advisory
fees
294,865‌
258,200‌
Administration
fees
65,538‌
47,824‌
Sub-Administration
fees
9,771‌
10,774‌
Custodian
fees
40,760‌
96,573‌
Trustees'
fees
9,025‌
6,794‌
Compliance
fees
1,093‌
792‌
Legal
and
audit
fees
28,269‌
28,022‌
Line
of
credit
fees
34‌
2,274‌
Other
expenses
11,149‌
10,823‌
Recoupment
of
prior
expenses
waived/reimbursed
by
Adviser
2,228‌
—‌
Total
Expenses
462,732‌
462,076‌
Expenses
waived/reimbursed
by
Adviser
(49,912‌)
(74,641‌)
Net
Expenses
412,820‌
387,435‌
Net
Investment
Income
(Loss)
3,007,016‌
3,129,813‌
Realized/Unrealized
Gains
(Losses)
from
Investments:
Net
realized
gains
(losses)
from
investment
securities
and
foreign
currency
transactions
8,149,765‌
8,383,587‌
Foreign
taxes
on
realized
gains
—‌
(971,254‌)
Net
realized
gains
(losses)
from
futures
contracts
(30,566‌)
(66,807‌)
Net
realized
gains
(losses)
from
in-kind
redemptions
1,755,912‌
—‌
Net
change
in
unrealized
appreciation/depreciation
on
investment
securities
and
foreign
currency
translations
6,840,041‌
7,157,412‌
Net
change
in
unrealized
appreciation/depreciation
on
futures
contracts
14,037‌
34,776‌
Net
change
in
accrued
foreign
taxes
on
unrealized
gains
—‌
(730,186‌)
Net
realized/unrealized
gains
(losses)
on
investments
16,729,189‌
13,807,528‌
Change
in
net
assets
resulting
from
operations
$
19,736,205‌
$
16,937,341‌
(a)
Includes
European
Union
("EU")
reclaims
of
$26,005.
See
Foreign
Taxes
in
Item
2
of
the
accompanying
Notes
to
Financial
Statements.
35
Victory
Portfolios
II
Statements
of
Changes
in
Net
Assets
See
notes
to
financial
statements.
VictoryShares
US
Value
Momentum
ETF
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
Six
Months
Ended
December
31,
2023
(Unaudited)
Year
Ended
June
30,
2023
Six
Months
Ended
December
31,
2023
(Unaudited)
Year
Ended
June
30,
2023
From
Investment
Activities:
Operations:
Net
Investment
Income
(Loss)
$
1,819,797‌
$
4,964,965‌
$
1,985,046‌
$
4,153,232‌
Net
realized
gains
(losses)
4,527,419‌
6,197,838‌
10,086,254‌
(
3,292,083‌
)
Net
change
in
unrealized
appreciation/depreciation
6,434,794‌
11,164,893‌
12,280,582‌
27,645,690‌
Change
in
net
assets
resulting
from
operations
12,782,010‌
22,327,696‌
24,351,882‌
28,506,839‌
Change
in
net
assets
resulting
from
distributions
to
shareholders
(
2,203,491‌
)
(
5,037,898‌
)
(
2,065,944‌
)
(
3,949,369‌
)
Change
in
net
assets
resulting
from
capital
transactions
(
32,384,096‌
)
(
92,182,672‌
)
(
14,007,411‌
)
(
51,254,237‌
)
Change
in
net
assets
(
21,805,577‌
)
(
74,892,874‌
)
8,278,527‌
(
26,696,767‌
)
Net
Assets:
Beginning
of
period
192,568,274‌
267,461,148‌
230,659,683‌
257,356,450‌
End
of
period
$
170,762,697‌
$
192,568,274‌
$
238,938,210‌
$
230,659,683‌
Capital
Transactions:
Proceeds
from
shares
issued
$
—‌
$
—‌
$
39,119,262‌
$
3,167,675‌
Cost
of
shares
redeemed
(
32,384,096‌
)
(
92,182,672‌
)
(
53,126,673‌
)
(
54,421,912‌
)
Change
in
net
assets
resulting
from
capital
transactions
$
(
32,384,096‌
)
$
(
92,182,672‌
)
$
(
14,007,411‌
)
$
(
51,254,237‌
)
Share
Transactions:
Issued
—‌
—‌
550,000‌
50,000‌
Redeemed
(
500,000‌
)
(
1,450,000‌
)
(
750,000‌
)
(
850,000‌
)
Change
in
Shares
(
500,000‌
)
(
1,450,000‌
)
(
200,000‌
)
(
800,000‌
)
36
Victory
Portfolios
II
Statements
of
Changes
in
Net
Assets
(continued)
See
notes
to
financial
statements.
VictoryShares
International
Value
Momentum
ETF
VictoryShares
Emerging
Markets
Value
Momentum
ETF
Six
Months
Ended
December
31,
2023
(Unaudited)
Year
Ended
June
30,
2023
Six
Months
Ended
December
31,
2023
(Unaudited)
Year
Ended
June
30,
2023
From
Investment
Activities:
Operations:
Net
Investment
Income
(Loss)
$
3,007,016‌
$
10,354,745‌
$
3,129,813‌
$
9,072,567‌
Net
realized
gains
(losses)
9,875,111‌
(
18,121,702‌
)
7,345,526‌
(
17,872,781‌
)
Net
change
in
unrealized
appreciation/depreciation
6,854,078‌
39,061,050‌
6,462,002‌
21,179,074‌
Change
in
net
assets
resulting
from
operations
19,736,205‌
31,294,093‌
16,937,341‌
12,378,860‌
Change
in
net
assets
resulting
from
distributions
to
shareholders
(
5,579,223‌
)
(
9,023,923‌
)
(
6,032,382‌
)
(
8,231,290‌
)
Change
in
net
assets
resulting
from
capital
transactions
(
13,236,912‌
)
(
58,663,287‌
)
—‌
(
43,657,374‌
)
Change
in
net
assets
920,070‌
(
36,393,117‌
)
10,904,959‌
(
39,509,804‌
)
Net
Assets:
Beginning
of
period
246,564,045‌
282,957,162‌
170,426,003‌
209,935,807‌
End
of
period
$
247,484,115‌
$
246,564,045‌
$
181,330,962‌
$
170,426,003‌
Capital
Transactions:
Cost
of
shares
redeemed
(
13,236,912‌
)
(
58,663,287‌
)
—‌
(
43,657,374‌
)
Change
in
net
assets
resulting
from
capital
transactions
$
(
13,236,912‌
)
$
(
58,663,287‌
)
$
—‌
$
(
43,657,374‌
)
Share
Transactions:
Redeemed
(
300,000‌
)
(
1,400,000‌
)
—‌
(
1,100,000‌
)
Change
in
Shares
(
300,000‌
)
(
1,400,000‌
)
—‌
(
1,100,000‌
)
Victory
Portfolios
II
Financial
Highlights
For
a
Share
Outstanding
Throughout
Each
Period
37
See
notes
to
financial
statements.
VictoryShares
US
Value
Momentum
ETF
Six
Months
Ended
December
31,
2023
(Unaudited)
Year
Ended
June
30,
2023
Year
Ended
June
30,
2022
Year
Ended
June
30,
2021
Ten
Months
Ended
June
30,
2020(a)
Year
Ended
August
31,
2019
Net
Asset
Value,
Beginning
of
Period
$64.19
$60.10
$65.66
$45.30
$50.37
$53.85
Investment
Activities:
Net
investment
income
(loss)(b)
0.70
1.25
1.07
0.81
0.72
1.00
Net
realized
and
unrealized
gains
(losses)
4.27
4.10
(5.52)
20.32
(4.85)
(3.59)
Total
from
Investment
Activities
4.97
5.35
(4.45)
21.13
(4.13)
(2.59)
Distributions
to
Shareholders
from:
Net
investment
income
(0.85)
(1.27)
(1.11)
(0.77)
(0.94)
(0.89)
Total
Distributions
(0.85)
(1.27)
(1.11)
(0.77)
(0.94)
(0.89)
Net
Asset
Value,
End
of
Period
$68.31
$64.19
$60.10
$65.66
$45.30
$50.37
Total
Return(c)(d)
7.81%
8.99%
(6.94)%
47.02%
(8.31)%
(4.79)%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
0.20%
0.20%
0.20%
0.20%
0.20%
0.20%
Net
Investment
Income
(Loss)(e)
2.17%
2.00%
1.59%
1.47%
1.80%
2.00%
Gross
Expenses(e)(f)
0.26%
0.26%
0.27%
0.27%
0.28%
0.25%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$170,763
$192,568
$267,461
$443,213
$464,347
$468,445
Portfolio
Turnover(c)(g)
67%
101%
53%
76%
66%
87%
(a)
The
Fund's
fiscal
year-end
changed
from
August
31
to
June
30,
effective
September
1,
2019.
(b)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(c)
Not
annualized
for
periods
less
than
one
year.
(d)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Excludes
impact
of
in-kind
transactions.
Victory
Portfolios
II
Financial
Highlights
—
continued
For
a
Share
Outstanding
Throughout
Each
Period
38
See
notes
to
financial
statements.
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
Six
Months
Ended
December
31,
2023
(Unaudited)
Year
Ended
June
30,
2023
Year
Ended
June
30,
2022
Year
Ended
June
30,
2021
Ten
Months
Ended
June
30,
2020(a)
Year
Ended
August
31,
2019
Net
Asset
Value,
Beginning
of
Period
$66.86
$60.55
$72.20
$45.57
$49.54
$57.21
Investment
Activities:
Net
investment
income
(loss)(b)
0.59
1.12
0.88
0.52
0.60
1.00
Net
realized
and
unrealized
gains
(losses)
6.69
6.29
(11.79)
26.84
(3.74)
(7.86)
Total
from
Investment
Activities
7.28
7.41
(10.91)
27.36
(3.14)
(6.86)
Distributions
to
Shareholders
from:
Net
investment
income
(0.62)
(1.10)
(0.74)
(0.73)
(0.83)
(0.81)
Total
Distributions
(0.62)
(1.10)
(0.74)
(0.73)
(0.83)
(0.81)
Net
Asset
Value,
End
of
Period
$73.52
$66.86
$60.55
$72.20
$45.57
$49.54
Total
Return(c)(d)
10.96%
12.33%
(15.24)%
60.47%
(6.44)%
(11.99)%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
0.25%
0.24%(g)
0.24%(g)
0.24%(g)
0.25%
0.25%
Net
Investment
Income
(Loss)(e)
1.76%
1.75%
1.26%
0.87%
1.53%
1.98%
Gross
Expenses(e)(f)
0.25%
0.27%
0.27%
0.28%
0.31%
0.30%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$238,938
$230,660
$257,356
$299,631
$239,247
$101,564
Portfolio
Turnover(c)(h)
62%
126%
70%
78%
70%
88%
(a)
The
Fund's
fiscal
year-end
changed
from
August
31
to
June
30,
effective
September
1,
2019.
(b)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(c)
Not
annualized
for
periods
less
than
one
year.
(d)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Includes
impact
of
voluntary
waivers.
Without
these
voluntary
waivers,
the
net
expense
ratio
would
have
been
at
the
contractual
cap.
(h)
Excludes
impact
of
in-kind
transactions.
39
Victory
Portfolios
II
For
a
Share
Outstanding
Throughout
Each
Period
Financial
Highlights
—
continued
See
notes
to
financial
statements.
VictoryShares
International
Value
Momentum
ETF
Six
Months
Ended
December
31,
2023
(Unaudited)
Year
Ended
June
30,
2023
Year
Ended
June
30,
2022
Year
Ended
June
30,
2021
Ten
Months
Ended
June
30,
2020(a)
Year
Ended
August
31,
2019
Net
Asset
Value,
Beginning
of
Period
$43.64
$40.14
$49.64
$38.42
$43.16
$48.10
Investment
Activities:
Net
investment
income
(loss)(b)
0.56(c)
1.59
1.41
1.28
0.83
1.30
Net
realized
and
unrealized
gains
(losses)
3.09
3.33
(9.20)
11.17
(4.35)
(4.99)
Total
from
Investment
Activities
3.65
4.92
(7.79)
12.45
(3.52)
(3.69)
Distributions
to
Shareholders
from:
Net
investment
income
(1.03)
(1.42)
(1.71)
(1.23)
(1.22)
(1.25)
Total
Distributions
(1.03)
(1.42)
(1.71)
(1.23)
(1.22)
(1.25)
Net
Asset
Value,
End
of
Period
$46.26
$43.64
$40.14
$49.64
$38.42
$43.16
Total
Return(d)(e)
8.56%(c)
12.50%
(16.12)%
32.66%
(8.39)%
(7.70)%
Ratios
to
Average
Net
Assets:
Net
Expenses(f)(g)
0.35%
0.35%
0.35%
0.35%
0.35%
0.35%
Net
Investment
Income
(Loss)(f)
2.55%(c)
3.86%
2.96%
2.86%
2.41%
2.90%
Gross
Expenses(f)(g)
0.39%
0.41%
0.41%
0.42%
0.41%
0.40%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$247,484
$246,564
$282,957
$357,380
$315,004
$323,693
Portfolio
Turnover(d)(h)
52%
105%
68%
90%
62%
87%
(a)
The
Fund's
fiscal
year-end
changed
from
August
31
to
June
30,
effective
September
1,
2019.
(b)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(c)
Includes
net
investment
income
received
on
EU
Reclaims
during
the
six
months
ended
December
31,
2023.  Without
these
amounts
the
net
investment
income
(loss)
per
share,
net
investment
income
(loss)
ratio,
and
total
return
would
have
been
less
by
0.005,
0.02%,
and
0.01%,
respectively.
(d)
Not
annualized
for
periods
less
than
one
year.
(e)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(f)
Annualized
for
periods
less
than
one
year.
(g)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(h)
Excludes
impact
of
in-kind
transactions.
Victory
Portfolios
II
Financial
Highlights
—
continued
For
a
Share
Outstanding
Throughout
Each
Period
40
See
notes
to
financial
statements.
VictoryShares
Emerging
Markets
Value
Momentum
ETF
Six
Months
Ended
December
31,
2023
(Unaudited)
Year
Ended
June
30,
2023
Year
Ended
June
30,
2022
Year
Ended
June
30,
2021
Ten
Months
Ended
June
30,
2020(a)
Year
Ended
August
31,
2019
Net
Asset
Value,
Beginning
of
Period
$42.08
$40.76
$52.08
$37.91
$41.23
$45.58
Investment
Activities:
Net
investment
income
(loss)(b)
0.77
2.04
1.91
1.36
0.73
1.31
Net
realized
and
unrealized
gains
(losses)
3.41
1.04
(11.18)
14.10
(2.85)
(4.73)
Total
from
Investment
Activities
4.18
3.08
(9.27)
15.46
(2.12)
(3.42)
Distributions
to
Shareholders
from:
Net
investment
income
(1.49)
(1.76)
(2.05)
(1.29)
(1.20)
(0.93)
Total
Distributions
(1.49)
(1.76)
(2.05)
(1.29)
(1.20)
(0.93)
Net
Asset
Value,
End
of
Period
$44.77
$42.08
$40.76
$52.08
$37.91
$41.23
Total
Return(c)(d)
10.20%
7.80%
(18.34)%
41.48%
(5.47)%
(7.62)%
Ratios
to
Average
Net
Assets:
Net
Expenses(e)(f)
0.45%
0.45%
0.45%
0.45%
0.45%
0.45%
Net
Investment
Income
(Loss)(e)
3.63%
5.07%
4.05%
2.98%
2.18%
3.00%
Gross
Expenses(e)(f)
0.54%
0.61%
0.55%
0.56%
0.57%
0.50%
Supplemental
Data:
Net
Assets
at
end
of
period
(000's)
$181,331
$170,426
$209,936
$265,591
$164,892
$169,051
Portfolio
Turnover(c)(g)
71%
109%
70%
95%
51%
67%
(a)
The
Fund's
fiscal
year-end
changed
from
August
31
to
June
30,
effective
September
1,
2019.
(b)
Per
share
net
investment
income
(loss)
has
been
calculated
using
the
average
daily
shares
method.
(c)
Not
annualized
for
periods
less
than
one
year.
(d)
Assumes
reinvestment
of
all
net
investment
income
and
realized
capital
gain
distributions,
if
any,
during
the
period.
Includes
adjustments
in
accordance
with
U.S.
Generally
Accepted
Accounting
Principles
and
could
differ
from
the
reported
return.
(e)
Annualized
for
periods
less
than
one
year.
(f)
Does
not
include
acquired
fund
fees
and
expenses,
if
any.
(g)
Excludes
impact
of
in-kind
transactions.
Notes
to
Financial
Statements
December
31,
2023
Victory
Portfolios
II
41
(Unaudited)
1.
Organization:
Victory
Portfolios
II
(the
“Trust”)
is
organized as
a
Delaware
statutory
trust and
the Trust
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
investment
company.
The
Trust
is
comprised
of
27
funds, and
is
authorized
to
issue
an
unlimited
number
of
shares,
which
are
units
of
beneficial
interest
with
no
par
value.
The
accompanying
financial
statements
are
those
of
the
following four
Funds
(collectively,
the
“Funds”
and
individually,
a
“Fund”).
Each
Fund
is
classified
as
diversified
under
the
1940
Act.
Victory
Capital
Management
Inc.
(“VCM”
or
the
“Adviser”)
is
an
indirect
wholly
owned
subsidiary
of
Victory
Capital
Holdings,
Inc.,
a
publicly
traded
Delaware
corporation,
and
a
wholly
owned
direct
subsidiary
of
Victory
Capital
Operating,
LLC.
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Funds.
In
addition,
in
the
normal
course
of
business,
the
Funds
enter
into
contracts
with
their
vendors
and
others
that
provide
for
general
indemnifications.
The Funds’
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Funds.
However,
based
on
experience,
the
Funds
expect
that
risk
of
loss
to
be
remote.
2.
Significant
Accounting
Policies:
The
following
is
a
summary
of
significant
accounting
policies
followed
by
the Funds
in
the
preparation
of their
financial
statements.
 The
policies
are
in
conformity
with
U.S.
Generally
Accepted
Accounting
Principles
(“GAAP”).
The
preparation
of
financial
statements
in
accordance
with
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
income
and
expenses
for
the
period.
Actual
results
could
differ
from
those
estimates.
The
Funds
follow
the
specialized
accounting
and
reporting
requirements
under
GAAP
that
are
applicable
to
investment
companies
under
Accounting
Standards
Codification
Topic
946.
Shares
of
the
Funds
are
listed
and
traded
on
the
Nasdaq
Stock
Market,
LLC.
(the
“Exchange”).
The
Funds
issue
and
redeem
shares
(“Shares”)
at
net
asset
value
(“NAV”)
only
in
aggregations
of
50,000
shares,
(each
a
“Creation
Unit”).
Creation
Units
are
issued
and
redeemed
in
exchange
for
a
basket
of
securities
included
in
the
respective
Fund’s
Index
(the
“Deposit
Securities”),
and/or
with
the
deposit
of
a
specified
cash
payment
(the
“Cash
Component”),
plus
a
transaction
fee.
Shares
trade
on
the Exchange
at
market
prices
that
may
be
below,
at,
or
above
NAV.
Shares
of
a
Fund
may
only
be
purchased
or
redeemed
by
certain
financial
institutions
(“Authorized
Participants”).
An
Authorized
Participant
is
either
(i)
a
broker-dealer
or
other
participant
in
the
clearing
process
through
the
Continuous
Net
Settlement
System
of
the
National
Securities
Clearing
Corporation
or
(ii)
a
DTC
participant
and,
in
each
case,
must
have
executed
a
Participant
Agreement
with
the
distributor.
Only
Authorized
Participants
may
purchase
or
redeem
the
shares
directly
from
a
Fund.
In
addition,
shares
may
be
issued
in
advance
of
receipt
of
Deposit
Securities
subject
to
various
conditions,
including
a
requirement
to
maintain
on
deposit
with
the
Trust
cash
equal
to
up
to
105%
of
the
market
value
of
the
missing
Deposit
Securities.
In
each
instance
of
such
cash
creations
or
redemptions,
transaction
fees
may
be
imposed
and
may
be
higher
than
the
transaction
fees
associated
with
in-kind
creations
or
redemptions.
Each
Fund
may
issue
an
unlimited
number
of
shares
of
beneficial
interest,
with
no
par
value.
Shares
of
each
Fund
have
equal
rights
and
privileges.
A
purchase
(i.e.,
creation)
transaction
fee
is
imposed
for
the
transfer
and
other
transactional
costs
associated
with
the
purchase
of
Creation
Units.
In
addition,
a
variable
fee
may
be
charged
on
all
cash
transactions
or
substitutes
for
Creation
Units.
Variable
fees
received
by
each
Fund
are
displayed
in
the
Capital
Transactions
section
of
the
Statements
of
Changes
in
Net
Assets
as
an
increase
to
Capital.
The
transaction
fees
for
each
Fund
are
listed
below:
Investment
Valuation:
The
Funds
record
investments
at
fair
value.
Fair
value
is
defined
as
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
valuation
techniques
described
below
maximize
the
use
of
observable
inputs
and
minimize
the
use
of
unobservable
inputs
in
determining
fair
value.
The
inputs
used
for
valuing
the
Funds’
investments
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
—
quoted
prices
(unadjusted)
in
active
markets
for
identical
securities
Funds
(Legal
Name)
Funds
(Short
Name)
VictoryShares
US
Value
Momentum
ETF
US
Value
Momentum
ETF
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF
US
Small
Mid
Cap
Value
Momentum
ETF
VictoryShares
International
Value
Momentum
ETF
International
Value
Momentum
ETF
VictoryShares
Emerging
Markets
Value
Momentum
ETF
Emerging
Markets
Value
Momentum
ETF
Fee
for
In-Kind
and
Cash
Purchases
and
Redemptions
Maximum
Additional
Variable
Charge
for
Cash
Purchases
and
Redemptions*
US
Value
Momentum
ETF
...............................................
$
500
2.00%
US
Small
Mid
Cap
Value
Momentum
ETF
....................................
750
2.00%
International
Value
Momentum
ETF
........................................
3,000
2.00%
Emerging
Markets
Value
Momentum
ETF
....................................
5,500
2.00%
*  
As
a
percentage
of
the
amount
invested
Notes
to
Financial
Statements
—
continued
December
31,
2023
Victory
Portfolios
II
42
(Unaudited)
Level
2
—
other
significant
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
or
credit
spreads,
applicable
to
those
securities,
etc.)
Level
3
—
significant
unobservable
inputs
(including
the
Adviser’s
assumptions
in
determining
the
fair
value
of
investments)
Changes
in
valuation
techniques
may
result
in
transfers
in
or
out
of
an
assigned
level
within
the
disclosure
hierarchy.
The
inputs
or
methodologies
used
for
valuation
techniques
are
not
necessarily
an
indication
of
the
risks
associated
with
entering
into
those
investments.
The
Adviser,
appointed
as the
valuation
designee
by the
Trust’s
Board
of
Trustees
(the
“Board”),
has
established
the
Pricing
and
Liquidity
Committee
(the
“Committee”),
and
subject
to Board
oversight,
the
Committee
administers
and
oversees
the
Funds’
valuation
policies
and
procedures,
which
were
approved
by
the
Board.
Portfolio
securities
listed
or
traded
on
securities
exchanges,
including
Exchange-Traded
Funds
(“ETFs”),
American
Depositary
Receipts,
and
Rights,
are
valued
at
the
last
sale
price
on
the
exchange
or
system
where
the
security
is
principally
traded,
if
available,
or
at
the
Nasdaq
Official
Closing
Price.
If
there
have
been
no
sales
for
that
day
on
the
exchange
or
system,
then
a
security
is
valued
at
the
closing bid
quotation
on
the
exchange
or
system
where
the
security
is
principally
traded.
In
each
of
these
situations,
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
Investments
in
open-end
investment
companies,
other
than
ETFs, are
valued
at their
NAV.
These
valuations
are
typically
categorized
as
Level
1 in
the
fair
value
hierarchy.
Swap
agreements
are
valued
at
the
mean
between
the
current
bid
and
ask
prices.
To
the
extent
this
model
is
utilized,
these
valuations
are
considered
as
Level
2
in
the
fair
value
hierarchy.
Futures
contracts
are
valued
at
the
settlement
price
established
each
day
by
the
board
of
trade
or
an
exchange
on
which
they
are
traded.
These
valuations
are
typically
categorized
as
Level
1
in
the
fair
value
hierarchy.
In
the
event
that
price
quotations
or
valuations
are
not
readily
available,
investments
are
valued
at
fair
value
in
accordance
with
procedures
established
by
and
under
the
general
supervision
and
responsibility
of
the
Board.
These
valuations
are
typically
categorized
as
Level
2
or
Level
3
in
the
fair
value
hierarchy,
based
on
the
observability
of
inputs
used
to
determine
the
fair
value.
The
effect
of
fair
value
pricing
is
that
securities
may
not
be
priced
on
the
basis
of
quotations
from
the
primary
market
in
which
they
are
traded
and
the
actual
price
realized
from
the
sale
of
a
security
may
differ
materially
from
the
fair
value
price.
Valuing
these
securities
at
fair
value
is
intended
to
cause
the
Funds’
NAV to
be
more
reliable
than
it
otherwise
would
be.
A
summary
of
the
valuations
as
of
December
31,
2023,
based
upon
the
three
levels
defined
above,
is
included
in
the
table
below
while
the
breakdown,
by
category,
of
investments
is
disclosed
on
the
Schedules
of
Portfolio
Investments:
Level
1
Level
2
Level
3
Total
US
Value
Momentum
ETF
Common
Stocks
............................
$
169,789,792
$
—
$
—
$
169,789,792
Total
....................................
$
169,789,792
$
—
$
—
$
169,789,792
Other
Financial
Investments:*
Assets:
Futures
Contracts
...........................
16,501
—
—
16,501
Total
....................................
$
16,501
$
—
$
—
$
16,501
US
Small
Mid
Cap
Value
Momentum
ETF
Common
Stocks
............................
237,808,896
—
49
237,808,945
Rights
...................................
—
—
4,130
4,130
Collateral
for
Securities
Loaned
................
2,949,176
—
—
2,949,176
Total
....................................
$
240,758,072
$
—
$
4,179
$
240,762,251
Other
Financial
Investments:*
Assets:
Futures
Contracts
...........................
51,614
—
—
51,614
Total
....................................
$
51,614
$
—
$
—
$
51,614
International
Value
Momentum
ETF
Common
Stocks
............................
245,333,551
—
—
245,333,551
Collateral
for
Securities
Loaned
................
4,378,532
—
—
4,378,532
Total
....................................
$
249,712,083
$
—
$
—
$
249,712,083
Other
Financial
Investments:*
Assets:
Futures
Contracts
...........................
22,471
—
—
22,471
Total
....................................
$
22,471
$
—
$
—
$
22,471
Notes
to
Financial
Statements
—
continued
December
31,
2023
Victory
Portfolios
II
43
(Unaudited)
As
of December
31,
2023,
there
were
no
significant transfers
into/out
of
Level
3.
Real
Estate
Investment
Trusts
(“REITs”):
The
Funds
may
invest
in
REITs,
which
report
information
on
the
source
of
their
distributions
annually.
REITs
are
pooled
investment
vehicles
that
invest
primarily
in
income-producing
real
estate
or
real
estate
related
loans
or
interests
(such
as
mortgages).
Certain
distributions
received
from
REITs
during
the
year
are
recorded
as
realized
gains
or
return
of
capital
as
estimated
by
the
Funds
or
when
such
information
becomes
known.
Investment
Companies:
Open-End
Funds:
The
Funds
may
invest
in
portfolios
of
open-end
investment
companies.
These
investment
companies
value
securities
in
their
portfolios
for
which
market
quotations
are
readily
available
at
their
market
values
(generally
the
last
reported
sale
price)
and
all
other
securities
and
assets
at
their
fair
value
by
the
methods
established
by
the
board
of
directors
of
the
underlying
funds.
Derivative
Instruments:
Foreign
Exchange
Currency
Contracts:
The Funds
may
enter
into
foreign
exchange
currency
contracts
to
convert
U.S.
dollars
to
and
from
various
foreign
currencies.
A
foreign
exchange
currency
contract
is
an
obligation
by the
Funds
to
purchase
or
sell
a
specific
currency
at
a
future
date
at
a
price
(in
U.S.
dollars)
set
at
the
time
of
the
contract.
The
Funds
do
not
engage
in
“cross-currency”
foreign
exchange
contracts
(i.e.,
contracts
to
purchase
or
sell
one
foreign
currency
in
exchange
for
another
foreign
currency).
The
Funds’
foreign
exchange
currency
contracts
might
be
considered
spot
contracts
(typically
a
contract
of
one
week
or
less)
or
forward
contracts
(typically
a
contract
term
over
one
week).
A
spot
contract
is
entered
into
for
purposes
of
hedging
against
foreign
currency
fluctuations
relating
to
a
specific
portfolio
transaction,
such
as
the
delay
between
a
security
transaction
trade
date
and
settlement
date.
Forward
contracts
are
entered
into
for
purposes
of
hedging
portfolio
holdings
or
concentrations
of
such
holdings.
Each
foreign
exchange
currency
contract
is
adjusted
daily
by
the
prevailing
spot
or
forward
rate
of
the
underlying
currency,
and
any
appreciation
or
depreciation
is
recorded
for
financial
statement
purposes
as
unrealized
until
the
contract
settlement
date,
at
which
time
the
Funds
record
realized
gains
or
losses
equal
to
the
difference
between
the
value
of
a
contract
at
the
time
it
was
opened
and
the
value
at
the
time
it
was
closed. The
Funds
could
be
exposed
to
risk
if
a
counterparty
is
unable
to
meet
the
terms
of
a
foreign
exchange
currency
contract
or
if
the
value
of
the
foreign
currency
changes
unfavorably.
In
addition,
the
use
of
foreign
exchange
currency
contracts
does
not
eliminate
fluctuations
in
the
underlying
prices
of
the
securities.
The
Funds
enter
into
foreign
exchange
currency
contracts
solely
for
spot
or
forward
hedging
purposes,
and
not
for
speculative
purposes
(i.e.,
the
Funds
do
not
enter
into
such
contracts
solely
for
the
purpose
of
earning
foreign
currency
gains).
 As
of December
31,
2023,
the
Funds
had
no
open
forward
foreign
exchange
currency
contracts.
Futures
Contracts:
The
Funds
may
enter
into
contracts
for
the
future
delivery
of
securities
or
foreign
currencies
and
futures
contracts
based
on
a
specific
security,
class
of
securities,
foreign
currency
or
an
index,
and
purchase
or
sell
options
on
any
such
futures
contracts.
A
futures
contract
on
a
securities
index
is
an
agreement
obligating
either
party
to
pay,
and
entitling
the
other
party
to
receive,
while
the
contract
is
outstanding,
cash
payments
based
on
the
level
of
a
specified
securities
index.
No
physical
delivery
of
the
underlying
asset
is
made.
The
Funds
may
enter
into
futures
contracts
in
an
effort
to
hedge
against
market
risks.
The
acquisition
of
put
and
call
options
on
futures
contracts
will
give
the
Funds
the
right
(but
not
the
obligation),
for
a
specified
price,
to
sell
or
to
purchase
the
underlying
futures
contract,
upon
exercise
of
the
option,
at
any
time
during
the
option
period.
Futures
transactions
involve
brokerage
costs and
a
good
faith
margin
deposit,
known
as
initial
margin,
of
cash
or
government
securities
with
a
broker
or
custodian
is
required
to
initiate
and
maintain
open
positions
in
futures
contracts.
Subsequent
payments,
known
as
variation
margin,
are
made
or
received
by
the
Funds
based
on
the
change
in
the
market
value
of
the
position
and
are
recorded
as
unrealized
appreciation
or
depreciation
until
the
contract
is
closed
out,
at
which
time
the
gain
or
loss
is
realized.
The
Funds
may
lose
the
expected
benefit
of
futures
transactions
if
interest
rates,
exchange
rates
or
securities
prices
change
in
an
unanticipated
manner.
Such
unanticipated
changes
may
also
result
in
lower
overall
performance
than
if
the
Funds
had
not
entered
into
any
futures
transactions.
In
addition,
the
value
of
the
Funds’
Level
1
Level
2
Level
3
Total
Emerging
Markets
Value
Momentum
ETF
Common
Stocks
............................
$
181,946,284
$
—
$
26,575
$
181,972,859
Collateral
for
Securities
Loaned
................
368,392
—
—
368,392
Total
....................................
$
182,314,676
$
—
$
26,575
$
182,341,251
Other
Financial
Investments:*
Assets:
Futures
Contracts
...........................
32,003
—
—
32,003
Total
....................................
$
32,003
$
—
$
—
$
32,003
*
Futures
Contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
investment.
Notes
to
Financial
Statements
—
continued
December
31,
2023
Victory
Portfolios
II
44
(Unaudited)
futures
positions
may
not
prove
to
be
perfectly
or
even
highly
correlated
with
the
value
of
its
portfolio
securities
or
foreign
currencies,
limiting
the
Funds’
ability
to
hedge
effectively
against
interest
rate,
exchange
rate
and/or
market
risk
and
giving
rise
to
additional
risks.
There
is
no
assurance
of
liquidity
in
the
secondary
market
for
purposes
of
closing
out
futures
positions.
The
collateral
held
by
the
Funds
is
reflected
on
the
Statements
of
Assets
and
Liabilities
under
Deposit
with
broker
for
futures
contracts.
Management
has
determined
that
no
offsetting
requirements
exist
as
a
result
of
their
conclusion
that
the
Funds
are
not
subject
to
master
netting
agreements
for
futures
contracts. During
the
six
months
ended December
31,
2023,
the Funds entered
into
futures
contracts
primarily
for
the
strategy
of
hedging
or
other
purposes,
including
but
not
limited
to,
providing
liquidity
and
equitizing
cash.
Summary
of
Derivative
Instruments:
The
following
table
summarizes
the
fair
values
of
derivative
instruments
on
the
Statements
of
Assets
and
Liabilities,
categorized
by
risk
exposure,
as
of
December
31,
2023:
The
following
table
presents the
effect
of
derivative
instruments
on
the
Statements
of
Operations,
categorized
by
risk
exposure,
for
the period
ended
December
31,
2023:
All
open
derivative
positions
at
period
end
are
reflected
on
each
respective
Fund’s
Schedule
of
Portfolio
Investments.
The
underlying
face
value
of
open
derivative
positions
relative
to
each
Fund’s
net
assets
at
period end
is
generally
representative
of
the
notional
amount
of
open
positions
to
net
assets
throughout
the
period.
Investment
Transactions
and
Related
Income:
Changes
in
holdings
of
investments
are
accounted
for
no
later
than
one
business
day
following
the
trade
date.
For
financial
reporting
purposes,
however,
investment
transactions
are
accounted
for
on
trade
date
or
the
last
business
day
of
the
reporting
period.
Interest
income
is
determined
on
the
basis
of
coupon
interest
accrued
and
recorded
daily
 using
the
effective
interest
method
which
adjusts,
where
applicable,
the
amortization
of
premiums
or
accretion
of
discounts. Dividend
income
is
recorded
on
the
ex-dividend
date.
Non-cash
dividends
included
in
income,
if
any,
are
recorded
at
the
fair
value
of
the
securities
received. Gains
or
losses
realized
on
sales
of
securities
are
recorded
on
the
identified
cost
basis.
Withholding
taxes
on
interest,
dividends,
and
gains
as
a
result
of
certain
investments
by
the
Funds
have
been
provided
for
in
accordance
with
each
investment’s
applicable
country’s
tax
rules
and
rates.
Securities
Lending:
The
Funds, through
a Securities
Lending
Agreement with
Citibank,
N.A.
(“Citibank”), may
lend
their
securities
to
qualified
financial
institutions,
such
as
certain
broker-dealers
and
banks,
to
earn
additional
income,
net
of
income
retained
by
Citibank. 
Borrowers
are
required
to
initially
secure
their
loans for
collateral
in
the
amount
of
at
least
102%
of
the
value
of
U.S.
securities
loaned
or
at
least
105%
of
the
value
of
non-U.S.
securities
loaned,
marked-to-market
daily.
Any
collateral
shortfalls
associated
with
increases
in
the
valuation
of
the
securities
loaned
are
generally
cured the
next
business
day.
The
collateral
can
be
received
in
the
form
of
cash
collateral
and/or
non-cash
collateral.
Non-
cash
collateral
can
include
U.S.
Government
Securities and
other
securities
as
permitted
by
Securities
and
Exchange
Commission
(“SEC”)
Assets
Variation
Margin
Receivable
on
Open
Futures
Contracts*
Equity
Risk
Exposure:
122,589
US
Value
Momentum
ETF
.............................................................................
$
16,501
US
Small
Mid
Cap
Value
Momentum
ETF
..................................................................
51,614
International
Value
Momentum
ETF
......................................................................
22,471
Emerging
Markets
Value
Momentum
ETF
..................................................................
32,003
*
Includes
cumulative
unrealized
appreciation
(depreciation)
of
futures
contracts
as
reported
on
the
Schedules
of
Portfolio
Investments.
Only
current
day’s
variation
margin
for
futures
contracts
is
reported
within
the
Statements
of
Assets
and
Liabilities.
Net
Realized
Gains
(Losses)
from
Futures
Contracts
Net
Change
in
Unrealized
Appreciation/
Depreciation
on
Futures
Contracts
Equity
Risk
Exposure:
(93615.00)
88952.00
US
Value
Momentum
ETF
...........................................................
$
36,551
$
(4,837)
US
Small
Mid
Cap
Value
Momentum
ETF
................................................
(32,793)
44,976
International
Value
Momentum
ETF
....................................................
(30,566)
14,037
Emerging
Markets
Value
Momentum
ETF
................................................
(66,807)
34,776
Notes
to
Financial
Statements
—
continued
December
31,
2023
Victory
Portfolios
II
45
(Unaudited)
guidelines.
The
cash
collateral
is
invested
in
short-term
instruments
or
cash
equivalents,
primarily
open-end
investment
companies,
as
noted
on
the
Funds’
Schedules
of
Portfolio
Investments.
The
Funds
effectively
do not
have
control
of
the
non-cash
collateral
and
therefore
it
is
not
disclosed
on
the
Funds’
Schedules
of
Portfolio
Investments.
Collateral
requirements
are
determined
daily
based
on
the
value
of
the
Funds’
securities
on
loan
as
of
the
end
of
the prior
business
day. 
During
the
time
portfolio
securities
are
on
loan,
the
borrower
will
pay
the
Funds
any
dividends
or
interest
paid
on
such
securities
plus
any
fee
negotiated
between
the
parties
to
the
lending
agreement.
The
Funds
also
earn
a
return
from
the
collateral.
The
Funds
pay
Citibank
various
fees
in
connection
with
the
investment
of
cash
collateral
and
fees
based
on
the
investment
income
received
from
securities
lending
activities.
Securities
lending
income
(net
of
these
fees)
is
disclosed
on
the
Statements
of
Operations.
Loans
are
terminable
upon
demand
and
the
borrower
must
return
the
loaned
securities
within
the
lesser
of
one
standard
settlement
period
or
five
business
days. 
Although
risk
is
mitigated
by
the
collateral, a
Fund could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
In
addition,
there
is
a
risk that
the
value
of
the
short-term
investments
will
be
less
than
the
amount
of
cash
collateral
required
to
be
returned
to
the
borrower.
The
Funds’
agreement
with
Citibank
does
not
include
master
netting
provisions.
Non-cash
collateral
received
by
the
Funds
may
not
be
sold
or
repledged,
except
to
satisfy
borrower
default.
The
following
table
is
a
summary
of
the
Funds’
securities
lending
transactions
as
of
December
31,
2023.
Foreign
Currency
Translations:
The
accounting
records
of
the
Funds
are
maintained
in
U.S.
dollars.
Investment
securities
and
other
assets
and
liabilities
of
a
Fund
denominated
in
a
foreign
currency
are
translated
into
U.S.
dollars
at
current
exchange
rates.
Purchases
and
sales
of
securities,
income
receipts
and
expense
payments
are
translated
into
U.S.
dollars
at
the
exchange
rates
on
the
date
of
the
transactions.
The
Funds
do
not
isolate
the
portion
of
the
results
of
operations
resulting
from
changes
in
foreign
exchange
rates
on
investments
from
fluctuations
arising
from
changes
in
market
prices
of
securities
held.
Such
fluctuations,
if
any, are
disclosed
as
Net
change
in
unrealized
appreciation/depreciation
on investment
securities
and
foreign
currency
translations
on
the
Statements
of
Operations.
Any
realized
gains
or
losses
from
these
fluctuations,
if
any, are
disclosed
as
Net
realized
gains
(losses)
from
investment
securities
and
foreign
currency
transactions
on
the
Statements
of
Operations.
Foreign
Taxes:
The
Funds
may
be
subject
to
foreign
taxes
related
to
foreign
income
received
(a
portion
of
which
may
be
reclaimable),
capital
gains
on
the
sale
of
securities,
and
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
The
International
Value
Momentum
ETF
received
European
Union
(“EU”)
reclaims
related
to
prior
years.
For
the
six
months
ended
December
31,
2023,
the
Fund
recognized
$25,416
related
to
EU
reclaims
and
$589
in
interest
and
entitlements.
These
EU
reclaims
and
related
interest
and
entitlements
are
reflected
on
the
Statements
of
Operations
as
a
reduction
to
Foreign
tax
withholding
expense.
Federal
Income
Taxes:
Each
Fund
intends
to
continue
to
qualify
as
a
regulated
investment
company
by
complying
with
the
provisions
available
to
certain
investment
companies,
as
defined
in
applicable
sections
of
the
Internal
Revenue
Code,
and
to
make
distributions
of
net
investment
income
and
net
realized
gains
sufficient
to
relieve
it
from
all,
or
substantially
all,
federal
income
taxes.
Accordingly,
no
provision
for
federal
income
taxes
is
required
in
the
financial
statements.
The
Funds
have
a
tax
year
end
of
June
30.
For
the
six
months
ended
December
31,
2023,
the
Funds
did
not
incur
any
income
tax,
interest,
or
penalties,
and
have
recorded
no
liability
for
net
unrecognized
tax
benefits
relating
to
uncertain
tax
positions.
Management
of
the
Funds
has
reviewed
tax
positions
taken
in
tax
years
that
remain
subject
to
examination
by
all
major
tax
jurisdictions,
including
federal
(i.e.,
the
last
four
tax
years,
which
includes
the
current
fiscal
tax
year
end).
Management
believes
that
there
is
no
tax
liability
resulting
from
unrecognized
tax
benefits
related
to
uncertain
tax
positions
taken.
Allocations:
Expenses
directly
attributable
to a
Fund
are
charged
to that
Fund,
while
expenses
that
are
attributable
to
more
than
one
fund
in
the
Trust,
or
jointly
with
an
affiliated
trust,
are
allocated
among
the
respective
funds
in
the
Trust
and/or
an
affiliated
trust
based
upon
net
assets
or
another
appropriate
basis.
Value
of
Securities
on
Loan
Non-Cash
Collateral
Cash
Collateral
US
Small
Mid
Cap
Value
Momentum
ETF
...............................
$
2,816,171
$
—
$
2,949,176
International
Value
Momentum
ETF
...................................
5,870,771
1,827,929
4,378,532
Emerging
Markets
Value
Momentum
ETF
...............................
245,336
—
368,392
Notes
to
Financial
Statements
—
continued
December
31,
2023
Victory
Portfolios
II
46
(Unaudited)
3.
Purchases
and
Sales:
Purchases
and
sales
of
securities
(excluding
securities
maturing
less
than
one
year
from
acquisition)
and
purchases
and
sales
associated
with
in-kind
transactions
for
the
six
months
ended
December
31,
2023,
are
included
in
the
table
below.
Any
realized
gains
or
losses
from
in-kind
redemptions
are
reflected
on
the
Statements
of
Operations
as
net
realized
gains
(losses)
from
in
kind
redemptions.
4.
Affiliated
Fund
Ownership:
The
Funds
offer
shares
for
investment
by
other
funds,
including
funds
offered
by
VCM
affiliated
fund-of-funds.
The
affiliated
fund-of-funds
do
not
invest
in
the
underlying
funds
for
the
purpose
of
exercising
management
or control;
however,
investments
by
affiliated
fund-of-funds
within
its
principal
investment
strategies
may
represent
a
significant
portion
of
an
underlying
fund’s
assets,
and
together
with
the
investments
of
the
other
affiliated
funds-of-funds,
may
represent
a
substantial
portion
or
even
all
of
an
underlying
fund’s
net
assets.
The
affiliated
fund-of-funds’
annual
and
semi-annual
reports
may
be
viewed
at
vcm.com.
As
of
December
31,
2023,
certain
affiliated fund-of-funds
owned
total
outstanding
shares
of
the
Funds
as
follows:
Excluding
U.S.
Government
Securities
and
In-Kind
Transactions
Associated
with
In-Kind
Transactions
Purchases
Sales
Purchases
Sales
US
Value
Momentum
ETF
..................................
$
113,563,669
$
113,998,342
$
—
$
32,224,773
US
Small
Mid
Cap
Value
Momentum
ETF
.......................
138,851,257
138,847,826
38,905,291
52,936,719
International
Value
Momentum
ETF
...........................
122,416,091
124,717,260
—
12,095,340
Emerging
Markets
Value
Momentum
ETF
.......................
121,425,950
123,344,273
—
—
US
Value
Momentum
ETF
Ownership
%
Victory
Cornerstone
Conservative
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1.2
Victory
Cornerstone
Equity
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
7.2
Victory
Target
Retirement
Income
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4.3
Victory
Target
Retirement
2030
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15.5
Victory
Target
Retirement
2040
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
27.0
Victory
Target
Retirement
2050
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
19.7
Victory
Target
Retirement
2060
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2.8
Small
Mid
Cap
Value
Momentum
ETF
Ownership
%
Victory
Cornerstone
Conservative
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.6
Victory
Cornerstone
Equity
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
3.1
Victory
Target
Retirement
Income
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2.7
Victory
Target
Retirement
2030
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
9.5
Victory
Target
Retirement
2040
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15.5
Victory
Target
Retirement
2050
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10.2
Victory
Target
Retirement
2060
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1.5
International
Value
Momentum
ETF
Ownership
%
Victory
Cornerstone
Conservative
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1.9
Victory
Cornerstone
Equity
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
9.3
Victory
Target
Retirement
Income
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5.9
Victory
Target
Retirement
2030
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
17.0
Victory
Target
Retirement
2040
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
26.7
Victory
Target
Retirement
2050
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
19.4
Victory
Target
Retirement
2060
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2.8
Emerging
Markets
Value
Momentum
ETF
Ownership
%
Victory
Cornerstone
Aggressive
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.4
Victory
Cornerstone
Conservative
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1.4
Victory
Cornerstone
Equity
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6.6
Victory
Cornerstone
Moderate
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1.3
Victory
Cornerstone
Moderately
Aggressive
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1.7
Victory
Cornerstone
Moderately
Conservative
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.2
Victory
Target
Retirement
Income
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6.3
Victory
Target
Retirement
2030
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15.0
Victory
Target
Retirement
2040
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
26.1
Victory
Target
Retirement
2050
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
18.4
Victory
Target
Retirement
2060
Fund
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2.7
Notes
to
Financial
Statements
—
continued
December
31,
2023
Victory
Portfolios
II
47
(Unaudited)
5.
Fees
and
Transactions
with
Affiliates
and
Related
Parties:
Investment
Advisory
Fees: 
Investment
advisory
services
are
provided
to
the
Funds
by
the
Adviser,
which
is
a
New
York
corporation
registered
as
an
investment
adviser
with
the
SEC.
Under
the
terms
of
the
Investment
Advisory
Agreement,
the
Adviser
is
entitled
to
receive
fees
accrued
daily
and
paid
monthly
at
an
annualized
rate
based
on
a
percentage
of
the
average
daily
net
assets
of
each
Fund. The
rates
at
which
the
Adviser
is
paid
by
each
Fund
are
included
in
the
table
below.
Amounts
incurred
and
paid
to
VCM
for
the
six
months ended
December
31,
2023,
are
reflected
on
the
Statements
of
Operations
as
Investment
advisory
fees.
Administration
and
Servicing
Fees:
VCM
also
serves
as
the
Funds’
administrator
and
fund
accountant.
Under
the
Administration
and
Fund
Accounting
Agreement,
VCM
is
paid
an
administration
fee
based
on
a
percentage
of
the
average
daily
net
assets
of
the
Trust,
Victory
Variable
Insurance
Funds
and
Victory
Portfolios.
The
tiered
rates
at
which
VCM
is
paid
by
the
Funds
are
shown
in
the
table
below:
Amounts
incurred
for
the
six
months
ended
December
31,
2023,
are
reflected
on
the
Statements
of
Operations
as
Administration
fees.
Citi
Fund
Services
Ohio,
Inc.
(“Citi”),
an
affiliate
of
Citibank,
acts
as
sub-administrator
and
sub-fund
accountant
to
the
Funds
pursuant
to
the
Sub-Administration
and
Sub-Fund
Accounting
Services
Agreement
between
VCM
and
Citi.
VCM
pays
Citi
a
fee
for
providing
these
services.
The Funds
reimburse
VCM
and
Citi
for
out-of-pocket
expenses
incurred
in
providing
these
services
and
certain
other
expenses
specifically
allocated
to
the
Funds.
Amounts
incurred
for
the six
months
ended
December
31,
2023,
are
reflected
on
the
Statements
of
Operations
as
Sub-
Administration
fees.
The
Funds
(as
part
of
the
Trust)
have
entered
into
an
agreement
with
the
Adviser
to
provide
compliance
services,
pursuant
to
which
the
Adviser
furnishes
its
compliance
personnel,
including
the
services
of
the
Chief
Compliance
Officer
(“CCO”),
and
other
resources
reasonably
necessary
to
provide
the
Trust
with
compliance
oversight
services
related
to
the
design,
administration,
and
oversight
of
a
compliance
program
for
the
Trust
in
accordance
with
Rule
38a-1
under
the
1940
Act.
The
CCO
is
an
employee
of
the
Adviser,
which
pays
the
compensation
of
the
CCO
and
support
staff.
The
funds
in
the
Trust,
Victory
Variable
Insurance
Funds,
Victory
Portfolios
and
Victory
Portfolios
III (collectively,
the
“Victory
Funds
Complex”),
in
aggregate,
compensate
the
Adviser
for
these
services.
Amounts
incurred
for
the six
months
ended
December
31,
2023,
are
reflected
on
the
Statements
of
Operations
as
Compliance
fees.
Distributor/Underwriting
Services: 
Foreside
Fund
Services,
LLC
serves
as
the
Funds’
distributor.
Other
Fees:
Citibank
serves
as
the
Funds’
custodian.
The
Funds
pay
Citibank
a
fee
for
providing
these
services.
Amounts
incurred
for
the six
months
ended
December
31,
2023,
are
reflected
on
the
Statements
of
Operations
as
Custodian
fees.
Sidley
Austin
LLP
provides
legal
services
to
the
Trust.
The
Adviser
has
entered
into
an
expense
limitation
agreement
with
the
Trust.  Under
the
terms
of
the
agreement,
the
Adviser
has
agreed
to
waive
fees
or
reimburse
certain
expenses
to
the
extent
that
ordinary
operating
expenses
incurred
in
any
fiscal
year
exceed
the
expense
limits
for the
Funds.
Such
excess
amounts
will
be
the
liability
of
the
Adviser.
Acquired
fund
fees
and
expenses,
interest,
taxes,
brokerage
commissions,
other
expenditures which
are
capitalized
in
accordance
with
GAAP,
and
other
extraordinary
expenses
not
incurred
in
the
ordinary
course
of the
Funds’
business
are
excluded
from
the
expense
limits.
As
of
December
31,
2023,
the
expense
limits
(excluding
voluntary
waivers) are
as
follows:
Flat
Rate
US
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.15%
US
Small
Mid
Cap
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.15%
International
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.25%
Emerging
Markets
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.30%
Net
Assets
Up
to
$15
billion
$15
billion
—
$30
billion
Over
$30
billion
0.08%,
plus
0.05%,
plus
0.04%
In
Effect
Until
October
31,
2024
US
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.20%
US
Small
Mid
Cap
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.25%
International
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.35%
Emerging
Markets
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
0.45%
Notes
to
Financial
Statements
—
continued
December
31,
2023
Victory
Portfolios
II
48
(Unaudited)
Under
the
terms
of
the
expense
limitation agreement, the Funds
have
agreed
to
repay
fees
and
expenses
that
were
waived
or
reimbursed
by
the
Adviser
for
a
period
of
up
to
three
years
(thirty-six
(36)
months)
after
the
waiver
or
reimbursement
took
place,
subject
to
the
lesser
of
any
operating
expense
limits
in
effect
at
the
time
of:
(a)
the
original
waiver
or
expense
reimbursement;
or
(b)
the
recoupment,
after
giving
effect
to
the
recoupment
amount.
The
Funds
have
not
recorded
any
amounts
available
to
be
repaid
to
the
Adviser
as
a
commitment
and
contingency
liability
due
to
an
assessment
that
such
repayments
are
not
probable
at
December
31,
2023.
For
the
six
months
ended
December
31,
2023,
the
following
recoupments
 were
paid to
the
Adviser.
As
of December
31,
2023,
the
following amounts
are
available
to
be
repaid
to
the
Adviser. 
The
Adviser
may
voluntarily
waive
or
reimburse
additional
fees
to
assist
the
Funds
in
maintaining
competitive
expense
ratios.
Voluntary
waivers
and
reimbursements
applicable
to
the
Funds
are
not
available
to
be
recouped
at
a
future
time
and
are
reflected
on
the
Statements
of
Operations
as
Expenses
waived/reimbursed
by
Adviser.
For
the six
months ended
December
31,
2023,
the
Adviser
voluntarily
waived
the
following
amounts:
Certain
officers
and/or
interested
trustees
of
the
Funds
are
also
officers
and/or
employees
of
the
Adviser,
administrator,
fund
accountant,
sub-
administrator,
sub-fund
accountant,
custodian,
legal
counsel, and
distributor.
6.
Risks:
The
Funds
may
be
subject
to
other
risks
in
addition
to
these
identified
risks.
Equity
Risk
—
The
value
of
the
equity
securities
in
which
the
Funds
invest
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.
Foreign
Securities
Risk
—
The International
Value
Momentum
ETF
and
the
Emerging
Markets
Value
Momentum
ETF
invest in
securities
of
foreign
issuers
in
various
countries.
Foreign
securities
may
be
subject
to
risk
of
loss
because
of
more
of
less
foreign
government
regulations,
less
public
information,
and
less
economic,
political,
and
social
stability
in
the
countries
in
which
the
Funds
invest.
The
imposition
of
exchange
controls,
sanctions,
confiscations,
trade
restrictions
(including
tariffs),
and
other
government
restrictions
by
the
United
States
or
other
governments;
or
problems
in
shares
registration,
settlement,
or
custody
also
may
result
in
losses.
Foreign
risk
also
involves
the
risk
of
negative
foreign
currency
rate
fluctuations,
which
may
cause
the
value
of
securities
denominated
in
such
foreign
currency
(or
other
instruments
through
which
the
Funds
have
exposure
to
foreign
currencies)
to
decline
in
value.
Currency
exchange
rates
may
fluctuate
significantly
over
short
periods
of
time.
Passive
Investment
Risk
—
Each
Fund
is
designed
to
track
its
index
and
is
not
actively
managed.
A
Fund
will
not
buy
or
sell
shares
of
an
equity
security
due
to
current
or
projected
performance
of
a
security,
industry
or
sector,
unless
that
security
is
added
to
or
removed,
respectively,
from
its
index.
A
Fund
does
not,
therefore,
seek
returns
in
excess
of
its
index,
and
does
not
attempt
to
take
defensive
positions
or
hedge
against
potential
risks
unless
such
defensive
positions
are
also
taken
by
its
index.
Different
types
of
investment
styles,
for
example
passively
managed
or
actively
managed,
or
growth
or
value,
tend
to
perform
differently
and
shift
into
and
out
of
favor
with
investors
depending
on
changes
in
market
and
economic
sentiment
and
conditions.
As
a
result,
a
Fund’s
performance
may
at
times
be
worse
than
the
performance
of
other
mutual
funds
that
invest
more
broadly
or
that
have
different
investment
styles.
Mid-Capitalization
Stock
Risk
—
Certain
Funds
invest
in
mid-sized
companies
which
may
be
subject
to
a
number
of
risks
not
associated
with
larger,
more
established
companies,
potentially
making
their
stock
prices
more
volatile
and
increasing
the
risk
of
loss.
Amount
US
Small
Mid
Cap
Value
Momentum
ETF
...................................................................
$
5
International
Value
Momentum
ETF
.......................................................................
2,228
Expires
2024
Expires
2025
Expires
2026
Expires
2027
Total
US
Value
Momentum
ETF
..................................
$
87,882
$
130,524
$
74,980
$
20,949
$
314,335
US
Small
Mid
Cap
Value
Momentum
ETF
.......................
—
—
—
2,088
2,088
International
Value
Momentum
ETF
...........................
108,036
104,166
61,004
10,772
283,978
Emerging
Markets
Value
Momentum
ETF
.......................
142,679
147,952
216,521
46,080
553,232
Amount
US
Value
Momentum
ETF
..............................................................................
$
27,914
International
Value
Momentum
ETF
.......................................................................
39,140
Emerging
Markets
Value
Momentum
ETF
...................................................................
28,561
Notes
to
Financial
Statements
—
continued
December
31,
2023
Victory
Portfolios
II
49
(Unaudited)
Small-Capitalization
Stock
Risk
—
Certain
Funds invest
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.
Market
Risk
—
Overall
market
risks
may
affect
the
value
of
the
Funds.
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.
7.
Borrowing:
Line
of
Credit:
The
Victory
Funds
Complex
participates
in
a
short-term
demand
note
“Line
of
Credit”
agreement
with
Citibank.
Under
the
agreement
with
Citibank,
the
Victory
Funds
Complex
may
borrow
up
to
$600
million,
of
which
$300
million
is
committed
and
$300
million
is
uncommitted.
$40
million
of
the
Line
of
Credit
is
reserved
for
use
by
the
Victory
Floating
Rate
Fund,
another
series
of
the
Victory
Funds
Complex,
with
Victory
Floating
Rate
Fund
paying
the
related
commitment
fees
for
that
amount.
The
purpose
of
the
Line
of
Credit
is
to
meet
temporary
or
emergency
cash
needs.
For
the six
months
ended
December
31,
2023,
Citibank
received
an
annual
commitment
fee
of
0.15%
on
$300
million
for
providing
the
Line
of
Credit.
Each
Fund
in
the
Victory
Funds
Complex
paid
a
pro-rata
portion
of
the
commitment
fees
plus
any
interest
on
amounts
borrowed.
Interest
is
based
on
the
one-month Secured
Overnight
Financing
Rate
(SOFR)
plus
1.10
percent.
Effective
June
27,
2023,
the
agreement
was
renewed
with
a
termination
date
of
June
24,
2024,
and
the
annual
commitment
fee
of
0.15%
remained
unchanged. Interest
charged
to each
Fund during
the
period,
if
applicable,
is
reflected
on
the
Statements
of
Operations
under
Line
of
credit
fees.
The
average
borrowing
for
the
days
outstanding
and
average
interest
rate
for
each
Fund
during
the
six
months
ended
December
31,
2023,
were
as
follows:
*
Based
on
the
number
of
days
borrowings
were
outstanding
for
the
six
months
ended
December
31,
2023.
8.
Federal
Income
Tax
Information:
Dividends
from
net
investment
income,
if
any,
are
declared
and
paid
as
noted
in
the
table
below.
Distributable
net
realized
gains,
if
any,
are
declared
and
distributed
at
least
annually
from
each
Fund. 
The
amounts
of
dividends
from
net
investment
income
and
distributions
from
net
realized
gains
(collectively,
distributions
to
shareholders)
are
determined
in
accordance
with
federal
income
tax
regulations,
which
may
differ
from
GAAP.
To
the
extent
these
“book/tax”
differences
are
permanent
in
nature
(e.g.,
net
operating
loss
and
distribution
reclassification),
such
amounts
are
reclassified
within
the
components
of
net
assets
based
on
their
federal
tax-basis
treatment;
temporary
differences
(e.g.,
wash
sales)
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
net
investment
income
and
net
realized
gains
for
tax
purposes,
they
are
reported
as
distributions
of
capital.
Net
investment
losses
incurred
by
the
Funds
may
be
reclassified
as
an
offset
to
capital
on
the
accompanying
Statements
of
Assets
and
Liabilities.
The
tax
character
of
current
year
distributions
paid
and
the
tax
basis
of
the
current
components
of
accumulated
earnings
(loss)
will
be
determined
at
the
end
of
the
current
tax
year.
As
of
the
tax
year
ended June
30,
2023,
the
Funds
had
net
capital
loss
carryforwards as shown
in
the
table
below.
It
is
unlikely
that
the
Board
will
authorize
a
distribution
of
capital
gains
realized
in
the
future
until
the
capital
loss
carryforwards
have
been
used.
Amount
Outstanding
at
December
31,
2023
Average
Borrowing*
Average
Interest
Rate*
Maximum
Borrowing
During
the
Period
International
Value
Momentum
ETF
...........................
$
—
$
1,300,000
6.42%
$
1,300,000
Emerging
Markets
Value
Momentum
ETF
.......................
—
3,564,286
6.44%
27,400,000
Declared
Paid
US
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Monthly
Monthly
US
Small
Mid
Cap
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Monthly
Monthly
International
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Monthly
Monthly
Emerging
Markets
Value
Momentum
ETF
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Monthly
Monthly
Notes
to
Financial
Statements
—
continued
December
31,
2023
Victory
Portfolios
II
50
(Unaudited)
9.
New
Regulatory
Pronouncement:
In
October
2022,
the
SEC
adopted
the
Tailored
Shareholder
Reports
Rule
and
form
amendments
that
require,
among
other
things,
mutual
funds
and
ETFs
to
prepare
and
transmit
streamlined
annual
and
semi-annual
shareholder
reports.
In
connection
with
these
amendments,
certain
information
that
was
previously
disclosed
in
shareholder
reports
will
instead
be
made
available
online,
delivered
free
of
charge
upon
request,
and
filed
with
the
SEC
on
a
semi-annual
basis.
Also
in
connection
with
these
amendments,
annual
and
semi-annual
reports
will
be
provided
directly
to
shareholders,
either
in
paper
or
(if
the
shareholder
has
so
elected)
electronically.
Compliance
with
the
rule
and
form
amendments
begins
in
July
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Funds.
Short-Term
Amount
Long-Term
Amount
Total
US
Value
Momentum
ETF
...............................................
$
(62,184,494)
$
(18,744,521)
$
(80,929,015)
US
Small
Mid
Cap
Value
Momentum
ETF
....................................
(56,572,873)
(3,893,976)
(60,466,849)
International
Value
Momentum
ETF
........................................
(63,614,249)
(21,685,729)
(85,299,978)
Emerging
Markets
Value
Momentum
ETF
....................................
(28,251,110)
(12,800,476)
(41,051,586)
Supplemental
Information
December
31,
2023
Victory
Portfolios
II
51
(Unaudited)
Proxy
Voting
and
Portfolio
Holdings
Information 
Proxy
Voting:
Information
regarding
each
Fund’s
policies
and
procedures
—
which
describes
how
we
vote
proxies
relating
to
portfolio
securities
—
is
included
in
the
Funds'
Statement
of
Additional
Information
on
our
website
or
upon
request
by
calling
800-539-3863. Each
Fund
files
its
proxy
voting
record
with
the
U.S.
Securities
and
Exchange
Commission
(SEC)
for
the
12
months
ended
June
30
by
August
31.
The
proxy
voting
record
is
available
free
of
charge
on
the
SEC
website
at sec.gov and
on
our
website.
Availability
of
Schedules
of
Portfolio
Investments:
The
Trust
files
a
complete
list
of
Schedules
of
Portfolio
Investments
with
the
SEC
for
the
first
and
third
quarter
of
each
fiscal
year
on
Form
N-PORT-P
and are
available
on
the
SEC’s
website
at
sec.gov.
Expense
Examples
As
a
shareholder
of
the
Fund,
you
may
incur
two
types
of
costs:
(1)
transaction
costs,  and
(2)
ongoing
costs,
including
management
fees
and
other
Fund
expenses.
These
examples
are
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
These
examples
are
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
from
July
1,
2023,
through
December
31,
2023.
The
Actual
Expense
figures
in
the
table
below
provide
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
below,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
table
under
the
heading
entitled
“Actual
Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
The
Hypothetical
Expense
figures
in
the
table
below
provide
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
shareholder
reports
of
other
funds.
Please
note
the
expenses
shown
in
the
table
below
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs.
Therefore,
the
hypothetical
expenses
in
the
table
are
useful
in
comparing
ongoing
costs
only
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
7/1/23
Actual
Ending
Account
Value
12/31/23
Hypothetical
Ending
Account
Value
12/31/23
Actual
Expenses
Paid
During
Period
7/1/23
-
12/31/23*
Hypothetical
Expenses
Paid
During
Period
7/1/23
-
12/31/23*
Annualized
Expense
Ratio
During
Period
7/1/23
-
12/31/23
US
Value
Momentum
ETF
.................
$
1,000.00
$
1,078.10
$
1,024.13
$
1.04
$
1.02
0.20%
US
Small
Mid
Cap
Value
Momentum
ETF
......
1,000.00
1,109.60
1,023.88
1.33
1.27
0.25%
International
Value
Momentum
ETF
..........
1,000.00
1,085.60
1,023.38
1.83
1.78
0.35%
Emerging
Markets
Value
Momentum
ETF
......
1,000.00
1,102.00
1,022.87
2.38
2.29
0.45%
*
Expenses
are
equal
to
the
average
account
value
multiplied
by
the
Fund’s
annualized
expense
ratio
multiplied
by
184/366
(the
number
of
days
in
the
most
recent
fiscal
half-year
divided
by
the
number
of
days
in
the
fiscal
year).
Victory
Portfolios
II
52
(Unaudited)
Supplemental
Information
—
continued
December
31,
2023
Considerations
of
the
Board
in
Continuing
the
Investment
Advisory
Agreements (the
“Agreement”)
The
Board
approved
the
Agreement
on
behalf
of
each
of
the
Funds
at
a
meeting,
which
was
called
for
that
purpose,
on
December
5,
2023.
The
Board
also
considered
information
relating
to
the
Funds
and
the
Agreement
provided
throughout
the
year
and,
more
specifically,
at
the
meetings
on
October
17,
2023
and
December
5,
2023.
In
considering
whether
to
approve
the
Agreement,
the
Board
requested
from
the
Adviser
certain
information
concerning
the
Funds
to
assist
it
in
evaluating
the
terms
of
the
Agreement.
In
response
to
the
request
from
the
Independent
Trustees,
the
Adviser
provided
information
and
reports
relevant
to
the
continuation
of
the
Agreement.
The
Board,
including
the
Independent
Trustees,
evaluated
this
information
along
with
other
information
obtained
throughout
the
year
and
was
advised
by
legal
counsel
to
the
Funds
and
independent
legal
counsel
to
the
Independent
Trustees.
The
Board
noted
that
each
Fund
assumed
the
performance
of
its
predecessor
fund,
that
the
Adviser
became
the
investment
adviser
to
each
Fund
on
February
26,
2019,
and
that
prior
to
that
date
each
predecessor
fund
was
managed
by
a
different
investment
adviser.
The
Board
considered
each
Fund’s
advisory
fee,
expense
ratio
and
investment
performance
as
significant
factors
in
determining
whether
the
Agreement
should
be
continued.
In
considering
whether
the
compensation
paid
to
the
Adviser
was
fair
and
reasonable,
the
Board
also
evaluated,
among
other
things,
the
following
factors:
The
requirements
of
the
Funds
for
the
services
provided
by
the
Adviser;
The
nature,
quality
and
extent
of
the
services
provided
and
expected
to
be
provided;
The
performance
of
the
Funds
as
compared
to
comparable
funds;
The
fees
payable
for
the
services
and
whether
the
fee
arrangements
provided
for
economies
of
scale
that
would
benefit
Fund
shareholders
as
the
Funds
grow
(acknowledging
that
economies
of
scale
can
be
complex
to
assess
and
typically
are
not
directly
measurable)
and
whether
breakpoints
would
be
appropriate;
Whether
the
fee
would
be
sufficient
to
enable
the
Adviser
to
attract
and
retain
experienced
personnel
and
continue
to
provide
quality
services
to
the
Funds;
Fees
paid
by
other
clients
of
the
Adviser
whose
accounts
are
managed
in
a
similar
investment
style
and
any
differences
in
the
services
provided
to
the
other
clients
compared
to
those
provided
to
the
Funds;
The
total
expenses
of
each
Fund;
Management’s
commitment
to
operating
the
Funds
at
competitive
expense
levels;
The
profitability
of
the
Adviser
(as
reflected
by
comparing
fees
earned
against
an
estimate
of
the
Adviser’s
costs)
with
respect
to
the
Adviser’s
relationship
with
the
Funds;
Research
and
other
service
benefits
received
by
the
Adviser
obtained
through
payment
of
client
commissions
for
securities
transactions;
Other
benefits
received
by
the
Adviser,
and
its
affiliates,
including
revenues
paid
to
the
Adviser,
or
its
affiliates,
by
the
Funds
for
administration
and
fund
accounting
services,
shareholder
services
and
distribution;
The
capabilities
and
financial
condition
of
the
Adviser;
Current
economic
and
industry
trends;
and
The
historical
relationship
between
the
Trust
and
the
Adviser.
The
Board
reviewed
each
Fund’s
current
management
fee
in
the
context
of
the
Adviser’s
business
and
services
with
respect
to
each
Fund
and
with
respect
to
all
the
funds
as
a
whole.
The
Board
retained
an
independent,
third-party
consultant
to
provide
comparative
information
about
fees,
expenses
and
performance,
and
to
design
and
maintain
a
database
of
relevant
information
designed
to
assist
the
Board
in
retrieving
and
analyzing
comparative
information.
The
Board
met
with
the
consultant
to
review
its
inputs
and
methodologies,
among
other
things.
The
Board
compared
each
Fund’s
gross
management
fee
and
total
expense
ratio
on
a
net
and
gross
basis
with
the
median
gross
management
fee
and
median
expense
ratio
of
a
universe
of
comparable
exchange-traded
funds
(“ETFs”)
compiled
by
the
consultant
and
a
peer
group
of
funds
with
similar
investment
strategies
selected
by
that
consultant
from
the
universe.
The
Board
reviewed
the
factors
and
methodology
used
by
the
consultant
in
the
selection
of
each
Fund’s
peer
group,
including
the
consultant’s
selection
of
a
broad
universe
of
funds,
the
more
specific
universe
of
comparable
funds,
and
peer
groups
of
funds
with
comparable
investment
strategies
and
asset
levels,
among
other
factors.
The
Board
noted
that
none
of
the
advisory
fee
arrangements
for
these
Funds
included
breakpoints,
which
would
be
a
structure
that
results
in
reduced
fees
as
a
fund
grows.
The
Board
also
considered
the
Adviser’s
commitment
to
limit
expenses
as
discussed
in
more
detail
below.
The
Board
also
reviewed
the
compliance
and
administrative
services
provided
to
the
Funds
by
the
Adviser
and
its
affiliates,
including
the
Adviser’s
oversight
of
the
Funds’
day-to-day
operations
and
oversight
of
Fund
accounting,
assistance
in
meeting
legal
and
regulatory
requirements,
and
other
services
necessary
for
the
operation
of
the
Funds
and
the
Trust.
The
Board
found
that
the
gross
annual
management
fee
paid
by
each
Fund
was
within
the
range
of
management
fees
paid
by
each
Fund’s
respective
peer
group.
The
Board
also
found
that
each
Fund’s
net
annual
expense
ratio
was
reasonable
as
compared
with
each
Fund’s
respective
peer
group.
The
Board
considered
the
Adviser’s
contractual
agreement
with
each
Fund
to
waive
its
fees
and
reimburse
expenses
for
a
specified
period
of
time,
as
described
in
the
Fund’s
prospectus.
Supplemental
Information
—
continued
December
31,
2023
Victory
Portfolios
II
53
(Unaudited)
The
Board
reviewed
each
Fund’s
performance
over
the
one-
and
three-year
periods
against
the
performance
of
the
Fund’s
selected
peer
group
and
benchmark
index,
noting
that
each
Fund’s
investment
objective
is
to
track
its
benchmark
index
before
fees
and
expenses.
The
Board
recognized
that
the
performance
of
each
Fund
is
net
of
expenses,
while
the
performance
of
each
benchmark
index
reflects
gross
returns,
and
as
a
result,
each
Fund
will
generally
underperform
its
benchmark
index
due
to
fees
and
expenses.
The
Board
also
considered
each
Fund’s
tracking
error
as
a
factor
in
evaluating
performance.
The
Board
reviewed
various
other
specific
factors
with
respect
to
each
Fund,
as
described
below.
In
their
deliberations,
the
Trustees
did
not
rank
the
importance
of
any
particular
information
or
factor
considered
and
each
Trustee
may
have
attributed
different
weights
to
various
factors.
VictoryShares
US
Value
Momentum
ETF:
Noting
that
the
Fund
commenced
operations
in
2017
and
that
the
performance
of
its
benchmark
index
was
available
only
for
the
three-month
period,
the
Board
compared
the
Fund’s
one-,
three-
and
five-year
performance
for
the
periods
ended
June
30,
2023,
to
that
of
the
median
performance
of
the
Fund’s
peer
group
for
the
same
periods,
and
the
Fund’s
three-month
performance
for
the
period
ended
June
30,
2023
to
that
of
the
benchmark
index
for
the
same
period.
The
Board
considered
the
fact
that
the
Fund
underperformed
the
peer
group
median
for
all
of
the
periods
reviewed
and
outperformed
the
benchmark
index
for
the
three-month
period.
Having
considered,
among
other
things:
(1)
the
Fund’s
management
fee
compared
to
comparable
ETFs;
(2)
the
Fund’s
total
expense
ratio
compared
to
comparable
ETFs;
(3)
that
the
Adviser’s
willingness
to
limit
the
expenses
for
a
period
of
time
would
provide
stability
to
the
Fund’s
expenses
during
that
period;
and
(4)
that
the
Fund’s
performance
in
relation
to
its
benchmark
index
and
peer
group
was
within
an
acceptable
range,
the
Board
concluded
that
the
Agreement
continued
to
be
in
the
best
interests
of
the
Fund’s
shareholders.
VictoryShares
US
Small
Mid
Cap
Value
Momentum
ETF:
Noting
that
the
Fund
commenced
operations
in
2017
and
that
the
performance
of
its
benchmark
index
was
available
only
for
the
three-month
period,
the
Board
compared
the
Fund’s
one-,
three-
and
five-year
performance
for
the
periods
ended
June
30,
2023,
to
that
of
the
median
performance
of
the
Fund’s
peer
group
for
the
same
periods,
and
the
Fund’s
three-month
performance
for
the
period
ended
June
30,
2023
to
that
of
the
benchmark
index
for
the
same
period.
The
Board
considered
the
fact
that
the
Fund
outperformed
the
peer
group
median
for
the
one-
and
five-year
periods,
underperformed
the
peer
group
median
for
the
three-year
period,
and
outperformed
the
benchmark
index
for
the
three-month
period.
Having
considered,
among
other
things:
(1)
the
Fund’s
management
fee
compared
to
comparable
ETFs;
(2)
the
Fund’s
total
expense
ratio
compared
to
comparable
ETFs;
(3)
that
the
Adviser’s
willingness
to
limit
the
expenses
for
a
period
of
time
would
provide
stability
to
the
Fund’s
expenses
during
that
period;
and
(4)
that
the
Fund’s
performance
in
relation
to
its
benchmark
index
and
peer
group
was
within
an
acceptable
range,
the
Board
concluded
that
the
Agreement
continued
to
be
in
the
best
interests
of
the
Fund’s
shareholders.
VictoryShares
International
Value
Momentum
ETF:
Noting
that
the
Fund
commenced
operations
in
2017
and
that
the
performance
of
its
benchmark
index
was
available
only
for
the
three-month
period,
the
Board
compared
the
Fund’s
one-,
three-
and
five-year
performance
for
the
periods
ended
June
30,
2023,
to
that
of
the
median
performance
of
the
Fund’s
peer
group
for
the
same
periods,
and
the
Fund’s
three-month
performance
for
the
period
ended
June
30,
2023
to
that
of
the
benchmark
index
for
the
same
period.
The
Board
considered
the
fact
that
the
Fund
underperformed
the
peer
group
median
for
all
of
the
periods
reviewed
and
outperformed
the
benchmark
index
for
the
three-month
period.
Having
considered,
among
other
things:
(1)
the
Fund’s
management
fee
compared
to
comparable
ETFs;
(2)
the
Fund’s
total
expense
ratio
compared
to
comparable
ETFs;
(3)
that
the
Adviser’s
willingness
to
limit
the
expenses
for
a
period
of
time
would
provide
stability
to
the
Fund’s
expenses
during
that
period;
and
(4)
that
the
Fund’s
performance
in
relation
to
its
benchmark
index
and
peer
group
was
within
an
acceptable
range,
the
Board
concluded
that
the
Agreement
continued
to
be
in
the
best
interests
of
the
Fund’s
shareholders.
The
Board
noted
the
Fund’s
tracking
error
for
the
periods
relative
to
its
peers.
VictoryShares
Emerging
Markets
Value
Momentum
ETF:
Noting
that
the
Fund
commenced
operations
in
2017
and
that
the
performance
of
its
benchmark
index
was
available
only
for
the
three-month
period,
the
Board
compared
the
Fund’s
one-,
three-
and
five-year
performance
for
the
periods
ended
June
30,
2023,
to
that
of
the
median
performance
of
the
Fund’s
peer
group
for
the
same
periods,
and
the
Fund’s
three-month
performance
for
the
period
ended
June
30,
2023
to
that
of
the
benchmark
index
for
the
same
period.
The
Board
considered
the
fact
that
the
Fund
outperformed
the
peer
group
median
for
the
one-
and
three-year
periods,
underperformed
the
peer
group
median
for
the
five-year
period
and
outperformed
the
benchmark
index
for
the
three-month
period.
Having
considered,
among
other
things:
(1)
the
Fund’s
management
fee
compared
to
comparable
ETFs;
(2)
the
Fund’s
total
expense
ratio
compared
to
comparable
ETFs;
(3)
that
the
Adviser’s
willingness
to
limit
the
expenses
for
a
period
of
time
would
provide
stability
to
the
Fund’s
expenses
during
that
period;
and
(4)
that
the
Fund’s
performance
in
relation
to
its
benchmark
index
and
peer
group
was
within
an
acceptable
range,
the
Board
concluded
that
the
Agreement
continued
to
be
in
the
best
interests
of
the
Fund’s
shareholders.
Conclusion:
Based
on
its
review
of
the
information
requested
and
provided,
and
following
extended
discussions,
the
Board
determined
that:
(i)
the
Adviser’s
services
benefitted
the
Funds’
shareholders,
particularly
in
light
of
the
nature
of
the
Funds
and
the
services
required
to
support
the
Funds;
(ii)
it
Supplemental
Information
—
continued
December
31,
2023
Victory
Portfolios
II
54
(Unaudited)
was
generally
satisfied
with
the
nature,
quality
and
extent
of
the
services
provide
by
the
Adviser
to
the
Funds;
and
(iii)
the
Agreement,
on
behalf
of
the
Funds
discussed
above,
was
consistent
with
the
best
interests
of
each
Fund
and
its
shareholders.
Accordingly,
the
Board
unanimously
approved
the
Agreement,
on
behalf
of
each
Fund,
for
an
additional
annual
period
on
the
basis
of
the
foregoing
review
and
discussions
and
the
following
considerations,
among
others:
The
fairness
and
reasonableness
of
the
investment
advisory
fee
payable
to
the
Adviser
under
the
Agreement
in
light
of
the
investment
advisory
services
provided,
the
costs
of
these
services,
the
profitability
of
the
Adviser’s
relationship
with
the
Fund
and
the
comparability
of
the
fee
paid
to
the
fees
paid
by
other
investment
companies,
to
the
extent
applicable;
The
nature,
quality
and
extent
of
the
investment
advisory
services
provided
by
the
Adviser;
The
Adviser’s
entrepreneurial
commitment
to
the
management
of
the
Funds
and
the
creation
of
a
broad-based
family
of
funds,
which
entails
a
substantial
commitment
of
the
Adviser’s
resources
to
the
successful
operation
of
the
Funds;
The
Adviser’s
representations
regarding
its
staffing
and
capabilities
to
manage
the
Funds,
including
the
retention
of
personnel
with
relevant
portfolio
management
experience;
The
Adviser’s
efforts
to
enhance
investment
results
by,
among
other
things,
developing
and
supporting
quality
portfolio
management
teams;
and
The
overall
high
quality
of
the
personnel,
operations,
financial
condition,
investment
management
capabilities,
methodologies
and
perfor-
mance
of
the
Adviser.
Victory
Portfolios
II
55
(Unaudited)
Supplemental
Information
—
continued
December
31,
2023
Privacy
Policy
Facts
WHAT
DOES
VICTORY
DO
WITH
YOUR
PERSONAL
INFORMATION?
Why?
Financial
companies
choose
how
they
share
your
personal
information.
Federal
law
gives
consumers
the
right
to
limit
some,
but
not
all
sharing.
Federal
law
also
requires
us
to
tell
you
how
we
collect,
share,
and
protect
your
personal
information.
Please
read
this
notice
carefully
to
understand
what
we
do.
What?
The
types
of
personal
information
we
collect,
and
share
depend
on
the
product
or
service
you
have
with
us.
This
information
can
include:
■
Social
Security
number
and
income.
■
Account
balances
and
account
transactions.
■
Data
from
public
sources
and
third-party
data
services.
How?
All
financial
companies
need
to
share
customers’
personal
information
to
run
their
everyday
business
as
permitted
by
law.
For
example,
we
share
with
print
and
mail
companies
that
assist
us
in
sending
mail.
In
the
section
below,
we
list
the
reasons
financial
companies
can
share
their
customers’
personal
information,
the
reasons
Victory
chooses
to
share
and
whether
you
can
limit
this
sharing.
Reasons
we
can
share
your
personal
information
Does
Victory
share?
Can
you
limit
this
sharing?
For
our
everyday
business
purposes
—
such
as
to
process
your
transactions,
maintain
your
accounts,
respond
to
court
orders
and
legal
investigations,
or
report
to
credit
bureaus
Yes
No
For
our
marketing
purposes
—
to
offer
products
and
services
provided
by
Victory
Yes
No
For
joint
marketing
—
sharing
with
other
financial
companies
to
jointly
market
the
other
company’s
products
or
services
No
We
do
not
share
For
everyday
business
purposes
of
the
Victory
family
of
companies
—
this
can
include
information
about
your
Victory
transactions
and
experiences
Yes
No
For
everyday
business
purposes
of
the
Victory
family
of
companies
—
this
can
include
information
about
your
creditworthiness
or
insurability
No
We
do
not
share
For
non-Victory
companies
to
market
to
you
No
We
do
not
share
Supplemental
Information
—
continued
December
31,
2023
Victory
Portfolios
II
56
(Unaudited)
To
limit
our
sharing
■
Visit
us
online:
vcm.com/optout
■
Call
(877)
660-4400
–
our
menu
will
prompt
you
through
your
choices.
Please
note:
If
you
are
a
new
customer,
we
can
begin
sharing
this
information
30
days
from
the
date
we
sent
this
notice.
When
you
are
no
longer
our
customer,
we
continue
to
share
and
protect
your
information
as
described
in
this
notice.
However,
you
can
contact
us
at
any
time
to
limit
our
sharing.
Questions?
Call
your
account
representative
or
(877)
660-4400
and
ask
to
speak
to
a
representative.
Who
we
are
Who
is
providing
this
notice?
Victory
Capital
Holdings,
Inc.,
and
its
family
of
companies,
including
companies
identified
with
the
Victory
Capital
name
as
described
in
the
affiliates
section
below.
What
we
do
How
does
Victory
protect
my
personal
information?
To
protect
your
personal
information
from
unauthorized
access
and
use,
we
use
security
measures
that
comply
with
federal
law.
These
measures
include
computer
safeguards
and
secured
files
and
buildings.
How
does
Victory
collect
my
personal
information?
We
collect
your
personal
information,
for
example,
when
you:
■
Open
an
account
or
make
deposits
or
withdrawals
from
your
account.
■
Give
us
your
contact
or
account
information.
■
Direct
us
to
buy
or
sell
securities.
We
also
collect
your
personal
information
from
others,
such
as
credit
bureaus,
affiliates,
or
other
companies.
Why
can’t
I
limit
all
sharing?
Federal
law
gives
you
the
right
to
limit
only:
■
Sharing
among
affiliated
companies
for
everyday
business
purposes
information
about
your
creditworthiness
and
insurability.
■
Affiliates
from
using
your
information
to
market
to
you.
■
Sharing
for
nonaffiliates
to
market
to
you.
State
laws
and
individual
companies
may
give
you
additional
rights
to
limit
sharing.
See
below
for
more
on
your
rights
under
state
law.
What
happens
when
I
limit
sharing
for
an
account
I
hold
jointly
with
someone
else?
Your
choices
will
apply
to
everyone
on
your
account.
Definitions
Victory
family
of
companies
(affiliates)
Companies
owned
or
controlled
by
Victory
Capital
Holdings,
Inc.
They
can
be
financial
and
nonfinancial
companies
in
the
Victory
family
of
companies.
■
The
Victory
family
of
companies
includes:
companies
with
a
Victory
Capital
name,
including
without
limitation
Victory
Capital
Services,
Inc.,
Victory
Capital
Transfer
Agency,
Inc.,
Victory
Capital
Management
Inc.
and
its
subsidiaries,
RS
Investments
(UK)
Limited,
RS
Investments
(Hong
Kong)
Limited,
and
RS
Investment
Management
(Singapore)
Pte.
Ltd.,
as
well
as
pooled
vehicles
managed
or
administered
by
Victory
Capital
Management
Inc.,
from
time
to
time.
Supplemental
Information
—
continued
December
31,
2023
Victory
Portfolios
II
57
(Unaudited)
Non-Victory
companies
(nonaffiliates)
Companies
not
related
by
common
ownership
or
control.
They
can
be
financial
and
nonfinancial
companies.
■
We
only
share
with
non-Victory
companies
to
service
transactions
you
request
or
as
necessary
to
provide
our
services.
■
We
do
not
share
with
non-Victory
companies
so
they
can
market
their
products
to
you.
Joint
Marketing
A
formal
agreement
between
a
Victory
company
and
a
non-Victory
financial
company
to
market
the
non-Victory
company’s
products
or
services
to
you.
■
We
do
not
share
with
any
non-Victory
financial
company
for
joint
marketing.
Other
important
information
For
Nevada
Residents
:
Nevada
law
requires
that
we
tell
you
about
the
option
to
be
placed
on
our
internal
do-
not-call
list.
If
you’d
rather
not
receive
sales
calls
from
us,
please
call
(877)
660-4400
and
ask
to
speak
to
a
representative
so
we
can
place
you
on
our
do-not-call
list.
You
may
also
contact:
Bureau
of
Consumer
Protection
Office
of
the
Nevada
Attorney
General,
555
E.
Washington
Ave.,
Ste.
3900,
Las
Vegas,
NV
89101,
call
1-702-486-3132
or
Email:
[email protected].
For
Vermont
Residents
:
In
accordance
with
Vermont
law,
we
will
not
share
information
we
collect
about
you
with
companies
who
are
not
affiliates,
except
as
permitted
by
law,
such
as
with
your
consent
or
to
service
your
accounts.
We
will
not
share
information
about
your
creditworthiness
with
our
affiliates
without
your
authorization
or
consent,
but
we
may
share
information
about
our
transactions
or
experiences
with
you
with
our
affiliates
as
permitted
by
law.
For
California
Residents
:
In
accordance
with
California
law,
we
will
not
share
information
we
collect
about
you
with
nonaffiliates,
except
as
allowed
by
law.
For
example,
we
may
share
information
with
your
consent
or
to
service
your
accounts.
Among
our
affiliates,
we
will
limit
information
sharing
to
the
extent
required
by
California
law.
Victory
Funds
P.O.
Box
182593
Columbus,
Ohio
43218-2593
Visit
our
website
at:
vcm.com
Call
Victory
at:
866-376-7890
VS-ETF-SAR
(12/23)