December 31, 2021
Semi Annual Report
VictoryShares USAA Core Short-Term Bond ETF
VictoryShares USAA Core Intermediate-Term Bond ETF
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Victory Portfolios II
TABLE OF CONTENTS
Investment
Objective & Portfolio Holdings (Unaudited) |
2 |
||||||
Schedules of Portfolio Investments |
|||||||
VictoryShares USAA Core Short-Term Bond ETF |
4 | ||||||
VictoryShares
USAA Core Intermediate-Term Bond ETF |
19 | ||||||
Financial Statements |
|||||||
Statements of Assets and Liabilities |
42 | ||||||
Statements of Operations |
43 | ||||||
Statements of Changes in Net Assets |
44 | ||||||
Financial Highlights |
46 | ||||||
Notes to Financial Statements |
48 |
||||||
Supplemental Information (Unaudited) |
58 |
||||||
Proxy Voting and Portfolio Holdings Information |
58 | ||||||
Expense Examples |
58 | ||||||
Advisory Contract Approval |
59 | ||||||
Privacy Policy (inside back cover) |
1
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
December 31, 2021 |
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund seeks to provide high current income consistent with preservation of principal.
Asset Allocation*:
December 31, 2021
(% of Net Assets)
* Does not include futures contracts, money market instruments, and short-term investments purchased with cash collateral from securities loaned.
Percentages are of the net assets of the Fund and may not equal 100%.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
2
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
December 31, 2021 |
(Unaudited)
Investment Objective and Portfolio Holdings:
The Fund seeks to provide high current income without undue risk to principal.
Asset Allocation*:
December 31, 2021
(% of Net Assets)
* Does not include futures contracts, money market instruments, and short-term investments purchased with cash collateral from securities loaned.
Percentages are of the net assets of the Fund and may not equal 100%.
Refer to the Schedule of Portfolio Investments for a complete list of securities.
3
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Asset-Backed Securities (16.4%) |
|||||||||||
AmeriCredit
Automobile Receivables Trust, Series 2017-3, Class D, 3.18%, 7/18/23, Callable 3/18/22 @ 100 |
$ |
500,000 |
$ |
502,429 |
|||||||
AmeriCredit
Automobile Receivables Trust, Series 2021-2, Class C, 1.01%, 1/19/27, Callable 9/18/24 @ 100 |
1,000,000 |
988,091 |
|||||||||
AmeriCredit
Automobile Receivables Trust, Series 2017-4, Class C, 2.60%, 9/18/23, Callable 6/18/22 @ 100 |
143,428 |
143,770 |
|||||||||
Atalaya
Equipment Leasing Trust, Series 2021-1A, Class A2, 1.23%, 5/15/26,
Callable 9/15/24 @ 100 (a) |
1,250,000 |
1,248,162 |
|||||||||
Bank
of The West Auto Trust, Series 2017-1, Class C, 2.96%, 2/15/24, Callable
2/15/22 @ 100 (a) |
500,000 |
501,432 |
|||||||||
Bank
of The West Auto Trust, Series 2018-1, Class C, 3.98%, 5/15/24, Callable
5/15/22 @ 100 (a) |
400,000 |
404,867 |
|||||||||
BCC
Funding XVII LLC, Series 2020-1, Class B, 1.46%, 9/22/25, Callable
7/20/24 @ 100 (a) |
3,000,000 |
2,995,799 |
|||||||||
Canadian
Pacer Auto Receivables Trust, Series 2018-2A, Class B, 3.63%, 1/19/24, Callable 4/19/22 @ 100 (a) |
500,000 |
504,433 |
|||||||||
CarMax
Auto Owner Trust, Series 2021-2, Class A3, 0.52%, 2/17/26, Callable
4/15/24 @ 100 |
2,000,000 |
1,990,620 |
|||||||||
CarMax
Auto Owner Trust, Series 2020-4, Class A3, 0.50%, 8/15/25, Callable
4/15/24 @ 100 |
1,000,000 |
995,939 |
|||||||||
CARS LP, Series 2020-1A, Class A1, 2.69%, 2/15/50, Callable 2/15/23 @ 100 (a) |
586,109 |
593,329 |
|||||||||
Carvana
Auto Receivables Trust, Series 2021-N1, Class C, 1.30%, 1/10/28,
Callable 7/10/24 @ 100 |
1,500,000 |
1,497,682 |
|||||||||
Carvana
Auto Receivables Trust, Series 2021-N1, Class A, 0.70%, 1/10/28,
Callable 7/10/24 @ 100 |
870,157 |
863,101 |
|||||||||
Carvana
Auto Receivables Trust, Series 2021-N4, Class C, 1.72%, 9/11/28,
Callable 12/10/26 @ 100 |
1,000,000 |
999,746 |
|||||||||
CNH
Equipment Trust, Series 2018-B, Class B, 3.56%, 2/17/26, Callable
12/15/22 @ 100 |
350,000 |
357,320 |
|||||||||
Conn's
Receivables Funding LLC, Series 2021-A, Class B, 2.87%, 5/15/26,
Callable 9/15/23 @ 100.25 (a) |
1,000,000 |
996,639 |
|||||||||
Conn's
Receivables Funding LLC, Series 2021-A, Class A, 1.05%, 5/15/26,
Callable 9/15/23 @ 100 (a) |
1,787,730 |
1,787,227 |
|||||||||
CPS
Auto Receivables Trust, Series 2019-C, Class D, 3.17%, 6/16/25, Callable
7/15/23 @ 100 (a) |
1,000,000 |
1,015,219 |
|||||||||
Credit
Acceptance Auto Loan Trust, Series 2021-4, Class A, 1.26%, 10/15/30,
Callable 4/15/25 @ 100 (a) |
333,000 |
331,129 |
|||||||||
Credit
Acceptance Auto Loan Trust, Series 2021-4, Class B, 1.74%, 12/16/30,
Callable 4/15/25 @ 100 (a) |
320,000 |
317,377 |
|||||||||
Dell
Equipment Finance Trust, Series 2020-2, Class D, 1.92%, 3/23/26, Callable
5/22/23 @ 100 (a) |
1,000,000 |
1,007,518 |
|||||||||
Diamond
Issuer, Series 2021-1A, Class B, 2.70%, 11/20/51, Callable 11/20/25 @ 100 (a) |
655,000 |
650,421 |
|||||||||
Drive
Auto Receivables Trust, Series 2021-1, Class C, 1.02%, 6/15/27, Callable
10/15/23 @ 100 |
708,000 |
707,181 |
|||||||||
Drive
Auto Receivables Trust, Series 2020-2, Class C, 2.28%, 8/17/26, Callable
6/15/23 @ 100 |
750,000 |
759,896 |
|||||||||
Drive
Auto Receivables Trust, Series 2021-1, Class B, 0.65%, 7/15/25, Callable
10/15/23 @ 100 |
750,000 |
748,370 |
See notes to financial statements.
4
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Evergreen Credit Card Trust, Series 2019-2, Class B, 2.27%, 9/15/24 (a) |
$ |
750,000 |
$ |
757,755 |
|||||||
Evergreen
Credit Card Trust, Series 2021-1A, Class A, 0.90%, 10/15/26, Callable 11/15/24 @ 100 (a) |
1,500,000 |
1,486,820 |
|||||||||
Exeter
Automobile Receivables Trust, Series 2021-4, Class C, 1.68%, 10/15/27,
Callable 1/15/25 @ 100 |
1,000,000 |
995,405 |
|||||||||
Exeter
Automobile Receivables Trust, Series 2020-3A, Class C, 1.32%, 7/15/25,
Callable 4/15/24 @ 100 |
472,000 |
473,639 |
|||||||||
Exeter
Automobile Receivables Trust, Series 2021-2A, Class C, 0.98%, 6/15/26,
Callable 5/15/24 @ 100 |
1,500,000 |
1,494,572 |
|||||||||
FirstKey Homes Trust, Series 2021-SFR3, Class B, 2.44%, 12/17/38 (a) |
1,000,000 |
990,691 |
|||||||||
FirstKey Homes Trust, Series 2021-SFR3, Class C, 2.54%, 12/17/38 (a) |
1,000,000 |
988,408 |
|||||||||
FirstKey Homes Trust, Series 2021-SFR3, Class A, 2.14%, 12/17/38 (a) |
1,000,000 |
997,532 |
|||||||||
Flagship
Credit Auto Trust, Series 4, Class B, 1.49%, 2/15/27, Callable 3/15/26 @ 100 (a) |
1,000,000 |
996,353 |
|||||||||
Flagship
Credit Auto Trust, Series 4, Class C, 1.96%, 12/15/27, Callable
3/15/26 @ 100 (a) |
1,000,000 |
996,544 |
|||||||||
Flexential
Issuer, Series 2021-1A, Class A2, 3.25%, 11/27/51, Callable 11/25/25 @ 100 (a) |
1,000,000 |
1,001,780 |
|||||||||
Ford
Credit Auto Owner Trust, Series 2018-B, Class A3, 3.24%, 4/15/23,
Callable 8/15/22 @ 100 |
22,622 |
22,658 |
|||||||||
GLS
Auto Receivables Issuer Trust, Series 4A, Class B, 1.53%, 4/15/26,
Callable 6/15/26 @ 100 (a) |
500,000 |
500,150 |
|||||||||
GLS
Auto Receivables Issuer Trust, Series 4A, Class A, 0.84%, 7/15/25,
Callable 6/15/26 @ 100 (a) |
1,000,000 |
999,639 |
|||||||||
GLS
Auto Receivables Issuer Trust, Series 2020-2A, Class B, 3.16%, 6/16/25,
Callable 1/15/24 @ 100 (a) |
1,250,000 |
1,276,239 |
|||||||||
GM
Financial Automobile Leasing Trust, Series 2020-3, Class A4, 0.51%,
10/21/24, Callable 4/20/23 @ 100 |
1,000,000 |
998,217 |
|||||||||
GM
Financial Automobile Leasing Trust, Series 2020-1, Class B, 1.84%,
12/20/23, Callable 8/20/22 @ 100 |
489,000 |
492,033 |
|||||||||
GM
Financial Consumer Automobile Receivables Trust, Series 2018-3, Class A3,
3.02%, 5/16/23, Callable 6/16/22 @ 100 |
33,908 |
33,976 |
|||||||||
Honda
Auto Receivables Owner Trust, Series 2020-3, Class A3, 0.37%, 10/18/24,
Callable 11/18/23 @ 100 |
1,000,000 |
996,957 |
|||||||||
Hyundai
Auto Receivables Trust, Series 2020-C, Class A3, 0.38%, 5/15/25,
Callable 11/15/24 @ 100 |
1,000,000 |
995,436 |
|||||||||
John
Deere Owner Trust, Series 2021-B, Class A3, 0.52%, 3/16/26, Callable
4/15/25 @ 100 |
1,500,000 |
1,479,360 |
|||||||||
JPMorgan
Chase Bank NA ? CACLN, Series 2021-3, Class B, 0.76%, 2/26/29,
Callable 1/25/25 @ 100 (a) |
621,680 |
618,480 |
|||||||||
Lad
Auto Receivables Trust, Series 2021-1A, Class B, 1.94%, 11/16/26, Callable
9/15/25 @ 100 (a) |
1,000,000 |
997,206 |
|||||||||
LAD
Auto Receivables Trust, Series 2021-1A, Class A, 1.30%, 8/17/26, Callable
9/15/25 @ 100 (a) |
908,653 |
906,524 |
|||||||||
Master Credit Card Trust, Series 2021-1A, Class C, 1.06%, 11/21/25 (a) |
1,500,000 |
1,477,030 |
|||||||||
Mercedes-Benz
Auto Lease Trust, Series 2020-B, Class A3, 0.40%, 11/15/23, Callable 3/15/23 @ 100 |
1,000,000 |
998,737 |
|||||||||
New
Economy Assets Phase 1 Sponsor LLC, Series 2021-1, Class B1, 2.41%,
10/20/61, Callable 10/20/24 @ 100 (a) |
293,000 |
293,675 |
See notes to financial statements.
5
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
New
Economy Assets Phase 1 Sponsor LLC, Series 2021-1, Class A1, 1.91%,
10/20/61, Callable 10/20/24 @ 100 (a) |
$ |
903,000 |
$ |
885,402 |
|||||||
Nissan
Auto Lease Trust 2020-B, Series 2020-B, Class A3, 0.43%, 10/16/23,
Callable 6/15/23 @ 100 |
1,000,000 |
999,875 |
|||||||||
Oscar
U.S. Funding XII LLC, Series 1A, Class A4, 1.00%, 4/10/28, Callable
2/10/25 @ 100 (a) |
2,500,000 |
2,449,694 |
|||||||||
Pawnee
Equipment Receivables LLC, Series 2021-1, Class A2, 1.10%, 7/15/27, Callable 11/15/25 @ 100 (a) |
545,000 |
541,810 |
|||||||||
PSNH Funding LLC, Series 2018-1, Class A1, 3.09%, 2/1/26 |
205,911 |
210,391 |
|||||||||
Santander
Drive Auto Receivables Trust, Series 2020-4, Class C, 1.01%, 1/15/26, Callable 8/15/23 @ 100 |
1,000,000 |
1,001,552 |
|||||||||
Santander
Drive Auto Receivables Trust, Series 2021-2, Class B, 0.59%, 9/15/25, Callable 1/15/24 @ 100 |
1,000,000 |
998,312 |
|||||||||
Santander
Drive Auto Receivables Trust, Series 2019-3, Class C, 2.49%, 10/15/25, Callable 4/15/23 @ 100 |
401,841 |
403,622 |
|||||||||
SCF
Equipment Leasing LLC, Series 2019-2A, Class A2, 2.47%, 4/20/26,
Callable 10/20/24 @ 100 (a) |
750,000 |
760,475 |
|||||||||
SCF
Equipment Leasing LLC, Series 2020-1A, Class A3, 1.19%, 10/20/27,
Callable 3/20/25 @ 100 (a) |
1,500,000 |
1,502,598 |
|||||||||
Vantage
Data Centers LLC, Series 2020-1A, Class A2, 1.65%, 9/15/45, Callable 9/15/23 @ 100 (a) |
1,000,000 |
973,075 |
|||||||||
Westlake
Automobile Receivables Trust, Series 2019-2A, Class C, 2.84%, 7/15/24, Callable 3/15/23 @ 100 (a) |
372,148 |
373,818 |
|||||||||
Westlake
Automobile Receivables Trust, Series 2021-3A, Class D, 2.12%, 1/15/27, Callable 12/15/24 @ 100 (a) |
1,000,000 |
1,002,388 |
|||||||||
Westlake
Automobile Receivables Trust, Series 2019-2A, Class E, 4.02%, 4/15/25, Callable 3/15/23 @ 100 (a) |
1,000,000 |
1,025,468 |
|||||||||
World
Omni Select Auto Trust, Series 2021-A, Class A3, 0.53%, 3/15/27,
Callable 7/15/24 @ 100 |
2,000,000 |
1,977,263 |
|||||||||
World
Omni Select Auto Trust, Series 2020-A, Class A3, 0.55%, 7/15/25,
Callable 8/15/23 @ 100 |
1,000,000 |
999,907 |
|||||||||
Total Asset-Backed Securities (Cost $63,484,719) |
63,279,163 |
||||||||||
Collateralized Mortgage Obligations (4.7%) |
|||||||||||
BBCMS
Mortgage Trust, Series 2020-BID, Class A, 2.25% (LIBOR01M+214bps),
10/15/37 (a) (b) |
1,000,000 |
1,002,122 |
|||||||||
BBCMS
Mortgage Trust, Series 2020-BID, Class B, 2.65% (LIBOR01M+254bps),
10/15/37 (a) (b) |
1,750,000 |
1,754,177 |
|||||||||
BPR Trust, Series 2021-TY, Class C, 1.81% (LIBOR01M+170bps), 9/23/23 (a) (b) |
1,000,000 |
997,203 |
|||||||||
BPR Trust, Series 2021-TY, Class A, 1.16% (LIBOR01M+105bps), 9/23/23 (a) (b) |
1,000,000 |
998,145 |
|||||||||
BX
Commercial Mortgage Trust, Series 2019-XL, Class D, 1.56%
(LIBOR01M+145bps), 10/15/36 (a) (b) |
2,465,000 |
2,458,026 |
|||||||||
CHT
Mortgage Trust, Series 2017-CSMO, Class E, 3.11% (LIBOR01M+300bps),
11/15/36 (a) (b) |
2,000,000 |
1,999,768 |
|||||||||
Citigroup
Commercial Mortgage Trust, Series 2019-SMRT, Class B, 4.38%, 1/10/36 (a) |
500,000 |
521,010 |
|||||||||
JP
Morgan Chase Commercial Mortgage Securities Trust, Series 2013-C13,
Class C, 4.08%, 1/15/46, Callable 7/15/23 @ 100 (c) |
1,000,000 |
1,028,867 |
|||||||||
JPMorgan
Chase Commercial Mortgage Securities Trust, Series 2013-C10, Class A5, 3.14%, 12/15/47, Callable 2/15/23 @ 100 |
979,433 |
996,923 |
See notes to financial statements.
6
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
KNDL
Mortgage Trust, Series 2019-KNSQ, Class C, 1.16% (US0001M+105bps),
5/15/36 (a) (b) |
$ |
1,175,000 |
$ |
1,173,445 |
|||||||
Morgan
Stanley Capital I Trust, Series 2017-CLS, Class F, 2.71%
(LIBOR01M+260bps), 11/15/34 (a) (b) |
1,000,000 |
995,222 |
|||||||||
Palmer
Square Loan Funding Ltd., Series 2020-1A, Class A1, 0.96%
(LIBOR03M+80bps), 2/20/28, Callable 2/20/22 @ 100 (a) (b) |
241,739 |
241,927 |
|||||||||
SREIT
Trust, Series 2021-MFP2, Class B, 1.27% (LIBOR01M+117bps), 11/15/36 (a) (b) |
1,000,000 |
994,999 |
|||||||||
Stratus
CLO Ltd., Series 2021-3A, Class A, 1.08% (US0003M+95bps), 12/29/29 (a) (b) |
1,000,000 |
1,000,000 |
|||||||||
Stratus
CLO Ltd., Series 2021-3A, Class B, 1.68% (US0003M +155bps), 12/29/29 (a) (b) |
821,000 |
821,000 |
|||||||||
STREIT
Trust, Series 2021-MFP2, Class A, 0.92% (US0001M+82bps), 11/15/36 (a) (b) |
1,000,000 |
994,999 |
|||||||||
WFRBS
Commercial Mortgage Trust, Series 2012-C9, Class ASB, 2.45%, 11/15/45, Callable 7/15/22 @ 100 |
77,385 |
77,744 |
|||||||||
WFRBS
Commercial Mortgage Trust, Series 2012-C7, Class AS, 4.09%, 6/15/45,
Callable 6/15/22 @ 100 (c) |
225,017 |
225,584 |
|||||||||
Total Collateralized Mortgage Obligations (Cost $18,313,425) |
18,281,161 |
||||||||||
Senior Secured Loans (1.3%) |
|||||||||||
Clean
Harbors, Inc., Initial Term Loan, First Lien, 1.84% (LIBOR01M+175bps),
6/30/24 (b) |
496,104 |
495,836 |
|||||||||
Genpact International LLC, Term Loan A,First Lien, 8/9/23 (d) (e) |
3,000,000 |
2,977,500 |
|||||||||
Magallanes, Inc., Term Loan A, First Lien, 12/4/22 (d) (e) |
1,500,000 |
1,475,625 |
|||||||||
Total Senior Secured Loans (Cost $4,998,066) |
4,948,961 |
||||||||||
Corporate Bonds (42.7%) |
|||||||||||
Communication Services (1.4%): |
|||||||||||
DISH DBS Corp., 5.88%, 7/15/22 |
1,374,000 |
1,397,248 |
|||||||||
TEGNA, Inc., 4.75%, 3/15/26, Callable 3/15/23 @ 102.38 (a) (f) |
2,000,000 |
2,082,600 |
|||||||||
T-Mobile USA, Inc., 2.63%, 4/15/26, Callable 4/15/23 @ 101.31 (f) |
2,000,000 |
2,014,340 |
|||||||||
5,494,188 |
|||||||||||
Consumer Discretionary (3.4%): |
|||||||||||
Association of American Medical Colleges, 2.12%, 10/1/24 |
750,000 |
750,175 |
|||||||||
Daimler Trucks Finance North America LLC, 1.63%, 12/13/24 (a) |
2,000,000 |
2,014,380 |
|||||||||
Expedia Group, Inc., 6.25%, 5/1/25, Callable 2/1/25 @ 100 (a) |
1,000,000 |
1,128,690 |
|||||||||
Genting
New York LLC/GENNY Capital, Inc., 3.30%, 2/15/26, Callable 1/15/26 @ 100 (a) |
500,000 |
495,015 |
|||||||||
Howard University, 2.74%, 10/1/22 |
500,000 |
506,555 |
|||||||||
Macy's Retail Holdings LLC, 2.88%, 2/15/23, Callable 11/15/22 @ 100 |
750,000 |
759,225 |
|||||||||
Marriott International, Inc., 2.30%, 1/15/22 |
1,000,000 |
1,000,430 |
|||||||||
Murphy Oil USA, Inc., 5.63%, 5/1/27, Callable 5/1/22 @ 102.81 |
1,500,000 |
1,557,930 |
|||||||||
Nordstrom, Inc., 2.30%, 4/8/24, Callable 4/8/22 @ 100 |
1,500,000 |
1,499,460 |
|||||||||
QVC, Inc., 4.38%, 3/15/23 |
667,000 |
687,771 |
|||||||||
Sodexo, Inc., 1.63%, 4/16/26, Callable 3/16/26 @ 100 (a) (f) |
2,000,000 |
1,982,620 |
|||||||||
Toll Brothers Finance Corp., 4.38%, 4/15/23, Callable 1/15/23 @ 100 |
750,000 |
775,515 |
|||||||||
13,157,766 |
See notes to financial statements.
7
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Consumer Staples (2.0%): |
|||||||||||
Central Garden & Pet Co., 5.13%, 2/1/28, Callable 1/1/23 @ 102.56 |
$ |
1,000,000 |
$ |
1,045,570 |
|||||||
Darling Ingredients, Inc., 5.25%, 4/15/27, Callable 4/15/22 @ 102.63 (a) |
2,000,000 |
2,065,000 |
|||||||||
Hormel Foods Corp., 0.65%, 6/3/24, Callable 6/3/22 @ 100 |
1,500,000 |
1,488,705 |
|||||||||
JBS USA Food Co., 5.75%, 1/15/28, Callable 7/15/22 @ 102.88 (a) |
1,000,000 |
1,045,160 |
|||||||||
Jbs
USA Lux SA / Jbs USA Food Co., 6.50%, 4/15/29, Callable 4/15/24 @ 103.25 (a) |
2,000,000 |
2,200,020 |
|||||||||
7,844,455 |
|||||||||||
Energy (9.5%): |
|||||||||||
Apache Corp., 3.25%, 4/15/22, Callable 1/18/22 @ 100 |
1,250,000 |
1,251,112 |
|||||||||
Continental
Resources, Inc. 4.50%, 4/15/23, Callable 1/15/23 @ 100 (f) |
1,230,000 |
1,269,852 |
|||||||||
3.80%, 6/1/24, Callable 3/1/24 @ 100 |
381,000 |
397,703 |
|||||||||
2.27%, 11/15/26, Callable 11/15/23 @ 100 (a) |
1,000,000 |
993,040 |
|||||||||
DCP Midstream Operating LP, 3.88%, 3/15/23, Callable 12/15/22 @ 100 |
1,000,000 |
1,024,790 |
|||||||||
Energy Transfer LP, 4.90%, 2/1/24, Callable 11/1/23 @ 100 |
1,715,000 |
1,817,506 |
|||||||||
EnLink Midstream Partners, LP, 4.40%, 4/1/24, Callable 1/1/24 @ 100 |
900,000 |
946,485 |
|||||||||
EQM
Midstream Partners LP 4.75%, 7/15/23, Callable 6/15/23 @ 100 (f) |
135,000 |
140,277 |
|||||||||
4.00%, 8/1/24, Callable 5/1/24 @ 100 |
865,000 |
899,730 |
|||||||||
Gray Oak Pipeline LLC, 2.00%, 9/15/23 (a) |
833,000 |
842,296 |
|||||||||
Hess Corp., 3.50%, 7/15/24, Callable 4/15/24 @ 100 |
1,000,000 |
1,044,060 |
|||||||||
Hess Midstream Operations, LP, 5.63%, 2/15/26, Callable 2/7/22 @ 104.22 (a) |
3,000,000 |
3,090,000 |
|||||||||
HollyFrontier
Corp. 2.63%, 10/1/23 |
1,000,000 |
1,019,710 |
|||||||||
5.88%, 4/1/26, Callable 1/1/26 @ 100 (f) |
1,881,000 |
2,109,241 |
|||||||||
Midwest
Connector Capital Co. LLC 3.63%, 4/1/22, Callable 3/1/22 @ 100 (a) (f) |
1,500,000 |
1,507,335 |
|||||||||
3.90%, 4/1/24, Callable 3/1/24 @ 100 (a) |
2,500,000 |
2,594,600 |
|||||||||
MPLX LP, 3.50%, 12/1/22, Callable 11/1/22 @ 100 |
271,000 |
276,756 |
|||||||||
Murphy
Oil Corp. 6.88%, 8/15/24, Callable 2/7/22 @ 101.72 |
565,000 |
575,786 |
|||||||||
5.88%, 12/1/27, Callable 12/1/22 @ 102.94 |
1,690,000 |
1,744,232 |
|||||||||
Occidental Petroleum Corp., 2.90%, 8/15/24, Callable 7/15/24 @ 100 |
687,000 |
701,674 |
|||||||||
Ovintiv
Exploration, Inc. 5.63%, 7/1/24 |
1,000,000 |
1,101,880 |
|||||||||
5.38%, 1/1/26, Callable 10/1/25 @ 100 (f) |
1,000,000 |
1,109,700 |
|||||||||
Parsley
Energy LLC/Parsley Finance Corp., 4.13%, 2/15/28, Callable 2/15/23 @ 102.06 (a) |
1,000,000 |
1,017,400 |
|||||||||
Range
Resources Corp. 5.88%, 7/1/22, Callable 4/1/22 @ 100 |
540,000 |
544,747 |
|||||||||
5.00%, 8/15/22, Callable 5/15/22 @ 100 |
500,000 |
505,600 |
|||||||||
SM Energy Co., 5.63%, 6/1/25, Callable 2/7/22 @ 101.88 |
1,000,000 |
1,009,290 |
|||||||||
Southwestern Energy Co., 4.10%, 3/15/22, Callable 1/24/22 @ 100 |
1,500,000 |
1,502,130 |
|||||||||
Targa
Resources Partners LP/Targa Resources Partners Finance Corp, 6.50%,
7/15/27, Callable 7/15/22 @ 104.88 |
700,000 |
750,400 |
|||||||||
USX Corp., 8.13%, 7/15/23 |
400,000 |
436,528 |
See notes to financial statements.
8
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Western
Midstream Operating LP 4.00%, 7/1/22, Callable 4/1/22 @ 100 |
$ |
1,500,000 |
$ |
1,506,705 |
|||||||
1.97% (LIBOR03M+185bps), 1/13/23 (b) |
500,000 |
499,170 |
|||||||||
4.35%, 2/1/25, Callable 1/1/25 @ 100 |
2,000,000 |
2,082,460 |
|||||||||
WPX Energy, Inc., 8.25%, 8/1/23, Callable 6/1/23 @ 100 |
500,000 |
547,615 |
|||||||||
36,859,810 |
|||||||||||
Financials (11.5%): |
|||||||||||
Ares Capital Corp., 3.25%, 7/15/25, Callable 6/15/25 @ 100 |
750,000 |
778,050 |
|||||||||
Athene
Global Funding 2.80%, 5/26/23 (a) |
750,000 |
769,028 |
|||||||||
1.20%, 10/13/23 (a) |
500,000 |
501,005 |
|||||||||
Blackstone
Private Credit Fund 1.75%, 9/15/24 (a) |
1,000,000 |
984,400 |
|||||||||
2.35%, 11/22/24 (a) |
1,000,000 |
1,000,160 |
|||||||||
Cadence
Bancorp, 4.75% (LIBOR03M+303bps), 6/30/29, Callable 6/30/24 @ 100 (b) |
1,165,000 |
1,235,785 |
|||||||||
CIT
Group, Inc. 5.00%, 8/15/22 |
1,740,000 |
1,782,265 |
|||||||||
4.75%, 2/16/24, Callable 11/16/23 @ 100 |
735,000 |
777,593 |
|||||||||
Citigroup,
Inc., 3.14% (LIBOR03M+72bps), 1/24/23, Callable 1/24/22 @ 100 (b) |
400,000 |
400,528 |
|||||||||
Colfax Corp., 6.38%, 2/15/26, Callable 2/15/22 @ 103.19 (a) |
1,500,000 |
1,553,385 |
|||||||||
DAE Funding LLC, 1.55%, 8/1/24, Callable 7/1/24 @ 100 (a) |
250,000 |
245,970 |
|||||||||
First American Financial Corp., 4.30%, 2/1/23 |
2,800,000 |
2,885,484 |
|||||||||
First
Citizens BancShares, Inc., 3.37% (SOFR+247bps), 3/15/30, Callable
3/15/25 @ 100 (b) |
1,000,000 |
1,015,470 |
|||||||||
First Financial Bancorp, 5.13%, 8/25/25 |
1,000,000 |
1,033,720 |
|||||||||
FNB Corp., 2.20%, 2/24/23, Callable 1/24/23 @ 100 |
1,876,000 |
1,893,916 |
|||||||||
Ford Motor Credit Co. LLC, 3.38%, 11/13/25, Callable 10/13/25 @ 100 |
1,000,000 |
1,037,590 |
|||||||||
FS
KKR Capital Corp. 4.75%, 5/15/22, Callable 4/15/22 @ 100 |
1,000,000 |
1,009,430 |
|||||||||
1.65%, 10/12/24 |
1,024,000 |
1,005,650 |
|||||||||
Fulton
Financial Corp., 3.25% (SOFR+230bps), 3/15/30, Callable 3/15/25 @ 100 (b) |
1,000,000 |
1,009,010 |
|||||||||
GA Global Funding Trust, 1.63%, 1/15/26 (a) |
500,000 |
496,115 |
|||||||||
Infinity Property & Casualty Corp., 5.00%, 9/19/22 (f) |
500,000 |
512,475 |
|||||||||
Main
Street Capital Corp. 5.20%, 5/1/24 |
2,000,000 |
2,135,900 |
|||||||||
3.00%, 7/14/26, Callable 6/14/26 @ 100 |
500,000 |
501,555 |
|||||||||
Morgan
Stanley 3.73% (US0003M+361bps), Callable 1/18/22 @ 100 (b) (g) |
3,000,000 |
3,001,110 |
|||||||||
0.79% (SOFR+53bps), 5/30/25, Callable 5/30/24 @ 100 (b) |
2,000,000 |
1,973,600 |
|||||||||
People's United Bank NA, 4.00%, 7/15/24, Callable 4/16/24 @ 100 |
1,000,000 |
1,050,800 |
|||||||||
ProAssurance Corp., 5.30%, 11/15/23 |
1,000,000 |
1,054,940 |
|||||||||
Protective Life Global Funding, 3.10%, 4/15/24 (a) |
500,000 |
520,500 |
|||||||||
Radian Group, Inc., 4.50%, 10/1/24, Callable 7/1/24 @ 100 |
1,000,000 |
1,048,300 |
|||||||||
Reliance Standard Life Global Funding II, 2.75%, 5/7/25 (a) |
750,000 |
776,100 |
|||||||||
Santander Holdings USA, Inc., 3.40%, 1/18/23, Callable 12/18/22 @ 100 |
250,000 |
255,512 |
|||||||||
SCE Recovery Funding LLC, 0.86%, 11/15/31 |
1,924,384 |
1,832,572 |
|||||||||
Synovus Bank, 2.29% (SOFR+95bps), 2/10/23, Callable 2/10/22 @ 100 (b) |
1,008,000 |
1,008,937 |
See notes to financial statements.
9
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
TCF
National Bank, 5.50% (LIBOR03M+509bps), 5/6/30, Callable 5/6/25 @ 100 (b) |
$ |
750,000 |
$ |
800,347 |
|||||||
Texas
Capital Bancshares, Inc., 4.00% (H15T5Y+315bps), 5/6/31, Callable
5/6/26 @ 100 (b) |
1,000,000 |
1,029,420 |
|||||||||
The Prudential Insurance Co. of America, 8.30%, 7/1/25 (a) |
1,000,000 |
1,213,770 |
|||||||||
TIAA
FSB Holdings, Inc. 5.75%, 7/2/25, Callable 6/2/25 @ 100 |
1,000,000 |
1,091,330 |
|||||||||
4.91% (LIBOR03M+470bps), 3/15/26, Callable 2/7/22 @ 100 (b) |
750,000 |
761,783 |
|||||||||
UMB
Financial Corp., 3.70% (H15T5Y+344bps), 9/17/30, Callable 9/17/25 @ 100 (b) |
750,000 |
757,793 |
|||||||||
Webster Financial Corp., 4.38%, 2/15/24, Callable 1/16/24 @ 100 |
1,700,000 |
1,785,493 |
|||||||||
44,526,791 |
|||||||||||
Health Care (1.4%): |
|||||||||||
Astrazeneca Finance LLC, 0.70%, 5/28/24, Callable 5/28/22 @ 100 |
1,000,000 |
992,260 |
|||||||||
Fresenius
Medical Care U.S. Finance III, Inc., 1.88%, 12/1/26, Callable 11/1/26 @ 100 (a) |
1,000,000 |
990,440 |
|||||||||
Hikma Finance USA LLC, 3.25%, 7/9/25 |
2,000,000 |
2,052,320 |
|||||||||
Laboratory Corp. of America Holdings, 1.55%, 6/1/26, Callable 5/1/26 @ 100 |
1,000,000 |
989,620 |
|||||||||
SSM Health Care Corp., 3.69%, 6/1/23, Callable 3/1/23 @ 100 |
500,000 |
515,750 |
|||||||||
5,540,390 |
|||||||||||
Industrials (5.0%): |
|||||||||||
Air Lease Corp., 2.25%, 1/15/23 |
250,000 |
253,177 |
|||||||||
Aircastle Ltd., 4.25%, 6/15/26, Callable 4/15/26 @ 100 (f) |
500,000 |
537,388 |
|||||||||
American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.50%, 4/20/26 (a) |
1,000,000 |
1,040,710 |
|||||||||
Ashtead Capital, Inc., 4.38%, 8/15/27, Callable 8/15/22 @ 102.19 (a) (f) |
3,435,000 |
3,563,469 |
|||||||||
Aviation Capital Group LLC, 5.50%, 12/15/24, Callable 11/15/24 @ 100 (a) |
1,000,000 |
1,094,510 |
|||||||||
Builders FirstSource, Inc., 6.75%, 6/1/27, Callable 6/1/22 @ 103.38 (a) |
1,764,000 |
1,860,085 |
|||||||||
Continental Airlines Pass Through Trust, 5.98%, 10/19/23 |
85,617 |
86,311 |
|||||||||
Delta Air Lines Pass Through Trust, 2.00%, 12/10/29 |
910,309 |
892,777 |
|||||||||
Delta Air Lines, Inc./SkyMiles IP Ltd., 4.50%, 10/20/25 (a) |
1,370,000 |
1,441,007 |
|||||||||
Hillenbrand, Inc., 5.75%, 6/15/25, Callable 6/15/22 @ 102.88 |
1,000,000 |
1,050,630 |
|||||||||
Huntington Ingalls Industries, Inc., 0.67%, 8/16/23, Callable 8/16/22 @ 100 (a) |
500,000 |
495,730 |
|||||||||
Mileage
Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd.,
6.50%, 6/20/27, Callable 6/30/23 @ 103.25 (a) |
1,000,000 |
1,068,890 |
|||||||||
Penske
Truck Leasing Co. LP/PTL Finance Corp., 1.70%, 6/15/26, Callable
5/15/26 @ 100 (a) |
1,000,000 |
991,020 |
|||||||||
Spirit Airlines Pass Through Trust, 4.45%, 10/1/25 |
925,297 |
946,782 |
|||||||||
The Nature Conservancy, 0.63%, 7/1/24 |
650,000 |
642,285 |
|||||||||
TransDigm, Inc., 8.00%, 12/15/25, Callable 4/8/22 @ 104 (a) (f) |
2,000,000 |
2,109,640 |
|||||||||
U.S. Airways Pass Through Trust, 3.95%, 5/15/27 |
329,209 |
330,453 |
|||||||||
United
Airlines Pass Through Trust 4.15%, 10/11/25 |
581,641 |
601,731 |
|||||||||
4.88%, 7/15/27 |
308,014 |
320,676 |
|||||||||
19,327,271 |
|||||||||||
Information Technology (1.2%): |
|||||||||||
Global Payments, Inc., 1.50%, 11/15/24, Callable 10/15/24 @ 100 |
2,000,000 |
2,000,600 |
|||||||||
Qorvo, Inc., 1.75%, 12/15/24, Callable 12/15/22 @ 100 (a) |
1,675,000 |
1,676,273 |
|||||||||
Skyworks Solutions, Inc., 0.90%, 6/1/23, Callable 6/1/22 @ 100 |
1,000,000 |
994,980 |
|||||||||
4,671,853 |
See notes to financial statements.
10
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Materials (3.5%): |
|||||||||||
Cleveland Cliffs, Inc., 9.88%, 10/17/25, Callable 10/17/22 @ 107.41 (a) (f) |
$ |
2,575,000 |
$ |
2,916,754 |
|||||||
Commercial Metals Co., 4.88%, 5/15/23, Callable 2/15/23 @ 100 |
2,625,000 |
2,711,966 |
|||||||||
Freeport-McMoRan, Inc., 5.00%, 9/1/27, Callable 9/1/22 @ 102.5 (f) |
3,000,000 |
3,139,830 |
|||||||||
Ingevity Corp., 4.50%, 2/1/26, Callable 2/7/22 @ 101.13 (a) |
1,500,000 |
1,503,750 |
|||||||||
Sealed
Air Corp. 5.25%, 4/1/23, Callable 1/1/23 @ 100 (a) |
1,000,000 |
1,037,260 |
|||||||||
1.57%, 10/15/26, Callable 9/15/26 @ 100 (a) |
1,000,000 |
970,140 |
|||||||||
West Fraser Timber Co Ltd, 4.35%, 10/15/24, Callable 7/15/24 @ 100 (a) |
1,000,000 |
1,068,740 |
|||||||||
13,348,440 |
|||||||||||
Real Estate (1.9%): |
|||||||||||
Host Hotels & Resorts LP, 4.50%, 2/1/26, Callable 11/1/25 @ 100 |
1,044,000 |
1,122,916 |
|||||||||
MPT
Operating Partnership LP/MPT Finance Corp., 5.00%, 10/15/27, Callable
10/15/22 @ 102.5 |
1,500,000 |
1,570,530 |
|||||||||
Office Properties Income Trust, 4.00%, 7/15/22, Callable 6/15/22 @ 100 |
1,000,000 |
1,011,990 |
|||||||||
Omega Healthcare Investors, Inc., 4.38%, 8/1/23, Callable 6/1/23 @ 100 |
919,000 |
958,002 |
|||||||||
SBA Tower Trust, 2.84%, 1/15/25, Callable 1/15/24 @ 100 (a) |
750,000 |
769,439 |
|||||||||
VICI
Properties LP/VICI Note Co., Inc., 3.50%, 2/15/25, Callable 2/15/22 @ 101.75 (a) |
364,000 |
371,142 |
|||||||||
Vornado Realty LP, 2.15%, 6/1/26, Callable 5/1/26 @ 100 |
1,500,000 |
1,503,210 |
|||||||||
7,307,229 |
|||||||||||
Utilities (1.9%): |
|||||||||||
Calpine Corp., 5.25%, 6/1/26, Callable 2/7/22 @ 102.63 (a) |
802,000 |
822,812 |
|||||||||
CenterPoint Energy Resources Corp., 0.70%, 3/2/23, Callable 2/7/22 @ 100 |
1,000,000 |
995,590 |
|||||||||
Cleco
Power LLC, 0.70% (US0003M+50bps), 6/15/23, Callable 3/15/22 @ 100 (a) (b) |
2,000,000 |
1,998,460 |
|||||||||
Entergy Texas, Inc., 1.50%, 9/1/26, Callable 8/1/26 @ 100 |
1,000,000 |
980,870 |
|||||||||
NextEra Energy Capital Holdings, Inc., 0.65%, 3/1/23 |
1,000,000 |
997,930 |
|||||||||
Oklahoma Gas & Electric Co., 0.55%, 5/26/23, Callable 2/7/22 @ 100 |
1,000,000 |
994,860 |
|||||||||
Sierra Pacific Power Co., 3.38%, 8/15/23, Callable 5/15/23 @ 100 |
500,000 |
516,670 |
|||||||||
7,307,192 |
|||||||||||
Total Corporate Bonds (Cost $165,028,929) |
165,385,385 |
||||||||||
Yankee Dollars (12.7%) |
|||||||||||
Communication Services (0.7%): |
|||||||||||
Bharti Airtel International Netherlands BV, 5.35%, 5/20/24 (a) |
1,000,000 |
1,077,230 |
|||||||||
Pearson Funding Four PLC, 3.75%, 5/8/22 (a) |
750,000 |
753,667 |
|||||||||
Telefonica Chile SA, 3.88%, 10/12/22 (a) |
1,000,000 |
1,020,040 |
|||||||||
2,850,937 |
|||||||||||
Consumer Discretionary (0.6%): |
|||||||||||
Nissan Motor Co. Ltd., 3.04%, 9/15/23 (a) |
1,000,000 |
1,026,360 |
|||||||||
Stellantis Finance US, Inc., 1.71%, 1/29/27, Callable 12/29/26 @ 100 (a) |
333,000 |
327,682 |
|||||||||
Stellantis NV, 5.25%, 4/15/23 |
1,000,000 |
1,050,720 |
|||||||||
2,404,762 |
|||||||||||
Consumer Staples (0.3%): |
|||||||||||
Imperial Brands Finance PLC, 3.13%, 7/26/24, Callable 6/26/24 @ 100 (a) |
948,000 |
980,602 |
See notes to financial statements.
11
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Energy (2.2%): |
|||||||||||
Bharat Petroleum Corp. Ltd., 4.38%, 1/24/22 |
$ |
2,095,000 |
$ |
2,098,557 |
|||||||
Galaxy Pipeline Assets Bidco Ltd., 1.75%, 9/30/27 (a) |
489,325 |
490,255 |
|||||||||
Harbour Energy PLC, 5.50%, 10/15/26, Callable 10/15/23 @ 102.75 (a) |
1,500,000 |
1,489,935 |
|||||||||
Harvest Operations Corp., 1.00%, 4/26/24, Callable 4/26/22 @ 100 (a) |
1,214,000 |
1,208,027 |
|||||||||
Petroleos
Mexicanos 4.88%, 1/24/22 |
703,000 |
704,047 |
|||||||||
3.85% (LIBOR03M+365bps), 3/11/22 (b) |
1,000,000 |
1,001,090 |
|||||||||
Suncor Energy Ventures Corp., 4.50%, 4/1/22 (a) |
1,597,000 |
1,612,699 |
|||||||||
8,604,610 |
|||||||||||
Financials (4.2%): |
|||||||||||
Banco
Santander Mexico SA Institucion de Banca Multiple Grupo Financiero
Santand, 5.38%, 4/17/25 (a) (f) |
3,000,000 |
3,275,700 |
|||||||||
BAT International Finance PLC, 1.67%, 3/25/26, Callable 2/25/26 @ 100 |
1,000,000 |
982,780 |
|||||||||
BBVA Bancomer SA, 6.75%, 9/30/22 (a) |
3,305,000 |
3,428,904 |
|||||||||
Element Fleet Management Corp., 1.60%, 4/6/24, Callable 3/6/24 @ 100 (a) |
400,000 |
400,932 |
|||||||||
Ontario Teachers' Finance Trust, 0.38%, 9/29/23 (a) |
1,000,000 |
992,440 |
|||||||||
Prudential
PLC 4.38%, Callable 1/20/22 @ 100, MTN (g) |
590,000 |
590,024 |
|||||||||
5.25%, Callable 1/20/22 @ 100, MTN (g) |
3,000,000 |
3,004,980 |
|||||||||
SA Global Sukuk Ltd., 0.95%, 6/17/24, Callable 5/17/24 @ 100 (a) |
416,000 |
409,760 |
|||||||||
Santander
UK Group Holdings PLC, 3.37% (LIBOR03M+108bps), 1/5/24, Callable 1/5/23 @ 100 (b) |
250,000 |
255,430 |
|||||||||
Standard Chartered PLC, 7.50% (USSW5+630bps), Callable 4/2/22 @ 100 (b) (g) |
1,000,000 |
1,013,750 |
|||||||||
VEON
Holdings BV 7.50%, 3/1/22 (a) |
1,000,000 |
1,010,050 |
|||||||||
5.95%, 2/13/23 |
1,000,000 |
1,041,660 |
|||||||||
16,406,410 |
|||||||||||
Health Care (0.3%): |
|||||||||||
Olympus Corp., 2.14%, 12/8/26 (a) |
1,212,000 |
1,218,957 |
|||||||||
Industrials (1.7%): |
|||||||||||
AerCap
Ireland Capital DAC/AerCap Global Aviation Trust, 3.15%, 2/15/24,
Callable 1/15/24 @ 100 |
1,000,000 |
1,030,790 |
|||||||||
Air
Canada Pass Through Trust 5.00%, 6/15/25 (a) |
243,814 |
247,520 |
|||||||||
4.13%, 11/15/26 (a) |
928,905 |
937,181 |
|||||||||
Avolon Holdings Funding Ltd., 2.13%, 2/21/26, Callable 1/21/26 @ 100 (a) |
750,000 |
737,025 |
|||||||||
CK Hutchison International Ltd., 2.75%, 3/29/23 (a) |
750,000 |
766,148 |
|||||||||
IHS Markit Ltd., 5.00%, 11/1/22, Callable 8/1/22 @ 100 (a) |
900,000 |
921,681 |
|||||||||
Smiths Group PLC, 3.63%, 10/12/22 (a) |
1,000,000 |
1,020,630 |
|||||||||
The Weir Group PLC, 2.20%, 5/13/26, Callable 4/13/26 @ 100 (a) |
1,000,000 |
992,010 |
|||||||||
6,652,985 |
|||||||||||
Information Technology (0.8%): |
|||||||||||
Telefonaktiebolaget LM Ericsson, 4.13%, 5/15/22 |
2,000,000 |
2,022,860 |
|||||||||
TSMC Global Ltd., 0.75%, 9/28/25, Callable 8/28/25 @ 100 (a) |
1,000,000 |
969,370 |
|||||||||
2,992,230 |
See notes to financial statements.
12
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Materials (1.5%): |
|||||||||||
OCI NV, 4.63%, 10/15/25, Callable 10/15/22 @ 102.31 (a) |
$ |
1,800,000 |
$ |
1,864,404 |
|||||||
POSCO, 2.38%, 1/17/23 |
2,100,000 |
2,123,352 |
|||||||||
Syngenta Finance NV, 3.13%, 3/28/22 |
1,718,000 |
1,722,793 |
|||||||||
5,710,549 |
|||||||||||
Utilities (0.4%): |
|||||||||||
TransAlta Corp., 4.50%, 11/15/22, Callable 8/15/22 @ 100 |
1,300,000 |
1,324,895 |
|||||||||
Total Yankee Dollars (Cost $49,214,964) |
49,146,937 |
||||||||||
Municipal Bonds (17.6%) |
|||||||||||
Alabama (0.3%): |
|||||||||||
City of Birmingham, GO, 0.86%, 3/1/24 |
1,015,000 |
1,010,175 |
|||||||||
California (3.1%): |
|||||||||||
California
Municipal Finance Authority Revenue 0.73%, 2/1/22 |
1,835,000 |
1,835,033 |
|||||||||
0.93%, 2/1/23 |
1,000,000 |
998,709 |
|||||||||
1.36%, 2/1/24 |
495,000 |
494,882 |
|||||||||
California
Statewide Communities Development Authority Revenue, 2.15%, 11/15/30, Continuously Callable @100 |
1,155,000 |
1,118,468 |
|||||||||
California
Statewide Communities Development Authority Revenue (NBGA ? California Health Insurance Construction Loan Insurance Program), 2.05%, 8/1/30 |
1,545,000 |
1,512,082 |
|||||||||
City of El Cajon Revenue, Series A, 0.65%, 4/1/23 |
650,000 |
648,088 |
|||||||||
City of Gardena Revenue, 1.30%, 4/1/23 |
565,000 |
567,931 |
|||||||||
Golden
State Tobacco Securitization Corp. Revenue 1.24%, 6/1/22 |
1,500,000 |
1,501,216 |
|||||||||
1.71%, 6/1/24 |
1,000,000 |
1,003,947 |
|||||||||
Series B, 0.67%, 6/1/23 |
1,000,000 |
997,768 |
|||||||||
Series B, 0.99%, 6/1/24 |
500,000 |
497,780 |
|||||||||
Placentia
Public Financing Authority Revenue Series A, 1.72%, 6/1/22 |
200,000 |
199,822 |
|||||||||
Series A, 1.93%, 6/1/23 |
300,000 |
298,852 |
|||||||||
San
Jose Redevelopment Agency Successor Agency Tax Allocation, Series A-T,
2.63%, 8/1/22 |
250,000 |
253,175 |
|||||||||
11,927,753 |
|||||||||||
Colorado (1.6%): |
|||||||||||
City
& County of Denver Co. Airport System Revenue Series C, 0.88%, 11/15/23 |
500,000 |
499,750 |
|||||||||
Series C, 1.12%, 11/15/24 |
500,000 |
499,727 |
|||||||||
City
of Loveland Electric & Communications Enterprise Revenue, 2.85%,
12/1/23 |
600,000 |
617,539 |
|||||||||
Colorado
Health Facilities Authority Revenue Series B, 2.24%, 11/1/22 |
750,000 |
756,984 |
|||||||||
Series B, 2.80%, 12/1/26 |
500,000 |
505,397 |
|||||||||
County of El Paso Co. Revenue, Series B, 1.05%, 6/1/24 |
1,230,000 |
1,224,129 |
|||||||||
Denver
City & County Housing Authority Revenue, 1.33%, 6/1/24,
Continuously Callable @100 |
750,000 |
747,875 |
See notes to financial statements.
13
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Denver City & County Housing Authority Revenue, 2.15%, 12/1/24 |
$ |
750,000 |
$ |
767,065 |
|||||||
Park Creek Metropolitan District Revenue, Series B, 2.43%, 12/1/23 |
700,000 |
722,979 |
|||||||||
6,341,445 |
|||||||||||
Florida (0.3%): |
|||||||||||
Hillsborough County IDA Revenue, 2.16%, 8/1/25 |
1,250,000 |
1,257,102 |
|||||||||
Georgia (0.3%): |
|||||||||||
Municipal Electric Authority of Georgia, 1.42%, 1/1/25 |
500,000 |
498,010 |
|||||||||
Municipal Electric Authority of Georgia Revenue, Series B, 1.58%, 1/1/26 |
555,000 |
549,787 |
|||||||||
1,047,797 |
|||||||||||
Guam (0.3%): |
|||||||||||
Territory of Guam Revenue, Series E, 3.25%, 11/15/26 |
1,000,000 |
1,019,572 |
|||||||||
Hawaii (0.5%): |
|||||||||||
State
of Hawaii Airports System Revenue Series B, 0.90%, 7/1/23 |
300,000 |
298,402 |
|||||||||
Series E, 1.39%, 7/1/25 |
1,500,000 |
1,498,686 |
|||||||||
1,797,088 |
|||||||||||
Illinois (0.7%): |
|||||||||||
Chicago O'Hare International Airport Revenue, Series D, 0.96%, 1/1/23 |
165,000 |
165,484 |
|||||||||
Sales Tax Securitization Corp. Revenue, 0.79%, 1/1/23 |
1,750,000 |
1,747,974 |
|||||||||
State of Illinois Sales Tax Revenue, Series B, 0.91%, 6/15/24 |
1,000,000 |
985,592 |
|||||||||
2,899,050 |
|||||||||||
Indiana (0.5%): |
|||||||||||
Indiana
Finance Authority Revenue 0.96%, 3/1/24 |
450,000 |
446,006 |
|||||||||
2.48%, 3/1/24 (f) |
1,000,000 |
1,027,942 |
|||||||||
1.41%, 3/1/25 |
570,000 |
566,806 |
|||||||||
2,040,754 |
|||||||||||
Kentucky (0.3%): |
|||||||||||
County of Warren Revenue, Series B, 0.92%, 4/1/25 |
1,200,000 |
1,179,401 |
|||||||||
Maine (0.1%): |
|||||||||||
Maine State Housing Authority Revenue, Series H, 1.70%, 11/15/26 |
600,000 |
595,639 |
|||||||||
Maryland (0.6%): |
|||||||||||
County of Howard, GO, Series C, 1.34%, 8/15/23 |
500,000 |
504,590 |
|||||||||
Maryland
Health & Higher Educational Facilities Authority Revenue 1.81%, 1/1/25 |
1,000,000 |
991,416 |
|||||||||
1.89%, 1/1/26 |
1,000,000 |
983,524 |
|||||||||
2,479,530 |
|||||||||||
Michigan (1.0%): |
|||||||||||
City of Grand Rapids MI Sanitary Sewer System Revenue, 0.94%, 1/1/25 |
1,000,000 |
994,312 |
|||||||||
Ecorse Public School District, GO, 2.00%, 5/1/24 |
750,000 |
768,301 |
|||||||||
Michigan
Finance Authority Revenue 2.21%, 12/1/23 |
185,000 |
188,808 |
|||||||||
2.31%, 12/1/24 |
105,000 |
107,786 |
|||||||||
2.37%, 9/1/49, (Put Date 9/1/23) (h) |
446,000 |
453,758 |
|||||||||
Series A-1, 2.33%, 6/1/30 |
764,071 |
777,580 |
See notes to financial statements.
14
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Ypsilanti School District, GO, 1.89%, 5/1/24 |
$ |
510,000 |
$ |
513,084 |
|||||||
3,803,629 |
|||||||||||
Mississippi (0.1%): |
|||||||||||
Medical Center Educational Building Corp. Revenue, 0.67%, 6/1/23 |
280,000 |
280,177 |
|||||||||
Missouri (0.4%): |
|||||||||||
Missouri
State Environmental Improvement & Energy Resources Authority
Revenue, Series B, 0.70%, 1/1/24 |
1,495,000 |
1,486,839 |
|||||||||
Nebraska (0.2%): |
|||||||||||
Papio-Missouri
River Natural Resource District Special Tax, 2.09%, 12/15/24,
Continuously Callable @100 |
630,000 |
639,648 |
|||||||||
New Jersey (0.6%): |
|||||||||||
Essex County Improvement Authority Revenue, Series B, 1.96%, 8/1/22 (a) |
350,000 |
348,289 |
|||||||||
South
Jersey Transportation Authority Revenue Series B, 2.10%, 11/1/24 |
750,000 |
756,825 |
|||||||||
Series B, 2.20%, 11/1/25 |
750,000 |
756,801 |
|||||||||
South
Jersey Transportation Authority System Revenue, Series B, 3.02%,
11/1/25 |
425,000 |
441,716 |
|||||||||
2,303,631 |
|||||||||||
New York (1.0%): |
|||||||||||
County of Suffolk, GO, Series C, 1.05%, 6/15/23 |
1,250,000 |
1,252,907 |
|||||||||
Madison County Capital Resource Corp. Revenue, 2.18%, 7/1/23 |
500,000 |
511,551 |
|||||||||
Metropolitan
Transportation Authority Revenue, Series A, 0.78%, 11/15/22,
Continuously Callable @100 |
2,000,000 |
2,002,362 |
|||||||||
3,766,820 |
|||||||||||
Ohio (0.1%): |
|||||||||||
Hamilton County Health Care Facilities Revenue, 2.37%, 6/1/22 |
325,000 |
326,992 |
|||||||||
Oklahoma (0.4%): |
|||||||||||
Oklahoma
Turnpike Authority Revenue Series B, 0.49%, 1/1/22 |
750,000 |
750,000 |
|||||||||
Series B, 0.63%, 1/1/23 |
560,000 |
560,551 |
|||||||||
The University of Oklahoma Revenue, Series B, 0.93%, 7/1/24 |
350,000 |
346,168 |
|||||||||
1,656,719 |
|||||||||||
Pennsylvania (0.3%): |
|||||||||||
School
District of Scranton, GO (INS ? Build America Mutual Assurance Co.),
2.46%, 4/1/22 |
500,000 |
502,548 |
|||||||||
State Public School Building Authority Revenue, 2.75%, 4/1/25 |
500,000 |
519,592 |
|||||||||
1,022,140 |
|||||||||||
Rhode Island (0.4%): |
|||||||||||
Providence Redevelopment Agency Revenue, Series A, 2.50%, 3/15/26 |
1,000,000 |
991,274 |
|||||||||
Rhode Island Commerce Corp. Revenue, 2.86%, 5/1/24 |
500,000 |
518,766 |
|||||||||
1,510,040 |
|||||||||||
South Carolina (0.1%): |
|||||||||||
Charleston Educational Excellence Finance Corp. Revenue, 0.65%, 12/1/23 |
600,000 |
596,782 |
See notes to financial statements.
15
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Tennessee (0.1%): |
|||||||||||
Metropolitan
Government Nashville & Davidson County Sports Authority Revenue, 1.03%, 8/1/24 |
$ |
600,000 |
$ |
597,737 |
|||||||
Texas (2.7%): |
|||||||||||
Aledo
Independent School District, GO (NBGA ? Texas Permanent School Fund),
0.95%, 2/15/24 |
250,000 |
244,997 |
|||||||||
Boerne
School District, GO 0.64%, 2/1/24 |
400,000 |
398,137 |
|||||||||
0.79%, 2/1/25 |
250,000 |
247,859 |
|||||||||
Central
Texas Turnpike System Revenue, Series B, 1.98%, 8/15/42, (Put Date 08/15/22) (h) |
1,000,000 |
1,006,082 |
|||||||||
City of Houston, GO, 2.77%, 3/1/22 |
150,000 |
150,598 |
|||||||||
Clear Creek Independent School District, GO, Series B, 5.00%, 2/15/24 |
1,000,000 |
1,083,971 |
|||||||||
Denton Independent School District, GO, Series A, 0.99%, 8/15/24 |
500,000 |
487,190 |
|||||||||
Harris
County Cultural Education Facilities Finance Corp. Revenue 1.59%, 11/15/23 |
675,000 |
680,743 |
|||||||||
1.84%, 11/15/24 |
500,000 |
505,321 |
|||||||||
Series B, 2.30%, 5/15/24 |
600,000 |
616,010 |
|||||||||
Lubbock Texas Water & Wastewater System Revenue, Series B, 1.93%, 2/15/24 |
750,000 |
768,361 |
|||||||||
Marshall
Independent School District, GO (NBGA ? Texas Permanent School Fund), 1.19%, 2/15/24 |
1,000,000 |
975,023 |
|||||||||
State of Texas, GO, 3.11%, 10/1/23 |
500,000 |
520,972 |
|||||||||
Tarrant
County Cultural Education Facilities Finance Corp. Revenue 1.07%, 9/1/23 |
525,000 |
527,318 |
|||||||||
1.36%, 9/1/24 |
700,000 |
705,377 |
|||||||||
Texas A&M University Revenue, Series A, 2.95%, 5/15/23 |
500,000 |
515,515 |
|||||||||
White
Settlement Independent School District, GO (NBGA ? Texas Permanent
School Fund), Series A, 1.33%, 8/15/25 |
920,000 |
876,688 |
|||||||||
10,310,162 |
|||||||||||
Virginia (0.8%): |
|||||||||||
County of Arlington, GO, Series B, 0.64%, 8/1/24 (f) |
2,000,000 |
1,983,958 |
|||||||||
Virginia
Small Business Financing Authority Revenue, 2.25%, 7/1/50, (Put Date 12/29/22) (a) (h) |
1,250,000 |
1,250,289 |
|||||||||
3,234,247 |
|||||||||||
Washington (0.1%): |
|||||||||||
Washington State University Revenue, Series A, 0.86%, 10/1/23 |
480,000 |
478,803 |
|||||||||
West Virginia (0.4%): |
|||||||||||
Tobacco Settlement Finance Authority Revenue, Series A, 1.19%, 6/1/23 |
1,500,000 |
1,503,571 |
|||||||||
Wisconsin (0.3%): |
|||||||||||
Public Finance Authority Revenue, Series S, 0.51%, 2/1/22 |
1,100,000 |
1,099,386 |
|||||||||
Total Municipal Bonds (Cost $68,074,097) |
68,212,629 |
||||||||||
U.S. Treasury Obligations (2.3%) |
|||||||||||
U.S.
Treasury Notes 0.38%, 10/31/23 (f) |
2,000,000 |
1,988,594 |
|||||||||
1.00%, 12/15/24 |
7,000,000 |
7,007,656 |
|||||||||
Total U.S. Treasury Obligations (Cost $8,992,536) |
8,996,250 |
See notes to financial statements.
16
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Commercial Papers (2.6%) (i) |
|||||||||||
AutoNation, Inc., 0.33%, 1/5/22 (a) |
$ |
2,300,000 |
$ |
2,299,895 |
|||||||
Energy Transfer LP, 0.33%, 1/5/22 (a) |
2,000,000 |
1,999,909 |
|||||||||
Jabil, Inc., 0.48%, 1/3/22 (a) |
3,800,000 |
3,799,848 |
|||||||||
One Gas, Inc., 0.18%, 1/4/22 (a) |
2,000,000 |
1,999,959 |
|||||||||
Total Commercial Papers (Cost $10,099,709) |
10,099,611 |
||||||||||
Total Investments (Cost $388,206,445) ? 100.3% |
388,350,097 |
||||||||||
Liabilities in excess of other assets ? (0.3)% |
(1,314,444 |
) |
|||||||||
NET ASSETS ? 100.00% |
$ |
387,035,653 |
(a) Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of December 31, 2021, the fair value of these securities was $152,891,407 and amounted to 39.5% of net assets.
(b) Variable or Floating-Rate Security. Rate disclosed is as of December 31, 2021.
(c) The rate for certain asset-backed and mortgage-backed securities may vary based on factors relating to the pool of assets underlying the security. The rate disclosed is the rate in effect at December 31, 2021.
(d) The rates for this senior secured loan will be known on settlement date of the loan, subsequent to this report date. Senior secured loans have rates that will fluctuate over time in line with prevailing interest rates.
(e) Security or a portion of the security purchased on a delayed-delivery and/or when-issued basis.
(f) All or a portion of the security has been segregated as collateral for securities purchased on a delayed-delivery and/or when-issued basis.
(g) Security is perpetual and has no final maturity date but may be subject to calls at various dates in the future.
(h) Put Bond.
(i) Rate represents the effective yield at December 31, 2021.
bps ? Basis points
GO ? General Obligation
H15T5Y ? 5 Year Treasury Constant Maturity Rate
IDA ? Industrial Development Authority
LIBOR ? London InterBank Offered Rate
LIBOR01M ? 1 Month US Dollar LIBOR, rate disclosed as of December 31, 2021, based on the last reset date of the security
LIBOR03M ? 3 Month US Dollar LIBOR, rate disclosed as of December 31, 2021, based on the last reset date of the security
LLC ? Limited Liability Company
LP ? Limited Partnership
See notes to financial statements.
17
Victory Portfolios
II VictoryShares USAA Core Short-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
MTN ? Medium Term Note
PLC ? Public Limited Company
SOFR ? Secured Overnight Financing Rate
US0001M ? 1 Month US Dollar LIBOR, rate disclosed as of December 31, 2021, based on the last reset date of the security
US0003M ? 3 Month US Dollar LIBOR, rate disclosed as of December 31, 2021, based on the last reset date of the security
USSW5 ? USD 5 Year Swap Rate, rate disclosed as of December 31, 2021.
Credit Enhancements ? Adds the financial strength of the provider of the enhancement to support the issuer's ability to repay the principal and interest payments when due. The enhancement may be provided by a high-quality bank, insurance company or other corporation, or a collateral trust. The enhancements do not guarantee the market values of the securities.
INS Principal and interest payments are insured by the name listed. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that value may fluctuate for other reasons, and there is no assurance that the insurance company will meet its obligations.
NBGA Principal and interest payments or, under certain circumstances, underlying mortgages, are guaranteed by a nonbank guarantee agreement from the name listed.
See notes to financial statements.
18
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Asset-Backed Securities (7.8%) |
|||||||||||
Aligned
Data Centers Issuer LLC, Series 2021-1A, Class A2, 1.94%, 8/15/46,
Callable 8/15/24 @ 100 (a) |
$ |
1,500,000 |
$ |
1,477,815 |
|||||||
American
Express Credit Account Master Trust, Series 2019-2, Class B, 2.86%, 11/15/24 |
2,076,000 |
2,090,213 |
|||||||||
AmeriCredit
Automobile Receivables Trust, Series 2021-3, Class B, 1.17%, 8/18/27, Callable 9/18/25 @ 100 |
1,000,000 |
991,173 |
|||||||||
ARI
Fleet Lease Trust, Series 2020-A, Class A3, 1.80%, 8/15/28, Callable
2/15/23 @ 100 (a) |
900,000 |
908,210 |
|||||||||
Avis
Budget Rental Car Funding AESOP LLC, Series 2019-2A, Class B, 3.55%,
9/22/25, Callable 10/20/24 @ 100 (a) |
500,000 |
521,102 |
|||||||||
Bank
of The West Auto Trust, Series 2019-1, Class C, 2.90%, 4/15/25, Callable
5/15/23 @ 100 (a) |
1,062,000 |
1,084,696 |
|||||||||
Bank
of The West Auto Trust, Series 2017-1, Class C, 2.96%, 2/15/24, Callable
2/15/22 @ 100 (a) |
500,000 |
501,432 |
|||||||||
BCC
Funding Corp. XVI LLC, Series 2019-1A, Class A2, 2.46%, 8/20/24,
Callable 6/20/23 @ 100 (a) |
282,431 |
283,949 |
|||||||||
BCC
Funding XVII LLC, Series 2020-1, Class B, 1.46%, 9/22/25, Callable
7/20/24 @ 100 (a) |
1,500,000 |
1,497,900 |
|||||||||
BCC
Funding XVII LLC, Series 2020-1, Class A2, 0.91%, 8/20/25, Callable
7/20/24 @ 100 (a) |
875,632 |
876,750 |
|||||||||
Canadian
Pacer Auto Receivables Trust, Series 2020-1A, Class A4, 1.89%,
3/19/25, Callable 7/19/23 @ 100 (a) |
433,000 |
438,382 |
|||||||||
Canadian
Pacer Auto Receivables Trust, Series 2018-2A, Class B, 3.63%, 1/19/24, Callable 4/19/22 @ 100 (a) |
500,000 |
504,433 |
|||||||||
CARDS II Trust, Series 2021-1A, Class A, 0.60%, 4/15/27 (a) |
2,300,000 |
2,273,362 |
|||||||||
CarMax
Auto Owner Trust, Series 2021-2, Class B, 1.03%, 12/15/26, Callable
4/15/24 @ 100 |
2,000,000 |
1,983,431 |
|||||||||
CarMax
Auto Owner Trust, Series 2020-1, Class B, 2.21%, 9/15/25, Callable
11/15/23 @ 100 |
1,275,000 |
1,298,329 |
|||||||||
CarNow
Auto Receivables Trust, Series 2021-1A, Class A, 0.97%, 10/15/24,
Callable 9/15/23 @ 100 (a) |
470,631 |
470,749 |
|||||||||
Carvana
Auto Receivables Trust, Series 2021-P2, Class B, 1.27%, 3/10/27,
Callable 4/10/25 @ 100 |
1,500,000 |
1,485,823 |
|||||||||
CF
Hippolyta LLC, Series 2021-1A, Class A1, 1.53%, 3/15/61, Callable
3/15/24 @ 100 (a) |
1,446,758 |
1,419,617 |
|||||||||
Chesapeake
Funding II LLC, Series 2019-1A, Class A1, 2.94%, 4/15/31, Callable 6/15/22 @ 100 (a) |
1,073,816 |
1,082,502 |
|||||||||
CPS
Auto Receivables Trust, Series 2019-C, Class D, 3.17%, 6/16/25, Callable
7/15/23 @ 100 (a) |
2,000,000 |
2,030,437 |
|||||||||
Credit
Acceptance Auto Loan Trust, Series 2021-2A, Class B, 1.26%, 4/15/30,
Callable 12/15/24 @ 100 (a) |
1,038,000 |
1,022,253 |
|||||||||
Credit
Acceptance Auto Loan Trust, Series 2020-1A, Class B, 2.39%, 4/16/29,
Callable 1/15/24 @ 100 (a) |
823,000 |
836,334 |
|||||||||
Crossroads
Asset Trust, Series 2021-A, Class A2, 0.82%, 3/20/24, Callable 4/20/24 @ 100 (a) |
559,961 |
559,918 |
|||||||||
Dell
Equipment Finance Trust, Series 2020-1, Class A3, 2.24%, 2/22/23,
Callable 10/22/22 @ 100 (a) |
687,500 |
692,859 |
|||||||||
Diamond
Infrastructure Funding LLC, Series 2021-1A, Class A, 1.76%, 4/15/49, Callable 9/20/25 @ 100 (a) |
1,000,000 |
973,009 |
See notes to financial statements.
19
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Diamond
Issuer, Series 2021-1A, Class A, 2.31%, 11/20/51, Callable 11/20/25 @ 100 (a) |
$ |
1,125,000 |
$ |
1,117,044 |
|||||||
Donlen
Fleet Lease Funding 2 LLC, Series 2021-2, Class B, 0.98%, 12/11/34 (a) |
1,327,000 |
1,308,611 |
|||||||||
Drive
Auto Receivables Trust, Series 2021-1, Class B, 0.65%, 7/15/25, Callable
10/15/23 @ 100 |
1,500,000 |
1,496,740 |
|||||||||
DT
Auto Owner Trust, Series 2018-2A, Class D, 4.15%, 3/15/24, Callable
8/15/22 @ 100 (a) |
831,267 |
838,634 |
|||||||||
DT
Auto Owner Trust, Series 2021-3A, Class B, 0.58%, 11/17/25, Callable
9/15/25 @ 100 (a) |
2,000,000 |
1,974,714 |
|||||||||
Encina
Equipment Finance LLC, Series 2021-1A, Class B, 1.21%, 2/15/27,
Callable 3/15/24 @ 100 (a) |
1,187,000 |
1,181,365 |
|||||||||
Encina
Equipment Finance LLC, Series 2021-1A, Class A2, 0.74%, 12/15/26,
Callable 3/15/24 @ 100 (a) |
877,000 |
875,121 |
|||||||||
Enterprise
Fleet Financing LLC, Series 2020-1, Class A3, 1.86%, 12/22/25,
Callable 8/20/23 @ 100 (a) |
820,000 |
831,367 |
|||||||||
Exeter
Automobile Receivables Trust, Series 2017-3A, Class D, 5.28%,
10/15/24, Callable 6/15/22 @ 100 (a) |
500,000 |
510,041 |
|||||||||
Exeter
Automobile Receivables Trust, Series 2021-4A, Class B, 1.26%, 5/15/26, Callable 1/15/25 @ 100 |
1,000,000 |
996,325 |
|||||||||
Exeter
Automobile Receivables Trust, Series 2020-1A, Class B, 2.26%, 4/15/24, Callable 10/15/23 @ 100 (a) |
63,777 |
63,804 |
|||||||||
ExteNet
LLC, Series 2019-1A, Class A2, 3.20%, 7/26/49, Callable 1/25/23 @ 100 (a) |
500,000 |
507,165 |
|||||||||
First
Investors Auto Owner Trust, Series 2018-2A, Class F, 7.31%, 9/15/25,
Callable 12/15/22 @ 100 (a) |
750,000 |
772,152 |
|||||||||
First
Investors Auto Owner Trust, Series 2019-2A, Class C, 2.71%, 12/15/25,
Callable 6/15/23 @ 100 (a) |
1,500,000 |
1,518,350 |
|||||||||
FirstKey Homes Trust, Series 2021-SFR2, Class B, 1.61%, 9/17/26 (a) |
1,153,846 |
1,104,326 |
|||||||||
Flagship
Credit Auto Trust, Series 2020-2, Class D, 5.75%, 4/15/26, Callable
2/15/24 @ 100 (a) |
1,000,000 |
1,071,923 |
|||||||||
Ford
Credit Auto Owner Trust, Series 2020-1, Class B, 2.29%, 8/15/31,
Callable 2/15/25 @ 100 (a) |
1,500,000 |
1,524,743 |
|||||||||
Foursight
Capital Automobile Receivables Trust, Series 2021-1, Class B, 0.87%, 1/15/26, Callable 11/15/24 @ 100 (a) |
1,406,000 |
1,392,236 |
|||||||||
GLS
Auto Receivables Issuer Trust, Series 2020-1A, Class B, 2.43%,
11/15/24, Callable 9/15/23 @ 100 (a) |
1,000,000 |
1,009,301 |
|||||||||
GM
Financial Consumer Automobile Receivables Trust, Series 2020-1, Class A4, 1.90%, 3/17/25, Callable 7/16/23 @ 100 |
1,000,000 |
1,014,771 |
|||||||||
GM
Financial Consumer Automobile Receivables Trust, Series 2020-2, Class A4, 1.74%, 8/18/25, Callable 10/16/23 @ 100 |
750,000 |
759,427 |
|||||||||
Hertz Vehicle Financing III LP, Series 2021-2A, Class A, 1.68%, 12/27/27 (a) |
1,000,000 |
987,844 |
|||||||||
Hertz Vehicle Financing LLC, Series 2021-1A, Class C, 2.05%, 12/26/25 (a) |
1,333,000 |
1,319,501 |
|||||||||
HPEFS
Equipment Trust, Series 2020-1A, Class B, 1.89%, 2/20/30, Callable
2/20/23 @ 100 (a) |
385,000 |
387,668 |
|||||||||
HPEFS
Equipment Trust, Series 2019-1A, Class C, 2.49%, 9/20/29, Callable
8/20/22 @ 100 (a) |
500,000 |
503,033 |
|||||||||
Hyundai
Auto Receivables Trust, Series 2021-C, Class B, 1.49%, 12/15/27,
Callable 12/15/25 @ 100 |
2,000,000 |
1,977,753 |
See notes to financial statements.
20
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Hyundai
Auto Receivables Trust, Series 2020-C, Class B, 0.81%, 11/16/26,
Callable 11/15/24 @ 100 |
$ |
1,271,000 |
$ |
1,248,654 |
|||||||
John
Deere Owner Trust, Series 2020-A, Class A4, 1.21%, 11/16/26, Callable
7/15/23 @ 100 |
2,000,000 |
2,007,832 |
|||||||||
JPMorgan
Chase Bank NA, Series 2021-2, Class B, 0.89%, 12/26/28, Callable
8/25/24 @ 100 (a) |
687,129 |
683,389 |
|||||||||
JPMorgan
Chase Bank NA, Series 2021-1, Class B, 0.88%, 9/25/28, Callable
9/25/24 @ 100 (a) |
737,183 |
734,643 |
|||||||||
Kubota
Credit Owner Trust, Series 2020-1A, Class A4, 2.26%, 7/15/26, Callable 9/15/23 @ 100 (a) |
433,000 |
441,750 |
|||||||||
LAD
Auto Receivables Trust, Series 2021-1A, Class A, 1.30%, 8/17/26,
Callable 9/15/25 @ 100 (a) |
1,817,305 |
1,813,047 |
|||||||||
Master Credit Card Trust, Series 2021-1A, Class B, 0.79%, 11/21/25 (a) |
539,000 |
530,576 |
|||||||||
MMAF
Equipment Finance LLC, Series 2017-B, Class A4, 2.41%, 11/15/24,
Callable 9/15/27 @ 100 (a) |
512,889 |
515,928 |
|||||||||
MVW
LLC, Series 2021-1WA, Class A, 1.14%, 1/22/41, Callable 4/20/27 @ 100 (a) |
876,094 |
860,648 |
|||||||||
Navient
Student Loan Trust, Series 2018-2A, Class B, 1.25% (LIBOR01M+115bps), 3/25/67, Callable 11/25/33 @ 100 (a) (b) |
1,000,000 |
975,833 |
|||||||||
Nelnet
Student Loan Trust, Series 2019-5, Class A, 2.53%, 10/25/67, Callable
5/25/35 @ 100 (a) |
1,133,683 |
1,157,969 |
|||||||||
New
Economy Assets Phase 1 Sponsor LLC, Series 2021-1, Class A1, 1.91%,
10/20/61, Callable 10/20/24 @ 100 (a) |
1,807,000 |
1,771,785 |
|||||||||
NP SPE II LLC, Series 2019-2A, Class C1, 6.44%, 11/19/49 (a) |
976,744 |
910,644 |
|||||||||
NP SPE LLC, Series 2019-1A, Class A2, 3.24%, 9/20/49 (a) |
500,000 |
506,092 |
|||||||||
Oscar
U.S. Funding XIII LLC, Series 2021-2A, Class A4, 1.27%, 9/11/28,
Callable 6/10/25 @ 100 (a) |
1,500,000 |
1,475,756 |
|||||||||
Pawnee
Equipment Receivables LLC, Series 2020-1, Class B, 1.84%, 1/15/26,
Callable 2/15/24 @ 100 (a) |
1,000,000 |
1,006,308 |
|||||||||
Prestige
Auto Receivables Trust, Series 2020-1A, Class C, 1.31%, 11/16/26,
Callable 6/15/23 @ 100 (a) |
929,000 |
931,367 |
|||||||||
Prestige
Auto Receivables Trust, Series 2021-1A, Class C, 1.53%, 2/15/28,
Callable 10/15/25 @ 100 (a) |
1,000,000 |
991,818 |
|||||||||
Progress
Residential Trust, Series 2021-SFR6, Class A, 1.52%, 7/17/38, Callable 7/17/26 @ 100 (a) |
1,100,000 |
1,075,479 |
|||||||||
PSNH Funding LLC, Series 2018-1, Class A3, 3.81%, 2/1/35 |
1,000,000 |
1,132,319 |
|||||||||
Santander
Bank NA, Series 2021-1A, Class B, 1.83%, 12/15/31, Callable 6/15/25 @ 100 (a) |
2,286,000 |
2,283,891 |
|||||||||
Santander
Consumer Auto Receivables Trust, Series 2020-AA, Class D, 5.49%, 4/15/26, Callable 11/15/23 @ 100 (a) |
1,000,000 |
1,061,369 |
|||||||||
SCF
Equipment Leasing LLC, Series 2020-1A, Class A3, 1.19%, 10/20/27,
Callable 3/20/25 @ 100 (a) |
1,000,000 |
1,001,732 |
|||||||||
SLM
Student Loan Trust, Series 2006-10, Class B, 0.34% (LIBOR03M+22bps),
3/25/44, Callable 7/25/32 @ 100 (b) |
204,502 |
192,131 |
|||||||||
SLM
Student Loan Trust, Series 2007-1, Class B, 0.34% (LIBOR03M+22bps),
1/27/42, Callable 7/25/29 @ 100 (b) |
325,179 |
306,903 |
|||||||||
Synchrony
Credit Card Master Note Trust, Series 2018-2, Class A, 3.47%,
5/15/26 |
2,000,000 |
2,072,263 |
|||||||||
Toyota
Auto Loan Extended Note Trust, Series 2021-1A, Class A, 1.07%,
2/27/34, Callable 2/25/26 @ 100 (a) (c) |
2,000,000 |
1,961,039 |
See notes to financial statements.
21
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Transportation
Finance Equipment Trust, Series 2019-1, Class A4, 1.88%, 3/25/24, Callable 5/23/23 @ 100 (a) |
$ |
1,280,000 |
$ |
1,294,483 |
|||||||
Trillium Credit Card Trust II, Series 2021-1A, Class C, 2.42%, 10/26/29 (a) |
2,000,000 |
1,992,090 |
|||||||||
Trillium Credit Card Trust II, Series 2021-1A, Class A, 1.53%, 10/26/29 (a) |
2,000,000 |
1,991,951 |
|||||||||
VB-S1
Issuer LLC, Series 2018-1A, Class C, 3.41%, 2/15/48, Callable 2/15/22 @ 100 (a) |
500,000 |
502,808 |
|||||||||
Wepco
Environmental Trust Finance I LLC, Series 2021-1, Class A, 1.58%,
12/15/35 |
1,447,897 |
1,451,741 |
|||||||||
Westlake
Automobile Receivables Trust, Series 2021-3A, Class C, 1.58%, 1/15/27, Callable 12/15/24 @ 100 (a) |
1,000,000 |
998,115 |
|||||||||
Westlake
Automobile Receivables Trust, Series 2018-2A, Class D, 4.00%, 1/16/24, Callable 2/15/22 @ 100 (a) |
33,493 |
33,524 |
|||||||||
Westlake
Automobile Receivables Trust, Series 2018-3A, Class D, 4.00%,
10/16/23, Callable 7/15/22 @ 100 (a) |
470,254 |
473,496 |
|||||||||
Westlake
Automobile Receivables Trust, Series 2019-2A, Class E, 4.02%, 4/15/25, Callable 3/15/23 @ 100 (a) |
1,000,000 |
1,025,468 |
|||||||||
Total Asset-Backed Securities (Cost $94,109,110) |
93,763,478 |
||||||||||
Collateralized Mortgage Obligations (2.5%) |
|||||||||||
Aventura Mall Trust, Series 2018-AVM, Class D, 4.11%, 7/5/40 (a) (c) |
1,000,000 |
996,671 |
|||||||||
BAMLL
Commercial Mortgage Securities Trust, Series 2015-200P, Class D, 3.60% (LIBOR01M+105bps), 4/14/33, Callable 4/14/25 @ 100 (a) (b) |
500,000 |
509,080 |
|||||||||
BBCMS
Mortgage Trust, Series 2020-BID, Class B, 2.65% (LIBOR01M+254bps), 10/15/37 (a) (b) |
1,750,000 |
1,754,177 |
|||||||||
Benchmark
Mortgage Trust, Series 2020-B17, Class ASB, 2.18%, 3/15/53, Callable 11/15/29 @ 100 |
1,000,000 |
1,007,127 |
|||||||||
BPR
Trust, Series 2021-TY, Class A, 1.16% (LIBOR01M+105bps), 9/23/23 (a) (b) |
865,000 |
863,396 |
|||||||||
BX
Commercial Mortgage Trust, Series 2019-XL, Class B, 1.19%
(LIBOR01M+108bps), 10/15/36 (a) (b) |
218,450 |
218,235 |
|||||||||
BX
Commercial Mortgage Trust, Series 2019-XL, Class D, 1.56%
(LIBOR01M+145bps), 10/15/36 (a) (b) |
1,015,750 |
1,012,876 |
|||||||||
BX Trust, Series 2019-OC11, Class A, 3.20%, 12/9/41 (a) |
923,077 |
972,942 |
|||||||||
BXP Trust, Series 2021-601L, Class C, 2.78%, 1/15/44 (a) (c) |
1,500,000 |
1,441,087 |
|||||||||
CHT
Mortgage Trust, Series 2017-CSMO, Class E, 3.11% (LIBOR01M+300bps), 11/15/36 (a) (b) |
1,000,000 |
999,884 |
|||||||||
Citigroup
Commercial Mortgage Trust, Series 2020-GC46, Class AAB, 2.61%,
1/15/53, Callable 11/15/29 @ 100 |
732,000 |
754,841 |
|||||||||
Citigroup
Commercial Mortgage Trust, Series 2020-555, Class A, 2.65%, 12/10/41 (a) |
2,000,000 |
2,024,607 |
|||||||||
Citigroup
Commercial Mortgage Trust, Series 2017-P8, Class AS, 3.79%, 9/15/50, Callable 9/15/27 @ 100 (c) |
500,000 |
539,232 |
|||||||||
Citigroup
Commercial Mortgage Trust, Series 2019-SMRT, Class C, 4.68%, 1/10/36 (a) |
500,000 |
517,480 |
|||||||||
COMM Mortgage Trust, Series 2015-LC23, Class AM, 4.16%, 10/10/48 (c) |
250,000 |
267,397 |
|||||||||
COMM
Mortgage Trust, Series 2020-CX, Class A, 2.17%, 11/10/46, Callable
11/10/30 @ 100 (a) |
1,500,000 |
1,479,883 |
|||||||||
COMM
Mortgage Trust, Series 2015-PC1, Class B, 4.32%, 7/10/50, Callable
6/10/25 @ 100 (c) |
865,000 |
922,058 |
See notes to financial statements.
22
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
COMM
Mortgage Trust, Series 2014-277P, Class A, 3.61%, 8/10/49, Callable
8/10/24 @ 100 (a) (c) |
$ |
1,000,000 |
$ |
1,045,335 |
|||||||
DBJPM
Mortgage Trust, Series 2016-SFC, Class A, 2.83%, 8/10/36, Callable
8/10/26 @ 100 (a) |
250,000 |
253,420 |
|||||||||
Extended
Stay America Trust, Series 2021-ESH, Class B, 1.49% (LIBOR01M+138bps), 7/15/38 (a) (b) |
773,753 |
774,807 |
|||||||||
FREMF Mortgage Trust, Series 2019-K99, Class B, 3.65%, 9/25/29 (a) (c) |
1,000,000 |
1,065,882 |
|||||||||
GS
Mortgage Securities Corp. Trust, Series 2012-ALOH, Class A, 3.55%,
4/10/34 (a) |
1,000,000 |
999,997 |
|||||||||
GS
Mortgage Securities Corp. Trust, Series 2017-GPTX, Class A, 2.86%,
5/10/34 (a) |
1,000,000 |
997,613 |
|||||||||
Houston
Galleria Mall Trust, Series 2015-HGLR, Class A1A2, 3.09%, 3/5/37 (a) |
1,000,000 |
1,021,158 |
|||||||||
Hudson
Yards Mortgage Trust, Series 2019-30HY, Class D, 3.44%, 7/10/39 (a) (c) |
595,000 |
607,703 |
|||||||||
J.P.
Morgan Chase Commercial Mortgage Securities Trust, Series 2021-2NU,
Class B, 2.08%, 1/5/40 (a) |
1,000,000 |
974,891 |
|||||||||
J.P.
Morgan Chase Commercial Mortgage Securities Trust, Series 2010-C2,
Class C, 5.69%, 11/15/43, Callable 1/15/22 @ 100 (a) (c) |
438,837 |
438,917 |
|||||||||
Manhattan West, Series 2020-1MW, Class A, 2.13%, 9/10/40 (a) |
750,000 |
748,451 |
|||||||||
Morgan
Stanley Capital I Trust, Series 2021-PLZA, Class B, 2.81%, 11/9/31 (a) |
1,000,000 |
1,006,104 |
|||||||||
SLG Office Trust, Series 2021-OVA, Class A, 2.59%, 7/15/41 (a) |
800,000 |
820,181 |
|||||||||
SREIT
Trust, Series 2021-MFP2, Class B, 1.27% (LIBOR01M+117bps), 11/15/36 (a) (b) |
1,500,000 |
1,492,499 |
|||||||||
VLS
Commercial Mortgage Trust, Series 2020-LAB, Class A, 2.13%, 10/10/42 (a) |
1,000,000 |
982,640 |
|||||||||
Wells
Fargo Commercial Mortgage Trust, Series 2018-AUS, Class A, 4.06%,
7/17/36 (a) (c) |
250,000 |
273,728 |
|||||||||
Total Collateralized Mortgage Obligations (Cost $30,023,691) |
29,784,299 |
||||||||||
Corporate Bonds (32.5%) |
|||||||||||
Communication Services (1.7%): |
|||||||||||
AT&T,
Inc. 4.35%, 3/1/29, Callable 12/1/28 @ 100 |
1,000,000 |
1,125,150 |
|||||||||
3.10%, 2/1/43, Callable 8/1/42 @ 100 |
2,000,000 |
1,936,940 |
|||||||||
CenturyLink, Inc., 4.50%, 1/15/29, Callable 1/15/24 @ 102.25 (a) |
1,000,000 |
969,730 |
|||||||||
Charter
Communications Operating LLC/Charter Communications Operating Capital 3.75%, 2/15/28, Callable 11/15/27 @ 100 |
500,000 |
536,020 |
|||||||||
2.25%, 1/15/29, Callable 11/15/28 @ 100 |
2,000,000 |
1,956,080 |
|||||||||
2.30%, 2/1/32, Callable 11/1/31 @ 100 |
2,500,000 |
2,375,625 |
|||||||||
Comcast Corp., 3.55%, 5/1/28, Callable 2/1/28 @ 100 |
750,000 |
821,138 |
|||||||||
Fox Corp., 4.71%, 1/25/29, Callable 10/25/28 @ 100 |
1,000,000 |
1,143,120 |
|||||||||
T-Mobile
USA, Inc. 4.75%, 2/1/28, Callable 2/1/23 @ 102.38 |
643,000 |
676,905 |
|||||||||
3.88%, 4/15/30, Callable 1/15/30 @ 100 |
1,000,000 |
1,094,270 |
|||||||||
2.25%, 11/15/31, Callable 8/15/31 @ 100 |
3,000,000 |
2,910,660 |
See notes to financial statements.
23
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Verizon
Communications, Inc. 2.10%, 3/22/28, Callable 1/22/28 @ 100 |
$ |
1,500,000 |
$ |
1,504,575 |
|||||||
1.75%, 1/20/31, Callable 10/20/30 @ 100 |
3,000,000 |
2,839,440 |
|||||||||
ViacomCBS, Inc., 3.38%, 2/15/28, Callable 11/15/27 @ 100 |
1,000,000 |
1,065,950 |
|||||||||
20,955,603 |
|||||||||||
Consumer Discretionary (2.3%): |
|||||||||||
AutoNation,
Inc. 4.75%, 6/1/30, Callable 3/1/30 @ 100 |
600,000 |
686,160 |
|||||||||
2.40%, 8/1/31, Callable 5/1/31 @ 100 |
3,000,000 |
2,903,820 |
|||||||||
AutoZone, Inc., 3.75%, 6/1/27, Callable 3/1/27 @ 100 |
500,000 |
547,035 |
|||||||||
Brunswick Corp., 2.40%, 8/18/31, Callable 5/18/31 @ 100 |
1,500,000 |
1,445,985 |
|||||||||
D.R. Horton, Inc., 4.75%, 2/15/23, Callable 11/15/22 @ 100 |
500,000 |
516,450 |
|||||||||
Daimler
Finance North America LLC 3.70%, 5/4/23 (a) |
1,000,000 |
1,036,000 |
|||||||||
3.45%, 1/6/27 (a) |
1,000,000 |
1,077,370 |
|||||||||
Daimler Trucks Finance North America LLC, 2.38%, 12/14/28 (a) |
1,050,000 |
1,055,565 |
|||||||||
Genting
New York LLC/GENNY Capital, Inc., 3.30%, 2/15/26, Callable 1/15/26 @ 100 (a) |
1,000,000 |
990,030 |
|||||||||
Hasbro,
Inc. 3.55%, 11/19/26, Callable 9/19/26 @ 100 |
600,000 |
643,938 |
|||||||||
3.90%, 11/19/29, Callable 8/19/29 @ 100 |
1,000,000 |
1,102,440 |
|||||||||
Kohl's Corp., 3.38%, 5/1/31, Callable 2/1/31 @ 100 (d) |
2,000,000 |
2,035,900 |
|||||||||
Marriott International, Inc., 2.85%, 4/15/31, Callable 1/15/31 @ 100 |
2,000,000 |
1,995,240 |
|||||||||
Murphy
Oil USA, Inc. 4.75%, 9/15/29, Callable 9/15/24 @ 102.38 |
1,000,000 |
1,054,720 |
|||||||||
3.75%, 2/15/31, Callable 2/15/26 @ 101.88 (a) |
235,000 |
233,552 |
|||||||||
Newell Brands, Inc., 4.70%, 4/1/26, Callable 1/1/26 @ 100 |
500,000 |
545,345 |
|||||||||
Nordstrom, Inc., 4.25%, 8/1/31, Callable 5/1/31 @ 100 (d) |
750,000 |
737,198 |
|||||||||
Novant Health, Inc., 2.64%, 11/1/36, Callable 8/1/36 @ 100 |
2,000,000 |
2,016,560 |
|||||||||
O'Reilly Automotive, Inc., 4.20%, 4/1/30, Callable 1/1/30 @ 100 |
500,000 |
565,130 |
|||||||||
Resorts
World Las Vegas LLC/RWLV Capital, Inc., 4.63%, 4/6/31, Callable 1/6/31 @ 100 (a) |
1,300,000 |
1,295,684 |
|||||||||
Sodexo, Inc., 2.72%, 4/16/31, Callable 1/16/31 @ 100 (a) |
2,000,000 |
2,047,780 |
|||||||||
Stellantis Finance U.S., Inc., 2.69%, 9/15/31, Callable 6/15/31 @ 100 (a) |
1,200,000 |
1,182,024 |
|||||||||
VF Corp., 2.95%, 4/23/30, Callable 1/23/30 @ 100 |
500,000 |
518,930 |
|||||||||
Volkswagen Group of America Finance LLC, 3.20%, 9/26/26 (a) |
1,000,000 |
1,054,230 |
|||||||||
27,287,086 |
|||||||||||
Consumer Staples (2.3%): |
|||||||||||
Altria Group, Inc., 2.45%, 2/4/32, Callable 11/4/31 @ 100 |
1,500,000 |
1,425,765 |
|||||||||
Anheuser-Busch
InBev Worldwide, Inc. 3.65%, 2/1/26, Callable 11/1/25 @ 100 |
1,000,000 |
1,078,730 |
|||||||||
3.50%, 6/1/30, Callable 3/1/30 @ 100 |
1,500,000 |
1,643,535 |
|||||||||
4.38%, 4/15/38, Callable 10/15/37 @ 100 |
500,000 |
586,015 |
|||||||||
5.45%, 1/23/39, Callable 7/23/38 @ 100 |
500,000 |
656,925 |
|||||||||
4.35%, 6/1/40, Callable 12/1/39 @ 100 |
1,000,000 |
1,176,030 |
|||||||||
BAT
Capital Corp. 2.73%, 3/25/31, Callable 12/25/30 @ 100 |
1,000,000 |
971,280 |
|||||||||
4.39%, 8/15/37, Callable 2/15/37 @ 100 |
1,250,000 |
1,322,587 |
|||||||||
Bunge Ltd. Finance Corp., 2.75%, 5/14/31, Callable 2/14/31 @ 100 |
2,000,000 |
2,030,500 |
See notes to financial statements.
24
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Cargill, Inc., 2.13%, 11/10/31, Callable 8/10/31 @ 100 (a) |
$ |
1,000,000 |
$ |
984,540 |
|||||||
Church & Dwight Co., Inc., 2.30%, 12/15/31, Callable 9/15/31 @ 100 |
1,000,000 |
1,007,040 |
|||||||||
Constellation
Brands, Inc. 3.50%, 5/9/27, Callable 2/9/27 @ 100 |
750,000 |
808,470 |
|||||||||
2.25%, 8/1/31, Callable 5/1/31 @ 100 |
1,769,000 |
1,729,074 |
|||||||||
General Mills, Inc., 4.55%, 4/17/38, Callable 10/17/37 @ 100 |
1,000,000 |
1,194,110 |
|||||||||
JBS Finance Luxembourg Sarl, 2.50%, 1/15/27, Callable 12/15/26 @ 100 (a) |
1,500,000 |
1,492,800 |
|||||||||
Keurig Dr Pepper, Inc., 2.25%, 3/15/31, Callable 12/15/30 @ 100 |
1,000,000 |
987,540 |
|||||||||
Kraft Heinz Foods Co., 3.75%, 4/1/30, Callable 1/1/30 @ 100 |
1,000,000 |
1,080,440 |
|||||||||
Mars, Inc., 3.88%, 4/1/39, Callable 10/1/38 @ 100 (a) |
1,000,000 |
1,156,950 |
|||||||||
McCormick
& Co., Inc. 2.50%, 4/15/30, Callable 1/15/30 @ 100 |
375,000 |
379,058 |
|||||||||
1.85%, 2/15/31, Callable 11/15/30 @ 100 |
1,000,000 |
957,630 |
|||||||||
PepsiCo, Inc., 2.75%, 3/19/30, Callable 12/19/29 @ 100 |
1,000,000 |
1,057,280 |
|||||||||
Sysco
Corp. 5.95%, 4/1/30, Callable 1/1/30 @ 100 |
260,000 |
324,987 |
|||||||||
2.45%, 12/14/31, Callable 9/14/31 @ 100 |
1,500,000 |
1,504,200 |
|||||||||
The Coca-Cola Co., 2.00%, 3/5/31 |
2,000,000 |
1,994,120 |
|||||||||
The Kroger Co., 3.50%, 2/1/26, Callable 11/1/25 @ 100 |
500,000 |
535,755 |
|||||||||
28,085,361 |
|||||||||||
Energy (2.6%): |
|||||||||||
Baker
Hughes Holdings LLC/Baker Hughes Co-Obligor, Inc., 2.06%, 12/15/26,
Callable 11/15/26 @ 100 |
1,312,000 |
1,324,792 |
|||||||||
Boardwalk
Pipelines LP 4.45%, 7/15/27, Callable 4/15/27 @ 100 |
1,500,000 |
1,645,020 |
|||||||||
4.80%, 5/3/29, Callable 2/3/29 @ 100 |
500,000 |
560,540 |
|||||||||
Buckeye Partners LP, 4.13%, 12/1/27, Callable 9/1/27 @ 100 |
1,000,000 |
1,032,310 |
|||||||||
Cameron LNG LLC, 3.30%, 1/15/35, Callable 9/15/34 @ 100 (a) |
1,091,000 |
1,143,695 |
|||||||||
Cheniere
Corpus Christi Holdings LLC, 2.74%, 12/31/39, Callable 7/4/39 @ 100 (a) |
1,333,000 |
1,304,154 |
|||||||||
Diamondback Energy, Inc., 3.25%, 12/1/26, Callable 10/1/26 @ 100 |
1,000,000 |
1,055,600 |
|||||||||
Enable Midstream Partners LP, 4.15%, 9/15/29, Callable 6/15/29 @ 100 |
1,000,000 |
1,074,430 |
|||||||||
Energy Transfer LP, 3.75%, 5/15/30, Callable 2/15/30 @ 100 |
1,000,000 |
1,062,810 |
|||||||||
Enterprise
Products Operating LLC, 2.80%, 1/31/30, Callable 10/31/29 @ 100 |
1,000,000 |
1,042,930 |
|||||||||
EQT Corp., 7.50%, 2/1/30, Callable 11/1/29 @ 100 |
514,000 |
659,878 |
|||||||||
Exxon Mobil Corp., 2.61%, 10/15/30, Callable 7/15/30 @ 100 |
1,500,000 |
1,556,670 |
|||||||||
Florida Gas Transmission Co. LLC, 2.55%, 7/1/30, Callable 4/1/30 @ 100 (a) |
750,000 |
754,718 |
|||||||||
Gray Oak Pipeline LLC, 3.45%, 10/15/27, Callable 8/15/27 @ 100 (a) |
1,334,000 |
1,394,817 |
|||||||||
Hilcorp
Energy I LP/Hilcorp Finance Co. 6.25%, 11/1/28, Callable 11/1/23 @ 103.13 (a) |
1,000,000 |
1,064,640 |
|||||||||
6.00%, 2/1/31, Callable 2/1/26 @ 103 (a) |
396,000 |
410,268 |
|||||||||
HollyFrontier Corp., 4.50%, 10/1/30, Callable 7/1/30 @ 100 |
2,000,000 |
2,162,440 |
|||||||||
Midwest
Connector Capital Co. LLC, 4.63%, 4/1/29, Callable 1/1/29 @ 100 (a) |
500,000 |
539,010 |
|||||||||
MPLX
LP 4.25%, 12/1/27, Callable 9/1/27 @ 100 |
500,000 |
553,910 |
|||||||||
4.00%, 3/15/28, Callable 12/15/27 @ 100 |
750,000 |
815,295 |
|||||||||
4.80%, 2/15/29, Callable 11/15/28 @ 100 |
250,000 |
285,812 |
See notes to financial statements.
25
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Murphy
Oil Corp. 6.88%, 8/15/24, Callable 2/7/22 @ 101.72 |
$ |
448,000 |
$ |
456,552 |
|||||||
5.75%, 8/15/25, Callable 2/7/22 @ 102.88 |
500,000 |
513,755 |
|||||||||
Occidental
Petroleum Corp. 3.40%, 4/15/26, Callable 1/15/26 @ 100 |
1,000,000 |
1,025,450 |
|||||||||
4.40%, 8/15/49, Callable 2/15/49 @ 100 |
500,000 |
508,175 |
|||||||||
ONEOK, Inc., 4.55%, 7/15/28, Callable 4/15/28 @ 100 |
500,000 |
553,370 |
|||||||||
Pioneer Natural Resources Co., 1.90%, 8/15/30, Callable 5/15/30 @ 100 |
1,500,000 |
1,424,100 |
|||||||||
Plains
All American Pipeline LP/PAA Finance Corp., 3.55%, 12/15/29, Callable 9/15/29 @ 100 |
2,280,000 |
2,371,132 |
|||||||||
Rockies Express Pipeline LLC, 4.95%, 7/15/29, Callable 4/15/29 @ 100 (a) |
1,000,000 |
1,073,330 |
|||||||||
Sabal Trail Transmission LLC, 4.25%, 5/1/28, Callable 2/1/28 @ 100 (a) |
1,000,000 |
1,115,000 |
|||||||||
Southwestern Energy Co., 7.75%, 10/1/27, Callable 10/1/22 @ 103.88 (d) |
500,000 |
538,955 |
|||||||||
31,023,558 |
|||||||||||
Financials (8.0%): |
|||||||||||
American Honda Finance Corp., 1.30%, 9/9/26 |
1,000,000 |
988,330 |
|||||||||
AmFam Holdings, Inc., 2.81%, 3/11/31, Callable 12/11/30 @ 100 (a) |
1,000,000 |
1,021,760 |
|||||||||
Assurant, Inc., 2.65%, 1/15/32, Callable 10/15/31 @ 100 |
1,000,000 |
981,610 |
|||||||||
Athene Global Funding, 1.45%, 1/8/26 (a) |
1,000,000 |
986,970 |
|||||||||
Athene Holding Ltd., 3.50%, 1/15/31, Callable 10/15/30 @ 100 |
1,000,000 |
1,055,430 |
|||||||||
AXA Equitable Holdings, Inc., 4.35%, 4/20/28, Callable 1/20/28 @ 100 |
1,000,000 |
1,120,320 |
|||||||||
Bank
of America Corp. 1.53% (SOFR+65bps), 12/6/25, Callable 12/6/24 @ 100, MTN (b) |
500,000 |
501,275 |
|||||||||
1.66% (SOFR+91bps), 3/11/27, Callable 3/11/26 @ 100 (b) |
1,500,000 |
1,489,485 |
|||||||||
3.70% (LIBOR03M+151bps), 4/24/28, Callable 4/24/27 @ 100 (b) |
1,000,000 |
1,085,880 |
|||||||||
2.57% (SOFR+121bps), 10/20/32, Callable 10/20/31 @ 100 (b) |
2,750,000 |
2,765,565 |
|||||||||
BB&T Corp., 4.25%, 9/30/24 |
750,000 |
799,598 |
|||||||||
Belrose Funding Trust, 2.33%, 8/15/30, Callable 5/15/30 @ 100 (a) |
1,000,000 |
980,140 |
|||||||||
Blackstone
Private Credit Fund, 2.63%, 12/15/26, Callable 11/15/26 @ 100 (a) |
1,290,000 |
1,258,743 |
|||||||||
Blue Owl Finance LLC, 3.13%, 6/10/31, Callable 3/10/31 @ 100 (a) |
1,000,000 |
978,540 |
|||||||||
BMW
US Capital LLC 1.25%, 8/12/26, Callable 7/12/26 @ 100 (a) |
1,000,000 |
984,730 |
|||||||||
3.75%, 4/12/28, Callable 1/12/28 @ 100 (a) |
1,000,000 |
1,103,090 |
|||||||||
Cadence
Bancorp, 4.75% (LIBOR03M+303bps), 6/30/29, Callable 6/30/24 @ 100 (b) |
500,000 |
530,380 |
|||||||||
Cadence
Bank, 4.13% (LIBOR03M+247bps), 11/20/29, Callable 11/20/24 @ 100 (b) |
625,000 |
646,881 |
|||||||||
Capital
One Financial Corp. 3.75%, 7/28/26, Callable 6/28/26 @ 100 |
1,000,000 |
1,071,410 |
|||||||||
2.36% (SOFR+134bps), 7/29/32, Callable 7/29/31 @ 100 (b) |
1,000,000 |
948,730 |
|||||||||
CIT Group, Inc., 5.25%, 3/7/25, Callable 12/7/24 @ 100 |
500,000 |
549,430 |
|||||||||
Citigroup, Inc., 2.52% (SOFR+118bps), 11/3/32, Callable 11/3/31 @ 100 (b) |
2,000,000 |
2,000,680 |
|||||||||
Citizens Financial Group, Inc., 2.50%, 2/6/30, Callable 11/6/29 @ 100 |
2,000,000 |
2,010,620 |
|||||||||
Compeer
Financial FLCA/Compeer Financial PCA, 3.38% (SOFR+197bps), 6/1/36, Callable 6/1/31 @ 100 (a) (b) |
978,000 |
931,838 |
|||||||||
Credit Acceptance Corp., 6.63%, 3/15/26, Callable 3/15/22 @ 103.31 |
500,000 |
520,650 |
|||||||||
F&G Global Funding, 2.00%, 9/20/28 (a) |
2,000,000 |
1,952,760 |
|||||||||
Fifth Third Bancorp, 3.95%, 3/14/28, Callable 2/14/28 @ 100 |
500,000 |
552,090 |
|||||||||
First American Financial Corp., 2.40%, 8/15/31, Callable 5/15/31 @ 100 |
2,275,000 |
2,229,841 |
See notes to financial statements.
26
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
First
Citizens BancShares, Inc., 3.37% (SOFR+247bps), 3/15/30, Callable
3/15/25 @ 100 (b) |
$ |
1,000,000 |
$ |
1,015,470 |
|||||||
First Horizon Bank, 5.75%, 5/1/30, Callable 2/1/30 @ 100 |
500,000 |
600,060 |
|||||||||
Ford
Motor Credit Co. LLC 4.54%, 8/1/26, Callable 6/1/26 @ 100 |
1,000,000 |
1,085,840 |
|||||||||
5.11%, 5/3/29, Callable 2/3/29 @ 100 |
500,000 |
568,750 |
|||||||||
FS KKR Capital Corp., 4.63%, 7/15/24, Callable 6/15/24 @ 100 |
1,000,000 |
1,054,220 |
|||||||||
GA
Global Funding Trust 1.63%, 1/15/26 (a) |
250,000 |
248,058 |
|||||||||
1.95%, 9/15/28 (a) |
1,000,000 |
974,370 |
|||||||||
Glencore
Funding LLC 2.50%, 9/1/30, Callable 6/1/30 @ 100 (a) |
500,000 |
485,800 |
|||||||||
2.85%, 4/27/31, Callable 1/27/31 @ 100 (a) |
1,000,000 |
992,810 |
|||||||||
Global Atlantic Financial Co., 4.40%, 10/15/29, Callable 7/15/29 @ 100 (a) |
1,714,000 |
1,847,675 |
|||||||||
Guardian Life Global Funding, 1.25%, 5/13/26 (a) |
2,000,000 |
1,974,080 |
|||||||||
Huntington Bancshares, Inc., 2.49%, 8/15/36, Callable 8/15/31 @ 100 (a) |
1,000,000 |
957,930 |
|||||||||
Hyundai
Capital America 3.40%, 6/20/24 (a) |
500,000 |
522,360 |
|||||||||
3.50%, 11/2/26, Callable 9/2/26 @ 100 (a) |
500,000 |
530,600 |
|||||||||
ILFC E-Capital Trust I, 3.37%, 12/21/65, Callable 2/7/22 @ 100 (a) |
500,000 |
409,635 |
|||||||||
JPMorgan
Chase & Co. 2.52% (SOFR+204bps), 4/22/31, Callable 4/22/30 @ 100 (b) |
2,500,000 |
2,528,975 |
|||||||||
1.95% (SOFR+1bps), 2/4/32, Callable 2/4/31 @ 100 (b) |
1,333,000 |
1,284,625 |
|||||||||
KeyBank NA, 3.90%, 4/13/29 |
1,500,000 |
1,651,440 |
|||||||||
KeyCorp, 2.25%, 4/6/27, MTN |
500,000 |
508,400 |
|||||||||
Level
3 Financing, Inc. 3.75%, 7/15/29, Callable 1/15/24 @ 101.88 (a) |
1,500,000 |
1,436,250 |
|||||||||
3.88%, 11/15/29, Callable 8/15/29 @ 100 (a) |
1,500,000 |
1,529,670 |
|||||||||
Lincoln National Corp., 3.80%, 3/1/28, Callable 12/1/27 @ 100 |
500,000 |
548,820 |
|||||||||
Main
Street Capital Corp. 4.50%, 12/1/22 |
500,000 |
512,735 |
|||||||||
3.00%, 7/14/26, Callable 6/14/26 @ 100 |
1,000,000 |
1,003,110 |
|||||||||
MassMutual Global Funding II, 1.20%, 7/16/26 (a) (d) |
1,500,000 |
1,471,125 |
|||||||||
Mercury General Corp., 4.40%, 3/15/27, Callable 12/15/26 @ 100 |
1,000,000 |
1,103,010 |
|||||||||
Morgan
Stanley, 2.51% (SOFR+120bps), 10/20/32, MTN, Callable 10/20/31 @ 100 (b) |
4,250,000 |
4,252,337 |
|||||||||
New
York Community Bancorp, Inc., 5.90% (LIBOR03M+278bps), 11/6/28,
Callable 11/6/23 @ 100 (b) |
500,000 |
539,000 |
|||||||||
New York Life Global Funding, 1.85%, 8/1/31 (a) |
1,500,000 |
1,459,650 |
|||||||||
Pacific Life Global Funding II, 1.38%, 4/14/26 (a) |
2,000,000 |
1,990,420 |
|||||||||
Pine Street Trust I, 4.57%, 2/15/29, Callable 11/15/28 @ 100 (a) |
500,000 |
564,215 |
|||||||||
Primerica, Inc., 2.80%, 11/19/31, Callable 8/19/31 @ 100 |
1,500,000 |
1,517,070 |
|||||||||
Principal Life Global Funding II, 1.25%, 8/16/26 (a) |
2,000,000 |
1,953,040 |
|||||||||
Protective Life Global Funding, 1.90%, 7/6/28 (a) |
2,000,000 |
1,956,640 |
|||||||||
Prudential Financial, Inc., 3.94%, 12/7/49, Callable 6/7/49 @ 100 |
1,000,000 |
1,174,510 |
|||||||||
Regions Financial Corp., 1.80%, 8/12/28, Callable 6/12/28 @ 100 |
4,000,000 |
3,916,560 |
|||||||||
Santander
Holdings USA, Inc. 3.40%, 1/18/23, Callable 12/18/22 @ 100 |
250,000 |
255,513 |
|||||||||
4.40%, 7/13/27, Callable 4/14/27 @ 100 |
750,000 |
824,190 |
|||||||||
Stewart Information Services Corp., 3.60%, 11/15/31, Callable 8/15/31 @ 100 |
1,500,000 |
1,519,740 |
See notes to financial statements.
27
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Synchrony
Financial 4.50%, 7/23/25, Callable 4/23/25 @ 100 |
$ |
500,000 |
$ |
540,545 |
|||||||
5.15%, 3/19/29, Callable 12/19/28 @ 100 |
500,000 |
575,030 |
|||||||||
Synovus
Bank/Columbus GA, 4.00% (H15T5Y+363bps), 10/29/30, Callable 10/29/25 @ 100 (b) |
500,000 |
523,320 |
|||||||||
Synovus
Financial Corp., 5.90% (USSW5+338bps), 2/7/29, Callable 2/7/24 @ 100 (b) |
500,000 |
534,500 |
|||||||||
TCF
National Bank, 4.13% (LIBOR03M+238bps), 7/2/29, Callable 7/2/24 @ 100 (b) |
1,000,000 |
1,051,330 |
|||||||||
Texas
Capital Bancshares, Inc., 4.00% (H15T5Y+315bps), 5/6/31, Callable
5/6/26 @ 100 (b) |
1,000,000 |
1,029,420 |
|||||||||
Texas Capital Bank NA, 5.25%, 1/31/26 |
250,000 |
270,023 |
|||||||||
The
Bank of New York Mellon Corp., 3.75% (H15T5Y+263bps), Callable
12/20/26 @ 100 (b) (e) |
1,000,000 |
1,003,210 |
|||||||||
The
PNC Financial Services Group, Inc., 2.55%, 1/22/30, Callable 10/24/29 @ 100 |
1,500,000 |
1,546,815 |
|||||||||
Torchmark Corp., 4.55%, 9/15/28, Callable 6/15/28 @ 100 |
500,000 |
568,215 |
|||||||||
Toyota Motor Credit Corp., 3.38%, 4/1/30, MTN |
536,000 |
587,611 |
|||||||||
Truist Bank, 2.25%, 3/11/30, Callable 12/11/29 @ 100 |
1,050,000 |
1,049,412 |
|||||||||
UMB
Financial Corp., 3.70% (H15T5Y+344bps), 9/17/30, Callable 9/17/25 @ 100 (b) |
375,000 |
378,896 |
|||||||||
US BanCorp, 2.49% (H15T5Y+95bps), 11/3/36, Callable 11/3/31 @ 100 (b) |
1,500,000 |
1,497,030 |
|||||||||
Webster
Financial Corp. 4.38%, 2/15/24, Callable 1/16/24 @ 100 |
1,000,000 |
1,050,290 |
|||||||||
4.10%, 3/25/29, Callable 12/25/28 @ 100 |
500,000 |
549,140 |
|||||||||
Wells
Fargo & Co. 2.19% (SOFR+200bps), 4/30/26, Callable 4/30/25 @ 100 (b) |
750,000 |
764,168 |
|||||||||
3.00%, 10/23/26 |
1,000,000 |
1,051,770 |
|||||||||
Zions Bancorp NA, 3.25%, 10/29/29, Callable 7/29/29 @ 100 |
1,000,000 |
1,033,940 |
|||||||||
96,420,144 |
|||||||||||
Health Care (3.1%): |
|||||||||||
AbbVie,
Inc. 3.20%, 11/21/29, Callable 8/21/29 @ 100 |
2,000,000 |
2,141,080 |
|||||||||
4.25%, 11/21/49, Callable 5/21/49 @ 100 |
500,000 |
601,860 |
|||||||||
Anthem,
Inc. 2.88%, 9/15/29, Callable 6/15/29 @ 100 |
323,000 |
337,835 |
|||||||||
2.55%, 3/15/31, Callable 12/15/30 @ 100 |
2,000,000 |
2,048,220 |
|||||||||
Baxter International, Inc., 2.54%, 2/1/32, Callable 11/1/31 @ 100 (a) |
1,750,000 |
1,767,990 |
|||||||||
Boston Medical Center Corp., 3.91%, 7/1/28 |
500,000 |
545,405 |
|||||||||
Bristol Myers Squibb Co., 3.90%, 2/20/28, Callable 11/20/27 @ 100 |
500,000 |
557,530 |
|||||||||
Centene Corp., 2.50%, 3/1/31, Callable 12/1/30 @ 100 |
500,000 |
486,715 |
|||||||||
Cigna Corp., 2.38%, 3/15/31, Callable 12/15/30 @ 100 |
2,000,000 |
2,008,240 |
|||||||||
CVS
Health Corp. 3.25%, 8/15/29, Callable 5/15/29 @ 100 |
500,000 |
533,585 |
|||||||||
1.75%, 8/21/30, Callable 5/21/30 @ 100 |
1,000,000 |
955,430 |
|||||||||
2.13%, 9/15/31, Callable 6/15/31 @ 100 (d) |
2,000,000 |
1,960,360 |
|||||||||
DENTSPLY SIRONA, Inc., 3.25%, 6/1/30, Callable 3/1/30 @ 100 |
2,000,000 |
2,111,740 |
|||||||||
Duke University Health System, Inc., 2.60%, 6/1/30 |
500,000 |
505,845 |
|||||||||
Eastern Maine Healthcare Systems, 3.71%, 7/1/26 |
400,000 |
409,061 |
See notes to financial statements.
28
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Fresenius
Medical Care U.S. Finance III, Inc., 2.38%, 2/16/31, Callable 11/16/30 @ 100 (a) (d) |
$ |
2,500,000 |
$ |
2,389,750 |
|||||||
Gilead Sciences, Inc., 1.20%, 10/1/27, Callable 8/1/27 @ 100 |
1,000,000 |
966,530 |
|||||||||
HCA, Inc., 4.50%, 2/15/27, Callable 8/15/26 @ 100 |
1,250,000 |
1,379,525 |
|||||||||
Illumina, Inc., 2.55%, 3/23/31, Callable 12/23/30 @ 100 |
2,000,000 |
2,003,120 |
|||||||||
Mercy Health, 4.30%, 7/1/28, Callable 1/1/28 @ 100 |
250,000 |
281,018 |
|||||||||
Orlando
Health Obligated Group 3.78%, 10/1/28, Callable 7/1/28 @ 100 |
500,000 |
543,085 |
|||||||||
2.89%, 10/1/35 |
1,000,000 |
1,010,260 |
|||||||||
PerkinElmer,
Inc. 2.55%, 3/15/31, Callable 12/15/30 @ 100 |
1,500,000 |
1,512,780 |
|||||||||
2.25%, 9/15/31, Callable 6/15/31 @ 100 |
500,000 |
486,990 |
|||||||||
Quest Diagnostics, Inc., 3.45%, 6/1/26, Callable 3/1/26 @ 100 |
1,250,000 |
1,337,637 |
|||||||||
Roche Holdings, Inc., 1.93%, 12/13/28, Callable 10/13/28 @ 100 (a) |
1,500,000 |
1,508,820 |
|||||||||
Royalty
Pharma PLC 2.20%, 9/2/30, Callable 6/2/30 @ 100 |
2,000,000 |
1,936,880 |
|||||||||
2.15%, 9/2/31, Callable 6/2/31 @ 100 |
1,500,000 |
1,431,180 |
|||||||||
Southern
Illinois Healthcare Enterprises, Inc., 3.97%, 5/15/50, Callable
11/15/49 @ 100 |
1,000,000 |
1,135,650 |
|||||||||
Universal Health Services, Inc., 2.65%, 1/15/32, Callable 10/15/31 @ 100 (a) |
1,000,000 |
982,210 |
|||||||||
Viatris, Inc., 2.30%, 6/22/27, Callable 4/22/27 @ 100 |
1,250,000 |
1,261,063 |
|||||||||
37,137,394 |
|||||||||||
Industrials (3.5%): |
|||||||||||
Acuity Brands Lighting, Inc., 2.15%, 12/15/30, Callable 9/15/30 @ 100 |
2,000,000 |
1,948,980 |
|||||||||
Aircastle Ltd., 4.25%, 6/15/26, Callable 4/15/26 @ 100 |
1,000,000 |
1,072,180 |
|||||||||
American
Airlines Pass Through Trust 3.70%, 4/1/28 |
312,683 |
316,654 |
|||||||||
3.85%, 8/15/29 |
429,217 |
405,515 |
|||||||||
3.60%, 4/15/31 |
405,286 |
393,443 |
|||||||||
Arconic, Inc., 5.90%, 2/1/27 |
250,000 |
285,757 |
|||||||||
Ashtead
Capital, Inc. 4.25%, 11/1/29, Callable 11/1/24 @ 102.13 (a) |
1,448,000 |
1,540,397 |
|||||||||
2.45%, 8/12/31, Callable 5/12/31 @ 100 (a) |
667,000 |
650,032 |
|||||||||
British
Airways Pass Through Trust 3.35%, 12/15/30 (a) |
419,835 |
415,569 |
|||||||||
3.80%, 3/20/33 (a) |
596,387 |
620,869 |
|||||||||
Carlisle Cos., Inc., 2.75%, 3/1/30, Callable 12/1/29 @ 100 |
1,000,000 |
1,021,620 |
|||||||||
Carrier Global Corp., 3.38%, 4/5/40, Callable 10/5/39 @ 100 |
1,000,000 |
1,046,320 |
|||||||||
Caterpillar, Inc., 2.60%, 4/9/30, Callable 1/9/30 @ 100 |
500,000 |
521,845 |
|||||||||
CNH Industrial Capital LLC, 1.88%, 1/15/26, Callable 12/15/25 @ 100 |
1,000,000 |
1,003,520 |
|||||||||
CoStar Group, Inc., 2.80%, 7/15/30, Callable 4/15/30 @ 100 (a) |
669,000 |
670,385 |
|||||||||
FedEx Corp., 3.90%, 2/1/35 |
1,250,000 |
1,393,538 |
|||||||||
Fluor Corp., 4.25%, 9/15/28, Callable 6/15/28 @ 100 (d) |
1,000,000 |
1,048,010 |
|||||||||
GXO Logistics, Inc., 2.65%, 7/15/31, Callable 4/15/31 @ 100 (a) |
2,000,000 |
1,972,580 |
|||||||||
Hawaiian
Airlines Pass Through Certificates 4.95%, 7/15/23 |
351,322 |
351,094 |
|||||||||
3.90%, 7/15/27 |
98,689 |
96,562 |
|||||||||
Hillenbrand,
Inc. 5.00%, 9/15/26, Callable 7/15/26 @ 100 |
1,000,000 |
1,113,890 |
|||||||||
3.75%, 3/1/31, Callable 3/1/26 @ 101.88 |
350,000 |
350,847 |
See notes to financial statements.
29
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Howmet Aerospace, Inc., 3.00%, 1/15/29, Callable 11/15/28 @ 100 |
$ |
1,500,000 |
$ |
1,502,640 |
|||||||
Hubbell,
Inc. 3.50%, 2/15/28, Callable 11/15/27 @ 100 |
1,000,000 |
1,076,840 |
|||||||||
2.30%, 3/15/31, Callable 12/15/30 @ 100 |
1,500,000 |
1,501,020 |
|||||||||
Huntington Ingalls Industries, Inc., 2.04%, 8/16/28, Callable 6/16/28 @ 100 (a) |
1,500,000 |
1,469,445 |
|||||||||
IDEX Corp., 3.00%, 5/1/30, Callable 2/1/30 @ 100 |
500,000 |
520,610 |
|||||||||
Ingersoll-Rand
Global Holding Co. Ltd., 3.75%, 8/21/28, Callable 5/21/28 @ 100 |
500,000 |
545,945 |
|||||||||
JetBlue Pass Through Trust, 2.95%, 11/15/29 |
223,175 |
217,140 |
|||||||||
Kennametal, Inc., 4.63%, 6/15/28, Callable 3/15/28 @ 100 |
1,058,000 |
1,188,155 |
|||||||||
Leidos, Inc., 2.30%, 2/15/31, Callable 11/15/30 @ 100 |
1,500,000 |
1,439,805 |
|||||||||
Northrop Grumman Corp., 3.25%, 1/15/28, Callable 10/15/27 @ 100 |
500,000 |
534,635 |
|||||||||
Otis Worldwide Corp., 3.11%, 2/15/40, Callable 8/15/39 @ 100 |
1,000,000 |
1,024,220 |
|||||||||
Penske
Truck Leasing Co. LP/PTL Finance Corp. 4.45%, 1/29/26, Callable 11/29/25 @ 100 (a) |
1,000,000 |
1,098,480 |
|||||||||
1.70%, 6/15/26, Callable 5/15/26 @ 100 (a) |
1,000,000 |
991,020 |
|||||||||
Ryder System, Inc., 3.40%, 3/1/23, MTN, Callable 2/1/23 @ 100 |
1,000,000 |
1,026,970 |
|||||||||
Southwest Airlines Co., 5.13%, 6/15/27, Callable 4/15/27 @ 100 |
800,000 |
915,664 |
|||||||||
Teledyne Technologies, Inc., 2.75%, 4/1/31, Callable 1/1/31 @ 100 |
2,000,000 |
2,032,660 |
|||||||||
The
Boeing Co. 2.20%, 2/4/26, Callable 2/4/23 @ 100 |
1,333,000 |
1,332,787 |
|||||||||
3.25%, 2/1/28, Callable 12/1/27 @ 100 |
1,500,000 |
1,564,695 |
|||||||||
3.63%, 2/1/31, Callable 11/1/30 @ 100 |
1,000,000 |
1,068,130 |
|||||||||
5.71%, 5/1/40, Callable 11/1/39 @ 100 |
1,000,000 |
1,288,660 |
|||||||||
Union Pacific Corp., 3.25%, 2/5/50, Callable 8/5/49 @ 100 |
1,000,000 |
1,073,960 |
|||||||||
United
Airlines Pass Through Trust 4.88%, 7/15/27 |
308,014 |
320,676 |
|||||||||
3.70%, 9/1/31 |
429,339 |
435,659 |
|||||||||
42,409,423 |
|||||||||||
Information Technology (2.4%): |
|||||||||||
Amphenol
Corp. 4.35%, 6/1/29, Callable 3/1/29 @ 100 |
500,000 |
568,110 |
|||||||||
2.20%, 9/15/31, Callable 6/15/31 @ 100 |
1,125,000 |
1,102,601 |
|||||||||
Broadcom,
Inc. 2.45%, 2/15/31, Callable 11/15/30 @ 100 (a) |
2,500,000 |
2,447,625 |
|||||||||
3.42%, 4/15/33, Callable 1/15/33 @ 100 (a) |
2,000,000 |
2,090,020 |
|||||||||
Dell
International LLC / EMC Corp., 3.38%, 12/15/41, Callable 6/15/41 @ 100 (a) |
500,000 |
495,055 |
|||||||||
Dell, Inc., 5.40%, 9/10/40 |
2,000,000 |
2,253,120 |
|||||||||
Global Payments, Inc., 2.90%, 11/15/31, Callable 8/15/31 @ 100 |
1,500,000 |
1,523,880 |
|||||||||
HP,
Inc. 3.40%, 6/17/30, Callable 3/17/30 @ 100 |
743,000 |
784,831 |
|||||||||
2.65%, 6/17/31, Callable 3/17/31 @ 100 (a) |
1,500,000 |
1,480,950 |
|||||||||
Jabil, Inc., 3.00%, 1/15/31, Callable 10/15/30 @ 100 |
1,474,000 |
1,516,422 |
|||||||||
Marvell Technology, Inc., 2.45%, 4/15/28, Callable 2/15/28 @ 100 |
1,050,000 |
1,065,970 |
|||||||||
Micron Technology, Inc., 2.70%, 4/15/32, Callable 1/15/32 @ 100 |
1,500,000 |
1,506,090 |
|||||||||
Microsoft Corp., 3.45%, 8/8/36, Callable 2/8/36 @ 100 |
500,000 |
574,445 |
|||||||||
Motorola Solutions, Inc., 2.75%, 5/24/31, Callable 2/24/31 @ 100 |
1,000,000 |
1,002,490 |
See notes to financial statements.
30
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Oracle
Corp. 2.95%, 4/1/30, Callable 1/1/30 @ 100 |
$ |
1,000,000 |
$ |
1,010,730 |
|||||||
2.88%, 3/25/31, Callable 12/25/30 @ 100 |
750,000 |
753,758 |
|||||||||
Qorvo, Inc., 3.38%, 4/1/31, Callable 4/1/26 @ 101.69 (a) |
1,909,000 |
1,942,274 |
|||||||||
Salesforce.com, Inc., 3.70%, 4/11/28, Callable 1/11/28 @ 100 |
1,000,000 |
1,108,780 |
|||||||||
Skyworks Solutions, Inc., 3.00%, 6/1/31, Callable 3/1/31 @ 100 |
1,200,000 |
1,207,416 |
|||||||||
TSMC Arizona Corp., 2.50%, 10/25/31, Callable 7/25/31 @ 100 |
2,950,000 |
2,986,403 |
|||||||||
Western Digital Corp., 3.10%, 2/1/32, Callable 11/1/31 @ 100 |
1,500,000 |
1,510,950 |
|||||||||
28,931,920 |
|||||||||||
Materials (1.7%): |
|||||||||||
Avery
Dennison Corp. 2.65%, 4/30/30, Callable 2/1/30 @ 100 |
800,000 |
810,568 |
|||||||||
2.25%, 2/15/32, Callable 11/15/31 @ 100 |
1,500,000 |
1,457,310 |
|||||||||
Ball Corp., 3.13%, 9/15/31, Callable 6/15/31 @ 100 |
1,500,000 |
1,484,580 |
|||||||||
Colonial Enterprises, Inc., 3.25%, 5/15/30, Callable 2/15/30 @ 100 (a) |
375,000 |
395,940 |
|||||||||
Commercial Metals Co., 3.88%, 2/15/31, Callable 2/15/26 @ 101.94 |
1,000,000 |
994,580 |
|||||||||
DuPont de Nemours, Inc., 4.73%, 11/15/28, Callable 8/15/28 @ 100 |
500,000 |
579,550 |
|||||||||
Eagle Materials, Inc., 2.50%, 7/1/31, Callable 4/1/31 @ 100 |
1,500,000 |
1,482,165 |
|||||||||
Ecolab, Inc., 1.65%, 2/1/27, Callable 1/1/27 @ 100 |
1,200,000 |
1,206,096 |
|||||||||
Freeport-McMoRan, Inc., 4.38%, 8/1/28, Callable 8/1/23 @ 102.19 |
2,000,000 |
2,098,440 |
|||||||||
LYB International Finance III LLC, 2.25%, 10/1/30, Callable 7/1/30 @ 100 |
500,000 |
497,600 |
|||||||||
Martin
Marietta Materials, Inc. 3.50%, 12/15/27, Callable 9/15/27 @ 100 |
625,000 |
673,113 |
|||||||||
2.40%, 7/15/31, Callable 4/15/31 @ 100 |
1,000,000 |
994,890 |
|||||||||
NewMarket Corp., 2.70%, 3/18/31, Callable 12/18/30 @ 100 (d) |
1,250,000 |
1,246,137 |
|||||||||
Packaging
Corp. of America 3.40%, 12/15/27, Callable 9/15/27 @ 100 |
500,000 |
539,045 |
|||||||||
3.05%, 10/1/51, Callable 4/1/51 @ 100 |
1,875,000 |
1,865,981 |
|||||||||
Reliance
Steel & Aluminum Co. 4.50%, 4/15/23, Callable 1/15/23 @ 100 |
500,000 |
518,195 |
|||||||||
2.15%, 8/15/30, Callable 5/15/30 @ 100 |
1,000,000 |
975,160 |
|||||||||
The Mosaic Co., 4.05%, 11/15/27, Callable 8/15/27 @ 100 |
1,000,000 |
1,102,310 |
|||||||||
Vulcan
Materials Co. 3.90%, 4/1/27, Callable 1/1/27 @ 100 |
500,000 |
547,480 |
|||||||||
3.50%, 6/1/30, Callable 3/1/30 @ 100 |
1,000,000 |
1,078,040 |
|||||||||
WRKCo, Inc., 3.00%, 6/15/33, Callable 3/15/33 @ 100 |
365,000 |
376,428 |
|||||||||
20,923,608 |
|||||||||||
Real Estate (1.7%): |
|||||||||||
Alexandria
Real Estate Equities, Inc., 2.00%, 5/18/32, Callable 2/18/32 @ 100 |
2,750,000 |
2,640,027 |
|||||||||
AvalonBay
Communities, Inc. 3.20%, 1/15/28, Callable 10/15/27 @ 100, MTN |
750,000 |
802,875 |
|||||||||
2.45%, 1/15/31, Callable 10/17/30 @ 100, MTN |
1,000,000 |
1,026,080 |
|||||||||
Boston Properties LP, 2.55%, 4/1/32, Callable 1/1/32 @ 100 |
2,250,000 |
2,238,975 |
|||||||||
CBRE Services, Inc., 2.50%, 4/1/31, Callable 1/1/31 @ 100 |
500,000 |
502,715 |
|||||||||
Crown Castle International Corp., 2.25%, 1/15/31, Callable 10/15/30 @ 100 |
1,500,000 |
1,459,755 |
|||||||||
Essex
Portfolio LP 1.70%, 3/1/28, Callable 1/1/28 @ 100 |
1,500,000 |
1,463,940 |
|||||||||
2.65%, 3/15/32, Callable 12/15/31 @ 100 |
1,500,000 |
1,508,970 |
See notes to financial statements.
31
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
GLP
Capital LP/GLP Financing II, Inc. 3.25%, 1/15/32, Callable 10/15/31 @ 100 |
$ |
933,000 |
$ |
937,768 |
|||||||
4.00%, 1/15/31, Callable 10/15/30 @ 100 |
250,000 |
266,833 |
|||||||||
Host
Hotels & Resorts LP 3.38%, 12/15/29, Callable 9/15/29 @ 100 |
500,000 |
511,440 |
|||||||||
3.50%, 9/15/30, Callable 6/15/30 @ 100 |
811,000 |
832,824 |
|||||||||
Hudson
Pacific Properties LP 3.95%, 11/1/27, Callable 8/1/27 @ 100 |
500,000 |
537,450 |
|||||||||
4.65%, 4/1/29, Callable 1/1/29 @ 100 |
500,000 |
567,005 |
|||||||||
3.25%, 1/15/30, Callable 10/15/29 @ 100 |
1,500,000 |
1,562,910 |
|||||||||
Kilroy Realty LP, 2.65%, 11/15/33, Callable 8/15/33 @ 100 |
1,500,000 |
1,457,983 |
|||||||||
Physicians
Realty LP 4.30%, 3/15/27, Callable 12/15/26 @ 100 |
750,000 |
832,830 |
|||||||||
2.63%, 11/1/31, Callable 8/1/31 @ 100 |
750,000 |
748,507 |
|||||||||
Vornado Realty LP, 3.50%, 1/15/25, Callable 11/15/24 @ 100 |
500,000 |
524,410 |
|||||||||
20,423,297 |
|||||||||||
Utilities (3.2%): |
|||||||||||
AEP Texas, Inc., 3.45%, 1/15/50, Callable 7/15/49 @ 100 |
1,500,000 |
1,539,300 |
|||||||||
Alabama Power Co., 3.13%, 7/15/51, Callable 1/15/51 @ 100 (d) |
2,000,000 |
2,048,720 |
|||||||||
Ameren
Corp. 1.75%, 3/15/28, Callable 1/15/28 @ 100 |
1,400,000 |
1,356,572 |
|||||||||
3.50%, 1/15/31, Callable 10/15/30 @ 100 |
250,000 |
270,638 |
|||||||||
American Water Capital Corp., 2.95%, 9/1/27, Callable 6/1/27 @ 100 |
1,000,000 |
1,056,750 |
|||||||||
Appalachian Power Co., 2.70%, 4/1/31, Callable 1/1/31 @ 100 |
1,500,000 |
1,535,130 |
|||||||||
CenterPoint Energy, Inc., 2.65%, 6/1/31, Callable 3/1/31 @ 100 |
1,500,000 |
1,517,970 |
|||||||||
Cleco Corporate Holdings LLC, 3.38%, 9/15/29, Callable 6/15/29 @ 100 |
1,000,000 |
1,022,690 |
|||||||||
Dominion Energy, Inc., 2.25%, 8/15/31, Callable 5/15/31 @ 100 |
1,500,000 |
1,469,310 |
|||||||||
DTE Electric Co., 2.25%, 3/1/30, Callable 12/1/29 @ 100 |
1,000,000 |
1,004,240 |
|||||||||
Duke Energy Corp., 2.55%, 6/15/31, Callable 3/15/31 @ 100 |
1,500,000 |
1,499,130 |
|||||||||
Duquesne Light Holdings, Inc., 2.78%, 1/7/32, Callable 10/7/31 @ 100 (a) |
1,200,000 |
1,193,616 |
|||||||||
Entergy Corp., 1.90%, 6/15/28, Callable 4/15/28 @ 100 |
2,000,000 |
1,961,260 |
|||||||||
Entergy Louisiana LLC, 4.00%, 3/15/33, Callable 12/15/32 @ 100 |
1,000,000 |
1,143,800 |
|||||||||
IPALCO Enterprises, Inc., 4.25%, 5/1/30, Callable 2/1/30 @ 100 |
1,525,000 |
1,672,620 |
|||||||||
ITC Holdings Corp., 2.95%, 5/14/30, Callable 2/14/30 @ 100 (a) |
500,000 |
511,465 |
|||||||||
National Fuel Gas Co., 4.75%, 9/1/28, Callable 6/1/28 @ 100 |
1,000,000 |
1,102,500 |
|||||||||
NextEra
Energy Capital Holdings, Inc. 0.45% (SOFR+40bps), 11/3/23, Callable 5/3/22 @ 100 (b) |
1,500,000 |
1,498,125 |
|||||||||
2.44%, 1/15/32, Callable 10/15/31 @ 100 |
2,000,000 |
2,005,280 |
|||||||||
NRG Energy, Inc., 4.45%, 6/15/29, Callable 3/15/29 @ 100 (a) |
1,000,000 |
1,090,270 |
|||||||||
Oncor Electric Delivery Co. LLC, 2.70%, 11/15/51, Callable 5/15/51 @ 100 (a) |
1,500,000 |
1,459,755 |
|||||||||
Public Service Co. of Colorado, 1.88%, 6/15/31, Callable 12/15/30 @ 100 |
2,000,000 |
1,949,480 |
|||||||||
Public
Service Electric & Gas Co., 1.90%, 8/15/31, MTN, Callable 5/15/31 @ 100 |
2,000,000 |
1,958,960 |
|||||||||
South Jersey Industries, Inc., 5.02%, 4/15/31 |
1,000,000 |
1,096,470 |
|||||||||
Southern Co. Gas Capital Corp., 1.75%, 1/15/31, Callable 10/15/30 @ 100 |
1,000,000 |
939,750 |
|||||||||
Southwestern Electric Power Co., 3.25%, 11/1/51, Callable 5/1/51 @ 100 |
750,000 |
747,322 |
|||||||||
The AES Corp., 2.45%, 1/15/31, Callable 10/15/30 @ 100 |
1,000,000 |
973,340 |
|||||||||
The
Cleveland Electric Illuminating Co., 4.55%, 11/15/30, Callable 8/15/30 @ 100 (a) |
500,000 |
574,795 |
|||||||||
Vistra Operations Co. LLC, 4.30%, 7/15/29, Callable 4/15/29 @ 100 (a) |
500,000 |
535,790 |
See notes to financial statements.
32
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Wisconsin Public Service Corp., 2.85%, 12/1/51, Callable 6/1/51 @ 100 |
$ |
1,250,000 |
$ |
1,235,575 |
|||||||
Xcel Energy, Inc., 2.35%, 11/15/31, Callable 5/15/31 @ 100 |
500,000 |
499,415 |
|||||||||
38,470,038 |
|||||||||||
Total Corporate Bonds (Cost $384,204,891) |
392,067,432 |
||||||||||
Yankee Dollars (8.3%) |
|||||||||||
Communication Services (0.1%): |
|||||||||||
British Telecommunications PLC, 3.25%, 11/8/29, Callable 8/8/29 @ 100 (a) |
1,000,000 |
1,022,820 |
|||||||||
Consumer Discretionary (0.4%): |
|||||||||||
Ascot Group Ltd., 4.25%, 12/15/30, Callable 12/15/25 @ 100 (a) |
1,000,000 |
1,029,940 |
|||||||||
GENM Capital Labuan Ltd., 3.88%, 4/19/31, Callable 1/19/31 @ 100 (a) |
1,500,000 |
1,465,950 |
|||||||||
International
Game Technology PLC, 5.25%, 1/15/29, Callable 1/15/24 @ 102.63 (a) |
1,000,000 |
1,060,840 |
|||||||||
Nemak SAB de CV, 3.63%, 6/28/31, Callable 3/28/31 @ 100 (a) |
1,269,000 |
1,238,569 |
|||||||||
4,795,299 |
|||||||||||
Consumer Staples (0.9%): |
|||||||||||
Alimentation
Couche-Tard, Inc. 2.95%, 1/25/30, Callable 10/25/29 @ 100 (a) |
667,000 |
692,259 |
|||||||||
3.44%, 5/13/41, Callable 11/13/40 @ 100 (a) |
750,000 |
776,700 |
|||||||||
Anheuser-Busch InBev Worldwide, Inc., 3.75%, 7/15/42 |
750,000 |
815,393 |
|||||||||
Bacardi
Ltd. 4.45%, 5/15/25, Callable 3/15/25 @ 100 (a) |
1,500,000 |
1,624,890 |
|||||||||
2.75%, 7/15/26, Callable 4/15/26 @ 100 (a) |
500,000 |
515,180 |
|||||||||
4.70%, 5/15/28, Callable 2/15/28 @ 100 (a) |
500,000 |
565,465 |
|||||||||
Becle SAB de CV, 2.50%, 10/14/31, Callable 7/14/31 @ 100 (a) |
1,750,000 |
1,716,995 |
|||||||||
Imperial Brands Finance PLC, 3.88%, 7/26/29, Callable 4/26/29 @ 100 (a) |
1,000,000 |
1,060,320 |
|||||||||
JDE Peet's NV, 2.25%, 9/24/31, Callable 6/24/31 @ 100 (a) |
3,000,000 |
2,896,770 |
|||||||||
10,663,972 |
|||||||||||
Energy (0.3%): |
|||||||||||
Aker BP ASA, 4.00%, 1/15/31, Callable 10/15/30 @ 100 (a) |
750,000 |
812,333 |
|||||||||
Petroleos
Mexicanos 6.50%, 3/13/27 |
2,000,000 |
2,133,400 |
|||||||||
6.70%, 2/16/32, Callable 11/16/31 @ 100 |
500,000 |
503,515 |
|||||||||
Transocean Guardian Ltd., 5.88%, 1/15/24, Callable 2/7/22 @ 102.94 (a) |
335,000 |
321,315 |
|||||||||
3,770,563 |
|||||||||||
Financials (4.7%): |
|||||||||||
ABN AMRO Bank NV, 4.80%, 4/18/26 (a) |
500,000 |
551,435 |
|||||||||
Banco
Santander Mexico SA Institucion de Banca Multiple Grupo Financiero
Santand, 5.38%, 4/17/25 (a) |
357,000 |
389,808 |
|||||||||
Banco Santander SA, 4.38%, 4/12/28 |
600,000 |
671,946 |
|||||||||
Bank
of Montreal, 3.80% (USSW5+143bps), 12/15/32, Callable 12/15/27 @ 100 (b) |
500,000 |
535,405 |
|||||||||
Bank of New Zealand, 1.00%, 3/3/26 (a) |
1,600,000 |
1,557,152 |
|||||||||
Barclays
PLC 4.61% (LIBOR03M+140bps), 2/15/23, Callable 2/15/22 @ 100 (b) |
1,000,000 |
1,004,250 |
|||||||||
3.93% (LIBOR03M+161bps), 5/7/25, Callable 5/7/24 @ 100 (b) |
500,000 |
526,330 |
See notes to financial statements.
33
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
2.28% (H15T1Y+105bps), 11/24/27, Callable 11/24/26 @ 100 (b) |
$ |
2,000,000 |
$ |
2,005,040 |
|||||||
BNP
Paribas SA, 4.71% (LIBOR03M+224bps), 1/10/25, Callable 1/10/24 @ 100 (a) (b) |
1,000,000 |
1,064,350 |
|||||||||
BPCE
SA 4.00%, 9/12/23 (a) |
500,000 |
523,200 |
|||||||||
3.25%, 1/11/28 (a) |
1,000,000 |
1,065,960 |
|||||||||
Brookfield Finance, Inc., 2.72%, 4/15/31, Callable 1/15/31 @ 100 |
1,000,000 |
1,009,600 |
|||||||||
Commonwealth Bank of Australia, 2.69%, 3/11/31 (a) |
1,000,000 |
983,630 |
|||||||||
Cooperatieve
Rabobank UA 1.11% (H15T1Y+55bps), 2/24/27, Callable 2/24/26 @ 100 (a) (b) |
2,000,000 |
1,942,620 |
|||||||||
4.00% (USSW5+189bps), 4/10/29, Callable 4/10/24 @ 100, MTN (b) |
600,000 |
628,164 |
|||||||||
Credit Agricole SA, 3.25%, 10/4/24 (a) |
1,250,000 |
1,312,688 |
|||||||||
Credit
Suisse Group AG, 1.31% (SOFR+98bps), 2/2/27, Callable 2/2/26 @ 100 (a) (b) |
1,000,000 |
966,580 |
|||||||||
Credit Suisse Group Funding Guernsey Ltd., 3.75%, 3/26/25 |
500,000 |
531,100 |
|||||||||
Deutsche Bank AG, 1.69%, 3/19/26 |
1,500,000 |
1,495,950 |
|||||||||
Enel Finance International NV, 1.88%, 7/12/28, Callable 5/12/28 @ 100 (a) |
2,000,000 |
1,950,740 |
|||||||||
HSBC
Holdings PLC 3.80% (LIBOR03M+121bps), 3/11/25, Callable 3/11/24 @ 100 (b) |
500,000 |
525,025 |
|||||||||
4.29% (LIBOR03M+135bps), 9/12/26, Callable 9/12/25 @ 100 (b) |
500,000 |
539,920 |
|||||||||
2.21% (SOFR+129bps), 8/17/29, Callable 8/17/28 @ 100 (b) |
1,500,000 |
1,471,380 |
|||||||||
ING Groep NV, 2.73% (SOFR+112bps), 4/1/32, Callable 4/1/31 @ 100 (b) |
2,000,000 |
2,038,300 |
|||||||||
JAB Holdings BV, 3.75%, 5/28/51, Callable 11/28/50 @ 100 (a) |
500,000 |
548,145 |
|||||||||
Lloyds
Banking Group PLC 2.91% (LIBOR03M+81bps), 11/7/23, Callable 11/7/22 @ 100 (b) |
250,000 |
254,015 |
|||||||||
1.63% (H15T1Y+85bps), 5/11/27, Callable 5/11/26 @ 100 (b) |
1,000,000 |
983,530 |
|||||||||
3.57% (LIBOR03M+121bps), 11/7/28, Callable 11/7/27 @ 100 (b) |
250,000 |
267,240 |
|||||||||
Macquarie
Bank Ltd., 3.05% (H15T5Y+170bps), 3/3/36, Callable 3/3/31 @ 100 (a) (b) |
1,250,000 |
1,227,525 |
|||||||||
Mizuho
Financial Group, Inc. 2.56%, 9/13/31 |
1,000,000 |
975,890 |
|||||||||
2.17% (H15T1Y+87bps), 5/22/32, Callable 5/22/31 @ 100 (b) |
1,500,000 |
1,457,175 |
|||||||||
National
Australia Bank Ltd., 3.93% (H15T5Y+188bps), 8/2/34, Callable 8/2/29 @ 100 (a) (b) |
1,500,000 |
1,595,640 |
|||||||||
Nationwide
Building Society 3.62% (LIBOR03M+118bps), 4/26/23, Callable 4/26/22 @ 100 (a) (b) |
1,000,000 |
1,008,260 |
|||||||||
4.27% (LIBOR03M+139bps), 8/1/24, Callable 8/1/23 @ 100 (a) (b) |
750,000 |
785,640 |
|||||||||
4.30% (LIBOR03M+145bps), 3/8/29, Callable 3/8/28 @ 100 (a) (b) |
250,000 |
276,350 |
|||||||||
3.96% (LIBOR03M+186bps), 7/18/30, Callable 7/18/29 @ 100 (a) (b) |
500,000 |
550,620 |
|||||||||
NXP
BV/NXP Funding LLC/NXP USA, Inc., 2.65%, 2/15/32, Callable 11/15/31 @ 100 (a) |
1,500,000 |
1,505,535 |
|||||||||
Royal
Bank of Scotland Group PLC 4.27% (LIBOR03M+176bps), 3/22/25, Callable 3/22/24 @ 100 (b) |
1,000,000 |
1,059,070 |
|||||||||
5.08% (LIBOR03M+191bps), 1/27/30, Callable 1/27/29 @ 100 (b) |
500,000 |
580,070 |
|||||||||
4.45% (LIBOR03M+187bps), 5/8/30, Callable 5/8/29 @ 100 (b) |
1,000,000 |
1,125,220 |
|||||||||
Santander
UK Group Holdings PLC, 2.90% (SOFR+148bps), 3/15/32, Callable 3/15/31 @ 100 (b) |
2,000,000 |
2,021,000 |
|||||||||
Shell International Finance BV, 2.88%, 11/26/41, Callable 5/26/41 @ 100 |
1,500,000 |
1,505,460 |
See notes to financial statements.
34
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Siemens
Financieringsmaatschappij NV 1.70%, 3/11/28 (a) |
$ |
1,000,000 |
$ |
990,160 |
|||||||
2.15%, 3/11/31 (a) |
1,000,000 |
996,800 |
|||||||||
Societe
Generale SA 3.88%, 3/28/24 (a) |
1,000,000 |
1,052,770 |
|||||||||
1.49% (H15T1Y+1bps), 12/14/26, Callable 12/14/25 @ 100 (a) (b) |
500,000 |
487,435 |
|||||||||
Standard
Chartered PLC, 4.87% (LIBOR03M+197bps), 3/15/33, Callable 3/15/28 @ 100 (a) (b) |
500,000 |
545,375 |
|||||||||
Sumitomo Mitsui Financial Group, Inc., 2.22%, 9/17/31 |
1,500,000 |
1,469,280 |
|||||||||
Swedbank AB, 0.85%, 3/18/24 (a) |
1,500,000 |
1,490,100 |
|||||||||
The
Bank of Nova Scotia 4.50%, 12/16/25 |
500,000 |
550,330 |
|||||||||
1.30%, 9/15/26, Callable 6/15/26 @ 100 (d) |
1,500,000 |
1,473,405 |
|||||||||
The Toronto-Dominion Bank, 2.00%, 9/10/31 (d) |
1,500,000 |
1,478,220 |
|||||||||
Westpac
Banking Corp. 4.32% (USISDA05+224bps), 11/23/31, Callable 11/23/26 @ 100 (b) |
1,000,000 |
1,081,880 |
|||||||||
2.67% (H15T5Y+2bps), 11/15/35, Callable 11/15/30 @ 100 (b) |
1,000,000 |
975,490 |
|||||||||
3.02% (H15T5Y+153bps), 11/18/36, Callable 11/18/31 @ 100 (b) |
1,000,000 |
990,030 |
|||||||||
56,598,233 |
|||||||||||
Health Care (0.6%): |
|||||||||||
Mylan NV, 3.95%, 6/15/26, Callable 3/15/26 @ 100 |
1,000,000 |
1,078,580 |
|||||||||
Olympus Corp., 2.14%, 12/8/26 (a) |
758,000 |
762,351 |
|||||||||
Smith & Nephew PLC, 2.03%, 10/14/30, Callable 7/14/30 @ 100 |
3,500,000 |
3,384,675 |
|||||||||
STERIS Irish FinCo Unlimited Co., 2.70%, 3/15/31, Callable 12/15/30 @ 100 |
2,000,000 |
2,023,440 |
|||||||||
7,249,046 |
|||||||||||
Industrials (0.7%): |
|||||||||||
Air Canada Pass Through Trust, 4.13%, 11/15/26 (a) |
1,857,191 |
1,873,739 |
|||||||||
Aircastle Ltd., 4.40%, 9/25/23, Callable 8/25/23 @ 100 |
500,000 |
523,775 |
|||||||||
BAE Systems PLC, 3.40%, 4/15/30, Callable 1/15/30 @ 100 (a) |
750,000 |
799,815 |
|||||||||
Canadian Pacific Railway Co., 2.45%, 12/2/31, Callable 9/2/31 @ 100 |
833,000 |
848,894 |
|||||||||
CK
Hutchison International 19 II Ltd., 2.75%, 9/6/29, Callable 6/6/29 @ 100 (a) |
1,500,000 |
1,554,060 |
|||||||||
Ferguson Finance PLC, 3.25%, 6/2/30, Callable 3/2/30 @ 100 (a) |
1,450,000 |
1,526,139 |
|||||||||
Port
of Newcastle Investments Financing Pty Ltd., 5.90%, 11/24/31, Callable
8/24/31 @ 100 (a) (d) |
1,000,000 |
1,029,260 |
|||||||||
Rolls-Royce PLC, 3.63%, 10/14/25, Callable 7/14/25 @ 100 (a) |
275,000 |
279,994 |
|||||||||
8,435,676 |
|||||||||||
Information Technology (0.0%): (f) |
|||||||||||
CGI, Inc., 1.45%, 9/14/26, Callable 8/14/26 @ 100 (a) |
533,000 |
521,668 |
|||||||||
Materials (0.3%): |
|||||||||||
Anglo American Capital PLC, 4.00%, 9/11/27 (a) |
1,000,000 |
1,077,700 |
|||||||||
Braskem Netherlands Finance BV, 4.50%, 1/31/30 (a) |
1,000,000 |
1,065,020 |
|||||||||
CCL Industries, Inc., 3.05%, 6/1/30, Callable 3/1/30 @ 100 (a) |
2,000,000 |
2,069,980 |
|||||||||
4,212,700 |
See notes to financial statements.
35
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Real Estate (0.3%): |
|||||||||||
Ontario
Teachers' Cadillac Fairview Properties Trust, 2.50%, 10/15/31,
Callable 7/15/31 @ 100 (a) |
$ |
3,233,000 |
$ |
3,245,512 |
|||||||
Total Yankee Dollars (Cost $98,930,930) |
100,515,489 |
||||||||||
Municipal Bonds (3.1%) |
|||||||||||
Arizona (0.1%): |
|||||||||||
The University of Arizona Revenue, Series A, 1.82%, 6/1/30 |
1,000,000 |
1,001,424 |
|||||||||
California (0.2%): |
|||||||||||
California
Statewide Communities Development Authority Revenue, 1.73%, 4/1/27 |
1,000,000 |
985,009 |
|||||||||
City
of El Cajon Revenue Series A, 1.70%, 4/1/27 |
620,000 |
614,920 |
|||||||||
Series A, 1.90%, 4/1/28 |
500,000 |
496,497 |
|||||||||
San
Jose Redevelopment Agency Successor Agency Tax Allocation, Series A-T, 3.13%, 8/1/28, Continuously Callable @ 100 |
500,000 |
529,201 |
|||||||||
2,625,627 |
|||||||||||
Colorado (0.1%): |
|||||||||||
City
& County of Denver Co. Airport System Revenue, Series C, 2.14%,
11/15/29 |
1,500,000 |
1,519,068 |
|||||||||
Connecticut (0.1%): |
|||||||||||
State of Connecticut, GO, Series A, 3.43%, 4/15/28 |
500,000 |
546,739 |
|||||||||
Florida (0.3%): |
|||||||||||
County
of Miami-Dade Seaport Department Revenue, Series B-3, 2.34%, 10/1/33, Continuously Callable @ 100 |
1,500,000 |
1,467,732 |
|||||||||
Hillsborough
County IDA Revenue, 3.58%, 8/1/35, Continuously Callable @ 100 |
1,500,000 |
1,624,136 |
|||||||||
Hillsborough
County School Board Certificate of Participation, Series B, 1.92%, 7/1/25 |
750,000 |
758,670 |
|||||||||
3,850,538 |
|||||||||||
Georgia (0.1%): |
|||||||||||
City
of Atlanta GA Water & Wastewater Revenue, 2.26%, 11/1/35,
Continuously Callable @ 100 |
1,500,000 |
1,496,268 |
|||||||||
Hawaii (0.1%): |
|||||||||||
State of Hawaii Airports System Revenue, Series E, 1.81%, 7/1/27 |
915,000 |
915,061 |
|||||||||
Illinois (0.0%): (f) |
|||||||||||
Illinois Finance Authority Revenue, 3.55%, 8/15/29 |
500,000 |
543,040 |
|||||||||
Louisiana (0.1%): |
|||||||||||
Louisiana
Local Government Environmental Facilities & Community Development Authority Revenue, 1.55%, 2/1/27 |
700,000 |
687,585 |
|||||||||
Louisiana Public Facilities Authority Revenue, 2.28%, 6/1/30 |
500,000 |
503,836 |
|||||||||
1,191,421 |
See notes to financial statements.
36
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Michigan (0.2%): |
|||||||||||
Michigan
Finance Authority Revenue 2.47%, 12/1/25 |
$ |
1,000,000 |
$ |
1,031,816 |
|||||||
3.08%, 12/1/34 |
1,000,000 |
1,060,581 |
|||||||||
2,092,397 |
|||||||||||
New Jersey (0.3%): |
|||||||||||
New
Jersey Economic Development Authority Revenue, Series NNN, 3.47%, 6/15/27 |
1,000,000 |
1,062,357 |
|||||||||
New
Jersey Health Care Facilities Financing Authority Revenue, Series A,
3.36%, 7/1/40 |
1,000,000 |
1,046,645 |
|||||||||
New Jersey Transportation Trust Fund Authority Revenue, 4.08%, 6/15/39 |
385,000 |
426,930 |
|||||||||
South Jersey Transportation Authority Revenue, Series B, 2.38%, 11/1/27 |
900,000 |
888,142 |
|||||||||
3,424,074 |
|||||||||||
New York (0.2%): |
|||||||||||
New York City Industrial Development Agency Revenue, 2.73%, 3/1/34 |
1,500,000 |
1,510,017 |
|||||||||
New York State Dormitory Authority Revenue, Series A, 2.46%, 7/1/32 |
750,000 |
754,035 |
|||||||||
2,264,052 |
|||||||||||
Oklahoma (0.1%): |
|||||||||||
Oklahoma
Development Finance Authority Revenue, Series C, 5.45%, 8/15/28 |
500,000 |
560,322 |
|||||||||
The University of Oklahoma Revenue, Series C, 2.05%, 7/1/29 |
1,000,000 |
993,761 |
|||||||||
1,554,083 |
|||||||||||
Pennsylvania (0.2%): |
|||||||||||
Commonwealth Financing Authority Revenue, Series A, 3.63%, 6/1/29 |
500,000 |
540,731 |
|||||||||
Public Parking Authority Of Pittsburgh Revenue, 2.33%, 12/1/29 |
895,000 |
899,177 |
|||||||||
State Public School Building Authority Revenue, 3.15%, 4/1/30 |
1,290,000 |
1,377,680 |
|||||||||
2,817,588 |
|||||||||||
Texas (0.8%): |
|||||||||||
City of Houston Airport System Revenue, Series C, 2.09%, 7/1/28 |
750,000 |
752,491 |
|||||||||
City of San Antoni, GO, 1.76%, 2/1/31, Continuously Callable @ 100 |
630,000 |
618,057 |
|||||||||
County of Bexar Revenue, 2.28%, 8/15/32, Continuously Callable @ 100 |
1,070,000 |
1,036,187 |
|||||||||
Harris
County Cultural Education Facilities Finance Corp. Revenue 3.34%, 11/15/37 |
2,000,000 |
2,124,478 |
|||||||||
Series D, 2.28%, 7/1/34 |
370,000 |
365,719 |
|||||||||
North Texas Tollway Authority Revenue, 1.02%, 1/1/25 |
1,000,000 |
989,818 |
|||||||||
San Antonio Education Facilities Corp. Revenue, 2.50%, 4/1/29 |
1,270,000 |
1,241,370 |
|||||||||
Tarrant
County Cultural Education Facilities Finance Corp. Revenue 1.63%, 9/1/26 |
525,000 |
526,856 |
|||||||||
1.82%, 9/1/27 |
700,000 |
702,140 |
|||||||||
Uptown
Development Authority Tax Allocation Series B, 2.58%, 9/1/31 |
270,000 |
272,293 |
|||||||||
Series B, 2.78%, 9/1/33, Continuously Callable @ 100 |
500,000 |
509,615 |
|||||||||
9,139,024 |
|||||||||||
Virginia (0.1%): |
|||||||||||
Virginia
Housing Development Authority Revenue Series J, 1.97%, 11/1/28 |
225,000 |
226,200 |
See notes to financial statements.
37
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Series J, 2.27%, 11/1/31, Continuously Callable @ 100 |
$ |
225,000 |
$ |
226,540 |
|||||||
Series J, 2.42%, 11/1/32, Continuously Callable @ 100 |
275,000 |
278,345 |
|||||||||
Series J, 2.47%, 11/1/33, Continuously Callable @ 100 |
270,000 |
273,041 |
|||||||||
Series J, 2.52%, 11/1/34, Continuously Callable @ 100 |
250,000 |
252,692 |
|||||||||
Series J, 2.57%, 11/1/35, Continuously Callable @ 100 |
300,000 |
303,169 |
|||||||||
1,559,987 |
|||||||||||
Washington (0.1%): |
|||||||||||
Washington State University Revenue, Series A, 2.24%, 10/1/28 |
1,000,000 |
1,013,194 |
|||||||||
Total Municipal Bonds (Cost $36,829,598) |
37,553,585 |
||||||||||
U.S. Government Agency Mortgages (3.4%) |
|||||||||||
Federal
Home Loan Mortgage Corp. Series K028, Class A2, 3.11%, 2/25/23 |
992,943 |
1,012,883 |
|||||||||
Series K059, Class A2, 3.12%, 9/25/26 (c) |
1,000,000 |
1,071,798 |
|||||||||
Series KIR3, Class A2, 3.28%, 8/25/27 |
1,500,000 |
1,636,289 |
|||||||||
Series K069, Class A2, 3.19%, 9/25/27 (c) |
86,000 |
93,451 |
|||||||||
Series K071, Class A2, 3.29%, 11/25/27 |
500,000 |
546,640 |
|||||||||
Series K075, Class A2, 3.65%, 2/25/28 (c) |
500,000 |
558,391 |
|||||||||
Series K087, Class A2, 3.77%, 12/25/28 |
500,000 |
565,398 |
|||||||||
Series K091, Class A2, 3.51%, 3/25/29 |
1,250,000 |
1,395,817 |
|||||||||
Series K095, Class A2, 2.79%, 6/25/29 |
1,000,000 |
1,072,865 |
|||||||||
Series K097, Class A2, 2.51%, 7/25/29 |
2,000,000 |
2,107,443 |
|||||||||
Series K096, Class A2, 2.52%, 7/25/29 |
1,000,000 |
1,054,252 |
|||||||||
Series KG02, Class A2, 2.41%, 8/25/29 |
909,000 |
948,260 |
|||||||||
Series K100, Class A2, 2.67%, 9/25/29 |
545,000 |
581,013 |
|||||||||
Series K159, Class A2, 3.95%, 11/25/30 (c) |
500,000 |
579,715 |
|||||||||
3.00%, 3/1/31 ? 2/1/33 |
303,206 |
318,169 |
|||||||||
3.50%, 5/1/33 ? 11/1/47 |
1,561,143 |
1,660,739 |
|||||||||
Series K-1510, Class A3, 3.79%, 1/25/34 |
1,000,000 |
1,161,443 |
|||||||||
Series K-1512, Class A3, 3.06%, 4/25/34 |
1,000,000 |
1,089,919 |
|||||||||
4.00%, 7/1/42 ? 5/1/46 |
1,235,304 |
1,341,268 |
|||||||||
4.50%, 12/1/45 |
93,343 |
102,867 |
|||||||||
18,898,620 |
|||||||||||
Federal
National Mortgage Association Series M4, Class A2, 3.06%, 3/25/28 (c) |
463,717 |
501,709 |
|||||||||
Series 2019-M1, Class A2, 3.55%, 9/25/28 (c) |
750,000 |
839,111 |
|||||||||
Series 2019-M12, Class A2, 2.89%, 5/25/29 (c) |
1,000,000 |
1,078,352 |
|||||||||
2.50%, 11/1/34 |
340,456 |
352,214 |
|||||||||
4.00%, 12/1/41 ? 2/1/50 |
5,259,888 |
5,607,213 |
|||||||||
3.50%, 9/1/45 ? 2/1/50 |
5,579,653 |
5,915,419 |
|||||||||
4.50%, 8/1/47 |
16,174 |
17,490 |
|||||||||
3.00%, 2/1/50 |
617,345 |
640,208 |
|||||||||
2.00%, 11/1/51 ? 12/1/51 |
3,473,387 |
3,473,007 |
|||||||||
18,424,723 |
|||||||||||
Government
National Mortgage Association 3.00%, 10/20/51 |
2,963,899 |
3,074,926 |
|||||||||
Total U.S. Government Agency Mortgages (Cost $39,044,092) |
40,398,269 |
See notes to financial statements.
38
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
U.S. Treasury Obligations (39.1%) |
|||||||||||
U.S.
Treasury Bonds 4.38%, 2/15/38 |
$ |
750,000 |
$ |
1,034,766 |
|||||||
3.50%, 2/15/39 |
2,770,000 |
3,481,111 |
|||||||||
4.38%, 11/15/39 |
1,000,000 |
1,393,125 |
|||||||||
1.13%, 5/15/40 |
1,000,000 |
879,531 |
|||||||||
1.38%, 11/15/40 |
5,000,000 |
4,571,094 |
|||||||||
1.88%, 2/15/41 |
9,000,000 |
8,935,312 |
|||||||||
1.75%, 8/15/41 |
1,000,000 |
972,656 |
|||||||||
2.75%, 8/15/47 |
500,000 |
582,422 |
|||||||||
2.75%, 11/15/47 |
500,000 |
582,813 |
|||||||||
3.00%, 2/15/48 |
3,500,000 |
4,275,469 |
|||||||||
3.38%, 11/15/48 |
2,012,000 |
2,634,462 |
|||||||||
1.38%, 8/15/50 |
7,000,000 |
6,163,281 |
|||||||||
1.63%, 11/15/50 |
3,000,000 |
2,807,813 |
|||||||||
1.88%, 2/15/51 |
4,000,000 |
3,976,875 |
|||||||||
2.00%, 8/15/51 |
2,000,000 |
2,048,750 |
|||||||||
U.S. Treasury Inflation Indexed Bonds, 0.88%, 1/15/29 |
500,000 |
633,382 |
|||||||||
U.S. Treasury Notes |
|||||||||||
2.50%, 1/15/22 |
712,000 |
712,501 |
|||||||||
1.88%, 1/31/22 |
1,000,000 |
1,001,289 |
|||||||||
1.50%, 1/31/22 |
7,000,000 |
7,007,109 |
|||||||||
2.50%, 2/15/22 |
2,000,000 |
2,005,547 |
|||||||||
1.88%, 2/28/22 |
1,700,000 |
1,704,648 |
|||||||||
2.25%, 4/15/22 |
2,000,000 |
2,011,875 |
|||||||||
0.13%, 5/31/22 |
5,000,000 |
4,999,219 |
|||||||||
0.13%, 6/30/22 |
10,000,000 |
9,995,703 |
|||||||||
0.13%, 7/31/22 |
12,500,000 |
12,492,187 |
|||||||||
1.50%, 8/15/22 |
1,000,000 |
1,007,656 |
|||||||||
0.13%, 9/30/22 |
6,000,000 |
5,992,266 |
|||||||||
0.13%, 10/31/22 |
10,000,000 |
9,983,594 |
|||||||||
2.00%, 10/31/22 |
400,000 |
405,391 |
|||||||||
0.13%, 6/30/23 |
10,000,000 |
9,932,812 |
|||||||||
0.13%, 8/31/23 |
5,000,000 |
4,956,055 |
|||||||||
0.13%, 9/15/23 |
6,000,000 |
5,944,687 |
|||||||||
0.13%, 10/15/23 |
2,500,000 |
2,474,902 |
|||||||||
0.25%, 11/15/23 |
22,000,000 |
21,817,813 |
|||||||||
0.13%, 1/15/24 |
10,000,000 |
9,873,437 |
|||||||||
2.00%, 4/30/24 |
24,550,000 |
25,215,535 |
|||||||||
0.25%, 6/15/24 |
20,000,000 |
19,706,250 |
|||||||||
0.38%, 7/15/24 |
7,000,000 |
6,913,594 |
|||||||||
0.38%, 8/15/24 |
10,000,000 |
9,867,969 |
|||||||||
1.50%, 10/31/24 |
3,000,000 |
3,047,109 |
|||||||||
1.00%, 12/15/24 |
30,000,000 |
30,032,813 |
|||||||||
2.25%, 12/31/24 |
5,000,000 |
5,189,063 |
|||||||||
2.75%, 2/28/25 |
850,000 |
895,820 |
|||||||||
0.25%, 6/30/25 |
10,000,000 |
9,716,406 |
|||||||||
3.00%, 9/30/25 |
300,000 |
320,648 |
|||||||||
0.25%, 9/30/25 |
3,500,000 |
3,389,531 |
|||||||||
0.38%, 11/30/25 |
13,000,000 |
12,612,031 |
See notes to financial statements.
39
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Shares
or Principal Amount |
Value |
|||||||||
0.38%, 1/31/26 |
$ |
4,000,000 |
$ |
3,872,188 |
|||||||
1.50%, 8/15/26 |
2,000,000 |
2,023,281 |
|||||||||
1.38%, 8/31/26 |
8,000,000 |
8,050,000 |
|||||||||
1.13%, 10/31/26 |
4,000,000 |
3,976,563 |
|||||||||
1.63%, 10/31/26 |
5,000,000 |
5,086,719 |
|||||||||
2.00%, 11/15/26 |
2,700,000 |
2,794,500 |
|||||||||
0.50%, 6/30/27 |
2,500,000 |
2,392,773 |
|||||||||
2.25%, 8/15/27 |
1,000,000 |
1,049,375 |
|||||||||
2.25%, 11/15/27 |
1,700,000 |
1,785,930 |
|||||||||
0.63%, 11/30/27 |
13,000,000 |
12,456,641 |
|||||||||
0.75%, 1/31/28 |
10,000,000 |
9,637,500 |
|||||||||
2.75%, 2/15/28 |
2,000,000 |
2,161,875 |
|||||||||
1.25%, 3/31/28 |
8,000,000 |
7,935,000 |
|||||||||
1.25%, 4/30/28 |
10,000,000 |
9,917,187 |
|||||||||
2.88%, 5/15/28 |
4,000,000 |
4,359,063 |
|||||||||
1.25%, 6/30/28 |
15,000,000 |
14,851,172 |
|||||||||
1.00%, 7/31/28 |
15,000,000 |
14,608,594 |
|||||||||
2.88%, 8/15/28 |
630,000 |
688,275 |
|||||||||
1.13%, 8/31/28 |
5,000,000 |
4,905,469 |
|||||||||
3.13%, 11/15/28 |
1,000,000 |
1,111,875 |
|||||||||
2.63%, 2/15/29 |
1,000,000 |
1,081,250 |
|||||||||
1.63%, 8/15/29 |
10,000,000 |
10,146,875 |
|||||||||
0.63%, 5/15/30 |
2,500,000 |
2,340,625 |
|||||||||
0.63%, 8/15/30 |
5,000,000 |
4,664,062 |
|||||||||
0.88%, 11/15/30 |
17,000,000 |
16,165,937 |
|||||||||
1.13%, 2/15/31 |
12,000,000 |
11,647,500 |
|||||||||
1.63%, 5/15/31 |
20,000,000 |
20,256,250 |
|||||||||
1.25%, 8/15/31 |
5,000,000 |
4,889,844 |
|||||||||
Total U.S. Treasury Obligations (Cost $472,732,255) |
471,054,645 |
||||||||||
Commercial Papers (2.8%) (g) |
|||||||||||
CenterPoint Energy, 0.15%, 1/3/22 (a) |
10,000,000 |
9,999,872 |
|||||||||
Hannover Funding Co. LLC, 0.16%, 1/3/22 (a) |
1,000,000 |
999,987 |
|||||||||
One Gas, Inc., 0.29%, 1/18/22 (a) |
2,000,000 |
1,999,708 |
|||||||||
Sonoco Products Co., 0.15%, 1/3/22 (a) |
11,000,000 |
10,999,858 |
|||||||||
Wisconsin Energy Corp., 0.12%, 1/4/22 (a) |
10,000,000 |
9,999,867 |
|||||||||
Total Commercial Papers (Cost $33,999,419) |
33,999,292 |
||||||||||
Collateral for Securities Loaned^ (0.8%) |
|||||||||||
BlackRock Liquidity Funds TempFund, Institutional Shares, 0.04% (h) |
214,462 |
214,462 |
|||||||||
Fidelity
Investments Money Market Government Portfolio, Institutional Shares, 0.01% (h) |
4,212,067 |
4,212,067 |
|||||||||
Goldman
Sachs Financial Square Prime Obligations Fund, Institutional Shares, 0.02% (h) |
107,027 |
107,027 |
|||||||||
JPMorgan Prime Money Market Fund, Capital Shares, 0.07% (h) |
853,402 |
853,402 |
See notes to financial statements.
40
Victory Portfolios
II VictoryShares USAA Core Intermediate-Term Bond ETF |
Schedule
of Portfolio Investments ? continued December 31, 2021 |
(Unaudited)
Security Description |
Principal Amount |
Value |
|||||||||
Morgan
Stanley Institutional Liquidity Prime Portfolio, Institutional Shares, 0.06% (h) |
$ |
3,837,063 |
$ |
3,837,063 |
|||||||
Total Collateral for Securities Loaned (Cost $9,224,021) |
9,224,021 |
||||||||||
Total Investments (Cost $1,199,098,007) ? 100.3% |
1,208,360,510 |
||||||||||
Liabilities in excess of other assets ? (0.3)% |
(3,633,478 |
) |
|||||||||
NET ASSETS ? 100.00% |
$ |
1,204,727,032 |
^ Purchased with cash collateral from securities on loan.
(a) Rule 144A security or other security that is restricted as to resale to institutional investors. The Fund's Adviser has deemed this security to be liquid (unless otherwise noted as illiquid) based upon procedures approved by the Board of Trustees. As of December 31, 2021, the fair value of these securities was $274,698,576 and amounted to 22.8% of net assets.
(b) Variable or Floating-Rate Security. Rate disclosed is as of December 31, 2021.
(c) The rate for certain asset-backed and mortgage-backed securities may vary based on factors relating to the pool of assets underlying the security. The rate disclosed is the rate in effect at December 31, 2021.
(d) All or a portion of this security is on loan.
(e) Security is perpetual and has no final maturity date but may be subject to calls at various dates in the future.
(f) Amount represents less than 0.05% of net assets.
(g) Rate represents the effective yield at December 31, 2021.
(h) Rate disclosed is the daily yield on December 31, 2021.
bps ? Basis points
GO ? General Obligation
H15T1Y ? 1 Year Treasury Constant Maturity Rate
H15T5Y ? 5 Year Treasury Constant Maturity Rate
IDA ? Industrial Development Authority
LIBOR ? London InterBank Offered Rate
LIBOR01M ? 1 Month US Dollar LIBOR, rate disclosed as of December 31, 2021, based on the last reset date of the security
LIBOR03M ? 3 Month US Dollar LIBOR, rate disclosed as of December 31, 2021, based on the last reset date of the security
LLC ? Limited Liability Company
LP ? Limited Partnership
MTN ? Medium Term Note
PLC ? Public Limited Company
SOFR ? Secured Overnight Financing Rate
USISDA05 ? 5 Year USD ICE Swap, rate disclosed as of December 31, 2021
USSW5 ? USD 5 Year Swap Rate, rate disclosed as of December 31, 2021.
See notes to financial statements.
41
Victory Portfolios II |
Statements
of Assets and Liabilities December 31, 2021 |
(Unaudited)
VictoryShares
USAA Core Short-Term Bond ETF |
VictoryShares USAA Core Intermediate-Term Bond ETF |
||||||||||
Assets: |
|||||||||||
Investments, at value (Cost $388,206,445 and $1,199,098,007) |
$ |
388,350,097 |
$ |
1,208,360,510 |
(a) |
||||||
Cash |
1,615,979 |
1,016,991 |
|||||||||
Deposit with broker for futures contracts |
? |
40,048 |
|||||||||
Receivables: |
|||||||||||
Interest and dividends |
2,522,145 |
5,439,577 |
|||||||||
Investments sold |
200,966 |
? |
|||||||||
Prepaid expenses |
302 |
980 |
|||||||||
Total Assets |
392,689,489 |
1,214,858,106 |
|||||||||
Liabilities: |
|||||||||||
Payables: |
|||||||||||
Collateral received on loaned securities |
? |
9,224,021 |
|||||||||
Investments purchased |
5,536,741 |
523,185 |
|||||||||
Accrued expenses and other payables: |
|||||||||||
Investment advisory fees |
81,307 |
305,324 |
|||||||||
Administration fees |
7,197 |
22,017 |
|||||||||
Custodian fees |
2,336 |
3,891 |
|||||||||
Compliance fees |
143 |
592 |
|||||||||
Trustees' fees |
? |
1,634 |
|||||||||
Other accrued expenses |
26,112 |
50,410 |
|||||||||
Total Liabilities |
5,653,836 |
10,131,074 |
|||||||||
Net Assets: |
|||||||||||
Capital |
386,881,097 |
1,195,534,676 |
|||||||||
Total accumulated earnings/(loss) |
154,556 |
9,192,356 |
|||||||||
Net Assets |
$ |
387,035,653 |
$ |
1,204,727,032 |
|||||||
Shares (unlimited shares authorized, no par value): |
7,550,000 |
22,750,000 |
|||||||||
Net asset value: |
$ |
51.26 |
$ |
52.96 |
(a) Includes $8,913,411 of securities on loan.
See notes to financial statements.
42
Victory Portfolios II |
Statements
of Operations For the Six Months Ended December 31, 2021 |
(Unaudited)
VictoryShares USAA Core Short-Term Bond ETF |
VictoryShares USAA Core Intermediate-Term Bond ETF |
||||||||||
Investment Income: |
|||||||||||
Interest |
$ |
2,705,477 |
$ |
10,399,779 |
|||||||
Securities lending (net of fees) |
1,216 |
5,900 |
|||||||||
Total Income |
2,706,693 |
10,405,679 |
|||||||||
Expenses: |
|||||||||||
Investment advisory fees |
379,152 |
1,604,831 |
|||||||||
Administration fees |
82,313 |
290,420 |
|||||||||
Sub-Administration fees |
10,057 |
12,395 |
|||||||||
Custodian fees |
7,381 |
19,668 |
|||||||||
Servicing fees |
7,339 |
7,337 |
|||||||||
Trustees' fees |
8,765 |
28,984 |
|||||||||
Compliance fees |
974 |
3,509 |
|||||||||
Legal and audit fees |
13,661 |
34,699 |
|||||||||
Other expenses |
23,987 |
50,311 |
|||||||||
Total Expenses |
533,629 |
2,052,154 |
|||||||||
Expenses waived/reimbursed by Adviser |
(48,057 |
) |
(169,575 |
) |
|||||||
Net Expenses |
485,572 |
1,882,579 |
|||||||||
Net Investment Income (Loss) |
2,221,121 |
8,523,100 |
|||||||||
Realized/Unrealized Gains (Losses) from Investments: |
|||||||||||
Net realized gains (losses) from investment securities |
466,159 |
1,834,964 |
|||||||||
Net
change in unrealized appreciation/depreciation on investment securities |
(2,669,667 |
) |
(14,036,879 |
) |
|||||||
Net realized/unrealized gains (losses) on investments |
(2,203,508 |
) |
(12,201,915 |
) |
|||||||
Change in net assets resulting from operations |
$ |
17,613 |
$ |
(3,678,815 |
) |
See notes to financial statements.
43
Victory Portfolios II |
Statements of Changes in Net Assets |
VictoryShares
USAA Core Short-Term Bond ETF |
VictoryShares
USAA Core Intermediate-Term Bond ETF |
||||||||||||||||||
Six Months Ended December 31, 2021 (Unaudited) |
Year Ended June 30, 2021 |
Six Months Ended December 31, 2021 (Unaudited) |
Year Ended June 30, 2021 |
||||||||||||||||
From Investment Activities: |
|||||||||||||||||||
Operations: |
|||||||||||||||||||
Net investment income (loss) |
$ |
2,221,121 |
$ |
3,587,482 |
$ |
8,523,100 |
$ |
12,759,697 |
|||||||||||
Net
realized gains (losses) from investments |
466,159 |
1,090,676 |
1,834,964 |
3,145,663 |
|||||||||||||||
Net
change in unrealized appreciation/depreciation on investments |
(2,669,667 |
) |
1,492,704 |
(14,036,879 |
) |
(2,477,903 |
) |
||||||||||||
Change
in net assets resulting from operations |
17,613 |
6,170,862 |
(3,678,815 |
) |
13,427,457 |
||||||||||||||
Change
in net assets resulting from distributions to shareholders |
(3,915,435 |
) |
(4,553,556 |
) |
(13,555,127 |
) |
(14,839,541 |
) |
|||||||||||
Change
in net assets resulting from capital transactions |
118,637,570 |
165,678,281 |
327,627,854 |
444,955,757 |
|||||||||||||||
Change in net assets |
114,739,748 |
167,295,587 |
310,393,912 |
443,543,673 |
|||||||||||||||
Net Assets: |
|||||||||||||||||||
Beginning of period |
272,295,905 |
105,000,318 |
894,333,120 |
450,789,447 |
|||||||||||||||
End of period |
$ |
387,035,653 |
$ |
272,295,905 |
$ |
1,204,727,032 |
$ |
894,333,120 |
|||||||||||
Capital Transactions: |
|||||||||||||||||||
Proceeds from shares issued |
$ |
118,637,570 |
$ |
181,229,714 |
$ |
327,627,854 |
$ |
458,507,492 |
|||||||||||
Cost of shares redeemed |
? |
(15,551,433 |
) |
? |
(13,551,735 |
) |
|||||||||||||
Change
in net assets resulting from capital transactions |
$ |
118,637,570 |
$ |
165,678,281 |
$ |
327,627,854 |
$ |
444,955,757 |
|||||||||||
Share Transactions: |
|||||||||||||||||||
Issued |
2,300,000 |
3,500,000 |
6,100,000 |
8,500,000 |
|||||||||||||||
Redeemed |
? |
(300,000 |
) |
? |
(250,000 |
) |
|||||||||||||
Change in Shares |
2,300,000 |
3,200,000 |
6,100,000 |
8,250,000 |
See notes to financial statements.
44
This page is intentionally left blank.
45
Victory Portfolios II |
Financial Highlights |
For a Share Outstanding Throughout Each Period
Investment Activities |
Distributions
to Shareholders From |
||||||||||||||||||||||||||
Net
Asset Value, Beginning of Period |
Net Investment Income (Loss)(a) |
Net
Realized and Unrealized Gains (Losses) on Investments |
Total
from Investment Activities |
Net Investment Income |
Net
Realized Gains from Investments |
||||||||||||||||||||||
VictoryShares USAA Core Short-Term Bond ETF |
|||||||||||||||||||||||||||
Six
Months Ended December 31, 2021 (Unaudited) |
$ |
51.87 |
0.38 |
(0.37 |
) |
0.01 |
(0.45 |
) |
(0.17 |
) |
|||||||||||||||||
Year
Ended June 30, 2021 |
$ |
51.22 |
0.84 |
0.93 |
1.77 |
(0.90 |
) |
(0.22 |
) |
||||||||||||||||||
Ten
Months Ended June 30, 2020(f) |
$ |
50.65 |
1.10 |
0.48 |
1.58 |
(1.01 |
) |
? |
|||||||||||||||||||
Year
Ended August 31, 2019 |
$ |
49.50 |
1.37 |
1.13 |
2.50 |
(1.35 |
) |
? |
|||||||||||||||||||
October
24, 2017(h) through August 31, 2018 |
$ |
50.00 |
0.93 |
(0.59 |
) |
0.34 |
(0.84 |
) |
? |
||||||||||||||||||
VictoryShares USAA Core Intermediate-Term Bond ETF |
|||||||||||||||||||||||||||
Six
Months Ended December 31, 2021 (Unaudited) |
$ |
53.71 |
0.43 |
(0.52 |
) |
(0.09 |
) |
(0.53 |
) |
(0.13 |
) |
||||||||||||||||
Year
Ended June 30, 2021 |
$ |
53.67 |
1.08 |
0.27 |
1.35 |
(1.11 |
) |
(0.20 |
) |
||||||||||||||||||
Ten
Months Ended June 30, 2020(f) |
$ |
52.48 |
1.21 |
1.12 |
2.33 |
(1.14 |
) |
? |
|||||||||||||||||||
Year
Ended August 31, 2019 |
$ |
48.61 |
1.62 |
3.81 |
5.43 |
(1.56 |
) |
? |
|||||||||||||||||||
October
24, 2017(h) through August 31, 2018 |
$ |
49.93 |
1.29 |
(1.46 |
) |
(0.17 |
) |
(1.15 |
) |
? |
(a) Per share net investment income (loss) has been calculated using the average daily shares method.
(b) Not annualized for periods less than one year.
(c) Annualized for periods less than one year.
(d) Excludes impact of in-kind transactions.
(e) Includes impact of voluntary waivers. Without these voluntary waivers, the net expense ratio would have been at the contractual cap. (See note 4 in the Notes to Financial Statements)
(f) The Fund's fiscal year-end changed from August 31 to June 30, effective September 1, 2019.
(g) Portfolio turnover increased significantly due to changes in the volume and timing of purchases and sales of portfolio holdings during the period.
(h) Commencement of operations.
(i) Includes impact of voluntary waiver. Without this voluntary waiver, the net expense ratio would have been 0.03% and 0.02% higher for the six months ended December 31, 2021, and ten months ended June 30, 2020, respectively.
(j) Portfolio turnover decreased significantly due to changes in the volume and timing of purchases and sales of portfolio holdings during the year.
See notes to financial statements.
46
Victory Portfolios II |
Financial Highlights ? continued |
For a Share Outstanding Throughout Each Period
Ratios to Average Net Assets |
Supplemental Data |
||||||||||||||||||||||||||||||||||
Total Distributions |
Net
Asset Value, End of Period |
Total Return(b) |
Net Expenses(c) |
Net Investment Income (Loss)(c) |
Gross Expenses(c) |
Net
Assets, End of Period (000's) |
Portfolio Turnover(b)(d) |
||||||||||||||||||||||||||||
VictoryShares USAA Core Short-Term Bond ETF |
|||||||||||||||||||||||||||||||||||
Six
Months Ended December 31, 2021 (Unaudited) |
(0.62 |
) |
$ |
51.26 |
0.04 |
% |
0.32 |
%(e) |
1.46 |
% |
0.35 |
% |
$ |
387,036 |
36 |
% |
|||||||||||||||||||
Year
Ended June 30, 2021 |
(1.12 |
) |
$ |
51.87 |
3.48 |
% |
0.34 |
%(e) |
1.62 |
% |
0.37 |
% |
$ |
272,296 |
80 |
% |
|||||||||||||||||||
Ten
Months Ended June 30, 2020(f) |
(1.01 |
) |
$ |
51.22 |
3.17 |
% |
0.35 |
% |
2.62 |
% |
0.44 |
% |
$ |
105,000 |
72 |
%(g) |
|||||||||||||||||||
Year
Ended August 31, 2019 |
(1.35 |
) |
$ |
50.65 |
5.11 |
% |
0.35 |
% |
2.75 |
% |
0.40 |
% |
$ |
83,573 |
30 |
% |
|||||||||||||||||||
October
24, 2017(h) through August 31, 2018 |
(0.84 |
) |
$ |
49.50 |
0.70 |
% |
0.35 |
% |
2.21 |
% |
0.40 |
% |
$ |
61,872 |
22 |
% |
|||||||||||||||||||
VictoryShares USAA Core Intermediate-Term Bond ETF |
|||||||||||||||||||||||||||||||||||
Six
Months Ended December 31, 2021 (Unaudited) |
(0.66 |
) |
$ |
52.96 |
(0.18 |
)% |
0.35 |
%(i) |
1.59 |
% |
0.38 |
% |
$ |
1,204,727 |
10 |
% |
|||||||||||||||||||
Year
Ended June 30, 2021 |
(1.31 |
) |
$ |
53.71 |
2.55 |
% |
0.37 |
%(e) |
2.01 |
% |
0.41 |
% |
$ |
894,333 |
16 |
% |
|||||||||||||||||||
Ten
Months Ended June 30, 2020(f) |
(1.14 |
) |
$ |
53.67 |
4.52 |
% |
0.38 |
%(i) |
2.80 |
% |
0.42 |
% |
$ |
450,789 |
13 |
% |
|||||||||||||||||||
Year
Ended August 31, 2019 |
(1.56 |
) |
$ |
52.48 |
11.37 |
% |
0.39 |
% |
3.27 |
% |
0.44 |
% |
$ |
314,856 |
3 |
%(j) |
|||||||||||||||||||
October
24, 2017(h) through August 31, 2018 |
(1.15 |
) |
$ |
48.61 |
(0.33 |
)% |
0.40 |
% |
3.10 |
% |
0.45 |
% |
$ |
150,703 |
10 |
% |
See notes to financial statements.
47
Victory Portfolios II |
Notes
to Financial Statements December 31, 2021 |
(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 25 funds, 23 of which are Exchange-Traded Funds ("ETFs"), 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 two Funds (collectively, the "Funds" and individually, a "Fund"). Each Fund is classified as diversified under the 1940 Act.
Funds (Legal Name) |
Funds (Short Name) |
||||||
VictoryShares USAA Core Short-Term Bond ETF |
USAA Core Short-Term Bond ETF |
||||||
VictoryShares USAA Core Intermediate-Term Bond ETF |
USAA Core Intermediate-Term Bond ETF |
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 Fund. 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 Trust in the preparation of its 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 NYSE Arca, Inc. (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.
48
Victory Portfolios II |
Notes
to Financial Statements ? continued December 31, 2021 |
(Unaudited)
The transaction fees for each Fund are listed below:
Fee
for In-Kind and Cash Purchases and Redemptions |
Maximum
Additional Variable Charge for Cash Purchases and Redemptions* |
||||||||||
USAA Core Short-Term Bond ETF |
$ |
100 |
2.00 |
% |
|||||||
USAA Core Intermediate-Term Bond ETF |
100 |
2.00 |
% |
* As a percentage of the amount invested.
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 in active markets for identical securities
? Level 2 ? other significant observable inputs (including quoted prices for similar securities or interest rates applicable to those securities, etc.)
? Level 3 ? significant unobservable inputs (including the Funds' own 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 risk associated with entering into those investments.
Victory Capital Management Inc. ("VCM" or the "Adviser") has established the Pricing and Liquidity Committee (the "Committee"), and subject to the Trust's Board of Trustees' (the "Board") oversight, the Committee administers and oversees the Funds' valuation policies and procedures, which are approved by the Board.
Investments in open-end investment companies are valued at their NAV. These valuations are typically categorized as Level 1 in the fair value hierarchy.
Debt securities are valued each business day by a pricing service approved by the Board. The approved pricing service uses the evaluated bid or the last sale price to value securities. Debt obligations maturing within 60 days may be valued at amortized cost, provided that the amortized cost represents the fair value of such securities. These valuations are typically categorized as Level 2 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 Fund's NAV to be more reliable than it otherwise would be.
49
Victory Portfolios II |
Notes
to Financial Statements ? continued December 31, 2021 |
(Unaudited)
A summary of the valuations as of December 31, 2021, 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 |
||||||||||||||||
USAA Core Short-Term Bond ETF |
|||||||||||||||||||
Asset-Backed Securities |
$ |
? |
$ |
63,279,163 |
$ |
? |
$ |
63,279,163 |
|||||||||||
Collateralized Mortgage Obligations |
? |
18,281,161 |
? |
18,281,161 |
|||||||||||||||
Senior Secured Loans |
? |
4,948,961 |
? |
4,948,961 |
|||||||||||||||
Corporate Bonds |
? |
165,385,385 |
? |
165,385,385 |
|||||||||||||||
Yankee Dollars |
? |
49,146,937 |
? |
49,146,937 |
|||||||||||||||
Municipal Bonds |
? |
68,212,629 |
? |
68,212,629 |
|||||||||||||||
U.S. Treasury Obligations |
? |
8,996,250 |
? |
8,996,250 |
|||||||||||||||
Commercial Papers |
? |
10,099,611 |
? |
10,099,611 |
|||||||||||||||
Total |
$ |
? |
$ |
388,350,097 |
$ |
? |
$ |
388,350,097 |
|||||||||||
USAA Core Intermediate-Term Bond ETF |
|||||||||||||||||||
Asset-Backed Securities |
$ |
? |
$ |
93,763,478 |
$ |
? |
$ |
93,763,478 |
|||||||||||
Collateralized Mortgage Obligations |
? |
29,784,299 |
? |
29,784,299 |
|||||||||||||||
Corporate Bonds |
? |
392,067,432 |
? |
392,067,432 |
|||||||||||||||
Yankee Dollars |
? |
100,515,489 |
? |
100,515,489 |
|||||||||||||||
Municipal Bonds |
? |
37,553,585 |
? |
37,553,585 |
|||||||||||||||
U.S. Government Agency Mortgages |
? |
40,398,269 |
? |
40,398,269 |
|||||||||||||||
U.S. Treasury Obligations |
? |
471,054,645 |
? |
471,054,645 |
|||||||||||||||
Commercial Papers |
? |
33,999,292 |
? |
33,999,292 |
|||||||||||||||
Collateral for Securities Loaned |
9,224,021 |
? |
? |
9,224,021 |
|||||||||||||||
Total |
$ |
9,224,021 |
$ |
1,199,136,489 |
$ |
? |
$ |
1,208,360,510 |
For the six months ended December 31, 2021, there were no transfers in or out of Level 3 in the fair value hierarchy.
Securities Purchased on a Delayed-Delivery or When-Issued Basis:
The Funds may purchase securities on a delayed-delivery or when-issued basis. Delivery and payment for securities that have been purchased by the Fund on a delayed-delivery or when-issued basis, or for delayed draws on loans can take place a month or more after the trade date. At the time a Fund makes the commitment to purchase a security on a when-issued basis, the Fund records the transaction and reflects the value of the security in determining NAV. No interest accrues to the Fund until the transaction settles and payment takes place. Normally, the settlement date occurs within one month of the purchase. A segregated account is established and the Fund maintains cash and/or marketable securities at least equal in value to commitments for when-issued securities. If a Fund owns when-issued securities, these values are included in Payables for investments purchased on the accompanying Statements of Assets and Liabilities and the segregated assets are identified on the Schedules of Portfolio Investments.
Municipal Obligations:
The values of municipal obligations can fluctuate and may be affected by adverse tax, legislative, or political changes, and by financial developments affecting municipal issuers. Payment of municipal obligations may depend on a relatively limited source of revenue, resulting in greater credit risk. Future changes in federal tax laws or the activity of an issuer may adversely affect the tax-exempt status of municipal obligations.
Mortgage- and Asset-Backed Securities:
The values of some mortgage-related or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Fund to a lower rate of return upon reinvestment of principal. The values of mortgage- and asset-backed securities depend in part on the credit quality and adequacy of the underlying assets or
50
Victory Portfolios II |
Notes
to Financial Statements ? continued December 31, 2021 |
(Unaudited)
collateral and may fluctuate in response to the market's perception of these factors as well as current and future repayment rates. Some mortgage-backed securities are backed by the full faith and credit of the U.S. government (e.g., mortgage-backed securities issued by the Government National Mortgage Association, commonly known as "Ginnie Mae"), while other mortgage-backed securities (e.g., mortgage-backed securities issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, commonly known as "Fannie Mae" and "Freddie Mac," respectively), are backed only by the credit of the government entity issuing them. In addition, some mortgage-backed securities are issued by private entities and, as such, are not guaranteed by the U.S. government or any agency or instrumentality of the U.S. government.
Below-Investment-Grade Securities:
Certain Funds may invest in below-investment-grade securities (i.e., lower-quality, "junk" debt), which are subject to various risks. Lower-quality debt is considered to be speculative because it is less certain that the issuer will be able to pay interest or repay the principal than in the case of investment-grade debt. These securities can involve a substantially greater risk of default than higher-rated securities, and their values can decline significantly over short periods of time. Lower-quality debt securities tend to be more sensitive to adverse news about their issuers, the market and the economy in general, than higher-quality debt securities. The market for these securities can be less liquid, especially during periods of recession or general market decline.
Collateralized Loan Obligations ("CLOs"):
CLOs are securities issued by entities that are collateralized by a pool of loans. CLOs are issued in multiple classes (tranches) and can be equity or debt with specific adjustable or fixed interest rates and varying maturities. The cash flow from the underlying loans is used to pay off each tranche separately within the debt, or senior tranches. Equity, or subordinated tranches, typically are not paid a cash flow but do offer ownership in the CLO itself in the event of a sale.
Bank Loans:
Floating rate loans in which a Fund invests are primarily "senior" loans. Senior floating rate loans typically hold a senior position in the capital structures of the borrower, are typically secured by specific collateral, and have a claim on the assets and/or stock of the borrower that is senior to that held by subordinated debtholders and stockholders of the borrower. While these protections may reduce risk, these investments still present significant credit risk. A significant portion of a Fund's floating rate investments may be issued in connection with highly leveraged transactions such as leveraged buyouts, leveraged recapitalization loans, and other types of acquisition financing. Obligations in these types of transactions are subject to greater credit risk (including default and bankruptcy) than many other investments and may be, or become, illiquid. See the note below regarding below investment grade securities.
The Funds may purchase second-lien loans (secured loans with a claim on collateral subordinate to a senior lender's claim on such collateral), fixed rate loans, unsecured loans, and other debt obligations.
Transactions in loans often settle on a delayed basis, and a Fund may not receive the proceeds from the sale of a loan or pay for a loan purchase for a substantial period of time after entering into the transactions.
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.
51
Victory Portfolios II |
Notes
to Financial Statements ? continued December 31, 2021 |
(Unaudited)
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 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. Gains or losses realized on sales of securities are recorded on the identified cost basis. Paydown gains or losses on applicable securities, if any, are recorded as components of Interest income on the Statements of Operations.
The Funds may receive other income from investments in loan assignments and/or unfunded commitments, including amendment fees, consent fees, and commitment fees. These fees are recorded as income when received. These amounts, if received, are included in Interest income on the Statements of Operations.
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") 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, 2021.
Value
of Securities on Loan |
Non-Cash Collateral |
Cash Collateral |
|||||||||||||
USAA Core Intermediate-Term Bond ETF |
$ |
8,913,411 |
$ |
? |
$ |
9,224,021 |
52
Victory Portfolios II |
Notes
to Financial Statements ? continued December 31, 2021 |
(Unaudited)
Federal Income Taxes:
It is each Fund's policy 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, 2021, the Funds did not incur any income tax, interest, or penalties, and have recorded no liability for net unrecognized tax benefits relating to uncertain income 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.
Cross-Trade Transactions:
Pursuant to Rule 17a-7 under the 1940 Act, the Funds may engage in securities transactions with affiliated investment companies and advisory accounts managed by the Adviser and any applicable sub-adviser. Any such purchase or sale transaction must be effected without brokerage commission or other remuneration, except for customary transfer fees. The transaction must be effected at the current market price, which is either the security's last sale price on an exchange or, if there are no transactions in the security that day, at the average of the highest bid and lowest asked price. For the year ended June 30, 2021, the Fund engaged in the following securities transactions with affiliated funds, which resulted in the following net realized gains (losses):
Purchases |
Sales |
Net
Realized Gains (Losses) |
|||||||||||||
USAA Core Intermediate-Term Bond ETF |
$ |
2,881,243 |
$ |
? |
$ |
? |
3. Purchases and Sales:
Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the six months ended December 31, 2021, were as follows:
Excluding
U.S. Government Securities |
U.S. Government Securities |
||||||||||||||||||
Purchases |
Sales |
Purchases |
Sales |
||||||||||||||||
USAA Core Short-Term Bond ETF |
$ |
188,756,119 |
$ |
75,750,542 |
$ |
31,931,484 |
$ |
22,878,086 |
|||||||||||
USAA
Core Intermediate-Term Bond ETF |
220,077,849 |
46,939,311 |
$ |
193,576,205 |
50,342,179 |
4. 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. 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.
53
Victory Portfolios II |
Notes
to Financial Statements ? continued December 31, 2021 |
(Unaudited)
Under the terms of the Investment Advisory Agreement, the Adviser is entitled to receive fees 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.
Flat Rate |
|||||||
USAA Core Short-Term Bond ETF |
0.25 |
% |
|||||
USAA Core Intermediate-Term Bond ETF |
0.30 |
% |
Amounts incurred and paid to VCM for the six months ended December 31, 2021, 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 entitled to receive fees 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:
Net Assets |
|||||||||||
Up to $15 billion |
$15 billion ? $30 billion |
Over $30 billion |
|||||||||
0.08 |
%, plus |
0.05 |
%, plus |
0.04 |
% |
Amounts incurred for the six months ended December 31, 2021, 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 Trust reimburses 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, 2021, 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 USAA Mutual Funds (collectively, the "Victory Funds Complex") in the aggregate, compensate the Adviser for these services. Amounts incurred for the six months ended December 31, 2021, are reflected on the Statements of Operations as Compliance fees.
Transfer Agency Fees:
Citibank serves as the Funds' Transfer Agent. Amounts incurred for the six months ended December 31, 2021, are reflected on the Statements of Operations as Transfer agent fees.
Distributor/Underwriting Services:
Foreside Fund Services, LLC ("Foreside") 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, 2021, are reflected on the Statements of Operations as Custodian fees.
Sidley Austin LLP provides legal services to the Trust.
The Adviser has entered into expense limitation agreements with the Funds. Under the terms of the agreements, the Adviser has agreed to waive fees or reimburse certain expenses to the extent that ordinary operating expenses incurred by certain Funds in any fiscal year exceed the expense limit for
54
Victory Portfolios II |
Notes
to Financial Statements ? continued December 31, 2021 |
(Unaudited)
such Fund. 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 a Fund's business are excluded from the expense limits. As of December 31, 2021, the expense limits (excluding voluntary waivers) are as follows:
In
Effect Until October 31, 2022 |
|||||||
USAA Core Short-Term Bond ETF |
0.35 |
% |
|||||
USAA Core Intermediate-Term Bond ETF |
0.40 |
% |
Under the terms of the expense limitation agreements, as amended May 1, 2021, 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. Prior to May 1, 2021, the Funds were permitted to recoup fees waived and expenses reimbursed for up to three years after the fiscal year in which the waiver or reimbursement took place, subject to the limitations above. This change did not have any effect on the amounts previously reported for recoupment.
As of December 31, 2021, the following amounts are available to be repaid to the Adviser. The Funds have not recorded any amounts available to be repaid as a liability due to an assessment that repayments are not probable at December 31, 2021.
2023 |
|||||||
USAA Core Short-Term Bond ETF |
$ |
41,935 |
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, 2021, the Adviser voluntarily waived the following amounts:
USAA Core Short-Term Bond ETF |
$ |
48,057 |
|||||
USAA Core Intermediate-Term Bond ETF |
169,574 |
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.
5. Risks:
The Funds may be subject to other risks in addition to these identified risks.
Debt Securities or Bond Risk ? The Funds are subject to the risk that the market value of the bonds in the Funds' portfolios will fluctuate because of changes in interest rates, changes in the supply of and demand for debt securities, and other market factors. Bond prices generally are linked to the prevailing market interest rates. In general, when interest rates rise, bond prices typically fall; conversely, when interest rates fall, bond prices typically rise. The price volatility of a bond also depends on its duration, which is a measure of a bond's sensitivity to a change in interest rates. Generally, the longer the duration of a bond, the greater is its sensitivity to interest rates. To compensate investors for this higher interest rate risk, bonds with longer durations generally offer higher yields than bonds with shorter durations. Should the U.S. Federal Reserve raise interest rates, the Funds may be subject to risks associated with rising interest rates. The fixed-income securities in the Funds' portfolios also are subject to credit risk, which is the possibility that an issuer of a fixed-income security cannot make timely interest and principal payments on its securities or that negative market perceptions of the issuer's ability to make such payments will cause the price of that security to decline. The Funds accept some credit risk as a recognized means to enhance an investor's return.
55
Victory Portfolios II |
Notes
to Financial Statements ? continued December 31, 2021 |
(Unaudited)
High-Yield Bond Risk ? Fixed-income securities rated below investment grade, also known as "junk" or high-yield bonds, generally entail greater credit and liquidity risk than investment-grade securities. Their prices also may be more volatile, especially during economic downturns and financial setbacks or liquidity events. The Funds' values could be hurt by price declines due to actual or perceived changes in an issuer's ability to make such payments. These securities are considered by the major rating agencies to be predominantly speculative with respect to the issuer's continuing ability to pay principal and interest, and they carry a greater risk that the issuer of such securities will default on the timely payment of principal and interest. Issuers of securities that are in default or have defaulted may fail to resume principal or interest payments, in which case the Funds may lose their entire investment. The creditworthiness of issuers of these securities may be more complex to analyze than that of issuers of investment-grade debt securities, and the overreliance on credit ratings may present additional risks.
Asset-Backed and Mortgage-Backed Securities Risk ? Mortgage- and asset-backed securities ("MBS" or "ABS," respectively) differ from conventional debt securities because principal is paid back over the life of the security rather than at maturity. MBS and ABS are subject to prepayment or call risk, which is the risk that a borrower's payments may be received earlier than expected due to changes in prepayment rates on underlying loans. As a result, the Funds may reinvest these early payments at lower interest rates, thereby reducing the Fund's income. These securities also are subject to extension risk, which is the risk that the life of the ABS or MBS may be extended due to higher interest rates and lower prepayments. As a result, the value of the securities will decrease. The value of MBS can be impacted by factors affecting the housing market, and MBS also are subject to the risk of high default rates on the mortgages within the mortgage pool. The liquidity of non-agency or privately issued ABS or MBS securities, in particular those that are rated as non-investment grade, may change dramatically over time.
LIBOR Discontinuation Risk ? The London Interbank Offered Rate ("LIBOR") discontinuation may adversely affect the financial markets generally and the Funds' operations, finances and investments specifically. LIBOR has been the principal floating-rate benchmark in the financial markets, and a large portion of the Funds' assets are tied to LIBOR. However, LIBOR has been or will be discontinued as a floating rate benchmark. The date of discontinuation depends on the LIBOR currency and tenor. With limited exceptions, no new LIBOR obligations will be entered into after December 31, 2021. Existing LIBOR obligations have transitioned or will transition to another benchmark, depending on the LIBOR currency and tenor. For some existing LIBOR-based obligations, the contractual consequences of the discontinuation of LIBOR may not be clear.
Non-LIBOR floating-rate obligations, including Secured Overnight Financing Rate ("SOFR")-based obligations, may have returns and values that fluctuate more than those of floating-rate debt obligations that are based on LIBOR or other rates. Also, because SOFR and some alternative floating rates are relatively new market indexes, markets for certain non-LIBOR obligations may never develop or may not be liquid. Market terms for non-LIBOR floating rate obligations, such as the spread over the index reflected in interest-rate provisions, may evolve over time, and prices of non-LIBOR floating rate obligations may be different depending on when they are issued and changing views about correct spread levels.
Various SOFR-based rates, including SOFR-based term rates, and various non-SOFR-based rates are expected to develop in response to the discontinuation of U.S. dollar LIBOR, which may create various risks for the Funds and the financial markets more generally. There are non-LIBOR forward-looking floating rates that are not based on SOFR and that may be considered by participants in the financial markets as LIBOR alternatives. Such rates include Ameribor (American Interbank Offered Rate), BSBY (Bloomberg Short-Term Bank Yield Index) and BYI (Bank Yield Index). Unlike forward-looking SOFR-based term rates, such rates are intended to reflect a bank credit spread component.
It is not clear how replacement rates for LIBOR ? including SOFR-based rates and non-SOFR-based rates ? will develop and to what extent they will be used. There is no assurance that these replacement rates will be suitable substitutes for LIBOR, and thus the substitution of such rates for LIBOR could have an adverse effect on the Funds and the financial markets more generally. Concerns about market depth and stability could affect the development of non-SOFR-based term rates, and such rates may create various risks, which may or may not be similar to the risks relating to SOFR.
56
Victory Portfolios II |
Notes
to Financial Statements ? continued December 31, 2021 |
(Unaudited)
6. Borrowing and Interfund Lending:
Line of Credit:
The Victory Funds Complex participates in a short-term demand note "Line of Credit" agreement with Citibank. The Line of Credit agreement with Citibank was renewed on June 28, 2021, with a termination date of June 27, 2022. 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, 2021, 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 pays a pro-rata portion of the commitment fees plus any interest (one-month LIBOR plus one percent, with LIBOR to be replaced by a different benchmark rate in accordance with the terms of the agreement) on amounts borrowed. Prior to June 28, 2021, the Victory Funds Complex paid an annual commitment fee of 0.15% and an upfront fee of 0.10%. Each fund in the Victory Funds Complex paid a pro-rata portion of the upfront fee. Interest charged to each fund during the period, if applicable, is reflected on the Statements of Operations under Line of credit fees.
The Funds had no borrowings under the Line of Credit agreement during the six months ended December 31, 2021.
7. 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.
Declared |
Paid |
||||||||||
USAA Core Short-Term Bond ETF |
Monthly |
Monthly |
|||||||||
USAA Core Intermediate-Term Bond ETF |
Monthly |
Monthly |
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 (deficit) will be determined at the end of the current tax year ending June 30, 2022.
As of June 30, 2021, the Funds had no capital loss carryforwards for federal income tax purposes.
57
Victory Portfolios II |
Supplemental
Information December 31, 2021 |
(Unaudited)
Proxy Voting and Portfolio Holdings Information
Proxy Voting:
Information regarding the policies and procedures each Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-539-3863. The information is also included in the Funds' Statement of Additional Information, which is available on the SEC's website at www.sec.gov.
Information relating to how the Funds voted proxies relating to portfolio securities held during the most recent 12 months ended June 30 is available on the SEC's website at www.sec.gov.
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. Forms N-PORT are available on the SEC's website at www.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, 2021, through December 31, 2021.
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 7/1/21 |
Actual Ending Account Value 12/31/21 |
Hypothetical Ending Account Value 12/31/21 |
Actual Expenses Paid During Period 7/1/21- 12/31/21* |
Hypothetical Expenses Paid During Period 7/1/21- 12/31/21* |
Annualized Expense Ratio During Period 7/1/21- 12/31/21 |
||||||||||||||||||||||
USAA
Core Short-Term Bond ETF |
$ |
1,000.00 |
$ |
1,000.40 |
$ |
1,023.59 |
$ |
1.61 |
$ |
1.63 |
0.32 |
% |
|||||||||||||||
USAA
Core Intermediate- Term Bond ETF |
1,000.00 |
998.20 |
1,023.44 |
1.76 |
1.79 |
0.35 |
% |
* Expenses are equal to the average account value multiplied by the Fund's annualized expense ratio multiplied by 184/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year).
58
Victory Portfolios II |
Supplemental
Information ? continued December 31, 2021 |
(Unaudited)
Considerations of the Board in Continuing the Investment Advisory Agreement (the "Agreement")
The Board approved the Agreement on behalf of each of the Funds at a meeting, which was called for that purpose, on November 30, 2021. The Board also considered information relating to the Funds and the Agreement provided throughout the year and, more specifically, at the meetings on October 19, 2021, and November 30, 2021. In considering whether to approve the Agreement, the Board requested, and the Adviser provided, information that the Board believed to be reasonably necessary to reach its conclusions.
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 took into consideration regular reports from the Adviser throughout the COVID-19 pandemic public health crisis concerning how the ongoing pandemic has affected market volatility, investment risk, liquidity and valuation of portfolio securities, and the implementation and effectiveness of business continuity plans. These reports also had confirmed that the pandemic had no material impact on the Adviser's operations.
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);
? 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;
? 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;
? The fact that the Funds are actively managed exchange-traded funds ("ETFs");
? 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, 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 profitability with respect to each Fund. The Board retained a consultant to provide comparative information about fees and performance. 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
59
Victory Portfolios II |
Supplemental
Information ? continued December 31, 2021 |
(Unaudited)
the median gross management fee and median expense ratio of a universe of comparable 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 the 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.
The Board reviewed each Fund's performance over the one-year period against the performance of the Fund's selected peer group and benchmark index. The Board recognized that the performance of the Funds and the peer group funds are net of expenses, while the performance of the benchmark index is gross returns.
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 USAA Core Short-Term Bond ETF
Noting that the Fund commenced operations in 2017, the Board compared the Fund's one- and three-year performance for the periods ended June 30, 2021, to that of the median performance of the Fund's peer group and benchmark index for the same period and considered the fact that the Fund outperformed both the benchmark index and the peer group median for both of the periods reviewed.
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 USAA Core Intermediate-Term Bond ETF
Noting that the Fund commenced operations in 2017, the Board compared the Fund's one- and three-year performance for the periods ended June 30, 2021, to that of the median performance of the Fund's peer group and benchmark index for the same period and considered the fact that the Fund outperformed both the benchmark index and the peer group median for both of the periods reviewed.
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 the Agreement, on behalf of the Funds discussed above, was consistent with the best interests
60
Victory Portfolios II |
Supplemental
Information ? continued December 31, 2021 |
(Unaudited)
of each Fund and its shareholders, and 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 could entail 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 quality portfolio management teams; and
? The overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies and performance of the Adviser.
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Privacy Policy
Protecting the Privacy of Information
The Trust respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms, and from the transactions you make with us or third parties. It may include your name, address, social security number, account transactions and balances, and information about investment goals and risk tolerance.
We do not disclose any information about you or about former customers to anyone except as permitted or required by law. Specifically, we may disclose the information we collect to companies that perform services on our behalf, such as the transfer agent that processes shareholder accounts and printers and mailers that assist us in the distribution of investor materials. We may also disclose this information to companies that perform marketing services on our behalf. This allows us to continue to offer you Victory investment products and services that meet your investing needs, and to effect transactions that you request or authorize. These companies will use this information only in connection with the services for which we hired them. They are not permitted to use or share this information for any other purpose.
To protect your personal information internally, we permit access only by authorized employees and maintain physical, electronic, and procedural safeguards to guard your personal information.*
* You may have received communications regarding information about privacy policies from other financial institutions which gave you the opportunity to "opt-out" of certain information sharing with companies which are not affiliated with that financial institution. The Trust does not share information with other companies for purposes of marketing solicitations for products other than the Trust. Therefore, the Trust does not provide opt-out options to their shareholders.
The Victory Funds
P.O.
Box 182593
Columbus, Ohio 43218-2593
Visit our website at: |
Call Victory at: |
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www.vcm.com |
866-376-7890 |
VS-BOND-ETF-SAR (12/21)