VictoryShares International Value Momentum ETF (UIVM)

What does UIVM actually track?

The VictoryShares International Value Momentum ETF (UIVM) is an index-tracking fund that holds stocks from developed and emerging markets outside the United States, selected using a two-factor screen: the fund favors stocks trading at attractive prices relative to their earnings and book value (value) and those showing recent upward price momentum (momentum). Rather than simply holding all stocks in a broad international index, UIVM narrows the universe by combining these two signals — seeking companies that are both reasonably priced and moving in the right direction. The underlying index is rebalanced regularly to maintain the selected universe.

Why combine value and momentum?

Academic research suggests these two factors capture different sources of return and can work together productively. Value investors buy cheap companies on the theory that the market misprices them; momentum investors buy stocks already rising on the theory that trends persist. In principle, a value-momentum hybrid can dampen the losses that either factor alone might suffer in certain markets. When value stocks struggle (as they have periodically), momentum holdings may still perform; when momentum falters, value positions may provide ballast. Neither factor is guaranteed to work in any given period, but the combination has historically offered a smoother ride than relying on either signal alone.

Who is behind this fund and how is it structured?

VictoryShares, the fund sponsor, is part of Invesco and focuses on smart-beta and factor-tilted strategies. UIVM is a straightforward ETF — not leveraged, not inverse — and trades on an exchange during market hours at real-time prices. The fund’s expense ratio is moderate compared to active international equity managers but higher than the broadest passive international index funds, reflecting the ongoing cost of the factor-screening methodology. The fund can be bought and sold freely without the daily NAV restrictions of a traditional mutual fund.

What are the actual risks here?

UIVM carries several layers of risk worth understanding. Factor risk is paramount: both value and momentum are stylistic tilts that perform well in some market regimes and badly in others. Over long periods value and momentum have offered diversification, but there is no guarantee — the factors may underperform broad market returns for years. Currency risk is meaningful: the fund holds foreign stocks whose values fluctuate with exchange rates, so a strong dollar reduces returns for U.S.-based holders even if the underlying stocks rise. Emerging market exposure introduces political, regulatory, and liquidity risks alongside the currency exposure. Concentration risk exists: the two-factor screen may narrow the universe significantly, creating a smaller basket of stocks that can move in unexpectedly correlated ways. In severe market stress, liquidity can tighten.

How should an investor think about owning this?

UIVM is positioned for investors seeking international diversification with an active tilt toward undervalued stocks showing positive momentum. It is less suitable for those wanting simple broad exposure to developed and emerging markets — a plain international index fund would be cheaper and less volatile. The fund works best as part of a globally diversified portfolio rather than as a core holding by itself. Investors should monitor both the composition of the fund and the performance of its component factors to understand whether the value-momentum combination continues to make sense for their goals. As with any international holding, currency fluctuations will drive returns alongside stock performance, a reality that shows up clearly in the fund’s price movements and is worth understanding before holding it.