Beginning with the VictoryShares (VS) Equity Rotation Model, the strategy sold the VictoryShares Dividend Accelerator ETF VSDA because it fell out of the top two positions in the model’s relative strength matrix and purchased the VictoryShares US Small Cap Volatility Wtd ETF CSA as it was the next highest ranking fund not currently in the model. We observe a notable tailwind behind small cap equities, present in CSA as well given its acceptable fund score of 3.20 and strongly positive score direction of 2.70. The VS Equity Rotation Model maintains a heavily tilt toward domestic equities yet leans toward small cap value and small cap blend exposure. This marks the model’s fifth trade this year.

As for the VictoryShares Equity Select Model, we also note a change as the VictoryShares US EQ Income Enhanced Volatility Wtd ETF CDC.TR fell out of the number one ranked position in the matrix, causing it to lose its 40% overweight. As a result, the VictoryShares US 500 Enhanced Volatility Wtd ETF CFO now carries the 40% overweight, with the other two funds each carrying a weighting of 30%. Like the VS Equity Rotation Model, the VS Equity Select Model also maintains a heavy overweight to domestic equities but instead leans toward the large cap space. This is only the second month this year that ushered changes for this strategy.

This weekly overview is designed to be used as a "radar" screen to bring your attention to potentially important technical changes that may require your attention and potential action. When evaluating the Fund Score, the strongest issues have scores of 4 or higher while those ETFs with scores below a 3 are no longer considered solid citizens.

This section of the report categorizes all of the Victory Mutual Funds by their respective broad group. Along with each group, you can view the Average Group Score, which is an average of the scores of all funds represented in that particular group. Those Victory Mutual Funds that meet or exceed the Average Group Score will be highlighted in green in order to easily view those Victory Mutual Funds that have superior strength within their respective group. You want to focus on those Victory Mutual Funds that exhibit superior strength when looking to add new exposure to a particular group.

The distribution curve places each ETF on a bell curve according to their respective degrees of overbought or oversold status using a 10-week distribution. ETFs that are statistically oversold will appear on the left-hand side of the bell curve, while those that have become statistically overbought will appear on the right-hand side of the bell curve. Perhaps the most useful attribute of this feature is that it displays the entire universe on the curve at one time to give us a general picture of whether the Victory ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong relative strength ETFs that have regressed back toward mean conditions based on market weakness, or have become oversold based upon extreme market weakness. Weekly Distribution is a short-term gauge that is most helpful in timing entry and exit points, while the longer-term information of trend and relative strength is a more controlling factor in the decision of whether to buy or sell.

Average Level

-30.15

					VSDA
					ULVM
					CFO
					CFA
		CIZ			ustb
		CEZ	UIVM	UITB	USVM		CSF
CIL	CID	VSMV	CEY	UEVM	CDL	CSB	CSA
<--100	-100--80	-80--60	-60--40	-40--20	-20-0	0-20	20-40	40-60	60-80	80-100	100->

VictoryShares ETF Models

The VictoryShares ETF Models are designed to identify major themes in the US equity marketplace through the use of the Point & Figure relative strength tools. For more information on the portfolio construction and backtesting, see the model info file on the models page.

Weekly Changes: 

* Dates prior to 09/04/2018, which is when the VictoryShares Rotation Model became available on the Dorsey Wright Research Platform are representative of when the position was added to the backtested model

* Dates prior to 09/04/2018, which is when the VictoryShares Select Model became available on the Dorsey Wright Research Platform are representative of when the position was added to the backtested model.