In absence of model changes this week we highlight strength in the VictoryShares US Small Cap Volatility Weighted ETF (CSA)
There were no changes to either of the VictoryShares models this week, as each of the current positions continues to demonstrate sufficient relative strength against their counterparts. In absence of changes, we highlight strength in the VictoryShares US Small Cap Volatility Weighted ETF (CSA).
Small caps continue to shine, demonstrating favorable relative strength. As previously discussed, small cap growth currently ranks first in the DALI Size and Style rankings as well as in the top two (out of 135) on the Asset Class Group Scores page, each evidencing the group’s leadership. Despite the sharp pullback last week for many of the highfliers, the Russell 2000 (RUT) is still up over 15% YTD while the S&P 500 (SPX) lags with a 3.9% gain (through 3/1). Although small caps appear to hold the leadership baton, investing in the area can prove challenging with generally higher levels of volatility. VictoryShares sought to address this by launching CSA back in 2015, a strategy that seeks to provide small cap exposure without the historically elevated volatility. CSA was recently featured on ETF Trends, which stated, “The ETF offers a better approach than many of the most widely followed small cap benchmarks. In fact, the VictoryShares fund can be seen as a higher quality alternative to the Russell 2000 Index funds.” To read more on the strategy, click here.
In addition to favorable qualitative measurements, CSA sports an optimal fund score of 4.50 and strongly positive score direction of 2.46. The ETF trades on three consecutive Point and Figure buy signals, well-above its bullish support line, and recently experienced a flip to positive weekly momentum which suggests the near-term potential for further upside. Furthermore, CSA ranks in the 93rd performance percentile of all equity funds on a YTD basis, and in the 94th performance percentile over the past 90 days. Note CSA currently sits on a stem of Xs in overbought territory, so those looking to initiate new long exposure way consider entering on a pullback.
