The new suite of ETFs, which consists of four smart beta equity ETFs and two fixed income ETFs, was built as a core portfolio-building solution, providing investors more choices at a competitive entry point.
The smart beta equity ETFs strategy is to focus on two primary factors: value and momentum, which identify stocks with attractive valuations and positive price momentum. The strategy includes holdings that are weighted in such a way to help diversify the risk of the individual holdings.
The four new smart beta equity ETFs include USAA MSCI USA Value Momentum Blend Index ETF (ULVM), which has a net expense ratio of 20 basis points; USAA MSCI USA Small Cap Value Momentum Blend Index ETF (USVM), which has a net expense ratio of 25 basis points; USAA MSCI International Value Momentum Blend Index ETF (UIVM), with a net expense ratio of 35 basis points; and USAA MSCI Emerging Markets Value Momentum Blend Index ETF (UEVM), which has a net expense ratio of 45 basis points.
Meanwhile, the new actively managed fixed income ETFs capitalize on USAA’s decades of experience in core bond categories. The USAA Core Intermediate-Term Bond ETF (UITB), which has a net expense ratio of 40 basis points, has an investment objective that focuses on high current income without undue risk to principal. The USAA Core Short-Term Bond ETF (USTB), which has a net expense ratio of 35 basis points, features an investment objective that focuses on high current income consistent with preservation of capital.