November 1, 2025
Summary
Prospectus
Prospectus
VictoryShares International Volatility Wtd ETF (CIL)
Before you invest, you may want to review the Fund’s Statutory Prospectus and Statement of Additional Information, both of which are dated November 1, 2025, and are incorporated by reference into this Summary Prospectus, as they each contain more information about the Fund and its risks.
You can find the Fund’s Prospectus, reports to shareholders, and other information about the Fund online at vcm.com.
You may also obtain this information at no cost by calling 866-376-7890 or by sending an e–mail request to VictoryMail@VCM.com.
You may also obtain this information at no cost from your financial intermediary.
Listed and traded on: The Nasdaq Stock Market LLC
vcm.com
866-376-7890
866-376-7890
VictoryShares International Volatility Wtd ETF Summary
Investment Objective
The VictoryShares International Volatility Wtd ETF (the “Fund”) seeks to provide investment
results that track the performance of the Nasdaq Victory International 500 Volatility Weighted
Index (the “Index”) before fees and expenses.
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and example below.
|
Shareholder Fees
(paid directly from your investment)
|
None
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
(expenses that you pay each year as a percentage of the value of your investment)
|
Management Fees
|
0.40%
|
|
Other Expenses
|
0.20%
|
|
Total Annual Fund Operating Expenses
|
0.60%
|
|
Fee Waiver/Expense Reimbursement1
|
(0.15)%
|
|
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement1
|
0.45%
|
1
Victory Capital Management Inc. (the “Adviser”) has contractually agreed to waive
its management fee and/or reimburse expenses so that the total annual fund operating expenses (excluding certain items such as
interest, taxes, and brokerage commissions) do not exceed 0.45% through at least October 31, 2026. The Adviser is permitted to recoup advisory fees waived and expenses reimbursed for up to three years after the date of the waiver or reimbursement, 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. This agreement may only be terminated by the Fund’s Board of Trustees.
Example:
This Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other funds. The example assumes that (1) you invest $10,000 in the Fund
for the time periods indicated and then sell or continue to hold all of your shares at the end
of the period, (2) your investment has a 5% return each year, and (3) the Fund’s operating expenses remain
the same. The amounts shown reflect any fee waiver/expense reimbursement in place through its expiration
date. Although your actual costs may be higher or lower, based upon these assumptions your
costs would be:
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
|
$46
|
$177
|
$320
|
$736
|
Portfolio Turnover:
The Fund pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund shares are held in a taxable account. These costs,
which are not reflected in annual Fund operating expenses or in the example, affect the Fund’s performance.
For the most recent fiscal year, the Fund’s portfolio turnover rate was 27% of the average value of its portfolio.
1
VictoryShares International Volatility Wtd ETF Summary
Principal Investment Strategy
The Fund seeks to achieve its investment objective by investing, under normal market
conditions, at least 80% of its assets directly or indirectly in the securities included in the Nasdaq
Victory International 500 Volatility Weighted Index (the “Index”), an unmanaged, volatility
weighted index maintained exclusively by Nasdaq, Inc. (the “Index Provider”). The Index Provider
is not affiliated with the Fund or the Adviser.
The Index combines fundamental criteria with individual security risk control achieved
through volatility weighting of individual securities. The Index follows a rules-based methodology
to construct its constituent securities:
◼
The Index universe begins with all publicly traded foreign companies and then screens
for all companies with positive earnings over the last twelve months.
◼
The Index identifies the 500 largest foreign companies by market capitalization measured
at the time the Index’s constituent securities are determined.
◼
The 500 stocks are weighted based on their daily standard deviation (volatility) of
daily price changes over the last 180 trading days. Stocks with lower volatility receive a higher
weighting and stocks with higher volatility receive a lower weighting.
The Index considers foreign companies to be those that are organized or domiciled
in a developed country (excluding the U.S. and emerging markets) and whose stock principally trades
on a foreign exchange. Representative developed markets include Canada, France, Germany, Japan,
Hong Kong and Australia.
The Index is reconstituted every March and September (based on information as of the
prior month-end) and is adjusted to limit exposure to any particular country to 20% and
any particular sector to 25%. The Index may include more than or fewer than 500 stocks depending
on the number of companies meeting the Index’s criteria.
The Fund seeks to track the returns of the Index before fees and expenses by employing,
under normal circumstances, a “sampling” process to invest in a representative sample of
stocks included in the Index. The Fund’s portfolio managers select these stocks using a statistical optimization
process designed to produce investment characteristics that closely approximate those of the
Index.
Principal Risks of Investing in the Fund
The Fund’s investments are subject to the following principal risks:
Equity Securities Risk — The value of the equity securities in which the Fund invests may decline in response to developments affecting individual companies and/or general economic conditions
in the United States or abroad. A company’s earnings or dividends may not increase as expected
(or may decline) because of poor management, competitive pressures, reliance on particular
suppliers or geographical regions, labor problems or shortages, corporate restructurings, fraudulent
disclosures, man-made or natural disasters, military confrontations or wars, terrorism, public
health crises, or other events, conditions, and factors. Price changes may be temporary or last for
extended periods. Equity securities have the lowest priority, and the greatest risk, with respect to
dividends and any liquidation payments in the event of an issuer’s bankruptcy.
General Market Risk — Overall market risks may affect the value of the Fund. Domestic and international factors such as political events, war, terrorism, trade disputes, inflation
rates, interest rate levels, and other fiscal and monetary policy changes; cybersecurity incidents,
pandemics, and other public health crises; imposition of tariffs; sanctions against a particular
foreign country, its nationals, businesses, or industries; and related geopolitical events, as well as
environmental disasters such as earthquakes, fires, and floods, or other catastrophes, may add to instability
in global economies and markets generally, and may lead to increased market volatility. Global
economies and financial markets are highly interconnected, which increases the possibility that
conditions in one
2
VictoryShares International Volatility Wtd ETF Summary
country or region might adversely affect issuers in another country or region. The
impact of these and other factors may be short-term or may last for extended periods.
Foreign Securities Risk — Foreign securities (including depositary receipts) are subject to political, regulatory, and economic risks not present in domestic investments. Foreign securities
could be affected by factors not present in the United States, including expropriation, confiscation
of property, and difficulties in enforcing contracts. Compared to U.S. companies, there generally
is less publicly available information about foreign companies and there may be less governmental regulation
and supervision of foreign companies. Foreign securities generally experience more volatility
than their domestic counterparts. Depositary receipts may have additional risks, including creditworthiness
of the depositary bank and the risk of an illiquid market. In addition, to the extent
investments are made in a limited number of countries, events in those countries will have a more significant
impact on the Fund. Fluctuations in the exchange rates between the U.S. dollar and foreign currencies,
currency exchange control regulations, and restrictions or prohibitions on the repatriation
of foreign currencies may negatively affect an investment. Dividends and interest received by the Fund and
capital gains recognized by the Fund may give rise to withholding and other taxes imposed by foreign
countries and may decrease the Fund’s return.
Index Risk — The Fund attempts to track the performance of the Index. The Fund’s performance
will be negatively affected by general declines in the securities and asset classes represented
in the Index. In addition, because the Fund is not actively managed, unless a specific security
is removed from the Index, the Fund generally will not sell a security because the security’s issuer was
in financial trouble. The Fund also does not attempt to take defensive positions under any market conditions,
including declining markets. Therefore, the Fund’s performance could be lower than funds that
may actively shift their portfolio assets to take advantage of market opportunities or to lessen
the impact of a market decline or a decline in the value of one or more issuers.
Passive Investment Risk — The Fund is not actively managed, and the Adviser does not take defensive positions under any market conditions, including declining markets.
Calculation Methodology Risk — The Index relies on various sources of information to assess the criteria of issuers included in the Index, including information that may be based
on assumptions and estimates. Neither the Fund, the Index Provider, nor the Adviser can offer assurances
that the Index’s calculation methodology or sources of information will provide an accurate assessment
of included issuers or correct valuation of securities, nor can they guarantee the availability
or timeliness of the production of the Index.
Tracking Error Risk — The Fund may be subject to tracking error, which is the divergence of the Fund’s performance from its index. Tracking error may occur because of, among other
reasons, differences between the securities and other instruments held in the Fund’s portfolio
and those included in the Index. This risk may be heightened during times of increased market
volatility or other unusual market conditions. Tracking error also may result because the Fund incurs
fees and expenses, while the Index does not. The Fund’s use of representative sampling may cause the
tracking error to be higher than would be the case if the Fund purchased all of the securities in the
Index.
Rebalancing Risk — In purchasing and selling securities to rebalance its portfolio, the Fund will
pay more in brokerage commissions than it would without a rebalancing policy. As a result
of the need to rebalance, the Fund also has less flexibility in the timing of purchases and sales
of securities than it would otherwise, and the rebalancing may result in high portfolio turnover. While
we will attempt to minimize any adverse impact to the Fund or its shareholders, the Fund may have a higher
proportion of capital gains and a lower return than a fund that does not have a rebalancing policy.
Errors in index data, index computations or the construction of the index in accordance with its methodology
may occur from time to time and may not be identified and corrected by the Index Provider
for a period of time or at all, which may have an adverse impact on the Fund and its shareholders.
3
VictoryShares International Volatility Wtd ETF Summary
Sampling Risk — The Fund’s use of a representative sampling approach, if used, could result in
it holding a smaller number of securities than are in the Index. As a result, an adverse
development with an issuer or a small number of issuers of securities held by the Fund could result
in a greater decline in NAV than would be the case if the Fund held all of the securities in the Index.
To the extent the assets in the Fund are smaller, these risks will be greater.
Sector Focus Risk — In following its methodology, the Index from time to time may be concentrated to
a significant degree in securities of issuers located in a single industry or sector,
such as the financials sector. To the extent that the Index concentrates in the securities of issuers in
a particular industry or sector, the Fund also can be expected to concentrate its investments to approximately
the same extent. By concentrating its investments in an industry or sector, the Fund may face more
risks than if it were diversified broadly over numerous industries or sectors.If the Index is not concentrated
in a particular industry or sector, the Fund will not concentrate in a particular industry or sector.
◼
Financials Sector Risk — Companies in the financials sector are subject to extensive government regulation, which may limit both the amounts and types of loans and other
financial commitments that companies in this sector can make, and the interest rates
and fees that these companies can charge. Profitability can be largely dependent on the availability
and cost of capital and the rate of corporate and consumer debt defaults, and can fluctuate
significantly when interest rates change. Financial difficulties of borrowers can
negatively affect the financials sector. Insurance companies can be subject to severe price competition.
The financials sector can be subject to relatively rapid change as distinctions between
financial service segments become increasingly blurred.
Exchange-Traded Fund (“ETF”) Structure Risk — The Fund is structured as an ETF and, as a result, is subject to special risks, including:
◼
Not Individually Redeemable — The Fund’s shares are not individually redeemable and may be redeemed by the Fund at its net asset value per share (“NAV”) only in large blocks
known as Creation Units. The Fund may incur brokerage costs purchasing enough shares to constitute
a Creation Unit. Alternatively, the Fund may redeem your shares by selling them on the
secondary market at prevailing market prices.
◼
Trading Issues — Trading in shares on the exchange operated by Nasdaq Stock Market LLC (the “Exchange”) may be halted due to market conditions or for reasons that, in the
view of the Exchange, make trading in shares inadvisable, such as extraordinary market volatility.
There can be no assurance that shares will continue to meet the listing requirements of
the Exchange. There is no guarantee that an active secondary market will develop for the
shares. In stressed market conditions, authorized participants may be unwilling to participate
in the creation/redemption process, particularly if the market for shares becomes less liquid
in response to deteriorating liquidity in the markets for the Fund’s underlying portfolio
holdings, which may lead to widening of bid-ask spreads and differences between the market price
of the shares and the underlying value of those shares.
◼
Market Price Variance Risk — The market prices of shares will fluctuate in response to changes in NAV and supply and demand for shares and will include a bid-ask spread
charged by the exchange specialists, market makers, or other participants that trade the particular
security. There may be times when the market price and the NAV vary significantly,
particularly in times of market stress. This means that shares may trade at a premium
or discount to NAV and bid-ask spreads may widen.
◼
International Closed Market Trading Risk — Many of the Fund’s underlying securities trade on foreign exchanges that are closed when the Exchange is open; consequently, events
may transpire while such foreign exchanges are closed but the Exchange is open that may
change the value of such underlying securities relative to their last quoted prices on such
foreign exchanges.
◼
Authorized Participants Concentration Risk — A limited number of financial institutions may
4
VictoryShares International Volatility Wtd ETF Summary
be responsible for all or a significant portion of the creation and redemption activity
for the Fund. If these firms exit the business or are unable or unwilling to process creation
and/or redemption orders, shares may trade at a premium or discount to NAV and bid-ask spreads
may widen.
◼
Intraday Indicative Value (“IIV”) Risk — The Exchange intends to disseminate the approximate per share value of the Fund’s published basket of securities (“Deposit
Securities”) every 15 seconds (the “intraday indicative value” or “IIV”). The IIV is not a real-time
update of the NAV per share of the Fund because the IIV may not be calculated in the same manner
as the NAV. For example, the calculation of the NAV may be subject to fair valuation
at different prices than those used in the calculations of the IIV and, unlike the calculation
of NAV, the IIV does not take into account Fund expenses. The IIV calculations are based on local
market prices and may not reflect events that occur subsequent to the local market’s close
which could affect premiums and discounts between the IIV and the market price of the shares.
In addition, the IIV is based on the published Deposit Securities and not on the Fund’s actual
holdings.
◼
Tax-Efficiency Risk — Redemptions of shares may be effected for cash, rather than in kind, which means that the Fund may need to sell portfolio securities in order to complete
an in-cash redemption, and may recognize net gains on these sales. As a result, investments
in the shares may be less tax-efficient than investments in ETFs that redeem solely or principally
in kind, and the Fund may pay out higher annual capital gain distributions than if the
in-kind redemption process was used.
Valuation Risk — The sale price the Fund could receive for a security may differ from the Fund’s
valuation of the security and may differ from the value used by the Index, particularly
for securities that trade in low volume or volatile markets or that are valued using a fair value
methodology. The Fund relies on various sources to calculate its NAV. The information may be provided
by third parties that are believed to be reliable, but the information may not be accurate due to errors
by such pricing sources, technological issues, or otherwise.
Large Shareholder Risk — Certain large shareholders, including authorized participants and other funds advised by the Adviser, may from time to time own a substantial amount of the
Fund’s shares. The actions by one shareholder or multiple shareholders may have an impact on the
Fund and, therefore, indirectly on other shareholders. Shareholder purchase and redemption activity
may affect the per share amount of the Fund’s distributions of its net investment income and
net realized capital gains, if any, thereby affecting the tax burden on the Fund’s shareholders subject
to federal income tax, and/or accelerate the realization of taxable income and cause the Fund to make
taxable distributions to its shareholders earlier than the Fund otherwise would have. In addition,
under certain circumstances, non-redeeming shareholders may be treated as receiving a disproportionately
large taxable distribution during or with respect to such tax year. To the extent
a larger shareholder is permitted to invest in the Fund, the Fund may experience large inflows or outflows
of cash from time to time. This activity could magnify these adverse effects on the Fund.
You may lose money by investing in the Fund. There is no guarantee that the Fund will achieve its objective. An investment in the Fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
By itself, the Fund does not constitute a complete investment plan and should be considered
a long-term investment for investors who can afford to weather changes in the value
of their investment.
Investment Performance
The bar chart and table that follow are intended to help you understand some of the
risks of investing in the Fund. The bar chart shows you how the Fund’s calendar year performance has varied over
the past 10 years (or the life of the Fund if shorter). The table compares the Fund’s
average annual total returns over the same period to one or more broad measures of market performance.
The MSCI EAFE
5
VictoryShares International Volatility Wtd ETF Summary
Index serves as the Fund's regulatory broad-based securities market index. We assume
reinvestment of dividends and distributions.
The Fund's past performance (before and after taxes) does not necessarily indicate
how the Fund will perform in the future. Updated performance information is available on the Fund’s website at vcm.com.
Calendar Year Returns
|
During the periods shown in the chart:
|
Returns
|
Quarter ended
|
|
Highest Quarter
|
15.16%
|
December 31, 2022
|
|
Lowest Quarter
|
-22.89%
|
March 31, 2020
|
|
Year-to-date return
|
26.51%
|
September 30, 2025
|
|
Average Annual Total Returns
(For the Periods Ended December 31, 2024)
|
1 Year
|
5 Years
|
Life of
Fund
|
|
FUND
|
|||
|
Before Taxes
|
4.32%
|
3.87%
|
4.65%1
|
|
After Taxes on Distributions
|
3.64%
|
3.65%
|
4.30%1
|
|
After Taxes on Distributions and Sale of Fund Shares
|
3.31%
|
3.41%
|
3.90%1
|
|
Indices
|
|||
|
MSCI EAFE Index
reflects no deduction for fees, expenses, or taxes, except foreign withholding
taxes
|
3.82%
|
4.73%
|
5.11%
|
|
Nasdaq Victory International 500 Volatility Weighted Index
reflects no deduction for fees, expenses, or taxes, except foreign withholding
taxes
|
4.66%
|
4.24%
|
3.89%
|
1
Inception date is August 20, 2015.
After-tax returns use the historical highest individual federal marginal income tax
rates and do not reflect the effect of state and local taxes. In certain situations, the return after taxes on distributions and sale of fund shares may be higher than the other return amounts (including before
taxes). A higher after-tax return may result when a capital loss occurs upon redemption and
translates into an assumed tax deduction that benefits the shareholder. Actual after-tax returns depend
on your tax situation and may differ from those shown. After-tax returns shown are not relevant if you own your Fund shares through tax-deferred arrangements, such as 401(k) plans or individual
retirement accounts.
6
VictoryShares International Volatility Wtd ETF Summary
Management of the Fund
Investment Adviser
Victory Capital Management Inc. (the “Adviser”) serves as the Fund’s investment adviser.
The portfolio managers jointly and primarily responsible for day-to-day management of the Fund are
members of the Adviser's Victory Solutions platform, which oversees the Adviser's rules-based
investment strategies.
Portfolio Management
|
|
Title
|
Tenure with the Fund
|
|
Mannik Dhillon, CFA, CAIA®
|
President, Investment Franchises
& Solutions
|
Since 2018
|
|
Lela Dunlap, CFA
|
Portfolio Manager, Victory
Solutions
|
Since 2024
|
Purchase and Sale of Fund Shares
The Fund will issue and redeem shares at NAV only in large blocks of 50,000 shares
(each block of shares is called a “Creation Unit”). Creation Units are issued and redeemed for cash
and/or in-kind for securities by Authorized Participants (“APs”) that have entered into agreements with
the Fund’s distributor. Except when aggregated in Creation Units, shares are not redeemable securities
of the Fund.
Shares of the Fund are listed for trading on the Exchange. Individual shares may only
be purchased and sold in the secondary market through a broker or dealer at a market price. Because
shares of the Fund trade at market prices rather than NAV, shares may trade at a price that is greater
than (a premium), at, or less than (a discount) NAV. An investor may incur costs attributable
to the difference between the highest price a buyer is willing to pay to purchase shares (bid) and the
lowest price a seller is willing to accept for shares (ask) when buying or selling shares in the
secondary market (the “bid-ask spread”).
For recent information about the Fund, including the Fund’s NAV, market price, premiums
and discounts, and bid-ask spreads, visit vcm.com.
Tax Information
The Fund’s distributions generally are taxable as ordinary income, qualified dividend
income, or capital gains, unless you are investing through a tax-deferred arrangement, such as
a 401(k) plan or an individual retirement account. Taxes may be imposed on withdrawals from tax-deferred
arrangements. A sale of shares may result in a capital gain or loss.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares through a broker-dealer or other financial intermediary (such
as a bank), the Fund and its related companies may pay the intermediary for the sale of shares and
related services. These payments may create a conflict of interest by influencing the broker-dealer
or other intermediary and your salesperson to recommend the Fund over another investment. Ask
your salesperson or visit your financial intermediary’s website for more information.
7