Victory Capital launches three new ETFs including first Pioneer strategy

Published 26/06/2025, 13:44
Victory Capital launches three new ETFs including first Pioneer strategy

SAN ANTONIO - Victory Capital Holdings, Inc. (NASDAQ:VCTR), a $4.23 billion market cap asset manager with strong financial fundamentals and a perfect Piotroski Score of 9 according to InvestingPro, announced Thursday the launch of three new exchange-traded funds through its investment adviser, Victory Capital Management Inc.

The new offerings include the VictoryShares Pioneer Asset-Based Income ETF (ABI), VictoryShares International Free Cash Flow ETF (IFLO), and VictoryShares International Free Cash Flow Growth ETF (GRIN).

ABI represents the first strategy from Pioneer Investments, Victory Capital’s newest Investment Franchise, to be offered as an ETF. The actively managed fund targets specialized fixed income sectors that bridge public and private credit markets, focusing on securities collateralized by physical assets.

"ABI aims to deliver a differentiated income stream by investing in specialized fixed income sectors, including those that bridge the public and private credit markets," said Mannik Dhillon, President of Investment Franchises and Solutions for Victory Capital.

The IFLO and GRIN funds expand the company’s free cash flow ETF suite to five strategies, providing exposure to developed international markets using the same rules-based index methodology as Victory Capital’s existing free cash flow ETFs.

With these additions, VictoryShares now offers 26 ETFs with more than $14 billion in assets under management as of May 31, 2025.

Victory Capital manages $293.1 billion in total client assets as of May 31, 2025, according to the company’s press release statement.

In other recent news, Victory Capital Holdings Inc. reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.36, which narrowly missed the analyst forecast of $1.38. The company’s revenue stood at $219.6 million, reflecting a 5% decline from the previous quarter. Despite these figures, Victory Capital exhibited strong operational performance, with a significant increase in cash reserves and a robust adjusted EBITDA margin of 53%. The firm is also exploring potential acquisitions in 2025, supported by a solid cash position and reduced leverage. Additionally, Victory Capital’s ETF assets under management surged by 28% quarter-over-quarter, positioning the company well in the competitive asset management sector. The company is focused on expanding its ETF offerings and leveraging Amundi’s global distribution network. Analysts from firms such as JPMorgan and Goldman Sachs have taken note of the company’s strategic initiatives and growth potential, with no significant negative impacts reported from the recent Amundi acquisition. The firm remains committed to maintaining a long-term margin guidance of 49% and is planning several ETF launches in 2025 to drive future performance.

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