Copyright © 2020 USAA.
This information is intended for U.S. residents.
Investing in securities products involves risk, including possible loss of principal.
Shares of ETFs are bought and sold in the market at a market price, which may differ from NAV. Investors selling ETF shares in the market may receive less than NAV. Investors buying and selling ETF shares at market price may pay brokerage commissions, which will reduce returns. Market returns are based upon the closing price, which is generally at 4:00 p.m. Eastern time and do not represent the returns you would receive if you traded shares at other times. Investors may acquire ETF shares and tender them for redemption in Creation Unit Aggregations only. Individual ETF shares are not redeemable.
Transactions in ETF shares have tax consequences.
Diversification does not guarantee a profit or prevent a loss.
The Fund's shares are traded on an exchange and are bought and sold on the secondary market at market prices. The shares may trade at a premium or discount to NAV and as a result investors may pay more than NAV when purchasing shares and receive less than NAV when selling shares. Investors buying or selling shares in the secondary market may pay brokerage commissions, which may be a significant proportional cost for investors seeking to buy or sell relatively small amounts of shares. The Fund's investments in other investment companies are subject to statutory limitations prescribed by the Investment Company Act of 1940 (the "1940 Act"). It is possible that an active trading market for the shares will not be maintained, or that trading in the shares will be halted such as due to market-wide trading halts or due to the shares no longer meeting the listing requirements of the exchange.
The ETF will be negatively affected by general declines in the securities and asset classes represented in the Index. In addition, because the ETF is not "actively" managed, unless a specific security is removed from the Index ,the ETF generally would not sell a security because the security's issuer was in financial trouble.
The sale price the ETF could receive for a security may differ from the ETF'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.
Derivatives, including swap agreements and futures contracts, may involve risks different from, or greater than, those associated with more traditional investments.
The ETF is not actively managed, and USAA generally does not attempt to take defensive positions under any market conditions, including declining markets.
Equity securities are subject to changes in value, and their values may be more volatile than those of other asset classes.
Momentum investing entails investing more in securities that have recently had higher total returns and investing less in securities that have had lower total returns. These securities may be more volatile than a broad cross-section of securities, and momentum may be an indicator that a security's price is peaking. Momentum can turn quickly and cause significant variation from other types of investments. The Fund may experience significant losses if momentum stops, turns or otherwise behaves differently than predicted.
Value investing entails investing in securities that are inexpensive (or "cheap") relative to other stocks in the universe based on ratios such as earnings to price or book to price and shorting securities that are expensive based on the same ratios. There may be periods when value investing is out of favor, and during which the investment performance of a fund using a value strategy may suffer. In addition, value stocks are subject to the risks that their intrinsic value may never be realized by the market.
Investments provided by USAA Investment Management Company and USAA Financial Advisors Inc., both registered broker dealers, and affiliates.
¹NAV quote times are Eastern Time (ET) and are calculated at the end of the business day.
²Represents the total annual operating expenses, before reductions, of any expenses paid indirectly, as reported in the fund's most current prospectus. It is calculated as a percentage of average net assets.