Victory Portfolios II Announces Liquidation of ETFs

Rhea-AI Summary

Victory Portfolios II has announced the liquidation of three ETFs: VictoryShares US Discovery Enhanced Volatility Wtd ETF (CSF), VictoryShares US Small Cap Volatility Wtd ETF (CSA), and VictoryShares THB Mid Cap ETF (MDCP). The decision follows the company's regular product lineup review.

Key dates include:

• April 22, 2025: Last day for Creation Units purchase orders
• April 23, 2025: Final trading day on Nasdaq
• April 29, 2025: Expected liquidation date

Shareholders can sell their holdings on Nasdaq until April 23, 2025, or receive a cash distribution equal to the net asset value during liquidation. Victory Capital Management Inc. (VCM) will cover all liquidation-related fees and expenses, except brokerage fees and related costs.

Positive

• Company covering all liquidation-related fees and expenses
• Orderly liquidation process with clear timeline for shareholders

Negative

• Discontinuation of three ETF products indicates portfolio reduction
• Forced liquidation may result in unwanted tax consequences for shareholders

SAN ANTONIO--(BUSINESS WIRE)-- Victory Portfolios II today announced plans to liquidate the VictoryShares US Discovery Enhanced Volatility Wtd ETF (CSF), VictoryShares US Small Cap Volatility Wtd ETF (CSA), and VictoryShares THB Mid Cap ETF (MDCP) (the “Funds”).

The decision to liquidate the Funds was the result of the Company’s regular review of its product lineup to ensure it is best meeting client needs.

After the close of business on April 22, 2025, the Funds will no longer accept purchase orders for Creation Units. Shareholders of the Funds may sell their holdings on the Nasdaq Stock Market prior to the close of trading on April 23, 2025, and customary brokerage charges may apply to these transactions. The Funds will cease trading at the end of the trading day on April 23, 2025. It is anticipated that the Funds will liquidate on or about April 29, 2025. Any person holding shares of the Funds as of the liquidation date will receive a cash distribution equal to the net asset value of their shares as of that date.

Victory Capital Management Inc. (VCM), the adviser to the VictoryShares ETFs, will bear all fees and expenses that may be incurred in connection with the liquidation of the ETFs and the distribution of the cash proceeds to investors, other than brokerage fees and other related expenses.

For tax purposes, shareholders will generally recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares.

About Victory Capital

Victory Capital is a diversified global asset management firm with $180.5 billion in total client assets, as of January 31, 2025. The Company employs a next-generation business strategy that combines boutique investment qualities with the benefits of a fully integrated, centralized operating and distribution platform.

Victory Capital provides specialized investment strategies to institutions, intermediaries, retirement platforms and individual investors. With 11 autonomous Investment Franchises and a Solutions Business, Victory Capital offers a wide array of investment products and services, including mutual funds, ETFs, separately managed accounts, alternative investments, third-party ETF model strategies, collective investment trusts, private funds, a 529 Education Savings Plan, and brokerage services.

Victory Capital is headquartered in San Antonio, Texas, with offices and investment professionals in the U.S. and around the world. To learn more please visit www.vcm.com or follow Victory Capital on Facebook, Twitter, and LinkedIn.

Carefully consider a fund's investment objectives, risks, charges and expenses before investing. To obtain a prospectus or summary prospectus containing this and other important information, visit www.victorysharesliterature.com. Read it carefully before investing.

VictoryShares ETFs and Victory Funds distributed by Victory Capital Services, Inc., an affiliate of Victory Capital Management Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250228237809/en/

Investors:

Matthew Dennis, CFA

Chief of Staff

Director, Investor Relations

216-898-2412

mdennis@vcm.com

Media:

Jessica Davila

Director, Global Communications

210-694-9693

Jessica_davila@vcm.com

Source: Victory Capital Holdings, Inc.

FAQ

When will Victory Portfolios II ETFs (CSF, CSA, MDCP) stop trading?

The ETFs will cease trading at the end of the trading day on April 23, 2025 on the Nasdaq Stock Market.

What happens to shareholders during the Victory ETFs liquidation?

Shareholders can either sell their holdings on Nasdaq before April 23, 2025, or receive a cash distribution equal to the NAV during liquidation around April 29, 2025.

Which Victory ETFs are being liquidated in 2025?

Three ETFs: VictoryShares US Discovery Enhanced Volatility Wtd ETF (CSF), VictoryShares US Small Cap Volatility Wtd ETF (CSA), and VictoryShares THB Mid Cap ETF (MDCP).

Who will bear the liquidation costs of the Victory ETFs?

Victory Capital Management Inc. (VCM) will bear all liquidation fees and expenses, except for brokerage fees and related expenses.