Victory Capital Holdings, Inc. (VCTR) announced that its subsidiary, Victory Portfolios II, will liquidate three VictoryShares ETFs—WestEnd Economic Cycle Bond ETF (BMDL), Hedged Equity Income ETF (HEJD), and International Volatility Weighted ETF (CIL). New creation orders for the ETFs will close on January 28, 2026, the final trading day will be January 29, 2026, and the liquidations are expected to complete around February 4, 2026. Investors holding shares will receive a cash distribution equal to the net asset value on the liquidation date, after brokerage fees.
The decision follows a routine review of the product lineup and reflects Victory Capital’s strategy to streamline its ETF offerings and concentrate resources on higher‑growth products. The three ETFs were chosen for liquidation because their assets under management had fallen below $200 million each, and investor demand had declined relative to the company’s flagship products. By removing these lower‑performing vehicles, Victory Capital can reallocate capital and distribution support to its faster‑growing segments, such as the recently launched ABI, IFLO, and GRIN ETFs.
The liquidation is part of a broader portfolio‑management approach that has seen Victory Capital both prune and expand its ETF lineup. The VictoryShares platform had grown to more than $14 billion in AUM as of May 31, 2025, while the company’s total client assets reached $306.4 billion on August 31, 2025. The removal of BMDL, HEJD, and CIL is expected to have a modest impact on overall AUM but will free up distribution bandwidth and reduce operating costs associated with maintaining under‑performing products.
Victory Capital’s recent earnings report showed a slight contraction in adjusted EBITDA margin—from 53.7% in Q3 2024 to 52.7% in Q3 2025—due to higher marketing and distribution expenses. The company’s focus on product rationalization is intended to counteract this margin pressure by concentrating on higher‑margin, higher‑growth ETFs, thereby improving long‑term profitability. The company also announced acquisitions of Pioneer Investments and Amundi US earlier in the year, which have expanded its client base and revenue streams.
No market reaction data or analyst commentary was reported in the fact‑check sources, so the article does not include any market‑reaction analysis.
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