VictoryShares Municipal High Yield ETF

Frequently Asked Questions About VMHY

What does VMHY invest in?

VictoryShares Municipal High Yield ETF is an actively managed exchange-traded fund that seeks to maximize total return through a combination of income exempt from regular federal income tax and capital appreciation. The fund primarily invests in high-yield municipal securities issued by U.S. states, municipalities, territories, and related authorities, focusing on below-investment-grade and unrated municipal obligations.

What is the expense ratio of VMHY?

VictoryShares Municipal High Yield ETF (VMHY) charges an expense ratio of 0.77%. This is the annual fee deducted from fund assets to cover management and operations.

What is VMHY's distribution yield?

VMHY's trailing-twelve-month yield is —, calculated from the sum of distributions over the past year divided by the current price.

How does VMHY's covered-call strategy work?

VMHY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of VMHY?

Effective duration measures VMHY's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VMHY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VMHY?

VMHY's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.