Wealth Enhancement Leans Into USVM for Structured Small and Mid Cap Exposure

Core Insights - Wealth Enhancement Advisory Services has strategically increased its position in the VictoryShares US Small Mid Cap Value Momentum ETF (USVM), indicating a focused approach to accessing small- and mid-cap stocks while managing volatility [2][10]. Fund Positioning - The firm acquired an additional 618,272 shares of USVM, raising its total position to 1.125% of its 13F Assets Under Management (AUM) as of December 31, 2025 [2][3]. - As of January 7, 2026, USVM shares were priced at $93.81, reflecting a 13.52% increase over the past year, although it underperformed the S&P 500 by 2.96 percentage points [3][4]. ETF Overview - The USVM ETF has an AUM of $1.18 billion and a dividend yield of 1.84% as of January 8, 2026 [4]. - The ETF aims to capture the performance of U.S. small- and mid-cap equities that exhibit strong value and momentum characteristics [5][6]. Investment Strategy - USVM employs a systematic, index-based approach to provide diversified exposure while aiming to reduce volatility compared to traditional cap-weighted strategies [6][11]. - The fund focuses on U.S. small- and mid-cap equities with high value and momentum factors, seeking lower volatility and moderate turnover relative to traditional indexes [7][11]. Implications for Investors - The transaction reflects a long-term investment strategy rather than a short-term trade, emphasizing careful risk management in accessing smaller U.S. companies [10][12]. - USVM is positioned to perform well during market shifts, with its performance relative to small-cap benchmarks being crucial during market drawdowns and recoveries [12].