Victory Portfolios II Announces Liquidation of ETFs

Key Terms

creation units financial

Creation units are large blocks of an exchange-traded fund’s (ETF) shares that big market players can exchange with the fund for the underlying basket of securities, or vice versa. Think of it like a bakery swapping a box of finished cookies for the exact ingredients — this mechanism helps keep the ETF’s market price close to the value of its holdings, supports liquidity, and lets investors buy or sell without large price gaps.

net asset value financial

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

capital gain or loss financial

The difference between what you paid for an investment and what you receive when you sell it; if you sell for more you have a capital gain, if you sell for less you have a capital loss. Think of it like selling a house: the profit or shortfall compared with your purchase price affects your personal wealth and can change taxable income, which makes it important for evaluating real returns and making decisions about when to sell.

SAN ANTONIO--(BUSINESS WIRE)-- Victory Portfolios II today announced plans to liquidate VictoryShares WestEnd Economic Cycle Bond ETF (BMDL), VictoryShares Hedged Equity Income ETF (HEJD), and VictoryShares International Volatility Wtd ETF (CIL) (the “ETFs”).

The decision to liquidate the ETFs 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 January 28, 2026, the ETFs will no longer accept purchase orders for Creation Units. Shareholders of the ETFs may sell their holdings on the Nasdaq Stock Market prior to the close of trading on January 29, 2026. Customary brokerage charges may apply to these transactions. The ETFs will cease trading at the end of the trading day on January 29, 2026. It is anticipated that the ETFs will liquidate on or about February 4, 2026. Any person holding shares of the ETFs 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.

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

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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.