ETF Evaluator:
VictoryShares Short-Term Bond ETF (USTB)
Follow This ETF
(as of Jul 31)
Best Performing in Short-Term Bond Over the Last Year
| 7.8% | Overlay Shares Short Term Bond ETF (OVT) |
| 5.1% | AAM SLC Low Duration Income ETF (LODI) |
| 5.0% | Performance Trust Short Term Bond ETF (STBF) |
| 4.6% | SanJac Alpha Low Duration ETF (SJLD) |
| 4.5% | American Century® Short Dur Str Inc ETF (SDSI) |
Risk
Index
Risk
Index
ETF Details
VictoryShares Short-Term Bond ETF Overview
VictoryShares Short-Term Bond ETF (USTB) is an actively managed Taxable Bond Short-Term Bond exchange-traded fund (ETF). Victory Capital Management Inc. launched the ETF in 2017.
The investment seeks high current income consistent with preservation of principal.
Under normal circumstances, the fund invests at least 80% of its assets in debt securities and in derivatives and other instruments that have economic characteristics similar to such securities. It may invest up to 20% of its net assets in foreign debt securities, including non-U.S. dollar-denominated securities and securities of companies in emerging market countries (i.e., those that are in the early stages of their industrial cycles).
About VictoryShares Short-Term Bond ETF (USTB)
There are 5 members of the management team with an average tenure of 5.74 years: Brian Smith (2017), Kurt Daum (2017), Douglas Rollwitz (2022), Jim Jackson (2019) and Zach Winters (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg Credit 1-3 Yr TR USD index with a weighting of 100%. VictoryShares Short-Term Bond ETF has 1059 securities in its portfolio. The top 10 holdings constitute 10.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
VictoryShares Short-Term Bond ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. VictoryShares Short-Term Bond ETF has 11.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 4.4% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 86.5% (74.6% domestic bond, 11.9% foreign bond and 0.2% convertible bond). VictoryShares Short-Term Bond ETF has 9.0% of the portfolio in cash.
Assets Under Management
The fund has $2 billion in total assets, which is below the $3 billion average for the Short-Term Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
USTB Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The VictoryShares Short-Term Bond ETF expense ratio is below average compared to funds in the Short-Term Bond category. VictoryShares Short-Term Bond ETF has an expense ratio of 0.34%, which is 22% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. VictoryShares Short-Term Bond ETF has a portfolio turnover rate of 33%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 77% for the Short-Term Bond category.
Recently, in the month of June 2026, VictoryShares Short-Term Bond ETF returned 0.3%, which earned it a grade of A, as the Short-Term Bond category had an average return of 0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
VictoryShares Short-Term Bond ETF has a trailing yield of 4.57%, which is above the 4.55% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
VictoryShares Short-Term Bond ETF Grades
Year to date, the ETF has returned 1.5%, 0.4 percentage points better than the category, which translates into a grade of A. The fund has returned 4.2% over the past year (grade of A), 6.1% over the past three years (grade of A) and 3.5% per year over the past five years (grade of A).
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about VictoryShares Short-Term Bond ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
USTB Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| USTB Return (NAV) | 0.3% | 1.0% | 4.2% | 6.1% | 3.5% | na |
| USTB Return (Price) | 0.3% | 1.2% | 4.2% | 6.2% | 3.5% | na |
| NAV +/- Price Return | 0.000% | -0.179% | 0.005% | -0.020% | 0.000% | na |
| Short-Term Bond Avg | 0.1% | 0.9% | 3.7% | 5.5% | 2.4% | 2.5% |
| USTB Grade (NAV) | A | B | A | A | A | na |
| +/- Category (NAV) | 0.1% | 0.1% | 0.5% | 0.7% | 1.1% | na |
| USTB Tax-Cost Ratio | na | na | 1.8% | 2.0% | 1.6% | na |
USTB Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| USTB Return (NAV) | 1.5% | 6.1% | 6.5% | 6.6% | -2.8% | 0.9% | 5.1% | 4.9% | 1.4% | na | na |
| USTB Return (Price) | 1.5% | 6.1% | 6.5% | 6.7% | -2.8% | 0.9% | 5.1% | 5.1% | 1.1% | na | na |
| NAV +/- Price Ret | -0.014% | -0.008% | -0.002% | 0.005% | -0.002% | -0.000% | -0.008% | 4.1% | -24.9% | na | na |
| Short-Term Bond Avg | 1.1% | 6.3% | 5.1% | 6.0% | -5.3% | -0.4% | 4.4% | 5.6% | 1.2% | 1.7% | 2.4% |
| USTB Grade (NAV) | A | D | A | A | A | A | B | D | A | na | na |
| +/- Category | 0.4% | -0.1% | 1.4% | 0.7% | 2.5% | 1.3% | 0.8% | -0.7% | 0.2% | na | na |
| Risk Measures | |
| Beta: | 0.26 |
| R-Squared: | 86% |
| Standard Deviation: | 1.6% |
| Category Risk Index: | 0.71 |
| Category Risk Rating: | Below Average |
| Total Risk Index: | 0.13 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 4.6% |
| Total Assets: | $ 2,224 Mil |
| Share Class Assets: | $ 2,224 Mil |
| Turnover: | 33.0% |
| Expense Ratio: | 0.34% |
| Index Fund: | No |
| Index Tracked: | Bloomberg US Agg Bond TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 5 | |||
| Longest Tenure: 8.7 years | |||
| Average Tenure: 5.7 years | |||
| Managers (Year): Smith Brian (2017), Daum Kurt (2017), Jackson Jim (2019), Rollwitz Douglas (2022), Winters Zach (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 1059 |
| % in Top 10 Holdings: | 10.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 11.9% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 4.4% |
| Domestic Bond: | 74.6% |
| Foreign Bond: | 11.9% |
| Convertible Bond: | 0.2% |
| Other: | 0.0% |
| Cash: | 9.0% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Victory Capital Management Inc. |
| Phone Number: | 800-531-8722 |
| Website: | www.CompassEMPFunds.com |
| Inception Date: | October 24, 2017 |
Expenses and Fees
| Expense Ratio (%): | 0.34% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.28% |
