Fund Evaluator:

Victory Diversified Stock Y Overview

Victory Diversified Stock Y (VDSYX) is an actively managed U.S. Equity Large Blend fund. Victory Capital Management Inc. launched the fund in 2013.

The investment seeks to provide long-term growth of capital. The Adviser pursues the fund's investment objective by investing, under normal circumstances, at least 80% of its assets in common stock, which includes securities convertible or exchangeable into common stock traded on U.S. exchanges. Its investments include securities issued by established, large-cap companies, as well as securities of mid-cap companies. The fund's investments include foreign securities that are traded in the U.S., including American Depositary and Global Depositary Receipts (“ADRs” and “GDRs”).

About Victory Diversified Stock Y (VDSYX)

There are 2 members of the management team with an average tenure of 0.75 years: Elie Masri (2025), Lance Humphrey (2025). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. Victory Diversified Stock Y has 115 securities in its portfolio. The top 10 holdings constitute 38.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Victory Diversified Stock Y is part of the Equity global asset class and is within the U.S. Equity fund group. Victory Diversified Stock Y has 2.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 97.6%. There is 2.3% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Victory Diversified Stock Y has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $2 million in total assets, which is below the $6 billion average for the Large Blend 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.

VDSYX 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 Victory Diversified Stock Y expense ratio is high compared to funds in the Large Blend category. Victory Diversified Stock Y has an expense ratio of 0.86%, which is 6% higher than its category average, making the fund expense ratio grade a C. 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. Victory Diversified Stock Y has a portfolio turnover rate of 92%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 48% for the Large Blend category.

Recently, in the month of July 2026, Victory Diversified Stock Y returned 0.4%, which earned it a grade of C, as the Large Blend category had an average return of 0.4%. 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 funds in that category.

Victory Diversified Stock Y has a trailing yield of 0.27%, which is below the 0.56% category average. The fund normally distributes its income quarterly 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.

Victory Diversified Stock Y Grades

Year to date, the fund has returned 11.0%, 1.7 percentage points better than the category, which translates into a grade of B. The fund has returned 23.4% over the past year (grade of A), 21.6% over the past three years (grade of A) and 15.0% per year over the past five years (grade of A) and 14.8% per year over the past 10 years (grade of B).

For more mutual fund 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 Victory Diversified Stock Y, including its riskiness, submit your email to unlock the rest of the article.