This is a rules-based ETF that broadly screens US small caps for high dividend yields and holds them using a volatility-weighted method. The index is built by assigning higher weights to stocks with lower volatility.

It suits diversified investors who want small-cap dividend exposure while softening price swings.

It is managed by Victory Capital and follows a passive (index-tracking) approach.

The fund selects the stocks with the highest dividend yields from the US small-cap universe, then assigns weights inversely proportional to each stock's price volatility. It is a rules-based strategy that puts larger weights on lower-volatility stocks to soften the price swings typical of small caps, and it also applies caps that limit concentration in any single sector.

• Volatility weighting gives higher weights to low-volatility stocks
• High-dividend screening is combined with sector concentration limits

Assets under management (AUM) stand at $239.9M, and the total expense ratio (Expense Ratio) is 0.35% per year.

Unlike traditional market-cap-weighted large-cap dividend ETFs, it stands out by applying a volatility-weighting rule to the small-cap segment.

Because it combines small-cap and dividend-stock characteristics, its performance tends to diverge depending on the interest rate environment and economic sensitivity. It can move differently from a market led by large caps, so it is often considered for its diversification benefits.

Demand for both high dividends and reduced volatility underpins its fund flows, and given the nature of the small-cap category, its asset base is relatively small compared with large core ETFs.

Its strengths are high-dividend small-cap exposure and a volatility-dampening rule, while the volatility typical of small caps and the cost burden are cited as drawbacks.

Comparable ETFs in the same dividend category shown in the table include SCHD, VYM and VIG, which are lower-cost, large-cap-focused dividend ETFs. This ETF differs in character because it applies volatility weighting to the small-cap segment. In addition, from the same VictoryShares family, you can also consider CDL, the large-cap high dividend volatility weighted ETF, and CDC, the US equity income volatility weighted ETF.

Here are the points to review before investing in CSB. Since this is a small-cap dividend strategy, it is wise to check volatility, costs and sector composition in advance, and to consider how it would complement your existing large-cap dividend portfolio.

Small-cap volatility and the sector skew that comes from high-dividend screening are the main risk factors. During market corrections, short-term losses can widen given the nature of small caps, despite the volatility-weighting rule.

It is an option worth considering for investors who want to add small-cap dividend exposure to a large-cap-focused dividend portfolio. It is recommended to review costs, liquidity and sector composition together to judge whether it fits your own strategy.