Fund Description: Victory CEMP US Discovery Enhanced Volatility Weighted Index ETF, formerly Compass EMP U.S. Discovery 500 Enhanced Volatility Weighted Index ETF, is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Victory Portfolios II, formerly Compass EMP Funds Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The Victory CEMP US Discovery Enhanced Volatility Weighted Index ETF seeks to provide investment results that match the performance, before fees and expenses, of the CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index. INDEX DESCRIPTION: The CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index is an unmanaged index that was created by the Fund’s investment advisor and generally consists of the common stock of the 500 largest companies by market capitalization that have their headquarters in the U.S., market capitalizations of less than $3 billion, and the stock of which trades on a U.S. exchange. The Index may include less than 500 stocks depending on the number of companies meeting the Index’s criteria. The Index includes only companies with consistent positive earnings (at least its 4 most recent quarters) and is weighted based on the volatility of each stock. Volatility is the extent to which the return of a security fluctuates between its highest price and its lowest price within a given period. The weight of each member in the Index is defined by its own volatility relative to the average volatility of all Index members measured over the past 180 trading days. Stocks with lower volatility receive a higher weighting and stocks with higher volatility receive a lower weighting. The Index’s stock component is reconstituted every March and September and is adjusted to limit exposure to any particular sector to 25%. Based on the month-end price of the CEMP U.S. Small Cap 500 Volatility Weighted Index, the Index will liquidate 75% of the securities if the Index has declined -10% from its daily highest value (DHV). Based on the month-end price, if the Index increases back to or above the -10% decline from its DHV, all securities will be reinvested. The Index would then be fully invested. If the Index declines -20% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 50% invested. If the Index declines -30% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 75% invested. If the Index declines -40% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 100% invested. The Index’s exposure to the market is dictated by a mathematical index construction algorithm, which is not subject to discretionary human judgment or intervention. FUND STRATEGY: Under normal market conditions, the Fund invests at least 80% of its assets (defined as net assets plus any borrowing for investment purposes) in securities of U.S. issuers included in the Index as of its most recent reconstitution. The Fund employs a replication strategy that entails holding all, or approximately all, the stocks in the Index. During unfavorable market conditions the Fund will invest its cash in excess of the amount required for equity investments primarily in fixed income securities, including U.S. Treasury bills and notes, commercial paper and corporate bonds. With respect to such excess cash investments, the Fund expects the dollar-weighted average fixed income maturity to be 12 months or less and the credit quality of such securities to be primarily investment grade (defined as having a rating of BBB- and above). However, up to 20% of the fixed income portfolio may be composed of lower-quality corporate bonds rated B- or higher, which are commonly referred to as junk bonds. FUND MANAGEMENT: Compass Efficient Model Portfolios, LLC (Compass EMP) serves as the investment advisor to the Fund.