By the end of 2015, there were just over $2 trillion in total net assets in the U.S. ETF market, which would increase by over six times in the next decade. 2015 was also the year that Mannik Dhillon, president of VictoryShares and Victory Capital Solutions, joined the company. TMX VettaFi caught up with Dhillon at ETF Exchange 2026 to reflect on an industry that turned from a fledgling corner of the financial market to a sophisticated, multi-trillion-dollar engine.
Education to Execution
When Victory Capital, the parent company and investment advisor for the VictoryShares brand, entered the ETF business over 10 years ago via acquisition, the market landscape was starkly different. At that time, the firm managed just five ETFs with roughly $190 million in assets. Compare that to today, with the firm having 23 ETFs and about $20 billion assets in the U.S. ETF market.
In 2025, the primary hurdle to compete in the ETF market wasn’t competition. Instead, it was basic literacy.
“When we set out back in 2015… we had to educate our salespeople, plus the advisors. How does an ETF work? Why is it tax-efficient? What are the pros and cons to how you trade it?” Dhillon recalled.
While ETF education is still pertinent today, the industry has moved from a simple explanation of what an ETF does to hypothesizing on which sophisticated strategy belongs inside the wrapper. Dhillon has been one of the chief architects in helping to bring institutional strategies to the retail ETF market — considered “smart beta” at the time, though that term isn’t widely circulated anymore.
One of the notable shifts Dhillon has witnessed in his ETF career is the blurring lines between active and passive management. While VictoryShares has a reputation for its rules-based methodologies, Dhillon views them as inherently active. Their free cash flow ETF suite is a prime example of this. Dhillon noted that the firm’s solutions team sat down to create a methodology “as if it was like an active quantitative strategy” before working with VettaFi to turn the idea into an index. This active-to-index pipeline provides clients with a unique blend of human insight in tandem with systematic repeatability.
Growth Through Strategic Acquisition
Victory’s expansive growth over the years has been fueled by a methodical acquisition strategy. Recent deals like the acquisition of Amundi US (Pioneer Investments) and WestEnd Advisors aren’t just “asset grabs,” but more so “capability grabs.”
“Each one of those acquisitions gives us new investment capabilities,” said Dhillon. “Every time we do that, we have an opportunity to say ‘Would any of these resonate in an ETF wrapper?’” Ultimately, the approach allowed Victory to launch an active ETF for Pioneer within the first quarter of closing the deal — VictoryShares Pioneer Asset-Based Income ETF (ABI ).
Moreover, Dhillon is quick to point out that Victory does not treat its acquisitions as a monolith. A degree of autonomy is given to acquired companies, allowing them to maintain their brand identity and boutique “secret sauce” while providing them with the necessary support for success. This includes centralized compliance, technology, and distributional assistance.
“Leave them alone to do what they do best… and then take away all the ancillary stuff they would deal with otherwise,” Dhillon explained.
Looking Ahead: ETF Share Classes and Derivatives
Looking ahead to the rest of 2026, Dhillon saw two major trends that could disrupt the status quo in the ETF marketplace. This includes the emergence of ETF share classes for mutual funds as well as the rise of derivative-income strategies.
The ETF share class — a structure in which mutual fund shareholders can derive the tax efficiencies and other structural benefits inherent in ETFs — could essentially level the playing field. Dhillon noted that technological hurdles at distributors means this won’t be an overnight transition. However, it’s a vital evolution for the industry.
As mentioned, the “derivative income” category is emerging as a breeding ground for innovation. In the end, the prime focus is offering the clients the solutions they seek.
“That whole derivative income category just emerged from nowhere over the last few years,” Dhillon said. “People are driving a specific outcome, and that’s kind of how we’ve always thought about product development—you start with the outcome you want to give the client and then work backwards.”
As the firm looks to scale, Dhillon is squarely focused on delivering distinct, non-correlated solutions that may be overlooked. This includes market-neutral income strategies designed to provide yield without bond exposure.
One fund to watch from VictoryShares that Dhillon mentioned is the VictoryShares US Multi-Factor Minimum Volatility ETF (VSMV ), especially given the current market environment. The fund has delivered exceptional risk-adjusted performance compared to other minimum volatility options in the market. By tracking the Nasdaq Victory US Multi-Factor Minimum Volatility Index, VSMV uses a multi-factor screening process to construct a portfolio aimed at minimizing volatility.
The Trillion-Dollar Goal
In the broader context, Victory Capital has set its sights on becoming a trillion-dollar asset manager. As Dhillon mentioned, in an industry where “organic growth is hard to come by,” he believes that inorganic growth and scale serve as ways to stay competitive against the BlackRocks, Vanguards, and other giants of the industry.
“We need size and scale to compete in the industry,” Dhillon said. “And 320 billion is not big anymore.”
Ultimately, Victory’s evolution is a prime example of the maturation occurring within the ETF market. The firm is emblematic of a shift away from simple benchmarks and into outcome-oriented, high-conviction strategies that give advisors the precision they need in an increasingly complex market via an ETF wrapper.
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VettaFi LLC (“VettaFi”) is the index provider for GFLW, VFLO, SFLO, IFLO, GRIN, for which it receives an index licensing fee. However, GFLW, VFLO, SFLO, IFLO, GRIN are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of GFLW, VFLO, SFLO, IFLO, GRIN.
