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Markets in Perspective: Quality Small-Cap Stocks (February Update)

Russell 2000® Index: A market capitalization-weighted index of the 2,000 smallest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies. S&P Quality Rankings: Stocks with an S&P Quality Ranking of B+ and above are defined as High Quality. Stocks with an S&P Quality Ranking of B and below are defined as Low Quality. Return on Equity (ROE): The amount of net income returned as a percentage of shareholders’ equity. ROE measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested. Beta: A quantitative measure of the volatility of a given stock relative to the overall stock market. Higher beta suggests higher volatility. Credit Quality: BBB and above are considered investment grade bonds. BB+ and below are considered below-investment grade bonds.

Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk. Limited Number of Investments: Because the fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities. Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolio’s assets as intended.

Please consider a Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other information about any Virtus Fund, contact your financial professional, call 800-243-4361, or visit for a prospectus or summary prospectus. Read it carefully before investing.