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Virtus Emerging Markets Opportunities Fund

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$ (as of )
Total Assets by Class
$19,124,333.16 (as of 06/02/2023)
Total Assets by Fund
$126,338,755.53 (as of 06/02/2023)
Morningstar Category
Diversified Emerging Mkts

Portfolio Overview

Investment Overview

The Fund seeks capital appreciation through a systematic, bottom-up investing approach to emerging market equities that focuses on uncovering attractive investment opportunities while striving to mitigate downside risk. The all-cap core portfolio is built with high conviction at the stock level, focusing on securities that exhibit higher growth forecasts, lower valuations, and reduced volatility versus the benchmark.

Effective June 10, 2022, this Fund's name has changed.

Effective July 25, 2022, this Fund's manager has changed.

Management Team

Investment Partner

Virtus Systematic

The Virtus Systematic team of Virtus Investment Advisers, Inc. specializes in differentiated investment solutions, strategies, and outcomes across asset classes, regions, and securities.

Learn more about Virtus Systematic

Investment Professionals

Kunal, Ghosh

Kunal Ghosh

Chief Investment Officer, Senior Managing Director, Portfolio Manager

Industry start date: 2003
Start date as fund Portfolio Manager: 2007

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Yu, Lu


Managing Director, Lead Portfolio Manager

Industry start date: 2002
Start date as fund Portfolio Manager: 2010

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Key Features

Exploits Inefficiencies

A behavioral finance approach, rooted in investors' often-inefficient reaction to new information, helps identify companies poised to benefit from changes not yet fully reflected in the market

Broad Emerging Market Exposure

Daily analysis of 3,000+ securities from a proprietary multi-factor model has resulted in a clear investment view on each stock and a high active share

Risk-Focused Approach

Proactive risk controls are embedded throughout the investment process to help lower volatility exposure versus the benchmark while a statistically based risk model helps uncover hidden sources of market risk

Portfolio Characteristics


(as of 03/31/2023)
Average Weighted Market Cap (billions) $69.87
Median Market Cap (billions) $6.87
Trailing P/E Ex-Negative Earnings 8.89
Price-to-Cash Flow 10.59
Price-to-Book Value 2.65
3-Year Earnings Growth Rate 23.50

Top Holdings (% Fund)

(as of 03/31/2023)
Taiwan Semiconductor Manufacturing Co Ltd
Tencent Holdings Ltd
PetroChina Co Ltd
Novatek Microelectronics Corp
Yum China Holdings Inc
Starbucks Corp
DB HiTek Co Ltd
Alibaba Group Holding Ltd
Samsung Electronics Co Ltd

Holdings are subject to change.

Sector Allocation (% Equity)

(as of 03/31/2023)
Information Technology
Consumer Discretionary
Consumer Staples
Communication Services
Health Care
Real Estate

Top Countries (% Invested Assets)

(as of 03/31/2023)

Performance & Risk

Growth of $10,000 Investment

From to
This chart assumes an initial investment of $10,000 made on for Class ddd shares including any applicable sales charges. Performance assumes reinvestment of dividends and capital gain distributions.


As of
As of

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Sales Charge and Expenses

Risk Statistics3

(as of )
Fund Index
Std Dev

Risk Considerations

Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war, terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio's manager(s) to invest its assets as intended.
Issuer Risk: The portfolio will be affected by factors specific to the issuers of securities and other instruments in which the portfolio invests, including actual or perceived changes in the financial condition or business prospects of such issuers.
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, medium, or large-sized companies may enhance that risk.
Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the portfolio to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk.
Focused Investments: To the extent the portfolio focuses its investments on a limited number of issuers, sectors, industries or geographic regions, it may be subject to increased risk and volatility.
Prospectus: For additional information on risks, please see the fund's prospectus.



Market Review

Emerging markets equities broadly continued to rise in the first quarter, though the period was largely split in two from a performance perspective. Early in the period, shares were lifted higher by investor enthusiasm for the anticipated boost China’s reopening might have on the global economy and optimism around softening U.S. inflation numbers and growing hope that Federal Reserve (Fed) interest rate tightening may soon slow or even reverse.

Volatility returned to the markets in the second half of the period, however, as it became clearer that China’s growth gains were likely to be more of a grind than initially expected. Additionally, surprising resiliency in U.S. employment and wage growth numbers suggested that additional rounds of rate hikes were probably in store as the Fed continued its fight against inflation.

The MSCI Emerging Markets Index advanced 3.96% for the quarter, with the strongest sector gains in information technology (+14.76%) and communication services (+12.60%), and the weakest returns in utilities (-10.50%) and healthcare (-4.89%). The Czech Republic was the index’s top performing country, climbing an impressive 32.98%, followed by Mexico (+20.33%), Greece (+15.75%), and Taiwan (+14.75%). The largest country declines were in Colombia (-13.48%), Turkey (-9.42%), and the United Arab Emirates (-7.54%).

Portfolio Overview

The Virtus Emerging Markets Opportunities Fund gained 6.96% (Class INST) for the quarter while the MSCI Emerging Markets Index rose 3.96%. From a sector perspective, stock selection in information technology, consumer discretionary, utilities, and industrials contributed the most to performance. An underweight communications services position weighed the most on returns.


Novatek Microelectronics and DB HitTek were among the strongest stock contributors.

  • Taiwanese semiconductor company Novatek Microelectronics outperformed on higher-than-expected earnings and overall business momentum. The company is a leading chip supplier for TV displays and has benefited from strong demand, particularly from China. We continued to hold the stock as we see room for additional gains at current valuations.
  • In addition to reporting strong financial results, South Korean semiconductor manufacturer DB HiTek rallied due to Japan’s decision to lift chip material export restrictions on South Korea, which should provide the company with a cheaper source for chemicals used in its chip production. The stock was a new position purchased in the quarter.
  • Additional top contributors included Taiwan Semiconductor Manufacturing, PetroChina, and Grupo Financiero Banorte.


Banpu Public and Axis Bank were among the largest stock detractors.

  • Thailand-based coal company Banpu Public lagged due to broad energy price softness and refocused environmental, social, and governance (ESG) scrutiny around the coal industry, which had become somewhat muted during last year’s energy crisis. We trimmed our position but continue to hold the stock.
  • Indian banking and financial services company Axis Bank fell on investor profit taking, as shares had become rich in valuation after a phenomenal run in 2022. The company also completed its acquisition of Citibank’s India consumer and non-banking finance businesses, and it remains to be seen whether the bank can hold onto these customers. We scaled back our position but still have overall confidence in the long-term prospects of the company.
  • Additional bottom detractors included PTT Exploration & Production, Archer-Daniels-Midland, and SK Inc.


Looking ahead, we see a generally constructive backdrop for emerging markets equities. U.S. employment gains appear to be slowing, and the U.S. economy looks like it is probably heading toward recession, if it is not already in one. This likely will put pressure on the U.S. dollar, which is historically a positive for emerging markets.

China also continues to emerge out of recession. While the country faces a number of challenges as it tries to rebalance its economy, its reopening from COVID lockdowns should be a favorable contributor to global growth and help it remain a central driver in the developing world.

Another bright spot is India’s economy, which continues to perform extremely well. The country emerged from COVID much earlier than China and has benefited from both a booming real estate market and overall consumer strength.

We expect these factors should provide supportive tailwinds. Additionally, increased dispersions across these markets have offered greater opportunities to capture attractive outperformance potential through our active stock selection process. We continue to apply systematic, behavioral finance research to uncover investment potential, while maintaining a disciplined focus on mitigating downside risk. This higher-quality, lower-volatility approach seeks to deliver stronger, more consistent returns over the long term.

The commentary is the opinion of the subadviser. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.

Related Literature

Marketing Materials

Virtus Emerging Markets Opportunities Fund Fact Sheet - R6
Virtus Emerging Markets Opportunities Fund Fact Sheet - A
Virtus Emerging Markets Opportunities Fund Fact Sheet - INST
Virtus Systematic Funds Presentation
Virtus Emerging Markets Equity Funds
The Next Generation Alpha Model: Illuminating CEO and CFO Behavior Using NLP
The Next Generation Alpha Model: Seeding Intelligence with the Ground Truth
The Next Generation Alpha Model: Introducing Natural Language Processing

Financial Materials

Virtus Investment Trust Statutory Prospectus
Virtus Emerging Markets Opportunities Fund Summary Prospectus
Virtus Investment Trust SAI
Virtus Investment Trust Annual Report
Virtus Investment Trust Semiannual Report


Virtus Emerging Markets Opportunities Fund Monthly Holdings
Virtus Emerging Markets Opportunities Fund Top Holdings
Virtus Emerging Markets Opportunities Fund Holdings Fiscal Q1
Virtus Emerging Markets Opportunities Fund Holdings Fiscal Q3

Investors should carefully consider the investment objectives, risks, charges and expenses of any Virtus Mutual Fund before investing. The prospectus and summary prospectus contains this and other information about the fund. Please contact your financial representative, call 1-800-243-4361 to obtain a current prospectus and/or summary prospectus. You should read the prospectus and/or summary prospectus carefully before you invest or send money.

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Average annual total return is the annual compound return for the indicated period. It reflects the change in share price and the reinvestment of all dividends and capital gains. NAV returns do not include the effect of any applicable sales charges. POP and w/CDSC returns include the effect of maximum applicable sales charges.

Returns for periods of less than one year are cumulative total returns.

1 Yields/Distributions: 30-day SEC Yield is a standardized yield calculated according to a formula set by the SEC, and is subject to change. 30-day SEC Yield (unsubsidized) is the 30-day SEC Yield without the effect of applicable expense waivers. Distribution Rate is calculated by (a) annualizing the latest income distribution for fixed income funds or funds less than 1 year old, or (b) summing all income distributions over the preceding 12 months for all other funds, and dividing by the NAV on the last business date of the period, unless otherwise indicated. The Distribution Rate may be comprised of ordinary income, net realized capital gains and returns of capital.

2 Distribution History: Distributions are represented on a cash basis and may be reclassified at year end for tax purposes. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. STCG: Short Term Capital Gain, LTCG: Long Term Capital Gain

3 Risk Statistics: R2 is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. Beta is a quantitative measure of the volatility of a given portfolio to the overall market. Alpha is a risk adjusted measure of an investment's excess return relative to a benchmark. A positive Alpha indicates that the investment produced a return greater than expected for the risk (as measured by Beta) taken. Standard Deviation measures variability of returns around the average return for an investment fund. Higher standard deviation suggests greater risk. Risk Statistics are calculated using 36 monthly returns.

4 Characteristics: For Equity Funds: Avg. Weighted Market Cap (bn): The sum of each security's weight within the fund (or index) multiplied by the security's market capitalization. Trailing P/E Ex-Negative Earnings: Per-share stock price divided by the latest 12-months Earnings per Share; Price/Cash Flow: Per-share stock price divided by the per-share operating cash flow; Price/Book: Per-share stock price divided by the latest 12-month per-share Book Value; 3-Year EPS Growth Rate: Average of earnings per share growth for latest 3-year period. The 3-Year EPS Growth Rate is not a forecast of the fund's performance.

4 Characteristics: For Fixed Income Funds: Effective Duration represents the interest rate sensitivity of a fixed income fund. For example, if a fund's effective duration is five years, a 1% increase in interest rates would result in a 5% decline in the fund's price. Similarly, a 1% decline in interest rates would result in a 5% gain in the fund's price.

Morningstar Disclosures:
The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.

© Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.