Virtus Enhanced Short U.S. Equity ETF
The Fund seeks to outperform -100% of the total return of the S&P 500 by providing inverse (short) exposure to large and mid-capitalization U.S. equities. In seeking its objective, the fund systematically sells (shorts) listed futures contracts based on the S&P 500 and sectors of the S&P 500 according to a proprietary, relative strength momentum methodology that overweights short exposure to sectors that have exhibited the weakest relative strength. The Fund may be appropriate for investors seeking to: (a) express a bearish view on the U.S. stock market and/or (b) tactically hedge portfolio exposure to U.S. equities. The Fund does not rebalance daily, does not have a leveraged investment objective, and does not utilize swaps.
Rampart Investment Management Company, LLC
Rampart Investment Management, an investment management affiliate of Virtus Investment Partners, is one of the leading asset managers specializing in option strategies. A registered investment adviser since 1983, Rampart manages client positions and portfolios using domestic and international index and equity options.Visit the Rampart Investment Management Company, LLC website
Industry start date: 1993
Start date with fund: 2017
Warun Kumar is a senior managing director at Virtus Investment Partners, responsible for quantitative investment strategies. Mr. Kumar serves as portfolio manager of the Virtus Trend Funds since 2015. He is also chief investment officer of Rampart Investment Management, a Virtus affiliate specializing in option strategies.
Prior to joining Virtus in 2014, Mr. Kumar was a managing partner at Varick Asset Management, an alternative investment firm, where he developed derivative-based active and passive investment strategies. Prior to forming Varick in 2010, he was the head of the Americas division of Barclays Capital Fund Solutions, which managed derivative-based strategies for institutional clients and third-party funds. Mr. Kumar’s role at Barclays evolved from his previous role at Lehman Brothers (which was acquired by Barclays), where he led the structured investments team that designed and built derivative-based products for individual and institutional investors.
Mr. Kumar began managing derivative investment portfolios in 2001 at Volaris Advisors, a derivative advisory firm, where, as a partner and head of the investment team, he developed and managed option trading strategies. From 2002 to 2007, he was a managing partner at Sigma Advisors, an investment consulting firm he founded, which was focused on portfolio construction and asset allocation strategies for institutional clients.
Mr. Kumar began his career in the capital markets, working for J.P. Morgan’s equity derivatives business (1993-1999) where he focused on concentrated stock hedging and monetization transactions, before moving to Robertson Stephens (1999-2001) where he was head of equity derivatives marketing.
Mr. Kumar earned a B.S. in mechanical engineering from Columbia University. He began his career in the investment industry in 1993.
Brendan R. Finneran, CMT
Industry start date: 2003
Start date with fund: 2017
Brendan Finneran is a portfolio manager at Rampart Investment Management Company (since 2012) and a managing director and equity trader at Virtus Investment Advisers (since 2016), both investment management affiliates of Virtus Investment Partners.
Mr. Finneran’s responsibilities with Rampart include investment strategy, product development, and portfolio management for the firm’s high-net-worth, institutional, and mutual fund clients. His responsibilities with Virtus Investment Advisers include portfolio management and trading for the Virtus Trend suite of portfolios.
Prior to joining Rampart in 2008, Mr. Finneran was a trader and operations manager at Andover Capital Advisors, where he was responsible for operational account management (processing and settlement) for all equity, option, bond, bank debt, CDS, and swap trades. Prior to entering the financial industry, he held sales positions at Cone Jacquards and was an account manager at Robert Fleming.
Mr. Finneran received a B.A. in organizational behavior and management from Brown University. He is a member of the Market Technicians Association and holds the Chartered Market Technician® (CMT) designation. He began his career in the investment industry in 2003.
Robert F. Hofeman, Jr.
Industry start date: 2002
Start date with fund: 2017
Robert Hofeman is a portfolio manager at Rampart Investment Management Company (since 2012) and managing director and equity trader at Virtus Investment Advisers (since 2016), both investment management affiliates of Virtus Investment Partners.
Mr. Hofeman’s responsibilities with Rampart include investment strategy, product development, and portfolio management for the firm’s high-net-worth, institutional, and mutual fund clients. His responsibilities with Virtus Investment Advisers include portfolio management and trading for the Virtus Trend suite of portfolios.
Prior to joining Rampart in 2012, Mr. Hofeman was an equity trading consultant for Linedata (2010-2012), director and senior equity trader at Evergreen Investments (2007-2009), and equity trader at Ironwood Investment Management, LLC (2002-2007).
Mr. Hofeman earned a B.S. in computer science from Boston College and an M.B.A. from Emory University. He is a member of the Boston Securities Traders Association (BSTA) since 2003, serving on its board of directors from 2008 to 2015, and as its president in 2014. He began his career in the investment industry in 2002.
Industry start date: 1999
Start date with fund: 2017
Michael Davis is a portfolio manager at Rampart Investment Management Company (since 2016) and managing director at Virtus Investment Advisers (since 2014), both investment management affiliates of Virtus Investment Partners.
Mr. Davis’ responsibilities with Rampart include investment strategy, product development, and portfolio management for the firm’s high-net-worth, institutional, and mutual fund clients. His responsibilities with Virtus Investment Advisers include portfolio management for the Virtus Trend suite of portfolios, along with alternative investment strategy development and portfolio risk management.
Mr. Davis has over 15 years of experience in the financial services industry, including investment management and capital markets. Prior to joining Virtus in 2014, he was a founding partner of Varick Asset Management, an independent alternative manager focused on the development of innovative portfolio solutions and investment strategies. Before forming Varick, Mr. Davis worked in the institutional asset management division of Barclays Capital, focused on quantitative and derivative-based investment strategies. Prior to Barclays, he worked in the derivative structuring group at Lehman Brothers. Mr. Davis started his career at Merrill Lynch in the asset-backed finance business.
Mr. Davis earned a B.A. in psychology from Georgetown University, and an M.B.A. from the Johnson Graduate School of Management at Cornell University. He began his career in the financial services industry in 1999.
Positions & Distributions
|Security||% of Portfolio|
|S&P500 EMINI FUT Sep17 09/15/2017||
|XAV Health Care Sep17 09/15/2017||
|XAP Cons Staples Sep17 09/15/2017||
|XAE Energy Sep17 09/15/2017||
|XAU Utilities Sep17 09/15/2017||
|Emini S&P ReEstateSep17 09/15/2017||
|JP MORGAN USD GOVT MONEY MARKET INSTL||
Performance & Risk
|1 Month||3 Month||YTD||1 Year||3 Years||5 Years||10 Years||Since Inception|
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
Fees & Expenses
|Gross Expense Ratio||0.55|
|Number of Days Fund has Traded at a:|
|Period||Less than -2%||-1.51% to -2.00%||-1.01% to -1.50%||-0.51% to -1.00%||-0.01% to -0.50%||0.00% to 0.50%||0.51% to 1.00%||1.01% to 1.50%||1.51% to 2.00%||Greater than 2%|
|2017-Q2: 6/26/2017 through 6/30/2017||0||0||0||0||2||2||1||0||0||0|
Documents & Resources
Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. Contact us at 1-888-383-0553 or visit www.virtus.com for a copy of the Fund's prospectus. Read the prospectus carefully before you invest or send money.
The Fund is an actively managed exchange-traded fund (“ETF”) and does not seek to replicate the performance of a specified index. The Fund may have a higher portfolio turnover than funds that seek to replicate the performance of an index.
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.
Closing Price: The Closing Price is the price of the last reported trade on the fund's primary exchange. If there has been no reported trade for a particular date, the Closing Price represents the 4PM Bid/Offer Midpoint.
4PM Bid/Offer Midpoint: The midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated (usually 4:00pm Eastern Time).
Premium/Discount: The amount the Fund is trading above or below the reported NAV (based on 4PM Bid/Offer Midpoint).
The Fund is an exchange-traded fund (“ETF”). The “net asset value” (NAV) of the Fund is determined at the close of each business day, and represents the dollar value of one share of the Fund; it is calculated by taking the total assets of the Fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV of the Fund is not necessarily the same as its intraday trading value. Fund investors should not expect to buy or sell shares at NAV because shares of ETFs such as the Fund are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Thus, shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV, and include the reinvestment of all dividends and other distributions (reinvested at the Fund's NAV on distribution ex-date). Market price returns are calculated using the 4:00 pm midpoint between the bid and offer, and include the reinvestment of all dividends and other distributions (reinvested at the 4:00pm bid/offer midpoint on distribution ex-date). Market price returns do not represent the return you would receive if you traded at other times.
SEC Yield is an annualized yield that is calculated by dividing the investment income earned by the Fund less expenses over the most recent 30 day period by the current NAV at the end of the 30 day period. The Subsidized Yield reflects fee waivers and/or expense reimbursements recorded by the Fund during the period. Without waivers and/or reimbursements, yields would be reduced. The Unsubsidized Yield does not adjust for any fee waivers and/ or expense reimbursements in effect. If the Fund does not incur any fee waivers and/or expense reimbursements during the period, the Subsidized Yield and Unsubsidized Yield will be identical.
Distribution Yield is the annual yield that an investor would receive if the most recent distribution remained the same going forward. The yield represents a single distribution from the Fund and does not represent total return of the Fund. The distribution yield is calculated by annualizing the most recent distribution and dividing it by the most recent NAV.
Returns for periods of less than one year are cumulative total returns.
Not insured by FDIC/NCUSIF or any federal government agency. No bank guarantee. Not a deposit. May lose value.
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