Virtus Newfleet ABS/MBS ETF
Investment Overview
The Fund seeks to generate income by investing primarily in short-duration, investment-grade securitized debt across asset-backed securities (ABS) and mortgage-backed securities (MBS), including commercial and residential MBS. A disciplined, time-tested investment process and rigorous risk management approach seeks to target ABS and MBS with competitive yield and current income across undervalued areas of securitized credit markets.
Income Insights
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Investment Partner
Newfleet Asset Management
Newfleet Asset Management leverages the knowledge and skill of a team of investment professionals with expertise in every sector of the bond market, including evolving, specialized, and out-of-favor sectors. The team employs active sector rotation and disciplined risk management to portfolio construction.
Newfleet Asset Management is a division of Virtus Fixed Income Advisers, LLC ("VFIA"), an SEC registered investment adviser.
Learn more about Newfleet Asset Management
Investment Professionals
David L. Albrycht, CFA
President and Chief Investment Officer
Industry start date: 1985
Start date as fund Portfolio Manager: 2021
Andrew Szabo, CFA
Portfolio Manager – Agency & Residential Mortgage-Backed Securities
Industry start date: 1986
Start date as fund Portfolio Manager: 2021
Nicodemus Rinaldi
Portfolio Manager – Asset-Backed Securities & Commercial Mortgage-Backed Securities
Industry start date: 1992
Start date as fund Portfolio Manager: 2021
Zachary Szyndlar, CFA
Director, Portfolio Manager, and Credit Analyst, Securitized Products
Industry start date: 2013
Start date as fund Portfolio Manager: 2021
Key Features
Complement to Traditional Fixed Income
ABS (auto loans, equipment leases, credit card receivables, student loans, etc.) and MBS (pools of mortgages, both residential and commercial, agency and non-agency) sectors provide a wider investment opportunity set and much needed diversification relative to traditional fixed income
Relative Value Focused
With an emphasis on the out-of-index, niche areas of the securitized credit markets, Newfleet's securitized credit specialists employ their hallmark relative value approach, exploiting inefficiencies by continuously evaluating the market, sectors, and securities
Lower Duration, Attractive Yield
Targeting a duration of between one- to three-years, significantly shorter than traditional core bond strategies, while focusing on investment-grade securitized credit, which has historically offered a yield advantage versus similarly rated traditional corporate bonds
Top Holdings (% Fund)
| Security | |
|---|---|
| AUTOC 2021-A C 3.790 04/15/2027 | |
| BPR 2021-KEN A 6.688 02/15/2029 | |
| MFCC 2023-1A A 8.040 09/20/2027 | |
| JPMMT 2015-5 A2 6.750 05/25/2045 | |
| BELL 2016-1A A23 4.970 05/25/2046 | |
| ALASKA AIRLINES 2020 TR 4.800 08/15/2027 | |
| HWIRE 2021-1 C 4.459 11/20/2051 | |
| BUNDT 2021-1 A2 2.989 07/30/2051 | |
| AESOP 2019-2A D 3.040 09/22/2025 | |
| ADMSO 2023-1 A2 6.967 07/15/2053 |
Performance
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.
Fees & Expenses
| Total Expense Ratio (Gross) | 0.49 |
| Total Expense Ratio (Net) | 0.39 |
Yields / Distribution Rate1
(as of 10/31/2023)| 30-day SEC Yield | 4.56 |
| 30-day SEC Yield (unsubsidized) | 4.46 |
| Distribution Rate (as of 11/27/2023) | 4.01 |
Distribution History2
| Ex-Date | Record Date | Payable Date | Dividend Income | ST Capital Gains | LT Capital Gains | Distribution Total |
|---|---|---|---|---|---|---|
| 12/20/2022 | 12/21/2022 | 12/29/2022 | 0.082970 | 0.000000 | 0.000000 | 0.082970 |
| 01/20/2023 | 01/23/2023 | 01/30/2023 | 0.030160 | 0.000000 | 0.000000 | 0.030160 |
| 02/21/2023 | 02/22/2023 | 02/27/2023 | 0.064790 | 0.000000 | 0.000000 | 0.064790 |
| 03/20/2023 | 03/21/2023 | 03/28/2023 | 0.060900 | 0.000000 | 0.000000 | 0.060900 |
| 04/20/2023 | 04/21/2023 | 04/28/2023 | 0.066860 | 0.000000 | 0.000000 | 0.066860 |
| 05/22/2023 | 05/23/2023 | 05/31/2023 | 0.071090 | 0.000000 | 0.000000 | 0.071090 |
| 06/20/2023 | 06/21/2023 | 06/28/2023 | 0.066130 | 0.000000 | 0.000000 | 0.066130 |
| 07/20/2023 | 07/21/2023 | 07/28/2023 | 0.070230 | 0.000000 | 0.000000 | 0.070230 |
| 08/21/2023 | 08/22/2023 | 08/29/2023 | 0.133300 | 0.000000 | 0.000000 | 0.133300 |
| 09/20/2023 | 09/21/2023 | 09/28/2023 | 0.075380 | 0.000000 | 0.000000 | 0.075380 |
| 10/20/2023 | 10/23/2023 | 10/30/2023 | 0.075910 | 0.000000 | 0.000000 | 0.075910 |
| 11/20/2023 | 11/21/2023 | 11/29/2023 | 0.078260 | 0.000000 | 0.000000 | 0.078260 |
Premium/Discount
| Period | Number of Days Fund has Traded at a: | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Discount | Premium | |||||||||
| 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% | |
| 2021-Q4: 10/1/2021 through 12/31/2021 | 0 | 0 | 0 | 0 | 2 | 62 | 0 | 0 | 0 | 0 |
| 2022-Q1: 1/3/2022 through 3/31/2022 | 0 | 0 | 0 | 0 | 7 | 53 | 2 | 0 | 0 | 0 |
| 2022-Q2: 4/1/2022 through 6/30/2022 | 0 | 0 | 0 | 0 | 12 | 48 | 1 | 1 | 0 | 0 |
| 2022-Q3: 7/1/2022 through 9/30/2022 | 0 | 0 | 0 | 0 | 25 | 39 | 0 | 0 | 0 | 0 |
| 2022-Q4: 10/3/2022 through 12/30/2022 | 0 | 0 | 0 | 2 | 28 | 33 | 0 | 0 | 0 | 0 |
| 2023-Q1: 1/3/2023 through 3/31/2023 | 0 | 0 | 0 | 0 | 34 | 27 | 1 | 0 | 0 | 0 |
| 2023-Q2: 4/3/2023 through 6/30/2023 | 0 | 0 | 0 | 0 | 46 | 16 | 0 | 0 | 0 | 0 |
| 2023-Q3: 7/3/2023 through 9/29/2023 | 0 | 0 | 0 | 0 | 55 | 8 | 0 | 0 | 0 | 0 |
Risk Considerations
Marketing Materials
| Virtus ETF Ticker Menu | |
| ETF Product Guide | |
| Is Now an Unprecedented Moment in the Fixed Income Market? | |
| Investment Case: Virtus Newfleet ABS/MBS ETF |
Positions
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.
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 the annual rate that an investor would receive if the most recent distribution remained the same going forward. The rate represents a single distribution from the Fund and does not represent total return of the Fund. The distribution rate is calculated by annualizing the most recent distribution and dividing it by the most recent NAV.
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
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.
ETFs distributed by VP Distributors, LLC, member FINRA and subsidiary of Virtus Investment Partners, Inc.