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Exchange Traded Fund Fixed Income Investment Grade

Virtus Newfleet ABS/MBS ETF

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Ticker
VABS
CUSIP
92790A603
Inception
02/09/2021
Closing Price
$
(as of 10/19/2021)
30-Day Median Bid/Ask Spread
0.04% (as of 10/19/2021)
Premium/Discount
$0.01 (as of 10/19/2021)
4PM Bid/Offer Midpoint
$24.93 (as of 10/19/2021)
Shares Outstanding
650,004 (as of 10/19/2021)
Daily Trading Volume
0.00 (as of 10/19/2021)
20 Day Average Trading Volume
350.00 (as of 10/19/2021)
Net Assets
$16,192,232 (as of 10/19/2021)

Portfolio Overview

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.

Management Team

Investment Partner

Newfleet Asset Management, LLC

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.


Learn more about Newfleet Asset Management, LLC

Investment Professionals

David Albrycht, CFA

David L. Albrycht, CFA

President and Chief Investment Officer

Industry start date: 1985
Start date as fund Portfolio Manager: 2021

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Andrew Szabo

Andrew Szabo, CFA

Portfolio Manager – Agency & Residential Mortgage-Backed Securities

Industry start date: 1986
Start date as fund Portfolio Manager: 2021

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Nicodemus Rinaldi

Nicodemus Rinaldi

Portfolio Manager – Asset-Backed Securities & Commercial Mortgage-Backed Securities

Industry start date: 1992
Start date as fund Portfolio Manager: 2021

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Photo Szyndlar Zachary 150x150

Zachary Szyndlar, CFA

Portfolio Manager and Credit Analyst, Securitized Products

Industry start date: 2013
Start date as fund Portfolio Manager: 2021

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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

Portfolio

Top Holdings (% Fund)

(as of 10/20/2021)
Security
LFT 2019-1A A 3.000 12/20/2027
0.00
 0.00
GSMS 2012-ALOH A 3.551 04/10/2034
0.00
 0.00
SRFC 2017-1A A 2.910 03/20/2034
0.00
 0.00
NRZT 2017-2A A3 4.000 03/25/2057
0.00
 0.00
BBCMS 2018-TALL A 0.813 03/15/2037
0.00
 0.00
TPMT 2018-4 A1 3.000 06/25/2058
0.00
 0.00
SIDC 2019-1A A2 4.237 02/25/2044
0.00
 0.00
ODART 2018-1A C 3.850 10/14/2025
0.00
 0.00
MST 2019-1A A1A 3.750 04/25/2058
0.00
 0.00
TPMT 2016-3 A1 2.250 04/25/2056
0.00
 0.00

Performance

Performance

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.

Fees & Expenses

Total Expense Ratio (Gross) 0.49
Total Expense Ratio (Net) 0.39
The management fee is structured as a 'unified fee', out of which the Fund's adviser pays all of the ordinary operating expenses of the Fund, except for the following expenses, each of which is paid by the Fund: the Fund's management fee; payments under any 12b-1 plan; and other fees as described in the prospectus. The Adviser has agreed to waive a portion of the management fee equal to 0.10% through at least January 8, 2022, which will have the effect of reducing the Fund's total expenses to 0.39%, excluding certain expenses as discussed above.

Yields/Distribution Rate

(as of 09/30/2021)
30-day SEC Yield 1.56
30-day SEC Yield (unsubsidized) 1.46
Distribution Rate (as of 10/19/2021) 1.40

Distribution History2

Ex-Date Record Date Payable Date Dividend Income ST Capital Gains LT Capital Gains Distribution Total
03/22/2021 03/23/2021 03/30/2021 0.044490 0.000000 0.000000 0.044490
04/20/2021 04/21/2021 04/28/2021 0.038380 0.000000 0.000000 0.038380
05/20/2021 05/21/2021 05/28/2021 0.041620 0.000000 0.000000 0.041620
06/21/2021 06/22/2021 06/29/2021 0.042200 0.000000 0.000000 0.042200
07/20/2021 07/21/2021 07/28/2021 0.017690 0.000000 0.000000 0.017690
08/20/2021 08/23/2021 08/30/2021 0.032140 0.000000 0.000000 0.032140
09/20/2021 09/21/2021 09/28/2021 0.029130 0.000000 0.000000 0.029130


Number of Days Fund has Traded at a:
Discount Premium
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%
2021-Q1: 2/9/2021 through 3/31/2021 0 0 0 0 7 29 0 0 0 0
2021-Q2: 4/1/2021 through 6/30/2021 0 0 0 0 27 36 0 0 0 0
2021-Q3: 7/1/2021 through 9/30/2021 0 0 0 0 1 63 0 0 0 0

Risk Considerations

Exchange-Traded Funds (ETF): The value of an ETF may be more volatile than the underlying portfolio of securities it is designed to track. The costs to the fund of owning shares of an ETF may exceed the cost of investing directly in the underlying securities.
ABS/MBS: Changes in interest rates can cause both extension and prepayment risks for asset- and mortgage-backed securities. These securities are also subject to risks associated with the non-repayment of underlying collateral, including losses to the portfolio.
Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.
Variable Distribution Risk: Periodic distributions by investments of variable or floating interest rates vary with fluctuations in market interest rates.
Derivatives: Investments in derivatives such as futures, options, forwards, and swaps may increase volatility or cause a loss greater than the principal investment.
Sector Focused Investing: Events negatively affecting a particular market sector in which the portfolio focuses its investments may cause the value of the portfolio to decrease.
Market Volatility: The value of securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short or long term.
Market Price/NAV: At the time of purchase and/or sale, an investor's shares may have a market price that is above or below the fund's NAV, which may increase the investor's risk of loss.
Prospectus: For additional information on risks, please see the fund's prospectus.

Documents & Resources

Marketing Materials

Virtus Newfleet ABS/MBS ETF Fact Sheet
Virtus Newfleet ABS/MBS ETF Commentary
Newfleet Monthly Sector Review
Newfleet Capabilities Brochure
Virtus ETF Ticker Menu
Precision Exposure Across Non-Traditional Sources of Income
Securitized Credit – Short on Duration, Long on Relative Value
Investment Case: Virtus Newfleet ABS/MBS ETF
Newfleet Market Review & Outlook
Newfleet Market Review & Outlook
Newfleet 2021 Fixed Income Market Outlook

Positions

Positions VABS

Financial Materials

Virtus Newfleet ABS/MBS ETF - VABS - Prospectus
Virtus Newfleet ABS/MBS ETF - VABS - SAI
Virtus ETF Trust II Annual Report | 2021

News Releases/Communications

Press Release: Newfleet and Virtus ETFs Introduce Actively Managed Securitized Debt ETF

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.virtusetfs.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.

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.