Virtus Newfleet Dynamic Credit ETF
Product Overview
The Fund has the potential to generate competitive total return from both income and capital appreciation, as well as to provide a hedge against rising interest rates. The Fund offers investors the opportunity to outsource the complexity of allocating between two rapidly converging non-investment-grade credit sectorshigh yield corporate bonds and floating rate bank loansto a single manager with deep expertise in both asset classes and longstanding experience managing multi-sector portfolios. The expanded opportunity set created by combining these asset classes may provide enhanced diversification benefits due to low correlation to core fixed income. The Fund also has the ability to invest up to 100% of its assets in U.S. Treasuries when the managers determine that market conditions warrant a move away from credit sectors.
Investment Partners
Newfleet Asset Management, LLC
Newfleet Asset Management, LLC is a dynamic provider of fixed income investments. Our talented and experienced team is committed to delivering a comprehensive array of portfolios, and together, we work with our clients and partners to build portfolios that meet investor needs in an ever-changing market.
Visit the Newfleet Asset Management, LLC websitePortfolio Managers
David L. Albrycht, CFA
President and Chief Investment Officer
Industry start date: 1985
Start date with fund: 2016
Francesco Ossino
Senior Managing Director and Senior Portfolio Manager
Industry start date: 1996
Start date with fund: 2016
Jonathan Stanley, CFA
Managing Director and Portfolio Manager
Industry start date: 1997
Start date with fund: 2016
Positions
| Security | % of Portfolio |
|---|---|
| JP MORGAN USD GOVT MONEY MARKET INSTL | |
| MORGAN STANLEY 2.712 10/24/2023 | |
| UNIVISION COMMUNICATIONS 4.068 03/15/2024 | |
| LEVEL 3 FINANCING INC 3.567 02/22/2024 | |
| UPC FINANCING PARTNERSHIP 4.221 04/15/2025 | |
| NUMERICABLE-SFR SA 4.061 06/22/2025 | |
| UFC HOLDINGS LLC 4.567 08/18/2023 | |
| INFOR US INC 4.049 02/01/2022 | |
| INEOS US FINANCE LLC 4.061 03/31/2024 | |
| CHANGE HEALTHCARE HOLDINGS 4.068 03/01/2024 |
Distribution History2
| Ex-Date | Record Date | Payable Date | Dividend Income | ST Capital Gains | LT Capital Gains | Distribution Total |
|---|---|---|---|---|---|---|
| 01/20/2017 | 01/24/2017 | 01/30/2017 | 0.006120 | 0.000000 | 0.000000 | 0.006120 |
| 02/22/2017 | 02/24/2017 | 02/28/2017 | 0.032330 | 0.000000 | 0.000000 | 0.032330 |
| 03/20/2017 | 03/22/2017 | 03/28/2017 | 0.040040 | 0.000000 | 0.000000 | 0.040040 |
| 04/20/2017 | 04/24/2017 | 05/01/2017 | 0.072140 | 0.000000 | 0.000000 | 0.072140 |
| 05/22/2017 | 05/24/2017 | 05/30/2017 | 0.080230 | 0.000000 | 0.000000 | 0.080230 |
| 06/20/2017 | 06/22/2017 | 06/29/2017 | 0.084130 | 0.000000 | 0.000000 | 0.084130 |
| 07/20/2017 | 07/24/2017 | 07/31/2017 | 0.093290 | 0.000000 | 0.000000 | 0.093290 |
| 08/21/2017 | 08/23/2017 | 08/30/2017 | 0.100620 | 0.000000 | 0.000000 | 0.100620 |
| 09/20/2017 | 09/21/2017 | 09/29/2017 | 0.095480 | 0.000000 | 0.000000 | 0.095480 |
Performance
| 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
| Management Fee | 0.55 |
| Other Expenses | 0.66 |
| Gross Expense Ratio | 1.21 |
| Net Expense Ratio | 0.68 |
Yields
| Distribution Yield (as of 09/22/2017) | 4.56 |
| SEC Yields (as of 08/31/2017) | |
| SEC Yield Subsidized: | 4.47 |
| SEC Yield Unsubsidized: | 4.45 |
Premium/Discount
| 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% |
| 2016-Q4: 12/5/2016 through 12/30/2016 | 0 | 0 | 0 | 0 | 13 | 6 | 0 | 0 | 0 | 0 |
| 2017-Q1: 1/3/2017 through 3/31/2017 | 0 | 0 | 0 | 0 | 54 | 8 | 0 | 0 | 0 | 0 |
| 2017-Q2: 4/3/2017 through 6/30/2017 | 0 | 0 | 0 | 1 | 61 | 1 | 0 | 0 | 0 | 0 |
Risk Considerations
Marketing Materials
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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