Virtus Newfleet Dynamic Credit ETF

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Exchange Traded Fund Fixed Income

Virtus Newfleet Dynamic Credit ETF

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Ticker

BLHY

CUSIP

92790A207

Fact Sheet

NAV

^$21.3152

(as of 03/26/2020)

Closing Price

^$21.18

(as of 03/26/2020)

Inception

12/05/2016

Premium/Discount

^$-0.13 (as of 03/26/2020)

4PM Bid/Offer Midpoint

^$21.19 (as of 03/26/2020)

Shares Outstanding

354,000 (as of 03/26/2020)

Daily Trading Volume

2,000.00 (as of 03/26/2020)

20 Day Average Trading Volume

1,370.00 (as of 03/26/2020)

Net Assets

^$7,545,564 (as of 03/26/2020)

Portfolio Overview
Management Team
Positions & Distributions
Performance & Risk
Documents & Resources

Portfolio Overview

Investment Overview

The Fund seeks high current income and capital appreciation, and may provide a rising interest rate hedge. It offers a way to outsource the complexity of allocating between two rapidly converging non-investment-grade credit sectors: high yield corporate bonds and floating rate bank loans.

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 L. Albrycht, CFA

President and Chief Investment Officer

Industry start date: 1985
Start date as fund Portfolio Manager: 2016

David Albrycht is president and chief investment officer of Newfleet Asset Management, an investment management affiliate of Virtus Investment Partners. Prior to joining Newfleet in 2011, Mr. Albrycht was executive managing director and senior portfolio manager with Goodwin Capital Advisers, a former Virtus investment management subsidiary. He joined the Goodwin multi-sector fixed income team in 1985 as a credit analyst and has managed fixed income portfolios since 1991.

Mr. Albrycht is portfolio manager of the Virtus Newfleet Multi-Sector Short Term Bond Fund since 1993 and Virtus Newfleet Multi-Sector Intermediate Bond Fund since 1994. He is co-manager of the Virtus Newfleet Senior Floating Rate Fund since 2008, Virtus Tactical Allocation Fund and Virtus Newfleet High Yield Fund since 2011; Virtus Newfleet Core Plus Bond Fund, and Virtus Newfleet Low Duration Core Plus Bond since 2012. In addition, he co-manages two variable investment options and two closed-end funds, Virtus Total Return Fund Inc. (NYSE: ZTR), and Virtus Global Multi-Sector Income Fund (NYSE: VGI). He also is a manager of three exchange-traded funds, AdvisorShares Newfleet Multi-Sector Income ETF (NYSE: MINC), Virtus Newfleet Multi-Sector Bond ETF (NFLT), and Virtus Newfleet Dynamic Credit ETF (BLHY), and two offshore funds, the Virtus GF Multi-Sector Short Duration Bond Fund and Virtus GF Multi-Sector Income Fund. He is also responsible for the structuring and management of Newfleet’s CLO platform

In Barron’s “Best Fund Families of 2016” annual rankings published in 2017, Virtus Investment Partners was ranked the #2 Taxable Bond Fund Family, and held the #1 position in 2012 and 2010, due in large part to the expert management of the firm’s multi-sector fixed income funds by Mr. Albrycht and the Newfleet team.¹ The Virtus Newfleet Multi-Sector Short Term Bond Fund, managed by Mr. Albrycht, received the 2018 Lipper Fund Award for best Short-Intermediate Investment-Grade Debt Fund over ten years.² Recognized in the industry as a leading multi-sector fixed income strategist, Mr. Albrycht has appeared on CNBC and Bloomberg Television, and been quoted or featured in Barron’s, The Wall Street Journal, Business Week, Dow Jones, and InvestmentNews.

While at Goodwin Capital, Mr. Albrycht also served as director of credit research. In addition, he managed the Phoenix MISTIC CDO, a $1 billion multi-sector collateralized debt obligation, where he was responsible for credit analysis and deal structure.

Mr. Albrycht earned a B.A., cum laude, from Central Connecticut State University and an M.B.A., with honors, from the University of Connecticut. He is a Chartered Financial Analyst^® (CFA^®) charterholder. He began his career in the investment industry in 1985.

¹Barron's Best Mutual Fund Families Annual Rankings: Within the taxable bond category for 2016 (published February 11, 2017), 2012 (published February 11, 2013), and 2010 (published February 7, 2011), Virtus Investment Partners ranked 2 out of 61, 1 out of 62, and 1 out of 57 qualifying fund families for the 1-year period ended 12/31/16, 12/31/12, and 12/31/10, respectively. Barron’s annual fund family rankings are based on asset-weighted returns (excluding 12b-1 fees and sales charges) in five fund categories: U.S. equity, world equity, mixed asset, taxable bond, and tax-exempt bond, as calculated by Lipper. Each fund’s performance is measured against all other funds in its Lipper category, resulting in a percentile ranking which is weighted by asset size relative to the fund family’s other assets in its general classification.

²Lipper Fund Awards: The Lipper Fund Awards from Refinitiv, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The awards are based on the Lipper Leader for Consistent Return rating, a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Lipper Fund Award. Virtus Newfleet Multi-Sector Short Term Bond Fund (I: PIMSX) had the highest Effective Return value in its Lipper classification, Short-Intermediate Investment-Grade Debt Funds, out of 32 funds, based on total return for the 10-year period as of 11/30/18. Rankings do not include the effect of a fund’s sales load, if applicable. Ranking is for Class I shares only, other classes may have different performance characteristics.

Lipper, Inc. is a nationally recognized organization that ranks the performance of mutual funds.

Past performance is no guarantee of future results. Strong ratings may not be indicative of positive fund performance. Performance for some funds may be negative.

Virtus Newfleet ETFs: Please consider the Fund’s objectives, risks, charges, and expenses before investing. Contact us at 1-800-243-4361 or visit Newfleet.com for a prospectus, which contains this and other information about the Fund. Read the prospectus carefully before investing.

Virtus Newfleet ETFs distributed by ETF Distributors LLC, an affiliate of Virtus ETF Advisers LLC.

Francesco Ossino

Senior Managing Director, Senior Portfolio Manager, and Bank Loan Sector Head

Industry start date: 1996
Start date as fund Portfolio Manager: 2016

William Eastwood, CFA

Senior Managing Director, Portfolio Manager, and Head of Trading

Industry start date: 1996
Start date as fund Portfolio Manager: 2019

Eric Hess, CFA

Managing Director, Portfolio Manager, and High Yield Sector Head

Industry start date: 2006
Start date as fund Portfolio Manager: 2019

Key Features

Diversification

Combines two compelling non-investment-grade bond segments with historically low correlations to core fixed income into one portfolio

Active Sector Weightings

Top-down analysis determines sector allocations and industry positioning, with the ability to invest up to 100% in U.S. Treasuries when market conditions warrant

Extensive Fundamental Research

Security selection driven by bottom-up analysis of individual bond quality, credit risk, valuation, company management, structure, and technical elements

Positions & Distributions

Top Issuers (% Fund)

(as of 03/27/2020)

Security
ELLIE MAE INC 5.695 04/17/2026	2.41 2.41
CALPINE CORP 4.195 04/01/2026	2.01 2.01
KRONOS INC/MA 4.763 11/01/2023	1.97 1.97
GREATBATCH LTD 3.505 10/27/2022	1.94 1.94
SITEONE LANDSCAPE SUPPLY HO 4.353 10/29/2024	1.86 1.86
GOLDEN NUGGET 3.879 10/04/2023	1.74 1.74
AZEK CO LLC 5.695 05/05/2024	1.61 1.61
BERLIN PACKAGING LLC 5.746 11/07/2025	1.59 1.59
APPLIED SYSTEMS INC 5.195 09/19/2024	1.39 1.39
GARDNER DENVER INC 3.353 02/28/2027	1.28 1.28

Does not include cash/cash equivalents.

Distribution History²

Ex-Date	Record Date	Payable Date	Dividend Income	Distribution Total
04/22/2019	04/23/2019	04/30/2019	0.114920	0.114920
05/20/2019	05/21/2019	05/29/2019	0.214540	0.214540
06/20/2019	06/21/2019	06/28/2019	0.085710	0.085710
07/22/2019	07/23/2019	07/30/2019	0.085390	0.085390
08/20/2019	08/21/2019	08/28/2019	0.086860	0.086860
09/20/2019	09/23/2019	09/30/2019	0.087280	0.087280
10/21/2019	10/22/2019	10/29/2019	0.080740	0.080740
11/20/2019	11/21/2019	11/29/2019	0.086610	0.086610
12/20/2019	12/23/2019	12/30/2019	0.163350	0.163350
01/21/2020	01/22/2020	01/29/2020	0.017620	0.017620
02/20/2020	02/21/2020	02/28/2020	0.092040	0.092040
03/20/2020	03/23/2020	03/30/2020	0.076110	0.076110

Performance & Risk

Performance

Quarterly As of

Monthly As of

	1 Month	3 Month	YTD	1 Year	3 Years	5 Years	10 Years	Since Inception

Fees & Expenses

Total Expense Ratio (Gross)	1.04
Total Expense Ratio (Net)	0.69

The Total Expense Ratio represents the Fund's Total Annual Fund Operating Expenses, which includes the management fee and other expenses where applicable, except for certain payments that are paid directly by the Fund, as described in the Prospectus. The Fund's investment adviser has entered into an expense limitation agreement to limit the Fund's total operating expenses (excluding certain expenses as described in the prospectus) so that such expenses do not exceed 0.68% of the Funds average daily net assets through November 29, 2020.

Sales Charge and Expenses

50% S&P LSTA Leveraged Loan / 50% Bloomberg Barclays HY 2% Issuer Cap: The composite index consists of 50% S&P/LSTA Leveraged Loan Index (an index that tracks the current outstanding balance and spread over LIBOR for fully funded term loans representing a broad cross section of leveraged loans syndicated in the United States, including dollar-denominated loans to overseas issuers, calculated on a total return basis) and 50% Bloomberg Barclays U.S. High-Yield 2% Issuer Capped Bond Index (a market capitalization-weighted index that measures fixed rate non-investment grade debt securities of U.S. and non-U.S. corporations, with no single issuer accounting for more than 2% of market cap, calculated on a total return basis). The composite index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

Yields/Distribution Rate

(as of 02/28/2020)

30-day SEC Yield	4.27
30-day SEC Yield (unsubsidized)	2.14
Distribution Rate (as of 03/26/2020)	4.28

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%
2018-Q1: 1/2/2018 through 3/29/2018	0	0	0	17	41	3	0	0	0	0
2018-Q2: 4/2/2018 through 6/29/2018	0	0	6	20	30	8	0	0	0	0
2018-Q3: 7/2/2018 through 9/28/2018	0	0	0	6	57	0	0	0	0	0
2018-Q4: 10/1/2018 through 12/31/2018	0	4	6	28	23	2	0	0	0	0
2019-Q1: 1/2/2019 through 3/29/2019	1	0	1	32	24	3	0	0	0	0
2019-Q2: 4/1/2019 through 6/28/2019	0	0	1	27	35	0	0	0	0	0
2019-Q3: 7/1/2019 through 9/30/2019	0	0	0	25	38	1	0	0	0	0
2019-Q4: 10/1/2019 through 12/31/2019	0	0	0	6	58	0	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 of owning the ETF may exceed the cost of investing directly in the underlying securities.

Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.

High Yield-High Risk Fixed Income Securities: There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities.

Bank Loans: Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary market. Loans can carry significant credit and call risk, can be difficult to value, and have longer settlement times than other investments, which can make loans relatively illiquid at times.

Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk.

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.

Market Volatility: Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the fund and its investments, including hampering the ability of the fund's portfolio manager(s) to invest the fund's assets as intended.

Prospectus: For additional information on risks, please see the fund's prospectus.

Documents & Resources

Marketing Materials

Newfleet Dynamic Credit ETF Fact Sheet (BLHY)	Email Download
Newfleet Monthly Sector Review	Email Download
Precision Exposure Across Non-Traditional Sources of Income	Email Download
Newfleet Fixed Income Fund Capabilities	Email Download
Virtus ETF Ticker Menu	Email Download
Wealth Management - "Bank Loans-More than a Rate Hedge" by Frank Ossino, Newfleet	Email Download
Activate Your Fixed Income	Email Download
Wealth Management - "Bank Loans-More than a Rate Hedge" by Frank Ossino, Newfleet	Email Download
The Wall Street Transcript – Providing Stable Risk-Adjusted Income Through a Leveraged Finance ETF	Email Download

Holdings

Positions BLHY

Email Download

Financial Materials

Virtus Newfleet Dynamic Credit ETF (BLHY) Prospectus - November 2019	Email Download
Virtus Newfleet Dynamic Credit ETF (BLHY) SAI - November 2019	Email Download
Virtus ETF Trust II Annual Report \| 2019	Email Download
Virtus Newfleet Dynamic Credit ETF (BLHY) Semi-annual Report	Email Download

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.

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.

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.

Investment Education

Virtus Viewpoints

Market Insights

Virtus Voices

Virtus Newfleet Dynamic Credit ETF

Portfolio Overview

Investment Overview

Management Team

Investment Partner

Newfleet Asset Management, LLC

Investment Professionals

David L. Albrycht, CFA

Francesco Ossino

William Eastwood, CFA

Eric Hess, CFA

Key Features

Diversification

Active Sector Weightings

Extensive Fundamental Research

Positions & Distributions

Top Issuers (% Fund)

Distribution History2

Performance & Risk

Performance

Fees & Expenses

Sales Charge and Expenses

Yields/Distribution Rate

Premium/Discount

Risk Considerations

Documents & Resources

Marketing Materials

Holdings

Financial Materials

Distribution History²