Virtus Newfleet Short Duration Core Plus Bond ETF

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Exchange Traded Fund Fixed Income Multi-Sector

Virtus Newfleet Short Duration Core Plus Bond ETF

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Fact Sheet

Ticker

SDCP

CUSIP

92790A884

Inception

11/15/2023

NAV

^$25.5631

(as of 12/07/2023)

Closing Price

^$25.56

(as of 12/07/2023)

30-Day Median Bid/Ask Spread

0.75% (as of 12/07/2023)

Premium/Discount

^$0.00 (as of 12/07/2023)

4PM Bid/Offer Midpoint

^$25.56 (as of 12/07/2023)

Shares Outstanding

400,004 (as of 12/07/2023)

Daily Trading Volume

0.00 (as of 12/07/2023)

20 Day Average Trading Volume

140.00 (as of 12/07/2023)

Net Assets

^$10,225,356 (as of 12/07/2023)

Portfolio Overview
Featured Resource
Management Team
Portfolio
Performance
Documents & Resources

Portfolio Overview

Investment Overview

The Fund seeks current income consistent with preservation of capital, while limiting fluctuations in net asset value due to changes in interest rates by investing primarily in investment grade, short-duration debt securities from multiple bond sectors. A disciplined, time-tested investment process and rigorous risk management approach aim to capitalize on opportunities across undervalued areas of the fixed income markets.

Featured Resource

Income Insights

Get market insight on non-traditional income producing asset classes in an interactive way.

Interact and Learn

Management Team

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: 2023

David Albrycht is president and chief investment officer of Newfleet Asset Management, an affiliated manager of Virtus Investment Partners. Mr. Albrycht is the senior portfolio manager of several multi-sector fixed income strategies, some dating back to the early 1990s.

In his role as CIO, Mr. Albrycht drives top-down strategy for Newfleet’s investment platform, which includes multi-sector and dedicated sector strategies for high yield and bank loans. In addition to managing mutual funds and variable investment options in these strategies, Mr. Albrycht is co-manager of two closed-end funds, Virtus Total Return Fund Inc. (NYSE: ZTR) and Virtus Global Multi-Sector Income Fund (NYSE: VGI). He also is co-manager of four exchange traded funds, Virtus Newfleet Multi-Sector Bond ETF (NYSE: NFLT), Virtus Newfleet Short Duration Core Plus Bond ETF (NYSE: SDCP), Virtus Newfleet Short Duration High Yield Bond ETF (NYSE: VSHY), and Virtus Newfleet ABS/MBS ETF (NYSE: VABS), and two offshore funds, the Virtus GF Multi-Sector Short Duration Bond Fund and the Virtus GF Multi-Sector Income Fund. Additionally, Mr. Albrycht is responsible for the structuring and management of Newfleet’s CLO platform.

Prior to joining Newfleet in 2011, Mr. Albrycht was executive managing director and senior portfolio manager with Goodwin Capital Advisers, a former investment management subsidiary of Newfleet’s parent, Virtus Investment Partners. Prior to that role, Mr. Albrycht was director of credit research at Goodwin’s predecessor, Phoenix Investment Counsel (PIC). In addition, he managed the Phoenix MISTIC CDO, a $1 billion multi-sector collateralized debt obligation, for which he was responsible for credit analysis and deal structure. He joined the PIC multi-sector fixed income team in 1985 as a credit analyst and has managed fixed income portfolios since 1991.

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 CFA® (Chartered Financial Analyst®) charterholder. He began his career in the investment industry in 1985.

Newfleet Asset Management is a division of Virtus Fixed Income Advisers, LLC (“VFIA”), an SEC registered investment adviser.

Please consider a Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other information about any Virtus Fund, contact your financial professional, call 800-243-4361, or visit virtus.com for a prospectus or summary prospectus. Read it carefully before investing.

Mutual Funds, Virtus Newfleet ETFs, and Virtus Global Funds distributed by VP Distributors, LLC, member FINRA and subsidiary of Virtus Investment Partners, Inc.

Lisa M. Baribault

Director and Portfolio Manager

Industry start date: 2003
Start date as fund Portfolio Manager: 2023

Benjamin Caron, CFA

Senior Managing Director and Portfolio Manager

Industry start date: 1997
Start date as fund Portfolio Manager: 2023

Key Features

Multi-Sector Short-Term Bond Exposure

Highly diversified, multi-sector bond allocation, with an emphasis on investment grade, domestic sectors

Relative Value Focus

Utilizes Newfleet's hallmark relative value approach across sectors and industries, evaluating fundamentals, yields, spreads, and supply/demand dynamics

Shorter Duration, Attractive Yield Potential

Targets a duration of 1 - 3 years with flexibility to invest in below investment grade securities and developed markets debt in an effort to identify attractive yield opportunities

Portfolio

Top Holdings (% Fund)

(as of 12/08/2023)

Security
US TREASURY N/B 5.000 10/31/2025	3.00 3.00
US TREASURY N/B 2.500 04/30/2024	3.00 3.00
HOMES 2023-NQM2 A1 6.456 02/25/2068	2.98 2.98
STAR 2021-1 A1 1.219 05/25/2065	2.98 2.98
GSAR 2023-2A A3 6.380 02/15/2029	2.98 2.98
AH4R 2015-SFR1 A 3.467 04/17/2052	2.97 2.97
COLT 2023-3 A1 7.180 09/25/2068	2.93 2.93
FCRT 2023-1 A3 5.390 12/15/2027	2.91 2.91
MST 2019-1A A1A 3.750 04/25/2058	2.86 2.86
OPTN 2021-C A 2.180 10/08/2031	2.02 2.02

Performance

Quarterly As of

Monthly As of

ICE BofA 1-5 Year Corporate & Government Bond Index: The ICE BofA 1-5 Year US Corporate & Government Bond Index tracks the performance of US dollar denominated investment grade debt publicly issued in the U.S. domestic market, including U.S. Treasury, U.S. agency, foreign government, supranational and corporate securities, with a remaining term to final maturity less than 5 years, calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

The Index shown represents the Fund's performance index, which may differ from the Fund's regulatory index included in the Fund's Prospectus.

Fees & Expenses

Total Expense Ratio (Gross)	0.40
Total Expense Ratio (Net)	0.35

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 Adviser has agreed to waive a portion of the management fee equal to 0.10% through at least November 30, 2025, which will have the effect of reducing the Fund's total expenses to 0.39%, excluding certain expenses as discussed above.

Premium/Discount

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 portfolio of owning shares of an ETF may exceed the cost of investing directly in the underlying securities.

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.

Foreign Investing: Investing in foreign securities subjects the portfolio to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.

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.

High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities.

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: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war or military conflict, terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio's manager(s) to invest its assets as intended.

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

Documents & Resources

Marketing Materials

Virtus Newfleet Short Duration Core Plus Bond ETF Fact Sheet	Email Download
ETF Product Guide	Email Download
Virtus ETF Ticker Menu	Email Download
Spotlight on Global Credit	Email Download
Is Now an Unprecedented Moment in the Fixed Income Market?	Email Download
Newfleet Fixed Income Fund Capabilities	Email Download
The Case for Multi-Sector Fixed Income Investing Remains Strong in the Current Environment	Email Download
Newfleet 2024 Fixed Income Market Outlook	Email Download
Newfleet Market Review & Outlook - Multi Sector	Email Download

Positions

Positions SDCP

Email Download

Financial Materials

Virtus Newfleet Short Duration Core Plus Bond ETF (SDCP) Prospectus	Email Download
Virtus Newfleet Short Duration Core Plus Bond ETF (SDCP) SAI	Email Download

News Releases/Communications

11.16.23 - Newfleet Launches SDCP

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.

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.