With inflation surging and interest rates moving off generational lows, traditional stock and bond strategies will likely provide more modest and muted returns. Consider an allocation to global real estate. Real estate has traditionally provided a strong hedge against inflation and higher rates. Discerning active managers with long-term records of excess returns have the flexibility to weather diverse market conditions.
Not Just Active. Virtus Active.
| All data as of 12/30/22 | Compelling risk-adjusted returns |
A history of generating excess return |
||||
|---|---|---|---|---|---|---|
|
VGISX Percentile Rankings
Morningstar Global Real Estate Category |
||||||
| Return | Sharpe Ratio | VGISX Return (%) |
FTSE EPRA Nareit Dev. Index Return (%) |
Excess Return Over Benchmark |
S&P 500* Index Return (%) |
|
| 1 Year | 81st (145/191 funds) |
47th (67/191 funds) |
-26.87 | -25.09 | -178 bps | -18.11 |
| 3 Year | 11th (27/184 funds) |
9th (23/184 funds) |
-1.60 | -4.93 | +333 bps | 7.66 |
| 5 Year | 6th (14/173 funds) |
7th (18/173 funds) |
3.34 | -0.23 | +358 bps | 9.42 |
| 10 Year | 1st (1/109 funds) |
3rd (6/109 funds) |
5.83 | 2.99 | +284 bps | 12.56 |
| Since Inception (3/2/09) |
2nd (3/87 funds) |
1st (2/87 funds) |
12.75 | 10.22 | +253 bps | 15.36 |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please visit virtus.com for performance data current to the most recent month end. This share class has no sales charges and is not available to all investors. Other share classes have sales charges. See virtus.com for details.
The fund class gross expense ratio is 1.15%.
Average annual total return is the annual compound return for the indicated period and reflects the change in share price and the reinvestment of all dividends and capital gains.
Morningstar Rating
(as of )stars
Overall Morningstar® Rating
3 Year
5 Year
10 Year
As of 2/28/2023 the Fund was rated 4 stars out of 184 funds, 5 stars out of 174 funds and 5 stars out of 108 funds within the Global Real Estate category for the 3-, 5- and 10-year periods, respectively.
Morningstar ratings are based on risk-adjusted returns. Strong ratings are not indicative of positive fund performance.
Inflation Protection and Listed Real Assets
Diversification and Defense
Consider the defensive characteristics VGISX has historically generated over the last 10 years, ended 12/30/22:
Strong downside protection
80% / 84%
Upside/Downside Ratio vs. MSCI ACWI
Lower correlation to stocks
0.77
Correlation to the S&P 500® Index
Lower volatility, relative to global equities
0.89
Beta vs. MSCI ACWI
Stable income from long-term leases
Attractive yield potential
relative to most asset classes
Past performance is not indicative of future results. Source: Morningstar Direct.
Additional Resources
Virtus Duff & Phelps Global Real Estate Securities Fund Commentary
Global Real Estate Securities 2023 Outlook
Why REITs are Compelling Now: Historical View on NAV Discount
IMPORTANT RISK CONSIDERATIONS
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk. Real Estate: The portfolio may be negatively affected by factors specific to the real estate market, including interest rates, leverage, property, and management. Industry/Sector Concentration: A portfolio that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated portfolio. Foreign & Emerging Markets: Investing in foreign securities, especially in emerging markets, subjects the portfolio to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk. 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. Price changes may be short- or long-term. 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 portfolio and its investments, including hampering the ability of the portfolio's manager(s) to invest the portfolio's assets as intended. Prospectus: For additional information on risks, please see the fund's prospectus.
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.
© Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The FTSE EPRA Nareit Developed Index (net) is a free-float market capitalization-weighted index measuring publicly traded equity REITs and listed property companies from developed markets, which meet minimum size and liquidity requirements. The FTSE EPRA Nareit Developed ex US Index is a free-float market capitalization-weighted index measuring publicly traded equity REITs and listed property companies from developed markets excluding the United States, which meet minimum size and liquidity requirements. The S&P 500® Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The MSCI AC World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging markets. The indexes are calculated on a total return basis with dividends reinvested. The indexes are unmanaged, their returns do not reflect any fees, expenses, or sales charges, and they are not available for direct investment.
FTSE International Limited (“FTSE”) © FTSE 2020. FTSE® is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. Nareit® is a trade mark of the National Association of Real Estate Investment Trusts (“Nareit”) and EPRA® is a trade mark of the European Public Real Estate Association (“EPRA”). All intellectual property rights in the FTSE indices vest in FTSE, Nareit and EPRA. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. All indices, trademarks and copyrights are the property of their respective owners.
Beta is a quantitative measure of the volatility of a given portfolio relative to the overall market. Higher beta suggests higher volatility. Beta can also refer to relative volatility to a portfolio’s stated benchmark. Standard Deviation measures variability of returns around the average return for an investment fund. Higher standard deviation suggests greater risk. Sharpe Ratio measures the efficiency, or excess return per unit of risk, of a manager’s returns. It is calculated by taking the portfolio’s annualized return, minus the annualized risk-free rate (typically the 30-Day T-Bill return), divided by the portfolio’s annualized standard deviation. The greater the Sharpe Ratio, the better the portfolio’s risk adjusted return.
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 representative, call 800-243-4361, or visit virtus.com for a prospectus or summary prospectus. Read it carefully before investing.
Not insured by FDIC/NCUSIF or any federal government agency. No bank guarantee. Not a deposit. May lose value.