The Virtus Newfleet Dynamic Credit ETF seeks to provide a high level of current income and capital appreciation by combining two converging credit sectors, high-yield corporate bonds and floating bank loans. By actively managing the portfolio, Newfleet is able to allocate between both asset classes at any ratio within the fund. Additionally, should market conditions merit a temporary exit from credit, the fund can allocate as much as 100 percent to U.S. Treasuries.
"The Virtus Newfleet Multi-Sector Dynamic Credit ETF brings together two of Newfleet's core investment credit strategies, and maintains the ability to reallocate to Treasuries should market conditions warrant," said Newfleet President and Chief Investment Officer David L. Albrycht, CFA. "This is a unique strategy that gives investors access to these fixed income sectors and takes advantage of safe haven assets if necessary. The portfolio also has the ability to act as a hedge in a rising rate environment."
The portfolio is managed by an experienced team with deep expertise in both asset classes and is intended to provide enhanced diversification to an investor's portfolio due to the low correlation to core fixed income investments.
BLHY is Newfleet's second ETF launched in conjunction with Virtus ETF Solutions, a Virtus affiliate and multi-manager ETF sponsor. "There is a growing demand for strategies in a transparent, tax-advantaged wrapper with lower fees, and Virtus ETF Solutions has the platform to make our strategies available to investors," Albrycht said.
Albrycht leads the management of BLHY with Frank Ossino, senior managing director and portfolio manager, and Jonathan Stanley, CFA, managing director and portfolio manager.
To learn more about the Virtus Newfleet Dynamic Credit ETF, visit: www.newfleet.com.
About Newfleet Asset Management Newfleet Asset Management, an affiliated manager of Virtus Investment Partners, provides comprehensive fixed income portfolio management, including multi-sector, enhanced core, and core strategies, in addition to dedicated sector strategies such as emerging markets debt, bank loans and high yield. Newfleet 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.
About Virtus ETF Solutions Virtus ETF Solutions, (VES) is a New York-based, multimanager ETF sponsor and affiliate of Virtus Investment Partners (NASDAQ: VRTS). With actively managed and index-based investment capabilities across multiple asset classes, VES seeks to deliver a family of complementary exchange-traded-funds subadvised by select investment managers.
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.
Fund Risks: The Virtus Newfleet Dynamic Credit ETF is subject to the risks of exchange traded funds and fixed income investing, including credit and interest rate risk, high yield/high fixed income securities, foreign and emerging markets, bank loans, asset- and mortgage-backed securities, and tax liability.
Please consider the fund's objectives, risks, charges, and expenses before investing. Contact Virtus ETF Solutions at 1.888.383.0553 or visit www.newfleet.comfor a prospectus, which contains this and other information about the Fund.
Distributed by ETF Distributors LLC, member FINRA and subsidiary of Virtus investment Partners, Inc.