The Virtus Cumberland Municipal Bond ETF seeks to maximize total return of income and capital appreciation by investing in a basket of municipal bonds. By actively managing the portfolio, Cumberland is able to allocate across local, state and federal bonds, placing an emphasis on quality issues and the ability to favor shorter maturities should interest rates rise.
"We believe the current market offers great value in municipal bonds, particularly in intermediate and longer maturity bonds, especially when compared to traditional valuations versus US Treasuries," said David Kotok, Cumberland Advisors chief investment officer and portfolio manager. "The Virtus Cumberland Municipal Bond ETF will give investors the opportunity to obtain total return and diversification in the municipal bond market while capitalizing on Cumberland's 40 years of experience in bond management."
The strategy emphasizes both shorter-term and longer-term bonds, which helps the fund benefit from the steepness of the municipal yield curve and capitalize from moves in the municipal bond yield curve and municipal "centric" events.
Kotok leads the management of CUMB along with John Mousseau, CFA, Director of Fixed Income and Portfolio Manager for Cumberland Advisors.
"We are very excited to join Virtus ETF Solutions in launching the Cumberland Municipal Bond ETF and opening the next chapter in our firm's history," Kotok added. "This ETF is a great opportunity for investors to participate in Cumberland's total return municipal bond management style within the affordable structure of an exchange traded fund."
CUMB is Cumberland's first ETF launched in conjunction with Virtus ETF Solutions, a multi-manager ETF sponsor.
"We're thrilled to add CUMB to our growing ETF family, and we believe municipal bonds is an asset class that is best managed by a blue chip sector specialist like Cumberland Advisors," said William Smalley, executive managing director of Virtus ETF Solutions. "We have taken a thoughtful approach to new product origination and will continue to leverage best-of-breed investment managers as we bolster our suite of alpha-seeking ETF solutions."
To learn more about the Virtus Cumberland Municipal Bond ETF, visit: www.cumberetfs.com.
About Cumberland Advisors
Cumberland Advisors is a dedicated fee-for-service only asset manager headquartered in Sarasota, FL that joins market-leading knowledge and analysis with low-fee management. The firm manages approximately $2.7 billion of fixed income as well as equity accounts (using exchange-traded funds only). Its clients include individuals, institutions, retirement plans, and government entities.
About Virtus ETF Solutions
Virtus ETF Solutions, (VES) is a New York-based, multi-manager ETF sponsor and affiliate of Virtus Investment Partners. 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.
About Virtus Investment Partners
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. In addition to Virtus ETF Solutions, its affiliated managers include Duff & Phelps Investment Management, Kayne Anderson Rudnick Investment Management, Newfleet Asset Management and Rampart Investment Management. Additional information can be found at virtus.com.
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.
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. Municipal Market: Events negatively impacting a municipal security, or the municipal bond market in general, may cause the fund to decrease in value. State & AMT Tax: A portion of income may be subject to some state and/or local taxes and, for certain investors, a portion may be subject to the federal alternative minimum tax. Tax Liability: Noncompliant conduct by a municipal bond issuer, or adverse interpretations, could cause interest from a security to become taxable, subjecting shareholders to increased tax liability. Exchange Traded Funds: The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities.
Please consider the fund's objectives, risks, charges, and expenses before investing. Contact Virtus ETF Solutions at 1.888.383.0553 or visit www.cumberetfs.com for 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.
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SOURCE Virtus ETF Solutions