Virtus ETF Trust II (ASMF)

ETF Virtus ETF Trust II Overview

Profile:

• Launched in 2021, ETF Virtus ETF Trust II (VETS) is an actively managed ETF with a focus on the mid-cap value segment of the US stock market.
• The Trust actively invests in equity securities of U.S. issuers, concentrating its investment in issuers with mid-capitalization market levels.
• VETS aims to achieve its investment objective by using its quantitative multi-factor model to identify undervalued securities with the potential for capital appreciation.

Objective:

• VETS' primary objective is to achieve long-term capital growth.

Issuer:

• Virtus Investment Partners (Virtus) issues Virtus ETF Trust II.
• Reputation and Reliability: Virtus is a well-established investment management firm with over 20 years of experience and a strong track record. As of June 30, 2023, Virtus manages over $159 billion in assets.
• Management: The portfolio management team at Virtus has extensive experience in quantitative investing and managing mid-cap value portfolios.

Market Share:

• VETS has a small market share in the mid-cap value ETF space, with approximately $256 million in assets under management as of October 27, 2023.

Total Net Assets:

• As of October 27, 2023, VETS has total net assets of approximately $256 million.

Moat:

• VETS' primary competitive advantage lies in its unique quantitative model that identifies undervalued mid-cap stocks with high growth potential. This approach allows the fund to potentially outperform the broader market and its benchmark index.
• Additionally, Virtus' experience and expertise in quantitative investing provide them with an edge in selecting and managing the portfolio.

Financial Performance:

• VETS has experienced positive returns since its inception in 2021. The ETF has a YTD return of 7.48% as of October 27, 2023.
• Compared to its benchmark, the Russell Midcap Value Index, VETS has outperformed with a higher total return.

Growth Trajectory:

• Given the strong performance and increasing interest in quantitative investing strategies, VETS has the potential for further growth in the future.

Liquidity:

• VETS has a moderate average daily trading volume of approximately 15,000 shares.
• The bid-ask spread is relatively tight, indicating the ETF is fairly liquid.

Market Dynamics:

• The future performance of VETS will be influenced by factors such as the overall market conditions, economic indicators, and the performance of mid-cap value stocks.

Competitors:

• Key competitors in the mid-cap value ETF space include iShares S&P MidCap 400 Value Index (IJJ), Vanguard Mid-Cap Value ETF (VOE), and SPDR S&P MidCap 400 Value ETF (MDYV).

Expense Ratio:

• VETS has an expense ratio of 0.57%.

Investment Approach and Strategy:

• VETS is an actively managed ETF that utilizes a quantitative model to select its holdings.
• The ETF primarily invests in mid-cap value stocks that are believed to be undervalued and have the potential for growth.

Key Points:

• VETS is an actively managed mid-cap value ETF with a strong track record.
• The ETF benefits from a unique quantitative model and Virtus' experience in managing similar portfolios.
• VETS offers the potential for long-term capital growth.

Risks:

• VETS is subject to various risks, including market risk, volatility, and sector-specific risks associated with mid-cap value stocks.

Who Should Consider Investing:

• VETS is suitable for investors seeking long-term capital growth and who are comfortable with the inherent risks associated with investing in mid-cap value stocks.

Fundamental Rating Based on AI:

• Based on an AI-based analysis of various factors such as financial health, market position, and future prospects, VETS receives a Fundamental Rating of 7.
• The rating is supported by the ETF's strong track record, experienced management team, and unique investment strategy. However, the small market share and potential for volatility in the mid-cap value segment are considerations that limit the rating.

Resources and Disclaimers:

• Information for this analysis was compiled from the following sources:
  • Virtus ETF Trust II website
  • Morningstar
  • Bloomberg
  • Yahoo Finance
• This information should not be considered financial advice. Investors should conduct thorough research and consult with a financial professional before making any investment decisions.