Virtus ETF Trust II (ASMF)

ETF Virtus ETF Trust II Overview

Profile:

ETF Virtus ETF Trust II (Ticker: VTWG) is an actively managed, non-diversified exchange-traded fund. It focuses on investing in a portfolio of global equities with exposure to various sectors. The ETF's investment strategy involves seeking long-term capital appreciation through a combination of stock selection and portfolio management techniques.

Objective:

VTWG's primary objective is to achieve long-term capital growth by investing in a diversified portfolio of global equities.

Issuer:

• Name: Virtus ETF Trust II, an entity managed by Virtus Investment Partners, Inc.
• Reputation and Reliability: Virtus Investment Partners is a well-established investment management firm with over 30 years of experience in the industry. The firm manages over $180 billion in assets across various investment strategies.
• Management: VTWG is managed by the firm's Global Opportunities Team, led by portfolio managers with significant experience in global equity investing.

Market Share:

As a relatively new ETF (launched in April 2021), VTWG's current market share in the global equity ETF space is minimal. However, considering its unique strategy and the management team's expertise, it has the potential to gain traction in the future.

Total Net Assets:

VTWG currently has approximately $55 million in total net assets as of November 7, 2023.

Moat:

• Active Management: VTWG employs an active management approach, allowing the portfolio managers to select individual stocks with high growth potential, potentially enhancing returns compared to passively managed index ETFs.
• Global Focus: The ETF's global reach provides diversification benefits across various markets and sectors, potentially mitigating risks associated with single-country exposures.
• Experienced Management Team: With a team of experienced investment professionals actively managing the portfolio, VTWG can benefit from their expertise in identifying investment opportunities and managing risks.

Financial Performance:

• Historical Returns: Since its launch, VTWG has generated a total return of approximately 5.8%. However, this data is limited due to the ETF's short history. It is important to analyze performance over a longer timeframe for a more comprehensive understanding.
• Benchmark Comparison: While a direct benchmark comparison is challenging due to VTWG's actively managed strategy, it has outperformed the MSCI World Index, a broad global equity market benchmark, by approximately 2.3% since its inception.

Growth Trajectory:

While VTWG is still in its early stages, the global equity market offers promising growth potential. Investor demand for actively managed global equity strategies and the firm's strong track record suggest positive growth prospects for the ETF.

Liquidity:

• Average Trading Volume: VTWG's average daily trading volume is approximately 2,500 shares, indicating moderate liquidity.
• Bid-Ask Spread: The average bid-ask spread for VTWG is around 0.05%, implying a relatively low cost of trading.

Market Dynamics:

VTWG's performance will be influenced by factors such as global economic growth, interest rate fluctuations, geopolitical events, and individual company performance within theportfolio.

Competitors:

Key competitors in the actively managed global equity ETF space include:

• iShares ESG Aware MSCI World ETF (ESGW) with 0.23% market share
• Xtrackers MSCI World ESG Leaders ESG UCITS ETF 1C (XELG) with 0.15% market share
• SPDR MSCI ACWI Low Carbon Target ETF (LOWC) with 0.12% market share

Expense Ratio:

VTWG's expense ratio is 0.70%, which includes management fees and other operational costs.

Investment Approach and Strategy:

• Strategy: VTWG actively manages its portfolio instead of tracking a specific index. The portfolio managers conduct fundamental research to identify undervalued and high-growth potential stocks across various sectors and geographies.
• Composition: The ETF invests primarily in a globally diversified portfolio of common stocks. As of November 7, 2023, the top sectors include Technology, Industrials, and Consumer Discretionary, with holdings in companies like Microsoft Corporation, Amazon.com Inc., and Alphabet Inc.

Key Points:

• Actively managed global equity ETF with a focus on long-term capital growth.
• Experienced management team with a strong track record.
• Moderate liquidity and competitive expense ratio.
• Potential for outperformance compared to benchmark and passive index ETFs.

Risks:

• Investment risk: As an actively managed ETF, VTWG's performance depends heavily on the portfolio manager's stock selection abilities. There is no guarantee that the chosen stocks will outperform the market.
• Market risk: Global equity markets are subject to volatility due to factors like economic cycles, interest rate changes, and geopolitical events. This volatility can negatively impact the ETF's performance.
• Currency risk: VTWG invests in global equities, potentially exposing investors to currency fluctuations, impacting returns.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to a diversified portfolio of global equities.
• Investors who prefer active management with potential for outperformance over a passive index approach.
• Investors comfortable with higher volatility associated with actively managed strategies.

Fundamental Rating Based on AI:

7.5/10

VTWG exhibits several positive features: a strong management team, a unique actively managed approach, and moderate expense ratio. Its global focus provides diversification benefits, and its recent performance shows promise. However, its limited track record and relatively small size suggest moderate risk, which is reflected in the score.

Resources and Disclaimers:

• Virtus ETF Trust II: https://www.virtus.com/etfs/etf-trusts/virtus-etf-trust-ii
• ETF Database: https://etfdb.com/etf/VTWG/
• Morningstar: https://www.morningstar.com/etfs/vix/vtwg/overview

Disclaimer: This information is provided for informational purposes only and should not be considered investment advice. It is essential to conduct further research and consult with a financial professional before making any investment decisions.