Virtus ETF Trust Stone Harbor Emerging Markets High Yield Bond ETF (VEMY)

Overview

The Virtus ETF Trust Stone Harbor Emerging Markets High Yield Bond ETF (NYSE Arca: EHHY) seeks to provide current income by investing primarily in high yield corporate and sovereign debt of emerging market countries.

Reputation and Reliability

Virtus Investment Partners is a multi-manager asset management firm with a history of providing investment solutions.

Management Expertise

Stone Harbor Investment Partners serves as the sub-advisor, bringing expertise in emerging market debt investing.

Goal

To provide current income.

Investment Approach and Strategy

Strategy: EHHY does not track a specific index but is actively managed. The fund invests in a portfolio of emerging market high yield bonds, seeking to generate income and capital appreciation.

Composition The ETF primarily holds bonds, specifically high-yield (non-investment grade) debt securities issued by corporations and governments in emerging markets.

Market Share: Information on EHHY's specific market share is not readily available.

Total Net Assets (AUM): 67981240

Key Competitors

• VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC)
• iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB)
• Invesco Emerging Markets Sovereign Debt ETF (PCY)
• Xtrackers Emerging Markets Bond - Interest Rate Hedged ETF (EMIH)

Competitive Landscape

The emerging market bond ETF industry is fairly concentrated. EHHY competes with larger, more established ETFs that track broad market indices. EHHY's active management aims to provide an edge, but it comes at a higher expense ratio compared to passively managed competitors. EHHY's focus on high yield provides potentially higher income but also higher risk compared to investment grade alternatives.

Historical Performance: Historical financial performance data requires retrieving time series data and is not available in a static format.

Benchmark Comparison: A benchmark comparison requires defining a specific benchmark and retrieving performance data, which is not available in a static format.

Expense Ratio: 0.85

Average Trading Volume

EHHY's average trading volume indicates moderate liquidity, facilitating relatively easy buying and selling of shares under normal market conditions.

Bid-Ask Spread

The bid-ask spread for EHHY can fluctuate, but generally represents a small percentage of the share price, reflecting the cost of immediacy in trading.

Market Environment Factors

Emerging market high-yield bonds are sensitive to global interest rates, emerging market economic growth, currency fluctuations, and geopolitical risks. Credit spreads tend to widen during periods of risk aversion.

Growth Trajectory

EHHY's growth depends on investor appetite for emerging market high-yield debt. Changes to strategy and holdings are at the discretion of the fund's management team.

Competitive Edge

EHHY's active management seeks to provide alpha through security selection and tactical asset allocation within the emerging market high-yield bond space. Stone Harbor's experience in emerging markets debt provides some differentiation. However, active management performance is not guaranteed, and the higher expense ratio creates a hurdle to overcome. The ETF's focus on high-yield bonds provides higher income potential than investment grade strategies, appealing to income-seeking investors willing to take on higher risk.

Volatility

Emerging market high-yield bonds are inherently more volatile than investment-grade bonds due to credit risk and currency fluctuations.

Market Risk

EHHY's underlying assets are subject to emerging market risk, including political instability, economic downturns, and currency devaluations. High-yield bonds also carry significant credit risk, as issuers may default on their debt obligations.

Ideal Investor Profile

EHHY is suitable for investors seeking current income and willing to accept a higher level of risk. Investors should have a long-term investment horizon and understand the risks associated with emerging market high-yield debt.

Market Risk

EHHY may be suitable for long-term investors seeking income and capital appreciation as part of a diversified portfolio, but is generally not appropriate for active traders or passive index followers.

Virtus ETF Trust Stone Harbor Emerging Markets High Yield Bond ETF seeks to provide current income by investing in high-yield emerging market debt. The fund is actively managed by Stone Harbor, which brings emerging market debt experience. EHHY's higher expense ratio compared to passively managed funds is a consideration. It is best suited for investors seeking income and willing to accept the higher risks associated with emerging market and high-yield debt.

Data Sources:

• Virtus ETF Trust website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on your own research and risk tolerance.