Virtus Real Asset Income ETF (VRAI)

Virtus Real Asset Income ETF (VRAI) Summary:

Profile:

Virtus Real Asset Income ETF (VRAI) is an actively managed ETF that seeks to provide a high level of current income, along with capital appreciation. It invests primarily in real estate investment trusts (REITs), real estate operating companies (REOCs), and real asset-related securities, including infrastructure, energy, and timber.

Objective:

VRAI's primary investment goal is to generate high current income and long-term capital appreciation.

Issuer:

Virtus Investment Partners: Virtus Investment Partners, Inc. is a global asset management firm with over $160 billion in assets under management. It is known for its expertise in alternative investments, including real estate.

Reputation and Reliability: Virtus has a strong reputation in the industry, with a long history of managing real estate investments.

Management: The ETF is managed by a team of experienced portfolio managers with a deep understanding of the real estate market.

Market Share:

VRAI is a relatively small ETF in the real estate sector, with a market share of 0.2%.

Total Net Assets:

As of October 26, 2023, VRAI has $87.26 million in total net assets.

Moat:

VRAI's competitive advantages include:

• Active Management: The ETF is actively managed, allowing the portfolio managers to take advantage of market opportunities and mitigate risks.
• Experienced Management Team: The ETF is managed by a team of experienced professionals with a strong track record in the real estate sector.
• Diversified Portfolio: The ETF invests in a variety of real estate assets, which helps to reduce risk.

Financial Performance:

• 1-Year Return: 17.2%
• 3-Year Return: 14.1%
• 5-Year Return: 11.5%

Benchmark Comparison:

VRAI has outperformed its benchmark, the FTSE Nareit All REITs Index, over the past 1, 3, and 5 years.

Growth Trajectory:

The real estate market is expected to continue to grow in the coming years, which could benefit VRAI.

Liquidity:

• Average Trading Volume: 36,190 shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

• Rising Interest Rates: Rising interest rates could negatively impact REITs and other real estate investments.
• Economic Growth: A strong economy could boost demand for real estate, which would benefit VRAI.

Competitors:

• Real Estate Select Sector SPDR Fund (XLRE): 15.2% market share
• Vanguard Real Estate Index Fund ETF (VNQ): 14.9% market share
• iShares U.S. Real Estate ETF (IYR): 11.3% market share

Expense Ratio:

VRAI has an expense ratio of 0.73%.

Investment Approach and Strategy:

• Strategy: Actively managed to generate high current income and long-term capital appreciation.
• Composition: Invests primarily in REITs, REOCs, and real asset-related securities.

Key Points:

• Actively managed ETF with a focus on real estate investments.
• High current income potential.
• Diversified portfolio.
• Experienced management team.

Risks:

• Volatility: Real estate investments can be volatile.
• Market Risk: The value of VRAI's investments can be affected by changes in the real estate market.
• Interest Rate Risk: Rising interest rates could negatively impact VRAI's investments.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors with a long-term investment horizon.
• Investors who are comfortable with the volatility of real estate investments.

Fundamental Rating Based on AI:

7.5/10

VRAI has a strong fundamental rating based on AI. The ETF has a solid track record, an experienced management team, and a diversified portfolio. However, the ETF is relatively small and has a higher expense ratio than some of its competitors.

Resources and Disclaimers:

• Virtus Real Asset Income ETF website: https://www.virtus.com/individual/etfs/vrai
• Yahoo Finance: https://finance.yahoo.com/quote/VRAI/
• Morningstar: https://www.morningstar.com/etfs/arkan/vrai/quote

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.