Virtus ETF Trust Virtus Newfleet Short Duration High Yield Bond ETF (VSHY)

Overview

The Virtus Newfleet Short Duration High Yield Bond ETF (NYSE Arca: HYLS) seeks to provide current income by investing primarily in a portfolio of U.S. dollar-denominated high yield corporate bonds with shorter maturities. It aims for a higher yield than investment-grade bonds while managing interest rate risk through its short-duration focus. The fund is actively managed, selecting securities based on fundamental research and credit analysis.

Reputation and Reliability

Virtus Investment Partners is a well-established asset management firm with a history of providing investment solutions. They are known for their multi-boutique structure, which allows for specialized investment expertise.

Management Expertise

Newfleet Asset Management, a division of Virtus, specializes in fixed income strategies. The management team has extensive experience in credit analysis and high yield bond investing.

Goal

To seek current income.

Investment Approach and Strategy

Strategy: The ETF is actively managed and does not track a specific index. It focuses on short-duration high yield bonds.

Composition The ETF holds primarily U.S. dollar-denominated high yield corporate bonds.

Market Share: Insufficient data to determine exact market share.

Total Net Assets (AUM): 560330643

Key Competitors

• iShares Short Maturity Bond ETF (NEAR)
• SPDR Portfolio Short Term Corporate Bond ETF (SPSB)
• PIMCO Enhanced Short Maturity Active ETF (MINT)
• Invesco Senior Loan ETF (BKLN)

Competitive Landscape

The competitive landscape for short-duration bond ETFs is characterized by a mix of passively and actively managed funds. HYLS, as an actively managed fund, aims to outperform its passive counterparts through security selection and duration management. However, it may have higher expense ratios. Competitors with larger AUM may benefit from economies of scale, potentially leading to lower expense ratios.

Historical Performance: Historical performance data needs to be retrieved from financial data providers.

Benchmark Comparison: Benchmark comparison requires historical performance data and the fund's stated benchmark.

Expense Ratio: 0.35

Average Trading Volume

The ETF exhibits moderate liquidity, with an average daily trading volume that facilitates entry and exit for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, indicating relatively low transaction costs.

Market Environment Factors

Economic indicators such as interest rates, credit spreads, and inflation can significantly impact the performance of high yield bonds. Sector-specific risks and overall market sentiment also play a role.

Growth Trajectory

The growth trajectory depends on the prevailing interest rate environment and investor demand for short-duration high yield exposure. Any changes to the fund's investment strategy or holdings would also influence its growth.

Competitive Edge

HYLS's competitive advantage lies in its active management approach, which allows the portfolio managers to dynamically adjust the portfolio based on market conditions and credit analysis. The ETF's focus on short-duration bonds helps mitigate interest rate risk compared to longer-duration high yield funds. The investment team at Newfleet has extensive experience in this market. The managers aim to produce higher yields than passive funds in a volatile market.

Volatility

The ETF's volatility is expected to be moderate due to its focus on short-duration bonds, which are generally less sensitive to interest rate changes than longer-duration bonds. However, high yield bonds carry credit risk.

Market Risk

The ETF is subject to market risk, including credit risk associated with high yield bonds and interest rate risk, although the short-duration focus mitigates the latter to some extent.

Ideal Investor Profile

The ideal investor is seeking current income and is willing to accept some credit risk in exchange for higher yields than investment-grade bonds. They are also concerned about interest rate risk and prefer a short-duration investment.

Market Risk

HYLS is suitable for investors seeking income and who are comfortable with moderate risk. It may be appropriate for both long-term investors and active traders, depending on their investment objectives and risk tolerance.

The Virtus Newfleet Short Duration High Yield Bond ETF (HYLS) is an actively managed fund designed to provide current income by investing in short-duration high yield bonds. It aims to offer a higher yield than investment-grade bonds while managing interest rate risk. The fund's active management allows for security selection and duration adjustments based on market conditions. This makes it potentially suitable for investors seeking income and with a moderate risk tolerance who are also concerned about interest rate risk. However, the investor should be aware of the credit risk inherent in high-yield bonds.

Data Sources:

• Virtus Investment Partners website
• ETF.com
• Seeking Alpha
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data may not be readily available for all ETFs. Performance data can vary depending on the source.