Virtus Newfleet ABS/MBS ETF (VABS)

Overview

The Virtus Newfleet ABS/MBS ETF (VFAB) is an actively managed ETF that seeks to provide a high level of current income by investing primarily in asset-backed securities (ABS) and mortgage-backed securities (MBS). The fund aims to outperform its benchmark through active security selection and sector allocation within the ABS/MBS market.

Reputation and Reliability

Virtus Investment Partners is a multi-boutique asset manager with a long history of providing investment solutions. They are considered reputable and reliable.

Management Expertise

Newfleet Asset Management, a division of Virtus, manages the ETF. Their team has extensive experience in fixed-income investing, particularly in structured credit markets.

Goal

To provide a high level of current income.

Investment Approach and Strategy

Strategy: Actively managed, focusing on security selection and sector allocation within the ABS/MBS market.

Composition Primarily invests in asset-backed securities (ABS) and mortgage-backed securities (MBS).

Market Share: Insufficient data available to determine VFAB's precise market share.

Total Net Assets (AUM): 34600000

Key Competitors

• iShares MBS ETF (MBB)
• Vanguard Mortgage-Backed Securities ETF (VMBS)
• SPDR Portfolio Mortgage Backed Securities ETF (SPMB)

Competitive Landscape

The mortgage-backed securities ETF market is dominated by large, passively managed ETFs like MBB and VMBS. VFAB differentiates itself through active management, aiming to generate higher income. However, it faces challenges in attracting assets compared to the scale and low expense ratios of its passive competitors. Its active management offers potential outperformance but also carries higher risk and expense.

Historical Performance: Historical performance data is not directly available here but is easily accessed from financial websites such as Bloomberg, Yahoo Finance, or ETFdb.

Benchmark Comparison: Benchmark comparison requires specific performance data against a relevant ABS/MBS index and is not available for population into this data structure.

Expense Ratio: 0.4

Average Trading Volume

Average trading volume is relatively low, indicating potentially lower liquidity compared to larger MBS ETFs.

Bid-Ask Spread

Bid-ask spreads can be wider than more liquid ETFs, reflecting the lower trading volume and the active management strategy.

Market Environment Factors

Interest rate movements, housing market conditions, and credit spreads significantly impact VFAB's performance. Changes in monetary policy and economic growth expectations also play a role.

Growth Trajectory

VFAB's growth depends on its ability to consistently deliver competitive returns relative to its benchmark and passive peers, attracting investors seeking higher income from ABS/MBS.

Competitive Edge

VFAB's competitive edge lies in its active management, which allows the fund managers to select securities and allocate assets based on their assessment of market conditions and credit risk. This flexibility enables them to potentially outperform passive MBS ETFs, especially in periods of market volatility or changing interest rate environments. The fund's focus on ABS in addition to MBS provides diversification and opportunities to capture yield. However, active management introduces higher costs and the risk of underperformance compared to passive benchmarks.

Volatility

VFAB's volatility is influenced by the underlying credit quality and interest rate sensitivity of its ABS/MBS holdings. Active management can potentially reduce volatility but also introduces manager-specific risk.

Market Risk

The fund is exposed to market risk related to changes in interest rates, credit spreads, and economic conditions. Specific risks include prepayment risk (MBS) and credit risk (ABS).

Ideal Investor Profile

VFAB is suitable for investors seeking higher current income than traditional fixed-income investments and who are comfortable with the risks associated with actively managed ABS/MBS.

Market Risk

VFAB may be suitable for long-term investors seeking income and diversification, but active traders should be aware of the potentially lower liquidity.

The Virtus Newfleet ABS/MBS ETF (VFAB) is an actively managed fund focusing on high current income through investments in asset-backed and mortgage-backed securities. Its active management approach seeks to outperform passive MBS ETFs, but it also carries higher expenses and manager-specific risk. VFAB is suitable for income-seeking investors comfortable with the complexities of the ABS/MBS market and potential volatility. Investors should consider their risk tolerance and investment objectives before investing.

Data Sources:

• Virtus Investment Partners website
• ETFdb.com
• Bloomberg
• Yahoo Finance

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.