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 and long-term capital appreciation by investing primarily in a portfolio of high-yield fixed income securities of emerging market issuers. The fund targets a diversified portfolio of corporate and sovereign bonds.

Reputation and Reliability

Virtus Investment Partners has a solid reputation and a track record of offering various investment products, including ETFs and mutual funds. Their reliability is generally considered high within the investment community.

Management Expertise

The management team leverages Stone Harbor Investment Partners' expertise in emerging market debt investing. Stone Harbor is known for its experienced portfolio managers and analysts specializing in this asset class.

Goal

The primary investment goal is to provide current income and long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. It is actively managed, employing a bottom-up security selection process to identify attractive high-yield emerging market bonds.

Composition The ETF primarily holds emerging market high-yield corporate and sovereign bonds. The portfolio is diversified across countries and sectors within the emerging markets universe.

Market Share: Information not found.

Total Net Assets (AUM): 60780000

Key Competitors

• iShares J.P. Morgan USD Emerging Markets High Yield Bond ETF (EMHY)
• VanEck J.P. Morgan EM Local Currency Bond ETF (EMLC)
• Invesco Emerging Markets Sovereign Debt ETF (PCY)

Competitive Landscape

The competitive landscape in the emerging markets high-yield bond ETF space is moderately competitive, featuring several established players. EHHY faces competition from larger, more liquid ETFs. Its advantage lies in Stone Harbor's active management, while a disadvantage could be a smaller AUM compared to competitors.

Historical Performance: Historical performance data is not available in this format.

Benchmark Comparison: Benchmark comparison data is not available in this format.

Expense Ratio: 0.0085

Average Trading Volume

The ETF's liquidity can be gauged based on its average trading volume, reflecting how easily shares can be bought and sold.

Bid-Ask Spread

The bid-ask spread reflects the cost of trading the ETF.

Market Environment Factors

Economic indicators in emerging markets, global interest rate trends, and geopolitical risks all significantly impact the performance of EHHY. Emerging market growth prospects and overall market sentiment towards riskier assets also play a crucial role.

Growth Trajectory

Growth trends depend on emerging market economic performance, credit spreads, and investor demand for high-yield debt. Changes to strategy may occur based on market conditions and opportunities identified by Stone Harbor's management team; these can include adjusting country allocations and sector exposures.

Competitive Edge

EHHY's competitive advantage stems from Stone Harbor's active management and expertise in emerging market high-yield debt. The firm's bottom-up security selection process aims to identify undervalued bonds with attractive risk-adjusted returns. This active approach differentiates it from passive index-tracking ETFs. Stone Harbor's established research capabilities and network within the emerging markets space can provide an informational edge.

Volatility

Volatility is influenced by emerging market credit spreads, currency fluctuations, and global risk sentiment.

Market Risk

Specific risks include credit risk (the risk of default by bond issuers), currency risk (due to investments in foreign currencies), and interest rate risk (sensitivity to changes in interest rates).

Ideal Investor Profile

The ideal investor is one seeking higher income than developed market bonds offer and has a higher risk tolerance. This includes investors looking for diversification with exposure to emerging market debt.

Market Risk

EHHY is more suited for long-term investors seeking income and willing to accept higher risk and volatility in exchange for potentially higher returns. It is less suitable for passive index followers due to its active management style.

The Virtus ETF Trust Stone Harbor Emerging Markets High Yield Bond ETF offers exposure to emerging market high-yield debt through active management by Stone Harbor. It targets income and capital appreciation, making it potentially suitable for risk-tolerant investors seeking diversification. The ETF's performance is influenced by emerging market economic conditions and credit spreads. The active management approach seeks to provide an advantage over passive strategies, although this comes with higher fees and potential underperformance.

Data Sources:

• Virtus Investment Partners
• ETF.com
• Morningstar
• FactSet

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions and fund performance can change rapidly. Consult with a qualified financial advisor before making any investment decisions.