Virtus Real Asset Income ETF (VRAI)

Overview

The Virtus Real Asset Income ETF (VRAI) seeks to provide current income and long-term capital appreciation by investing in a diversified portfolio of real asset companies and securities, including REITs, infrastructure, natural resources, and commodities. It targets companies and securities that own or operate real assets.

Reputation and Reliability

Virtus Investment Partners is a well-established asset manager with a long history of providing investment solutions. They are generally considered a reputable and reliable issuer.

Management Expertise

Virtus has a dedicated team of portfolio managers and analysts with expertise in real assets investing. The management team has a proven track record in managing income-oriented strategies.

Goal

To seek current income and long-term capital appreciation.

Investment Approach and Strategy

Strategy: VRAI does not track a specific index. It uses a actively managed investment approach to select real asset companies and securities.

Composition The ETF holds a mix of common stocks, preferred stocks, and debt securities of companies involved in real estate, infrastructure, natural resources, and commodities. The composition varies based on market conditions and the manager's outlook.

Market Share: Insufficient data available to accurately determine VRAI's specific market share.

Total Net Assets (AUM): 13986384

Key Competitors

• InfraCap REIT Preferred ETF (PFFR)
• ALPS Active REIT ETF (REIT)
• Hoya Capital Housing ETF (HOMZ)

Competitive Landscape

The real asset income ETF landscape is moderately competitive, with several ETFs focusing on different segments of the real asset market. VRAI's advantage lies in its actively managed, diversified approach across various real asset sectors. A disadvantage could be higher expenses compared to passively managed, sector-specific ETFs. It is a smaller fund than its competitors and has a low market share.

Historical Performance: Historical performance data would need to be obtained from financial data providers for various time periods.

Benchmark Comparison: A suitable benchmark would depend on the specific allocation of the ETF at any given time. A composite benchmark of REITs, infrastructure, and natural resources indices could be considered.

Expense Ratio: 1.18

Average Trading Volume

VRAI's average trading volume can vary, but it generally reflects moderate liquidity for an ETF of its size.

Bid-Ask Spread

The bid-ask spread for VRAI is typically moderate, reflecting its trading volume and liquidity.

Market Environment Factors

Economic indicators like inflation, interest rates, and GDP growth influence real asset performance. Sector-specific factors, such as demand for housing, infrastructure spending, and commodity prices, are also crucial.

Growth Trajectory

The growth trajectory of VRAI depends on the overall performance of real asset markets and the manager's ability to generate alpha through active management. Changes to strategy and holdings are at the discretion of the fund's management team.

Competitive Edge

VRAI's competitive edge lies in its actively managed, diversified approach across various real asset sectors, offering exposure to REITs, infrastructure, natural resources, and commodities within a single ETF. This diversification aims to mitigate risk compared to sector-specific funds. The active management seeks to identify undervalued opportunities and generate alpha, differentiating it from passive index-tracking ETFs. Its focus on income generation also appeals to investors seeking stable returns in a low-yield environment.

Volatility

The volatility of VRAI depends on the underlying assets and market conditions. Real assets can be sensitive to interest rate changes and economic cycles.

Market Risk

The specific risks include interest rate risk, inflation risk, commodity price volatility, and regulatory risks affecting specific real asset sectors.

Ideal Investor Profile

The ideal investor is one seeking current income and long-term capital appreciation through exposure to a diversified portfolio of real assets. They should have a moderate risk tolerance and a long-term investment horizon.

Market Risk

VRAI may be suitable for long-term investors seeking income and diversification. Active traders may find the bid-ask spread less appealing.

The Virtus Real Asset Income ETF (VRAI) offers a diversified approach to investing in real assets, combining REITs, infrastructure, natural resources, and commodities. It's actively managed, seeking to provide both current income and long-term capital appreciation, making it suitable for investors with a moderate risk tolerance. While its expense ratio is on the higher side, the potential for active management to generate alpha may offset this cost. However, due to a relatively small market share, trading volume and liquidity should be considered.

Data Sources:

• Virtus Investment Partners Website
• ETF.com
• Morningstar
• SEC Filings

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Data is based on publicly available information and may not be entirely accurate or up-to-date.