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 in a portfolio of short-duration, high-yield corporate bonds. The ETF focuses on managing credit risk and interest rate risk to deliver stable returns.

Reputation and Reliability

Virtus Investment Partners has a solid reputation in the investment management industry, offering a range of investment solutions. Virtus is considered reliable and well-established.

Management Expertise

The management team at Newfleet Asset Management, a Virtus affiliate, has extensive experience in fixed income investing, particularly in the high-yield sector. They possess expertise in credit analysis and portfolio management.

Goal

The ETF's primary goal is to provide current income while managing risk through a short-duration high yield bond portfolio.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. It is actively managed, focusing on fundamental credit research and security selection.

Composition The ETF holds a diversified portfolio of high-yield corporate bonds with short maturities, typically less than three years.

Market Share: Details of HYLS's market share in its sector will depend on specific market data, which can fluctuate. An estimated percentage may be determined using available data sources.

Total Net Assets (AUM): 862455025

Key Competitors

• iShares Short Duration High Yield Corporate Bond ETF (SHYG)
• SPDR Bloomberg Barclays Short Term High Yield Bond ETF (SJNK)
• VanEck Short High-Yield Municipal Index ETF (SHYD)

Competitive Landscape

The short duration high yield bond ETF market is competitive, with several large players. HYLS differentiates itself through active management, while SHYG and SJNK are passively managed and track indices. HYLS's active management may lead to outperformance during certain periods but also involves higher fees. SHYD focuses on municipal bonds, therefore its inclusion is due to its broader definition in the context of HY bond sector rather than being a direct competitor.

Historical Performance: Historical financial performance data should be gathered from reputable sources such as Morningstar or the fund's website.

Benchmark Comparison: Benchmark comparison data should be gathered from reputable sources such as Morningstar or the fund's website.

Expense Ratio: 0.55

Average Trading Volume

The average trading volume can be found on financial websites and indicates how easily shares can be bought and sold.

Bid-Ask Spread

The bid-ask spread, also found on financial websites, represents the difference between the highest price a buyer will pay and the lowest price a seller will accept.

Market Environment Factors

Economic growth, interest rate movements, and credit spreads are key factors affecting the ETF's performance. Changes in investor sentiment and risk appetite also play a role.

Growth Trajectory

The growth trajectory depends on the fund's ability to generate competitive returns, attract investor capital, and manage risk effectively. It will also depend on the performance of underlying holdings.

Competitive Edge

HYLS's competitive edge lies in its active management approach, focusing on fundamental credit research and security selection within the short-duration high yield bond market. The experienced management team at Newfleet aims to identify undervalued opportunities and manage downside risk effectively. This active approach potentially allows the ETF to outperform passive peers during periods of market volatility or credit stress. The ETF's focus on short-duration bonds helps mitigate interest rate risk compared to longer-duration high yield bond funds.

Volatility

HYLS's volatility can be assessed by reviewing its historical price fluctuations and standard deviation. High-yield bonds, by nature, are more volatile than investment-grade bonds.

Market Risk

The ETF is subject to market risk, including credit risk (the risk of issuers defaulting on their debt) and interest rate risk (although mitigated by the short duration of the portfolio). Economic downturns and changes in monetary policy can negatively impact the ETF's performance.

Ideal Investor Profile

The ideal investor is someone seeking current income and is comfortable with a moderate level of risk. This ETF is suitable for investors who understand high-yield bonds and want to diversify their fixed-income portfolio with shorter maturities.

Market Risk

HYLS is best suited for long-term investors seeking income and some capital appreciation, rather than active traders. It's a good option for those looking for a slightly higher yield than investment-grade bonds with less interest rate risk.

The Virtus Newfleet Short Duration High Yield Bond ETF aims to provide current income through actively managed investments in short-duration, high-yield corporate bonds. It differentiates itself through active management and a focus on credit research, potentially leading to outperformance but with higher fees. The ETF is suitable for income-seeking investors with moderate risk tolerance who understand the high-yield bond market. Economic growth, interest rate movements, and credit spreads significantly impact the fund's performance.

Data Sources:

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

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change and may not be real-time.