NEW YORK, Feb. 10, 2021 /PRNewswire/ -- Newfleet Asset
Management and Virtus ETF Solutions, both affiliates of Virtus
Investment Partners, Inc. (NASDAQ: VRTS), have introduced the
Virtus Newfleet ABS/MBS ETF (NYSE: VABS), the third Virtus ETF
strategy managed by Newfleet.
The Virtus Newfleet ABS/MBS ETF seeks to generate income by
investing primarily in short-duration, investment-grade securitized
debt across asset-backed securities (ABS) and mortgage-backed
securities (MBS), including commercial and residential MBS. By
utilizing Newfleet's disciplined, time-tested investment process
and rigorous risk management approach, the actively managed ETF
expects to invest in asset-backed and mortgage-backed securities
with competitive yield and current income across undervalued areas
of securitized credit markets.
"We believe active management is a better option in the ABS and
MBS sectors of the securitized credit markets and our approach
provides a wider investment opportunity set and much-needed
diversification relative to traditional fixed income," said
Newfleet President and Chief Investment Officer David L. Albrycht, CFA. "As the demand for
shorter duration, income-generating strategies grows, we can employ
our relative value approach to exploit market inefficiencies."
"Virtus ETF Solutions has the platform to bring our expertise
and experience in the niche securitized credit markets to investors
in a low-cost, transparent vehicle," said Albrycht, who will manage
VABS along with Andrew Szabo, CFA,
Nick Rinaldi, and Zachary Szyndlar, CFA, all of Newfleet.
"Historically, investment-grade securitized credit has offered a
yield advantage to its corporate bond counterparts."
Newfleet managed $9.9 billion of
fixed-income assets as of December 31,
2020 and applies its expertise in a variety of multi-sector
and dedicated strategies offered to institutional and individual
fixed income investors. In addition to VABS, Newfleet also manages
the Virtus Newfleet Dynamic Credit ETF (BLHY) and Virtus Newfleet
Multi-Sector Bond ETF (NFLT).
About Newfleet Asset Management
Newfleet Asset
Management provides comprehensive fixed income portfolio
management, including multi-sector, enhanced core, and core
strategies, in addition to dedicated sector strategies such as
emerging markets debt, bank loans and high yield. Newfleet
leverages the knowledge and skill of a team of investment
professionals with expertise in every sector of the bond market,
including evolving, specialized, and out-of-favor sectors. The team
employs active sector rotation and disciplined risk management to
portfolio construction.
About Virtus ETF Solutions
Virtus ETF
Solutions (VES) is a multi-manager ETF sponsor that offers
actively managed and index-based investment capabilities across
multiple asset classes, seeking to deliver a family of
complementary ETFs that are subadvised by select investment
managers.
About Virtus Investment Partners, Inc.
Virtus
Investment Partners (NASDAQ: VRTS) is a distinctive
partnership of boutique investment managers singularly committed to
the long-term success of individual and institutional investors.
The company provides investment management products and services
through its affiliated managers and select subadvisers, each with a
distinct investment style, autonomous investment process, and
individual brand. Virtus Investment Partners offers access to a
variety of investment styles across multiple disciplines to meet a
wide array of investor needs. In addition to Newfleet Asset
Management and Virtus ETF Solutions, its affiliates include Ceredex
Value Advisors, Duff & Phelps Investment Management, Kayne
Anderson Rudnick Investment Management, NFJ Investment Group, Seix
Investment Advisors, Silvant Capital Management, and Sustainable
Growth Advisers. Additional information is available at
virtus.com.
Risk Considerations
Exchange-Traded Funds
(ETF): The value of an ETF may be more volatile than the
underlying portfolio of securities it is designed to track. The
costs to the fund of owning shares of an ETF may exceed the cost of
investing directly in the underlying securities. ABS/MBS:
Changes in interest rates can cause both extension and prepayment
risks for asset- and mortgage-backed securities. These securities
are also subject to risks associated with the non-repayment of
underlying collateral, including losses to the fund. Credit
& Interest: Debt instruments are subject to various
risks, including credit and interest rate risk. The issuer of a
debt security may fail to make interest and/or principal payments.
Values of debt instruments may rise or fall in response to changes
in interest rates, and this risk may be enhanced with longer-term
maturities. Variable Distribution Risk: Periodic
distributions by investments of variable or floating interest rates
vary with fluctuations in market interest rates.
Derivatives: Investments in derivatives such as futures,
options, forwards, and swaps may increase volatility or cause a
loss greater than the principal investment. Sector Focused
Investing: Events negatively affecting a particular market
sector in which the fund focuses its investments may cause the
value of the fund's shares to decrease. Market Volatility:
Local, regional, or global events such as war, acts of terrorism,
the spread of infectious illness or other public health issues,
recessions, or other events could have a significant impact on the
portfolio and its investments, including hampering the ability of
the portfolio manager(s) to invest the portfolio's assets as
intended. Market Price/NAV: At the time of purchase and/or
sale, an investor's shares may have a market price that is above or
below the fund's NAV, which may increase the investor's risk of
loss. Prospectus: For additional information on risks,
please see the fund's prospectus.
Please consider the investment objectives, risks, charges,
and expenses of the fund carefully before investing. The prospectus
contains this and other information about the fund. Contact us at
1-888-383-0553 or visit www.virtus.com for a copy of the fund's
prospectus. Read the prospectus carefully before you invest or send
money.
Distributed by VP Distributors,
LLC.
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SOURCE Newfleet Asset Management; Virtus ETFs