Weakness in Virtus LifeSci Biotech Products ETF's People and Process Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. The portfolio maintains a cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The team managing the passive strategy earns a Below Average People Pillar. The strategy earns a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and has a significant underweight in quality exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Revolution Medicines

CymaBay Therapeutics

Immunovant Inc

MoonLake Immunotherapeutics

Crinetics Pharmaceuticals Inc

Mirati Therapeutics

Nuvalent

ImmunityBio

Arcellx

Biohaven Pharmaceutical Hld

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Virtus LifeSci Biotech Products ETF earns a Below Average Process Pillar rating. The process benefits from tracking an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. However, the rating is held back by the fund's unimpressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks investment results that correspond, before fees and expenses, to the price and yield performance of the LifeSci Biotechnology Products Index.  Under normal market conditions, and the fund will invest not less than 80% of its assets in component securities of the index. The index seeks to track the performance of the common stock of U.S. exchange-listed biotechnology companies with at least one drug therapy approved by the U.S. Food and Drug Administration ("FDA") for marketing. 

 The portfolio has allocations in its top two sectors, healthcare and energy, that are similar to the category. The sectors with low exposure compared to category peers are technology and basic materials; however, the allocations are similar to the category. The strategy owns 57 securities and is diversified among those holdings. In its most recent portfolio, 26.8% of the portfolio's assets were concentrated in the top 10 fund holdings, compared to the category average's 41.0%.

Below Average

Process

Virtus’s team earns a Below Average People Pillar rating. The team is supported by its parent firm's five-year success ratio of 55%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. However, the rating is weakened by the combined average five-year excess return of each manager, which indicates that the funds they manage have underperformed their respective category average. Management team experience, which averages six years at this fund, also weakens the team.

People

Virtus Investment Partners has been busy; its actions support an Average Parent rating.

The publicly traded firm uses a multimanager approach. It fully owns all but one of its 13 affiliated asset managers and also uses subadvisors. Since 2020, it purchased five affiliates, expanding its alternative offerings through its 2021 Westchester Capital Management acquisition. It also entered an agreement to buy quant alternatives manager AlphaSimplex, with an expected close in early 2023. Affiliates appreciate Virtus' distribution and back-office strength, while enjoying investment autonomy. Some of its managers are strong, such as  Kayne Anderson Rudnick, which constitutes roughly 30% of Virtus' assets under management.

In 2022, Virtus was forced to find new management for 17 of its funds that were subadvised by Allianz Global Investors, following the SEC disqualification of AGI from providing advisory services to U.S.-registered funds for 10 years. While Virtus had no connection to the AGI strategies at the center of the investigation, it had to find new management for the AGI subadvised funds within 90 days. Virtus maintained some portfolio managers who moved firms, but they hired affiliates for most of the mandates. Some were natural fits, but others were questionable, such as those on Virtus Global Allocation. Meanwhile, Virtus has merged or liquidated a number of funds, and its fees tend to be above average.

Average

Parent

Virtus LifeSci Biotech Products ETF

BBP tracks an index of US-listed biotechnology companies considered to be in the product stage by the index provider.

VanEck Vectors Biotech ETF

First Trust NYSE Arca Biotechnology Index Fund

iShares Nasdaq Biotechnology ETF

Invesco Dynamic Biotechnology & Genome ETF

Rising rate worries have weighed on the biotech sector. However, these biotech ETFs still have lost the least in recent days.

5 Least-Hurt Biotech ETFs of the Last Week

Global X Longevity Thematic ETF 

ARK Genomic Revolution Multi-Sector ETF

Virtus LifeSci Biotech Clinical Trials ETF

BlackRock Future Health ETF

Principal Healthcare Innovators Index ETF

Loncar Cancer Immunotherapy ETF

Global X Telemedicine & Digital Health ETF

Fidelity MSCI Health Care ETF

Nasdaq Pharm Shs Nasdaq Pharmaceuticals

First Trust Health Care AlphaDEX Fund

ETFMG Treatments Testing & Advancements ETF

Global X Genomics & Biotechnology ETF

 Franklin Genomic Advancements ETF

ROBO Global Healthcare Technology and Innovation ETF

Invesco Nasdaq Biotechnology ETF

iShares Genomics Immunology and Healthcare ETF

iShares U.S. Pharmaceuticals ETF

iShares U.S. Healthcare Providers ETF

iShares U.S. Medical Devices ETF

iShares Global Healthcare ETF

iShares U.S. Healthcare ETF

Eli Lilly

Global X Longevity Thematic ETF

First Trust Indxx Medical Devices ETF

Merck

Novo Nordisk

Direxion Daily Pharmaceutical & Medical Bull 3X Shares

Simplify Health Care ETF

Invesco Dynamic Pharmaceuticals ETF

VanEck Vectors Pharmaceutical ETF

Invesco S&P SmallCap Health Care ETF

Invesco DWA Healthcare Momentum ETF

Invesco S&P 500 Equal Weight Health Care ETF

ALPS Medical Breakthroughs ETF

Vanguard Health Care ETF

Wisdomtree BioRevolution Fund

SPDR S&P Biotech ETF

SPDR S&P Health Care Equipment ETF

SPDR S&P Health Care Services ETF

Health Care Select Sector SPDR Fund

SPDR S&P Pharmaceuticals ETF

How a recession could impact health care stocks in 2023. As Covid continues, what it could mean for the health care sector.

Can Health Care Stocks Outperform Again In 2023?

We all know that Wall Street is shattered this year. Still, two sectors -- Biotech and Aerospace -- have recently hit a 52-week high.

2 Sector ETFs Hovering Around a 52-Week High

iShares MSCI Brazil Small-Cap ETF

Global X MLP ETF

UBS ETRACS Alerian MLP Infrastructure Index ETN Series B

First Trust NASDAQ Clean Edge Green Energy Index Fund

iShares MSCI India Small Cap ETF

Global X Uranium ETF

These ETF areas won in the third quarter of 2022.

5 Best Areas of Q3 of 2022 & Their Top ETFs

ARK Fintech Innovation ETF

First Trust SkyBridge Crypto Industry and Digital Economy ETF

VanEck Vectors Digital Transformation ETF

Fidelity Covington Trust-Fidelity Crypto Industry And Digital Payments Etf

Direxion mRNA ETF

Biotech and cryptocurrency -- two ETF areas outperformed last week.

Biotech & Crypto -- Best ETF Areas of Last Week

Pfizer

The biotech corner of the broad healthcare sector outperformed last week on speculation over a takeover bid for Global Blood Therapeutics.

Biotech Wins Last Week: 5 Best ETFs

Biotechnology sector-related exchange traded funds continued to rally Friday on reports that Pfizer Inc. (NYSE: PFE) is looking to acquire Global Blood Therapeutics (NasdaqGS: GBT). On Friday, the Virtus LifeSci Biotech Products ETF (BBP) rose 1.8%, the SPDR S&P Biotech ETF (XBI) increased 3.6%, and the ALPS Medical Breakthroughs ETF (SBIO) was up 3.9%.

Biotech ETFs Rally as Global Blood Therapeutics Surges on Potential Pfizer Deal

Global Blood Therapeutics (NasdaqGS: GBT) shares climbed Thursday, lifting biotechnology sector-related exchange traded funds, on speculation of takeover bids for the small drug developer. On Thursday, the Virtus LifeSci Biotech Products ETF (BBP) rose 7.2%, the SPDR S&P Biotech ETF (XBI) increased 5.2%, and the ALPS Medical Breakthroughs ETF (SBIO) was up 5.1%.

Biotech ETFs Advance on Speculation of a Takeover Bid for Global Blood Therapeutics

Biotech, the downtrodden segment of the market, has made a solid comeback on bargain hunting.

5 ETFs Riding High on the Biotech Comeback

Biotechnology stocks and sector-related exchange traded funds have been gaining momentum as investors return to this downtrodden segment of the market. Over the past month, the Virtus LifeSci Biotech Clinical Trials ETF (BBC) gained 15.5%, the Virtus LifeSci Biotech Products ETF (BBP) rose 12.8%, the SPDR S&P Biotech ETF (XBI) increased 11.3% and the ALPS [.

Biotech ETFs Are Making a Comeback

Johnson & Johnson

Moderna

Biotech ETFs was the biggest gainer last week.

Biotech ETFs That Outperformed Last Week

Wall Street was downbeat last week with all indexes in the red. Still, Healthcare sector emerged as a key winner last week.

Healthcare Emerges as Best Sector of Last Week: 5 Top ETFs

Annovis Bio

Arvinas Inc

Anavex Life Sciences

Biogen

Denali Therapeutics

Tekla Life Sciences Investors

Defiance Nasdaq Junior Biotechnology ETF

INmune Bio Inc

Intra-Cellular Therapies

Karuna Therapeutics Inc

Direxion Daily S&P Biotech Bear 3X Shares

Direxion Daily S&P Biotech Bull 3X Shares

Prothena

Cassava Sciences Inc

Supernus Pharmaceuticals

Biotechs are ready to march forcefully higher after a lengthy consolidation. Approval of Biogen's Alzheimer's treatment creates a bonanza for neurodegenerative-focused companies and the overall biotech sector.

Biotechs Ready To Roar

Direxion Daily Healthcare Bull 3x Shares

Tekla Healthcare Investors

John Hancock Multifactor Healthcare ETF

ProShares UltraShort Health Care

ProShares Ultra Health Care

Tekla Healthcare Opportunities

Pacer BioThreat ETF

The first quarter of 2021 was challenging for the biotechnology industry, as the selloff in March represented a sharp reversal from record highs in February. While the sector has remained relatively resilient throughout the pandemic, we expect a full recovery in the latter half of this year, as operations that were disrupted return to normal.

Biotech Innovations Remain At Forefront

Just over one year after COVID-19 disrupted our lives, we are now getting to the point where multiple vaccine options are nearly ubiquitous for those in the United States. Per the CDC, as of April 12, 36% of the entire US population has received at least one vaccine, and 79% of those aged 65 years and older.

Moving Beyond COVID In Biopharma

iShares U.S. Home Construction ETF

Invesco DWA Industrials Momentum Portfolio

SPDR S&P Retail ETF

SPDR S&P Semiconductor ETF

As most corners of the market rallied on the slew of positive news, a few sectors scaled new highs. We have highlighted five ETFs from different sectors that hit all-time highs in the recent trading session.

Beyond Clean Energy, 5 Sector ETFs Soaring to Record Highs

Global X Cloud Computing ETF

Proshares Online Retail ETF

Invesco WilderHill Clean Energy ETF

The S&P 500 posted its best third-quarter gains since 2010 with an advancement of 8.5%. The gains could continue as the October-December period is normally gainful for the market.

4 ETFs to Play the Hot Events of Q4

WisdomTree Japan Hedged SmallCap Equity Fund

Renaissance IPO ETF

Invesco Solar ETF

Barclays Inverse US Treasury Composite ETN

After a superb August, September turned gloomy for Wall Street.

Top-Performing ETFs of the Worst September Since 2011

Roundhill Sports Betting & iGaming ETF

Global X Education ETF

The combination of lofty valuation, lack of additional fiscal stimulus package, election uncertainty and rising U.S.-China tensions weighed on investors' sentiment.

5 ETFs Shining Bright Amid September Selling

Invesco Global Clean Energy Portfolio

Invesco S&P 500 Equal Weight Materials ETF

After a superb August, September looks gloomy for Wall Street. Still,

"Worst September in 18 Years"? 4 Sector ETFs Surviving Selloffs

Late-stage biotech exchange-traded funds were among the day's biggest gainers Monday as investors pinned their hopes on medical responses to the novel coronavirus. The ALPS Medical Breakthroughs ETF  was up nearly 3% at midday, while the Virtus LifeSci Biotech Products ETF  was up 2.7%.

Late-stage biotech ETFs rally Monday on virus treatment hopes

Increasing M&A deals, growing AI dominance and favorable regulatory tidings continue to work in favor of the biotech market.

A Guide to Biotech ETF Investing

Hepion Pharmaceuticals Inc

The biotech sector got a boost over the past week from a flurry of positive news including trial results and deal activities.

Biotech ETFs Surge on a Flurry of Positive News

While the rest of the biotechnology sector remained depressed along with the broader markets, related exchange traded funds found strength from an unexpected surge in ACADIA Pharmaceuticals (NasdaqGS: ACAD), following the biopharma company’s positive announcement for a phase 3 trail on dementia-related psychosis.

ACADIA Pharmaceuticals Help Lift Biotech ETFs

Increasing M&A deals, growing AI dominance and favorable regulatory tidings continue to accelerate the biotech market. Accordingly, ETFs with exposure to the sector continue to shine.

Biotechnology Market on a Tear: 5 ETFs in Spotlight

News for Virtus LifeSci Biotech Products ETF ETF (BBP)