Strength in Virtus Seix Senior Loan ETF's People Pillar is partially offset by an Average Process Pillar rating, leading to a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy merits an Average Process Pillar. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Morningstar's style-agnostic evaluation of this fund's process seeks to understand whether the strategy has a performance objective and sensible, repeatable execution. Virtus Seix Senior Loan ETF earns an Average Process Pillar rating.    The main contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 55%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. Management team experience, which averages 19 years at this fund, also bolsters the rating. Lastly, the process is limited by its parent firm's risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.0 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

 The investment strategy as stated in the fund's prospectus is as follows: 


The investment seeks to provide a high level of current income.  The fund is an actively managed exchange-traded fund ("ETF") that seeks to achieve its investment objective by investing, under normal market circumstances, and at least 80% of its net assets (plus any borrowings for investment purposes) in a combination of first- and second-lien senior floating rate loans. These loans are made by banks and other large financial institutions to various companies and are senior in the borrowing companies' capital structure. The fund is non-diversified.

 This strategy's 12-month yield is 9.0%, higher than its average peer's 8.5%. In addition, it has a 9.5% 30-day SEC yield (a measure similar to yield-to-maturity). Typically, higher yields come at the cost of higher credit risk.

Average

Process

Virtus Seix Senior Loan ETF earns an Above Average People Pillar rating. George Goudelias, the longest-tenured manager on the strategy, provides strong guidance, offering 23 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 4.0 stars, demonstrating impressive risk-adjusted performance. George Goudelias has an experienced backdrop of support. The three listed managers boast 19 years of average listed portfolio management experience. As a team, they manage two investment vehicles together, with mixed prospects. The asset-weighted average Morningstar Medalist Rating across the strategies is Neutral. This means, in aggregate, they are not positioned to deliver positive alpha. The highest personal investment by any of the strategy's managers is between $10,000 and $50,000. That is too low to promote alignment of their interests with the fund's investors.

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

Above Average

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.

Parent

Virtus Seix Senior Loan ETF

SEIX provides actively-managed exposure to noninvestment-grade, floating-rate loans made by banks to US corporations.

Invesco Senior Loan ETF

Fidelity Low Duration Bond Factor ETF

iShares Floating Rate Bond ETF

JPMorgan Ultra-Short Income ETF

ProShares UltraShort 7-10 Year Treasury

Global X Interest Rate Hedge ETF

ProShares UltraShort Utilities

ProShares UltraShort Real Estate

ProShares UltraShort 20+ Year Treasury

iShares Treasury Floating Rate Bond ETF

Direxion Daily 20+ Year Treasury Bear 3X Shares

Stocks slumped to start Q2 as an interest rate cut by the Fed may come later than anticipated before. Investors can rely on these ETF strategies to play rising yields.

ETF Strategies to Play Rising Yields

SEIX is an actively managed senior loan ETF. The fund offers investors a strong 8.9% yield and performance track-record, both better than those of its peers. Although yields will almost certainly drop as the Fed cuts rates, these should remain competitive to those of most bonds, including high-yield bonds.

SEIX: Senior Loan ETF, Strong 8.9% Yield And Performance Track Record

The Virtus Seix Senior Loan ETF stands out relative to larger peers due to its superior historical performance and smaller size. SEIX charges a reasonable expense ratio compared to peer funds. SEIX has delivered downside protection for investors during challenging risk-off environments historically.

SEIX: Impressive Performance Vs. Peers Can Continue

Simplify Interest Rate Hedge ETF

Invesco Global Short Term High Yield Bond ETF

ProShares Short Real Estate

The U.S. jobs market has been hot despite higher rates while U.S. consumers have been resilient despite high inflation.

ETF Strategies to Follow Amid Rising Rates

Franklin Senior Loan ETF

First Trust Senior Loan Fund

 SPDR Blackstone Senior Loan ETF

Amid the prospect of higher interest rates for a longer-than-expected period, investors are flocking to bank loan ETFs.

5 Bank Loan ETFs to Capitalize on Higher Rates

Senior loan ETFs can offer protection against rising interest rates.

An Introduction to Senior Loan ETFs

Highland iBoxx Senior Loan ETF

Bond yields are likely to be high going into 2024. Here are the best ETF strategies to play the scenario.

Bond Yields Likely to Remain High in 2024: ETF Strategies in Focus

With their unique characteristics, such as floating interest rates and seniority in the capital structure, senior loan ETFs can provide stability amid rising rate environment.

Time to Buy Senior Loan ETFs as Rates Hit a 16-Year High?

The U.S. Treasury yields have been on a surge lately, driven by expectations that the Fed will keep interest rates higher for longer to fight inflation.

ETF Strategies to Fight Rising Rates

Investors seeking momentum may have Virtus Seix Senior Loan ETF SEIX on radar now. The fund recently hit a new 52-week high.

Senior Loan ETF (SEIX) Hits a 52-Week High

High yield bonds are enduring their share of punishment as interest rates spike and leveraged loans are getting caught up in the downdraft, but some market observers believe high yield bonds are offering value to income investors. Assuming that call is accurate, it could spell relief for exchange traded funds such as the Virtus Seix [.

Leveraged Loans Still Useful to Income Investors

Senior loans, also known as bank loans or leveraged loans, aren't entirely immune to the downdraft in the fixed income market this year. However, many of the exchange traded funds addressing this asset class are performing less poorly than broader bond strategies.

Size Up SEIX for Senior Loan Perks

Exchange traded fund investors can look to the alternative income category to help make the best risk return trade-off to meet their income needs. In the recent webcast, Enhance Your Fixed Income Portfolio with Rising Rate Strategies: Senior Loans and Securitized Debt, George Goudelias, Head of Leveraged Finance, Senior Portfolio Manager, Seix Investment Advisors; Nicodemus [.

Alternative Fixed-Income ETF Strategies for Challenging Market Conditions

Markets might be shifting rapidly, but investors' need for steady income hasn't changed. To maintain comfortable yields in an environment of rising interest rates and inflation, investors should consider out-of-the-box fixed income exposures, such as senior loans or securitized debt.

Enhance Your Fixed Income Portfolio with Rising Rate Strategies: Senior Loans and Securitized Debt

Virtus InfraCap U.S. Preferred Stock ETF

InfraCap REIT Preferred ETF

Reaves Utilities ETF

Virtus Investment Partners, a multi-manager asset management business, discusses why advisors should consider preferreds, bank loans, and utilities for investing in, the importance of diversification in a client's portfolio, and strategies for considering and approaching non-traditional allocations in a webcast moderated by Tom Lydon, CEO of ETF Trends. George Goudelias, head of leveraged finance, senior [.

Nontraditional Strategies to Consider in a Rising Rate Environment

InfraCap MLP

The hunt for income has become a never-ending quest in recent years, as the bond markets' rapidly changing dynamics simply aren't getting the job done for most investors. In response, many advisors have turned to non-traditional sources of portfolio yield.

Non-Traditional Income: Strategies for a Rising Rate Environment

In a lower-for-longer yield environment, exchange traded fund investors can turn to non-traditional sources of income to bolster their fixed income portfolios. In the recent webcast, Income for a Better Outcome: Where to Invest in Non-Traditional Income, Jay D.

Alternative ETF Strategies to Bolster Your Income Portfolio

Ares Dynamic Credit Allocation Fund

Invesco BulletShares 2023 High Yield Corporate Bond ETF

First Trust TCW Opportunistic Fixed Income ETF

Hartford Municipal Opportunities ETF

VanEck High Yield Muni ETF

First Trust Tactical High Yield ETF

SPDR Nuveen S&P High Yield Municipal Bond ETF

JPMorgan High Yield Research Enhanced ETF

Invesco KBW Premium Yield Equity REIT ETF

PIMCO Enhanced Short Maturity Active ETF

Virtus Newfleet Multi-Sector Bond ETF

WisdomTree CBOE S&P 500 PutWrite Strategy Fund

Global X NASDAQ 100 Covered Call ETF

Global X SuperDividend REIT ETF

Vanguard Short-Term Corporate Bond ETF

Vanguard Mortgage-Backed Securities ETF

Vanguard Real Estate ETF

Global X S&P 500 Covered Call ETF

In counter-cyclical investing, we want to buy CEFs when discounts are wide and sell them when discounts are tight. The problem we run into is that when we swap, we give up the upside of the NAVs should the bull market continue. We also give up higher income streams.

Swap Options For Reducing Discount Risk And Not Sacrificing A Ton Of Yield

Exchange traded fund investors should consider the diversification benefits of including senior loan strategies in an investment portfolio. In the recent webcast, Loans, An All-Weather Asset Class, George Goudelias, Head of Leveraged Finance, Senior Portfolio Manager, Seix Investment Advisors, explained that leveraged loans deliver competitive returns per unit of risk, which takes into account the [.

Leveraged Loan ETFs Can Provide Stable Income Generation

With returns on bonds as paltry as ever, fixed income investors must rethink their income strategies. Yet many such portfolios remain static, with one-dimensional, antiquated approaches still taking precedence.

News for Virtus Seix Senior Loan ETF ETF (SEIX)