VESHVirtus Enhanced Short U.S. Equity ETF
VESH Fund Description
The Virtus Enhanced Short U.S. Equity ETF is an actively managed fund that takes short positions in US equity index futures. The fund aims to outperform -100% of the total return of the S&P 500 Index.
VESH Factset Analytics Insight
For bearish equity investors, VESH makes an intriguing offer: inverse exposure to US large-caps, with the potential for outperformance of a simple -1x position. At each monthly rebalance, half of the portfolio is used to sell short S&P 500 futures. For the other half, the fund measures the trailing nine-month performance of each S&P 500 sector sub-index, taking short futures positions in the five weakest sectors. The five sectors are weighted proportionally to their weight in the broader index. The strategy amounts to a momentum play—a bet that underperforming sectors will continue to underperform. Monthly rebalancing and a reasonable fee make the fund suitable for longer holding periods compared to its daily-reset competitors. However, VESH is not a buy-and-hold product, so be sure to account for trading costs. As an active fund, VESH isn’t obligated to follow its strategy to the letter, but any deviations are likely to be technical (e.g., substituting short index ETFs for short index futures) rather than strategic.
VESH CHARTS AND PERFORMANCE
VESH Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of VESH. VESH is rated a N/A out of 5.