ETF Watch: Virtus Plans Risk Managed Active Equity Fund

Proposed fund will seek to outperform global equity market.
Reviewed by: Staff
Edited by: Staff

Virtus has filed for an ETF that will provide global equity exposure with a risk-managed twist. The Virtus WMC Global Factor Opportunities ETF (VGFO) will be managed by Wellington Management Co., and will approach the global market from a regional perspective.

The fund will generally maintain a portfolio with exposure to the markets of at least three different countries at any given time. On a regional basis, the fund will seek to invest in securities exhibiting complementary factors as determined by qualitative research and analysis, the prospectus said.

Generally, VGFO’s managers will evaluate companies based on mean reversion, trend following and risk aversion. It will also seek to limit risk by giving preference to “least risky” investment choices when all other qualities are equal. In particular, the fund’s managers will pay close attention to tail risk diversification, according to the prospectus.

The fund will primarily target equities from the U.S., developed markets and emerging markets. The filing did not include an expense ratio, but it did indicate the fund will list on the NYSE Arca.

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