VSHY

📎 Investment Objective

The Virtus Newfleet Short Duration High Yield Bond ETF seeks to provide a high level of current income.

✨ Key Features

• Focuses on high-yield corporate bonds with short durations, typically less than 3 years
• Aims to provide higher income potential than investment-grade short-term bonds
• Actively managed by Newfleet Asset Management, a specialized fixed income manager
• Relatively low interest rate sensitivity due to short duration positioning

⚠️ Primary Risks

• High-yield/junk bond risk: Invests in lower-rated, higher-yielding debt securities which carry greater credit risk
• Interest rate risk: Prices of fixed income securities generally rise when interest rates decline and vice versa
• Liquidity risk: The fund may have difficulty selling certain high-yield securities at an advantageous time and price
• Active management risk: The fund's performance could deviate from the benchmark due to the portfolio manager's security selection and asset allocation decisions

👤 Best For

This ETF may be suitable for investors seeking higher current income than traditional short-term bond funds, while maintaining a relatively low duration profile to mitigate interest rate risk. It is best suited for investors with a medium-term investment horizon and a moderate risk tolerance.