Duff & Phelps Investment Management Introduces Actively Managed Clean Energy ETF
On August 4, 2021, Virtus Investment Partners (NASDAQ: VRTS) and Duff & Phelps Investment Management announced the launch of the Virtus Duff & Phelps Clean Energy ETF (NYSE: VCLN). This actively managed ETF aims to deliver attractive total returns by investing in clean and renewable energy companies worldwide. David Grumhaus, Jr., President and CIO of Duff & Phelps, highlighted the ETF's focus on leading market innovators in the sector. As of June 30, 2021, Duff & Phelps managed $11.4 billion in assets, emphasizing their depth of resources and expertise in energy investing.
- Launch of Virtus Duff & Phelps Clean Energy ETF (VCLN) supports long-term investment in clean energy.
- Actively managed strategy distinguishes VCLN from passive competitors, potentially improving risk profile.
- Management's extensive experience in energy investing may lead to superior returns.
- Investments in the clean energy sector may be volatile due to market fluctuations and political risks.
- Limited number of investments could increase susceptibility to individual security performance risks.
HARTFORD, Conn., Aug. 4, 2021 /PRNewswire/ -- Duff & Phelps Investment Management Co. and Virtus ETF Solutions, both affiliates of Virtus Investment Partners, Inc. (NASDAQ: VRTS), today announced the introduction of the Virtus Duff & Phelps Clean Energy ETF (NYSE: VCLN), the first ETF strategy managed by Duff & Phelps.
The Virtus Duff & Phelps Clean Energy ETF seeks attractive total returns by investing globally in a portfolio of clean, renewable, and sustainable companies and technologies that will power the energy needs of the future. Actively managed, VCLN focuses on well-positioned market leaders at the forefront of clean energy innovation and commercialization.
"As society moves towards a more sustainable future, the energy and power sectors are beginning a major shift and VCLN can help investors benefit from this long-term capital replacement cycle," said David Grumhaus, Jr., president and chief investment officer of Duff & Phelps. "Our history, disciplined investment approach, exceptional depth of resources, and expertise in utilities and energy investing gives us a specialized perspective and understanding of this changing sector."
According to Grumhaus, VCLN's investment process contrasts favorably with the less defined investment processes of passive clean energy indexes, which are often driven by market capitalization and clean energy exposure scores derived from static, sometimes opaque, criteria. By contrast, Duff & Phelps' active investment management approach is more comprehensive than those of its passive competitors, resulting in a high-conviction stock portfolio with a more balanced risk profile.
"Duff & Phelps' rigorous investment process around energy infrastructure and clean energy makes VCLN a compelling, thematic equity strategy for the Virtus ETF suite," said William Smalley, executive managing director of Virtus ETF Solutions. "We believe strong active management, unconstrained by backward-looking and arbitrary rules, is an implementation style well suited to capture the dynamism of an exciting, emerging investment theme such as clean energy."
"We look forward to delivering our investment expertise through our first ETF," added Grumhaus. "Partnering with Virtus ETF Solutions provides the platform for investors to universally access our time-tested and experienced investment capabilities through an efficient, transparent vehicle."
Duff & Phelps managed
About Duff & Phelps Investment Management
Duff & Phelps Investment Management Co., an affiliated manager of Virtus Investment Partners, Inc., began in 1932 as a fundamental research firm and has been managing assets since 1979. The firm seeks to provide specialty investment strategies that enhance client outcomes through active portfolio management and customized solutions, with a process whose values include quality, reliability, and specialization. Investment strategies include global listed infrastructure, U.S. and global real estate securities, energy infrastructure and clean energy.
About Virtus ETF Solutions
Virtus ETF Solutions, (VES) is a multi-manager ETF sponsor that offers actively managed and index-based investment capabilities across multiple asset classes, seeking to deliver a family of complementary ETFs that are subadvised by select investment managers.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process, and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. In addition to Duff & Phelps Investment Management and Virtus ETF Solutions, its affiliates include Ceredex Value Advisors, Kayne Anderson Rudnick Investment Management, Newfleet Asset Management, NFJ Investment Group, Seix Investment Advisors, Silvant Capital Management, and Sustainable Growth Advisers. Additional information is available at virtus.com.
Risk Considerations
Exchange-Traded Funds (ETF): The value of an ETF may be more volatile than the underlying portfolio of securities it is designed to track. The costs to the fund of owning shares of an ETF may exceed the cost of investing directly in the underlying securities. Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk. Clean Energy Industry: Developments in the clean energy segment could adversely affect the price and valuations of portfolio holdings. These developments include swift price and supply fluctuations caused by events relating to international politics, the success of project development, and tax and other governmental regulatory policies. There could also be weak demand for clean energy company products or services, the obsolescence of existing technology or short product cycles, and falling prices and profits due to the supply of, and demand for, oil and gas along with competition from new market entrants. Limited Number of Investments: Because the portfolio has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a less concentrated portfolio. Foreign & Emerging Market: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk. Non-Diversified: The fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the fund's assets. Market Price/NAV: At the time of purchase and/or sale, an investor's shares may have a market price that is above or below the fund's NAV, which may increase the investor's risk of loss. Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolio's assets as intended. Prospectus: For additional information on risks, please see the fund's prospectus.
Please consider the Fund's objectives, risks, charges, and expenses before investing. Contact us at 1.800.243.4361 or visit www.virtus.com for a prospectus, which contains this and other information about the Fund. Read the prospectus carefully before investing.
Distributed by VP Distributors, LLC.
Contacts | |
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(860) 263-4725 | (862) 777-4274 |
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SOURCE Virtus Investment Partners, Inc.
FAQ
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