Virtus Introduces Virtus Seix AAA Private Credit CLO ETF
Virtus Investment Partners (NYSE: VRTS) has launched the Virtus Seix AAA Private Credit CLO ETF (NYSE Arca: PCLO), the first ETF focusing on private credit collateralized loan obligations. The actively managed ETF primarily invests in AAA-rated private credit CLOs, aiming to provide higher income and lower volatility compared to traditional fixed income investments.
The fund is managed by Seix Investment Advisors' John Wu and George Goudelias, leveraging Seix's extensive CLO experience, including management of 10 CLOs with approximately $3.4 billion in assets. This launch expands Virtus ETF Solutions' portfolio, which currently manages $2.6 billion in assets across 20 ETFs as of September 30, 2024.
Virtus Investment Partners (NYSE: VRTS) ha lanciato il Virtus Seix AAA Private Credit CLO ETF (NYSE Arca: PCLO), il primo ETF dedicato alle obbligazioni collaterizzate da prestiti privati. L'ETF gestito attivamente investe principalmente in CLO privati con rating AAA, cercando di fornire un reddito più elevato e una minore volatilità rispetto agli investimenti tradizionali a reddito fisso.
Il fondo è gestito da John Wu e George Goudelias di Seix Investment Advisors, sfruttando l'ampia esperienza di Seix nei CLO, che include la gestione di 10 CLO con circa $3.4 miliardi in attivi. Questo lancio espande il portafoglio di Virtus ETF Solutions, che attualmente gestisce $2.6 miliardi in attivi attraverso 20 ETF a partire dal 30 settembre 2024.
Virtus Investment Partners (NYSE: VRTS) ha lanzado el Virtus Seix AAA Private Credit CLO ETF (NYSE Arca: PCLO), el primer ETF centrado en obligaciones de préstamos garantizados de crédito privado. El ETF, gestionado activamente, invierte principalmente en CLO privados con calificación AAA, con el objetivo de proporcionar mayores ingresos y menor volatilidad en comparación con las inversiones tradicionales de renta fija.
El fondo es administrado por John Wu y George Goudelias de Seix Investment Advisors, aprovechando la amplia experiencia de Seix en CLO, que incluye la gestión de 10 CLO con aproximadamente $3.4 mil millones en activos. Este lanzamiento amplía el portafolio de Virtus ETF Solutions, que actualmente gestiona $2.6 mil millones en activos a través de 20 ETF a partir del 30 de septiembre de 2024.
Virtus Investment Partners (NYSE: VRTS)는 Virtus Seix AAA Private Credit CLO ETF (NYSE Arca: PCLO)를 출시했습니다. 이는 사모 신용 담보부 대출 채권(CLO)에 초점을 맞춘 최초의 ETF입니다. 이 ETF는 AAA 등급의 사모 신용 CLO에 주로 투자하며, 전통적인 고정 소득 투자에 비해 더 높은 수익과 낮은 변동성을 제공하는 것을 목표로 합니다.
펀드는 Seix Investment Advisors의 John Wu와 George Goudelias가 관리하며, Seix의 광범위한 CLO 관리 경험을 활용하고 있습니다. Seix는 약 $3.4억 달러의 자산을 가진 10개의 CLO를 관리합니다. 이번 출시로 Virtus ETF Solutions의 포트폴리오가 확장되어 현재 2024년 9월 30일 기준으로 20개의 ETF로 $2.6억 달러의 자산을 관리하고 있습니다.
Virtus Investment Partners (NYSE: VRTS) a lancé le Virtus Seix AAA Private Credit CLO ETF (NYSE Arca: PCLO), le premier ETF axé sur les obligations de prêts collatéralisés de crédit privé. Cet ETF activement géré investit principalement dans des CLO de crédit privé notés AAA, visant à fournir un revenu plus élevé et une volatilité plus faible par rapport aux investissements obligataires traditionnels.
Le fonds est géré par John Wu et George Goudelias de Seix Investment Advisors, tirant parti de l'expérience étendue de Seix dans les CLO, y compris la gestion de 10 CLO d'un montant d'environ $3.4 milliards. Ce lancement élargit le portefeuille de Virtus ETF Solutions, qui gère actuellement $2.6 milliards d'actifs à travers 20 ETF au 30 septembre 2024.
Virtus Investment Partners (NYSE: VRTS) hat den Virtus Seix AAA Private Credit CLO ETF (NYSE Arca: PCLO) eingeführt, den ersten ETF, der sich auf private Kredit-geschützte Darlehensverbindlichkeiten konzentriert. Der aktiv verwaltete ETF investiert hauptsächlich in AAA-bewertete private Kredit-CLOs und zielt darauf ab, höhere Einkünfte und eine geringere Volatilität im Vergleich zu traditionellen festverzinslichen Anlagen zu bieten.
Der Fonds wird von John Wu und George Goudelias von Seix Investment Advisors verwaltet, die die umfangreiche CLO-Erfahrung von Seix nutzen, einschließlich der Verwaltung von 10 CLOs mit etwa $3.4 Milliarden an Vermögenswerten. Diese Einführung erweitert das Portfolio von Virtus ETF Solutions, das derzeit verwaltet $2.6 Milliarden an Vermögenswerten in 20 ETFs zum Stand 30. September 2024.
- First-mover advantage in private credit CLO ETF space
- Expands product offering in growing ETF market
- Leverages existing expertise with $3.4B in CLO assets under management
- Provides investors access to traditionally less accessible private credit market
- None.
Insights
The launch of PCLO represents a strategic move into the growing private credit CLO market. This ETF fills a unique niche as the first ETF focused on private credit CLOs, targeting the highest-rated AAA segment. With Seix's established track record managing
The ETF structure offers retail investors rare access to private credit CLOs with better liquidity than traditional vehicles. This could be particularly attractive in the current high-yield environment where investors seek alternatives to traditional fixed income. However, success will depend on execution and market conditions, as private credit CLOs can face challenges during economic stress despite their AAA rating.
This product launch aligns with broader market trends showing increased retail investor demand for private credit exposure. The ETF wrapper makes an traditionally institutional product more accessible, potentially expanding Virtus's market reach. With
The timing is strategic, capitalizing on investor interest in yield-focused products amid market uncertainty. However, the specialized nature of private credit CLOs may require significant educational efforts to drive adoption. Competition from traditional fixed-income ETFs and potential regulatory scrutiny of private credit markets could impact growth prospects.
PCLO leverages Seix’s long-term CLO experience across credit cycles
The Virtus Seix AAA Private Credit CLO ETF, the first ETF to focus on private credit collateralized loan obligations (CLOs), primarily seeks to invest in the strongest and most undervalued AAA rated private credit CLOs and provides active management in a transparent, liquid, and cost-effective ETF.
“Private credit CLOs offer the potential for higher income and lower volatility versus traditional fixed income investments, providing investors with much needed diversification and lower correlation,” said Seix’s John Wu, CFA, portfolio manager and head of structured credit, who manages PCLO with George Goudelias, chief investment officer, leveraged finance, and senior portfolio manager. “With this offering, we will continue to take a multi-dimensional approach to portfolio management, combining time-tested portfolio construction methodology, disciplined trading strategies, and prudent risk management.”
Seix has significant experience in the CLO asset class, having launched its first leveraged loan strategy under Goudelias nearly 20 years ago. Seix now manages 10 CLOs with approximately
“We believe ETFs will become essential tools for investors seeking to access the burgeoning private credit market as it evolves,” said William J. Smalley, executive managing director, Virtus ETF Solutions. “Innovative products like PCLO provide a solution for investors seeking yield complements to a traditional portfolio, emphasizing efficiency and transparency.”
Virtus ETF Solutions offers 20 actively managed and index-based ETFs and had
About Seix Investment Advisors
Seix Investment Advisors is an investment management boutique and affiliated manager of Virtus Investment Partners that has been focused exclusively on managing fixed income securities since 1992. Seix seeks to generate competitive absolute and relative risk-adjusted returns over the full market cycle through a bottom-up focused, top-down aware process. Seix employs multi-dimensional approaches based on strict portfolio construction methodology, sell disciplines and trading strategies with prudent risk management as a cornerstone. The firm provides investment management services to a client base that includes endowments, foundations, corporations, healthcare organizations, public funds, insurance companies, and high net worth individuals, in the
About Virtus ETF Solutions
Virtus ETF Solutions is an ETF sponsor that offers actively managed and index-based investment capabilities across multiple asset classes, seeking to deliver a family of complementary ETFs that provide investors access to differentiated investment capabilities from select managers.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies 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 portfolio of owning shares of an ETF may exceed the cost of investing directly in the underlying securities. Collateralized Loan Obligations (CLO): The risks of investing in CLOs include both the economic risks of the underlying loans combined with the risks associated with the CLO structure governing the priority of payments. Private Credit: Private credit oriented CLOs bear the risks of the portfolio of loans that are privately negotiated between the borrower and a non-bank lender, including liquidity, industry, currency, valuation, and credit risks. Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities. High Yield Fixed Income Securities (Junk Bonds): There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities. 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 portfolio with a greater number of securities. Non-Diversified: The portfolio is not diversified and may be more susceptible to factors negatively impacting its holdings to the extent the portfolio invests more of its assets in the securities of fewer issuers than would a diversified portfolio. 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: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war, terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio’s manager(s) to invest its assets as intended.
Prospectus: For additional information on risks, please see the fund’s prospectus.
The J.P. Morgan CLOIE AAA Total Return Index (USD) is designed to track the performance of broadly-syndicated, arbitrage floating-rate
Please consider the Fund’s objectives, risks, charges, and expenses before investing. Contact us at 1.800.243.4361 or visit virtus.com for a prospectus, which contains this and other information about the Fund. Read the prospectus carefully before investing.
Not FDIC Insured. May Lose Value Not Bank Guaranteed
ETFs distributed by VP Distributors, LLC, member FINRA and subsidiary of Virtus Investment Partners, Inc.
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Media Relations Contacts
Zachary Allegretti II
(973) 214-5581
zallegrettiII@jconnelly.com
Josh Silvia
(860) 503-1327
josh.silvia@virtus.com
Source: Virtus Seix AAA Private Credit CLO ETF
FAQ
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Who manages the Virtus Seix AAA Private Credit CLO ETF (PCLO)?
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