Virtus Newfleet Multi-Sector Bond ETF (NFLT US) – Portfolio Construction Methodology

The investment philosophy underpinning the actively managed Virtus Newfleet Multi-Sector Bond ETF is a relative-value, multi-sector credit approach that seeks high current income and, secondarily, capital appreciation across the global fixed income universe. Sector allocation is set top-down using spreads, supply/demand, and macro regime inputs, while bottom-up security selection emphasizes fundamental credit research, structure, and valuations. The investable set spans investment-grade and high-yield corporates, senior loans, non-agency RMBS/CMBS/ABS, sovereigns and quasi-sovereigns (developed and emerging), and other debt instruments; the portfolio may also use ETFs and derivatives for exposure or hedging. Portfolio construction balances sector and issuer diversification with duration, quality, and liquidity controls; capacity is supported by broad, tradeable fixed-income markets. Risk is monitored via sector concentration and duration positioning, with trims/adds driven by relative-value shifts and credit catalysts; rebalancing is continuous.

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