Virtus Duff & Phelps Clean Energy ETF (VCLN US) – Portfolio Construction Methodology

The investment strategy driving the actively managed Virtus Duff & Phelps Clean Energy ETF targets global clean energy exposure by owning equity securities of companies that derive a majority of their economic value from producing, transmitting, or enabling clean energy. The sub-adviser screens listed issuers across developed and emerging markets in the utilities, industrials, technology, and energy sectors, requiring a minimum float-adjusted market capitalization threshold and sufficient trading liquidity. Fundamental and thematic research then narrows the universe to businesses whose revenues, assets, capital spending, and profits are predominantly linked to clean energy activities, enforcing an internal clean-energy eligibility framework. Portfolio construction emphasizes pure-play exposure, limits any single position to ≤10% of portfolio market value at purchase, and allows geographic and industry concentration consistent with a focused clean energy mandate. The fund is non-diversified and is rebalanced as fundamentals, clean-energy alignment, and relative opportunities across regions and segments evolve.

To explore VCLN in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/VCLN_US