Virtus launches actively managed global multi-factor ETF

Oct 19th, 2017 | By | Category: Equities

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Virtus ETF Solutions has launched a new global multi-factor ETF – the Virtus WMC Global Factor Opportunities ETF (NYSE Arca: VGFO), sub-advised by Wellington Management.

William J. Smalley, executive managing director and head of product strategy and management, Virtus ETF Solutions.

William J. Smalley, executive managing director and head of product strategy and management, Virtus ETF Solutions.

“This new relationship allows Virtus to leverage Wellington Management’s proprietary, independent research and vast expertise in global equities, as well as its advanced risk management platform, to structure a portfolio that adapts to an evolving economic climate,” said William J. Smalley, executive managing director and head of product strategy and management at Virtus ETF Solutions. “We are committed to growing our ETF platform and VGFO is an innovative ETF solution managed by a sub-adviser with a long history and deep investment management expertise.”

VGFO seeks to outperform the MSCI All Country World Index, by investing primarily in equity securities of US and foreign issuers, including emerging markets issuers, of any market capitalization.

The actively managed fund employs a multi-factor approach based on quantitative and qualitative research and analysis. It seeks to identify investment opportunities by region and, within each region, allocate the fund’s assets to equity securities it believes share complementary factors. According to the fund’s prospectus, VGFO seeks to identify the most attractive factors within value, momentum, and quality buckets.

“The dynamic, multi-factor approach combines the benefits of smart beta and active risk management, representing the next generation of factor investing,” added Smalley. “VGFO allows investors who use smart beta in their portfolios to outsource the factor allocation decision-making to Wellington Management, a highly respected firm whose capabilities span nearly all segments of the global capital markets.”

Gregg Thomas, senior managing director, and Thomas Simon, managing director, both of Wellington Management, are the portfolio managers of VGFO.

“We’re seeking to provide investors with exposure to attractive investment opportunities by leveraging our in-depth, proprietary research and risk management techniques to tilt the portfolio’s factor profile to take advantage of changing valuations and market risks,” said Simon. “We are excited to have the opportunity to offer this strategy to investors in an ETF structure through this new relationship with Virtus.”

VGFO has a total expense ratio of 0.49%.

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