NFLT: new Unconstrained Bond ETF by Newfleet

Newfleet Asset Management begun trading the Virtus Newfleet Multi-Sector Unconstrained Bond ETF (NYSEArca: NFLT) on Tuesday, August 11, 2015.



Symbol: NFLT    Exchange: NYSE Arca
Name: Virtus Newfleet Multi-Sector Unconstrained Bond ETF Net Expense Ratio: 0.80%


The Virtus Newfleet Multi-Sector Unconstrained Bond ETF seeks to provide a high level of current income and, secondarily, capital appreciation. In seeking to achieve the Fund’s investment objective, Newfleet Asset Management, LLC (Sub-Adviser) applies a time-tested approach to credit research to capitalize on opportunities across undervalued areas of the bond markets. The Sub-Adviser seeks to provide diversification by allocating the Fund’s investments among various sectors of the fixed income markets, including, without limitation, corporate investment-grade, corporate high-yield, bank loans, non-agency commercial mortgage-backed securities (CMBS), agency and non-agency residential mortgage-backed securities (RMBS), non-U.S. dollar securities, emerging market high-yield securities, Yankee investment-grade bonds, asset-backed securities, taxable municipal bonds, tax-exempt municipal bonds and securities issued or guaranteed as to principal and interest by the U.S. government, its agencies, authorities or instrumentalities.

The Fund’s fixed income investments may be issued by various types of issuers and may include some or all of the following:
* Securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies, authorities or instrumentalities, including, without limitation, collateralized mortgage obligations (CMOs), real estate mortgage investment conduits (REMICs) and other pass-through securities;
* Debt securities issued by foreign issuers, including foreign governments and their political subdivisions and issuers located in emerging markets countries;
* Investment grade securities of U.S. and non-U.S. issuers, including short-term securities; and
* High yield debt instruments of U.S. and non-U.S. issuers (junk bonds), which may include bank loans (generally with floating rates).

Under normal market conditions, the Sub-Adviser seeks to select securities using a sector rotation approach and seeks to adjust the proportion of Fund investments in various sectors and sub-sectors in an effort to obtain higher relative returns. Sectors and sub-sectors are analyzed by the Sub-Adviser for attractive relative values. The Sub-Adviser then typically identifies securities within these sectors and sub-sectors based on the particular issuer’s business, management, cash, assets, earnings and stability, as well as the economic and financial conditions of markets generally. Securities selected for investment are typically those that the Sub-Adviser believes offer the greatest available potential to achieve relatively high income and total return based on the Sub-Adviser’s risk-reward analysis.
The Fund may invest in securities of U.S. or non-U.S. issuers of any maturity or credit quality rating. With respect to maturity, the Fund has no target duration for its investment portfolio and the Fund’s portfolio managers may target shorter or longer durations in response to their view of the fixed income markets generally or any sector thereof. Duration measures the interest rate sensitivity of a fixed income security by assessing and weighting the present value of the security’s payment pattern. Generally, the longer the maturity, the greater the duration and, therefore, the greater effect interest rate changes have on the price of the security. From time to time, the Sub-Adviser may use Treasury futures, either long or short, to adjust total  portfolio duration. With respect to credit quality, the Fund may invest in investment grade or non-investment grade securities, without limitation.


ETF’s Top Holdings:

TREASURY BILL 0.000 09/03/2015 1.90%
RAST 2005-A1 A3 5.500 04/25/2035 1.51%
DPABS 2012-1A A2 5.216 01/25/2042 1.46%
AIR CANADA 2013-1B PTT 5.375 05/15/2021 1.42%
VOLT 2014-NP10 A1 3.375 10/25/2054 0.95%
HAWAIIAN AIRLINES 13-1B 4.950 01/15/2022 0.83%
CSMC 2007-C5 A1AM 5.870 09/15/2040 0.79%
WEN 2015-1A A2II 4.080 06/15/2045 0.78%
HNGRY 2013-1A A2 4.474 0.77%

Useful Links:
NFLT Home Page

Category: Bonds> Diversified Bonds> Global Diversified Bonds

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