On Wednesday, Virtus Investment Partners released its newest fund, the Virtus KAR Mid-Cap ETF (KMID ).
KMID is an actively managed fund that seeks to generate long-term capital appreciation. Its net expense ratio is 0.80%.
KMID invests its assets primarily in equities within the midcap sector. The fund seeks to present less market risk than the Russell Midcap Index.
Kayne Anderson Rudnick Investment Management (KAR) operates as KMID’s sub-adviser. When choosing assets to add to KMID’s portfolio, KAR seeks companies with strong growth potential despite lower valuations.
KAR’s selection strategy focuses on cultivating a selection of companies that offer compelling competitive advantages, strong balance sheets, and minimal risk. By doing so, KMID aspires to build a portfolio of companies that are positioned to grow well over market cycles.
Midcap Advantages
In the current rate-cutting environment, midcap equities can create strong opportunities for investors. Midcaps can offer more stability than small caps and a longer avenue for growth than their large-cap peers.
Traditionally, KMID aims to have between 25 and 35 securities in its portfolio at any given time. U.S. companies remain the primary focus of KMID’s investments. However, the fund reserves the right to invest in American depositary receipts (ADRs) as well.
As a non-diversified fund, KMID can allocate a larger percentage of assets to particular issuers or sectors. According to its fund prospectus, the fund has stronger exposure to the consumer discretionary, industrials, financials, and information technology sectors.
With KMID now available on the market, Virtus Investment Partners has 19 ETFs listed in the United States. The Virtus InfraCap U.S. Preferred Stock ETF (PFFA ) is one of the largest Virtus ETFs, representing over $1.3 billion in assets under management.
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