On Tuesday, Virtus Investment Partners launched its latest active ETF, the Virtus Seix AAA Private Credit CLO ETF
The actively managed fund has a low net expense ratio of 0.29%. It looks to provide both income and preservation of capital. Portfolio management for the fund is done by Seix Investment Advisors.
The primary focus of PCLO’s investments lie in AAA-rated private credit collateralized loan obligations (CLOs). Given that not many ETFs offer access to private credit CLOs, PCLO can be a very accessible means to do so.
Investors seeking strong yield might consider opting for high-rated CLOs at the moment. Along with mounting opportunities for resilient income, they can also help broaden one’s fixed income exposure.
CLO Expertise
“Private credit CLOs offer the potential for higher income and lower volatility versus traditional fixed income investments, providing investors with much-needed diversification and lower correlation,” said John Wu, CFA, portfolio manager and head of structured credit at Seix Investment Advisors. “With this offering, we will continue to take a multidimensional approach to portfolio management, combining time-tested portfolio construction methodology, disciplined trading strategies, and prudent risk management.”
Seix Investment Advisors leverages extensive experience in navigating the field of CLOs. Virtus notes that Seix manages 10 different CLOs with about $3.4 billion in assets.
A smaller portion of PCLO’s net assets may allocate to investments outside of private credit CLOs. This includes junk bonds, ETFs, senior loans, and cash investments, among other options.
With PCLO’s launch, Virtus Investment Partners has a total of 20 ETFs listed in the U.S. One of the largest Virtus ETFs, the Virtus InfraCap U.S. Preferred Stock ETF (PFFA ), has over $1.4 billion in assets under management.
For more information, please visit VettaFi.com | ETF Trends.
