Virtus ETF Trust II - Virtus Seix AAA Private Credit CLO ETF

Frequently Asked Questions About PCLO

What does PCLO invest in?

PCLO is actively managed, the AAA in the funds name does not indicate the same credit quality as investment grade bonds. All CLOs are below-investment grade corporate loans and derive their credit quality based on their claim to cash flows. AAA CLOs are the highest in the CLO capital structure in case of default. Private credit CLOs tend to offer high income and lower volatility as compared to fixed income investments. PCLO relies on the investment managers expertise in the leveraged loan credit space, combining portfolio construction, disciplined trading strategy and risk management skills, to actively manage the underlying portfolio. The Fund may also invest up to 20% of assets in senior loans, broadly syndicated CLOs, variable-rate debt, ETFs, high yield, and investment-grade bonds. No more than 10% of assets are allocated to a single CLO.

What is the expense ratio of PCLO?

Virtus ETF Trust II - Virtus Seix AAA Private Credit CLO ETF (PCLO) charges an expense ratio of 0.29%. This is the annual fee deducted from fund assets to cover management and operations.

What is PCLO's dividend yield?

PCLO's trailing-twelve-month yield is 5.01%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of PCLO?

Effective duration measures PCLO's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. PCLO's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of PCLO?

PCLO's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of PCLO?

Yield to maturity (YTM) is the total return you'd earn from PCLO if every bond in the portfolio is held to maturity at the current price. PCLO's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.