Virtus Launches AI-Driven Emerging Markets Dividend ETF, ETF Assets Jump 72%
Virtus launched an actively managed Emerging Markets Dividend ETF leveraging AI-driven sentiment analysis and quantitative models, with financials and tech exposures led by Taiwan Semiconductor Manufacturing Co. as its largest holding. ETF assets grew to $5.2 billion (up 72% YoY), offsetting $8.1 billion net outflows and AUM decline to $159 billion.
1. ETF Launch and Strategy
Virtus introduced the Virtus Emerging Markets Dividend ETF, an actively managed fund using AI-driven sentiment analysis and a quantitative stock-selection model tied to the MSCI Emerging Markets Index. The strategy emphasizes dividend-paying financials and technology names, with Taiwan Semiconductor Manufacturing Co. as its largest holding.
2. ETF Asset Growth Versus Equity Outflows
ETF assets climbed to approximately $5.2 billion at quarter-end, rising $500 million sequentially and 72% year-over-year, as equity strategies saw $8.1 billion in net outflows and overall assets under management fell to $159 billion from $169 billion. Adjusted EPS slipped to $6.50 from $6.69, while operating margin eased to 32.4%.
3. Strategic Acquisitions and Future Outlook
Virtus is expanding into alternative assets with a pending majority acquisition of private credit manager Keystone National Group and a minority investment in venture growth manager Crescent Cove. Management forecasts initial fee rates in the low-40-basis-point range, with potential uplift as the Keystone integration proceeds and additional ETFs launch over the next two quarters.