Virtus Launches Emerging Markets Dividend ETF, Boosts ETF AUM to $5.2B
Virtus launched the Emerging Markets Dividend ETF, an actively managed fund using AI-driven sentiment analysis tied to the MSCI Emerging Markets Index with Taiwan Semiconductor as its largest holding. ETF assets climbed to $5.2 billion, up $500 million sequentially and 72% year-over-year, bolstering growth despite $8.1 billion in equity outflows.
1. ETF Launch and Strategy
Virtus introduced the Virtus Emerging Markets Dividend ETF, an actively managed fund employing AI-driven sentiment analysis and a quantitative model to select dividend-paying companies tied to the MSCI Emerging Markets Index. The portfolio currently overweights financials and information technology, with Taiwan Semiconductor as its largest holding.
2. ETF Asset Growth
ETF assets at Virtus climbed to approximately $5.2 billion at quarter-end, rising $500 million sequentially and 72% year-over-year. Growth was supported by steady net inflows and the launch of this and three other actively managed ETFs during the quarter, with additional ETF rollouts planned.
3. Financial and Strategic Moves
Overall assets under management fell to $159 billion from $169 billion, driven by $8.1 billion in equity outflows as quality-focused strategies underperformed. Adjusted EPS dipped to $6.50 from $6.69 and operating margin slipped to 32.4%, while Virtus agreed to acquire a majority stake in Keystone National Group and take a minority position in Crescent Cove to expand into alternative assets.