Virtus Glovista Emerging Markets ETF

C000189866 Fund Overview

Virtus Glovista Emerging Markets ETF is a US ETF managed by ETFis Series Trust I, categorised as China Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: ETFis Series Trust I
• Category: China Blend / Core Equity
• Assets under management: $6.72M
• SEC CIK: 0001559109
• SEC series ID: S000058038
• Share class ID: C000189866

C000189866 Investment Objective and Strategy

Virtus Glovista Emerging Markets ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by ETFis Series Trust I.

Investment objective

The Virtus Glovista Emerging Markets ETF (Ticker: EMEM) (the Fund ) seeks investment results that correspond, before fees and expenses, to the price and yield performance of the Solactive Most Favored Emerging Market Index (the Underlying Index ).

Principal investment strategy

Under normal market conditions, the Fund will invest at least 80% of its assets in component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index is based on a proprietary methodology developed by Glovista Investments LLC, the Funds sub-adviser (the Sub-Adviser ), and is designed to identify securities of companies in large liquid emerging market countries, based on a country selection model, and provide exposure to those securities on a free-float adjusted market capitalization-weighted basis. A free-float index is one that only uses freely traded shares in calculating the market capitalization weighting. Market capitalization weighting means each component security is weighted by the issuers market capitalization relative to the overall capitalization of the Underlying Index.

The Underlying Index was co-developed by the Sub-Adviser and Solactive AG ( Solactive ), the index provider of the Underlying Index. Solactive is not affiliated with the Fund, the Sub-Adviser, or the Funds investment adviser, Virtus ETF Advisers LLC (the Adviser ). Solactive is solely responsible for calculating, maintaining, rebalancing and reconstituting the Underlying Index. Subject to periodic review and change, Solactive currently classifies as large liquid emerging market countries (and the Fund therefore invests at least 80% of its assets in companies in) the following 15 countries: China, Taiwan, South Korea, India, Malaysia, Indonesia, Thailand, Philippines, Russia, South Africa, Poland, Turkey, Brazil, Mexico and Chile. The Underlying Index utilizes three different selection models, each of which separately ranks top 10 large liquid emerging market countries based on the criteria of that model: (i) macroeconomic trends, (ii) bottom-up company-specific dynamics, and (iii) relative price momentum dynamics.

The macroeconomic trends model analyzes risk-adjusted interest rates, yield curves, fundamental currency values, monetary liquidity, and leading economic indicators within each country. The bottom-up dynamics model analyzes company-level inputs within each country, such as net debt, total assets, and price-earnings ratios. The momentum model analyzes absolute and relative price momentum and reversal of momentum based on each countrys price index. Once each model ranks its top 10 large liquid emerging market countries, securities of companies within those countries are eligible for selection if they have free-float adjusted market capitalizations greater than $750 million and an average daily trading volume of at least $500,000 over the last three months (the Selection Criteria). The Underlying Index will then include the securities of companies with the largest free-float adjusted market capitalizations from each eligible large liquid emerging market country, with not more than 50 portfolio companies from any individual country.

It is possible that the Underlying Index may exclude a large liquid emerging market country if that country does not have companies that satisfy the Selection Criteria. The Underlying Index is rebalanced and reconstituted monthly. The Underlying Index may include small capitalization companies ( i.e. , companies with less than $2 billion in capitalization) and medium capitalization companies ( i.e. , companies with between $2 billion and $6 billion in capitalization). Although the Underlying Index can include a maximum of 750 component securities, it is generally expected to include more than 400 component securities. As of December 31, 2017, the Underlying Index had 597 component securities. Under normal market conditions, the Fund will invest not less than 80% of its net assets (plus the amount of any borrowings for investment purposes) in securities of companies in emerging market countries.

The Fund considers securities of companies in emerging market countries to be those included in the Underlying Index. The Underlying Index determines a companys country classification based on one of the following three criteria: (i) the primary exchange on which the companys securities are listed; (ii) the companys country of incorporation; or (iii) the companys country of risk classification (which, in turn, is based on such factors as the country in which the company is headquartered, the companys country of incorporation, and the primary exchange on which the companys securities are listed). The Fund uses a passive or indexing investment approach to try to approximate the investment performance of the Underlying Index by investing in a portfolio of securities that generally replicates the Underlying Index.

The Sub-Adviser expects that, over time, the correlation between the Funds performance, before fees and expenses, and that of the Underlying Index will be 95% or better. A figure of 100% would indicate perfect correlation. The Fund will invest in specific countries or geographic regions to approximately the same extent as the Underlying Index. The Fund will concentrate its investments ( i.e. , hold 25% or more of its total assets) in a particular industry or group of industries approximately to the same extent that the Underlying Index is concentrated. As of the date of this prospectus, the Underlying Index (and therefore the Fund) is concentrated in the financial sector. The Fund is non-diversified, which means that it can invest a greater percentage of its assets in any one issuer than a diversified fund can.

The Fund invests primarily in equity securities, including American Depositary Receipts ( ADRs ) and Global Depositary Receipts ( GDRs ), but may seek to implement its investment strategy through investments in U.S. listed exchange-traded funds ( ETFs ) and other U.S. registered investment companies. ADRs and GDRs represent ownership interests in shares of foreign companies that are held in financial institution custodial accounts, and are traded on exchanges in the United States and around the world.

C000189866 Costs and Fees

C000189866 costs about $67 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.67%
• Gross expense ratio: 0.70%
• Portfolio turnover: 162%
• Brokerage commissions: 20.94 bps of average net assets (SEC N-CEN)

C000189866 Cashflows

Over the 12 months to 2019-10, Virtus Glovista Emerging Markets ETF had net inflows of $3.72K, from monthly SEC N-PORT filings.

C000189866 Debt Constituents

No individual debt constituents are reported in Virtus Glovista Emerging Markets ETF's latest SEC N-PORT filing.

C000189866 Prospectus and SEC Filings

Official Virtus Glovista Emerging Markets ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2017-11-15
• Prospectus supplement (497) — filed 2019-03-25
• Prospectus supplement (497) — filed 2018-03-19
• Portfolio holdings (N-PORT) — filed 2019-12-23
• Annual census (N-CEN) — filed 2020-01-14
• Annual census (N-CEN) — filed 2019-01-11

Related Funds

Other China Blend / Core Equity funds tracked on ABC INVEST:

• Fiera Capital Emerging Markets Fund (RIMIX)
• 2ndVote Society Defended ETF (EGIS)
• Infusive® Compounding Global Equities ETF (JOYY)
• Clough China Fund (CHNAX)
• Franklin FTSE Hong Kong ETF (FLHK)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.