VSEM — Virtus Emerging Markets Equity ETF

VSEM Fund Overview

VSEM — Virtus Emerging Markets Equity ETF is a US ETF managed by Virtus ETF Trust II, 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: Virtus ETF Trust II
• Category: China Blend / Core Equity
• Ticker: VSEM
• SEC CIK: 0001648403
• SEC series ID: S000096361
• Share class ID: C000265194

VSEM Investment Objective and Strategy

Virtus Emerging Markets Equity ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Virtus ETF Trust II.

Investment objective

The Virtus Emerging Markets Equity ETF (the Fund ) seeks long-term capital appreciation.

Principal investment strategy

Under normal circumstances, the Fund invests at least 80% of its net assets (plus borrowings made for investment purposes) in the equity securities of companies that are tied economically to emerging market countries. Virtus Systematic (Systematic), a division of Virtus Advisers, LLC, the Funds sub-adviser, defines emerging market countries as countries with securities markets that are less sophisticated than more developed markets in terms of participation by investors, analyst coverage, liquidity and/or regulation. The Fund will normally invest primarily in companies located in the countries represented in the Funds benchmark, the MSCI Emerging Markets Index (each an Emerging Market Country). The Fund considers a company to be economically tied to an Emerging Market Country if (i) its stock is listed on an emerging market exchange; or (ii) it is domiciled or headquartered or primarily operates in, or derives a majority of its profits, revenues, sales, or income from an Emerging Market Country.

The Fund may invest a substantial portion of its assets in equity securities of companies located in China. Systematic believes that behavioral biases of investors contribute to market inefficiencies, creating opportunities. Systematics quantitative investment process begins with a proprietary alpha model that uses artificial intelligence to power Natural Language Processing for sentiment analysis, which blends behavioral factors (e.g ., human behaviors and biases) and intrinsic valuation factors ( e.g ., tangible measures of a companys underlying worth). The final investment and trading decisions are made by Systematicss portfolio management personnel. In order to arrive at the final investment portfolio selection, Systematicss portfolio management personnel complement the recommendations produced by the alpha model with a dynamic risk management overlay and qualitative reviews.

Specifically, Systematics utilizes a risk model for portfolio construction, with constraints at the individual security and industry levels to manage exposures relative to the Funds benchmark. Additionally, all investment recommendations are thoroughly vetted at the individual company level to confirm the investment rationale and suitability before a purchase or sale. The Fund normally invests primarily in common stocks, either directly or indirectly through depositary receipts. In addition to common stocks, equity securities in which the Fund may invest include, without limitation, preferred stocks, convertible securities and warrants. The Fund may invest in issuers of any size market capitalization, including smaller capitalization companies. The Fund may utilize foreign currency exchange contracts, options, stock index futures contracts and other derivative instruments.

The Fund may also use participatory notes (P-Notes) or other equity-linked notes to gain exposure to issuers in certain countries. P-Notes are equity-linked instruments used by investors to obtain exposure to non-U.S. equity investments without trading directly in the local market. The Fund is an actively managed ETF and, thus, does not seek to replicate the performance of a specified index of securities. Instead, it uses an active investment strategy that seeks to meet its investment objective. In addition, from time to time the Fund may focus its investments (i.e., invest more than 15% of its total assets) in one or more particular sectors. As of the date of this Prospectus, the Fund focused its investments in the Financials and Information Technology sectors.

VSEM Costs and Fees

VSEM costs about $35 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.35%
• Gross expense ratio: 0.35%

VSEM Debt Constituents

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

VSEM Prospectus and SEC Filings

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

• Prospectus (485BPOS) — filed 2025-11-04
• Prospectus supplement (497) — filed 2026-02-04
• Prospectus supplement (497) — filed 2025-12-05

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.