Virtus Newfleet Multi-Sector Bond ETF

Virtus Newfleet Multi-Sector Bond ETF (NFLT) is an actively managed bond fund. It mixes Treasurys, mortgage- and asset-backed securities, corporate bonds, bank loans and foreign government debt, including junk bonds. It paid a 5.55% trailing yield in monthly distributions as of October 27, 2026. The trade-off is cost: its 0.50% expense ratio is the highest in a group of eight similar bond funds, where the other seven average 0.06%.

• Over the year to Oct 27, 2026, NFLT returned +0.7%, 1st of 8 among similar funds.
• Its 5-year annualized return was +2.8% and its 10-year +3.5%.
• In the 2020 COVID crash it fell 15.2% and regained its old high 4.3 months after the low.
• Its worst full calendar year was 2022 (-9.5%); its best was 2019 (+10.0%).
• The deepest fall in its price history was 15.2% (Feb 21, 2020 to Mar 19, 2020), recovered by Jul 27, 2020.

As of Jul 31, 2026, the fund held 1,101 securities; the ten largest made up 9.48% of assets.

The bonds mature in 13.8 years on average (weighted by size), with an average coupon of 5.73%.

• Over the three months to Jul 31, 2026, investors added a net $35.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.61%, +0.31%, -0.76%.

NFLT does not track an index. Virtus Investment Partners sponsors the fund, and Newfleet Asset Management, a division of Virtus Fixed Income Advisers, picks the bonds. At least 80% of net assets must be in bonds. Newfleet uses credit research to find parts of the bond market it sees as undervalued. It then shifts money among sectors such as investment-grade and high-yield corporate bonds, bank loans, mortgage- and asset-backed securities, municipal bonds, emerging-market debt and US government securities.

The rules are loose. There is no limit on junk bonds (bonds from issuers with weaker credit) or on foreign issuers. Bonds can be of any maturity. The fund also has no target duration. Duration measures how much a bond's price reacts when interest rates change. The managers may use Treasury futures to adjust duration and credit default swaps to add or reduce exposure, though the July 31, 2026 holdings report showed no derivative positions. Portfolio turnover was 91%, which means heavy trading.

As of July 31, 2026, the fund held 1,101 positions, and the top 10 made up only 9.48%. The largest were a Treasury bond due 2055 (1.6%), a Treasury note due 2029 (1.3%) and a Freddie Mac mortgage pool (1.2%). It also held government bonds from South Africa, the Czech Republic and Malaysia. Average maturity was 13.8 years.

• NFLT charges 0.5% a year, versus an average of 0.06% for the similar funds below (8th of 8, cheapest first).
• Of that, 0.45% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.09% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $729 over 10 years (assuming a 5% annual return).

NFLT pays monthly and had a 5.55% trailing yield as of October 27, 2026, drawn from a wide mix of higher-yielding bond sectors.

NFLT could add monthly income. It paid $1.23 a share over the 12 months to October 27, 2026, a 5.55% yield. It has had real drops, though. It launched in 2015, so it has no record from 2008. In the 2020 COVID crash it fell 15.2% between February 21 and March 19, 2020, and was back to its peak by July 27, 2020, about four months later. In 2022 rising rates pushed it down 12.4%, and it took about 16 months after the low to recover, in February 2024. Its 9.35% loss in 2022 was its worst calendar year. Anyone forced to sell shares in a year like that would lock in losses. The 0.50% fee also cuts into returns: $51 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).