Virtus Seix Senior Loan ETF

Virtus Seix Senior Loan ETF (SEIX) is an actively managed fund that lends to mostly below-investment-grade companies through senior floating-rate loans, which made up about 92% of its assets as of July 31, 2026. Because loan interest rates reset with short-term benchmarks, it pays high monthly income, with a trailing 12-month yield of 6.92% as of October 27, 2026, and reacts less to rate changes. Its 0.57% expense ratio is well above similar bond funds.

• Over the year to Oct 27, 2026, SEIX returned +4.9%, 1st of 8 among similar funds.
• Its 5-year annualized return was +5.7%.
• In the 2020 COVID crash it fell 15.8% and regained its old high 6.6 months after the low.
• Its worst full calendar year was 2022 (-1.8%); its best was 2023 (+12.6%).
• The deepest fall in its price history was 17.5% (Jan 21, 2020 to Mar 24, 2020), recovered by Oct 20, 2020.

As of Jul 31, 2026, the fund held 260 securities; the ten largest made up 10.61% of assets.

The bonds mature in 4.9 years on average (weighted by size), with an average coupon of 7.04%.

• Over the three months to Jul 31, 2026, investors added a net $9.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.50%, +0.13%, +0.70%.

SEIX does not track an index. Its sub-adviser, Seix Investment Advisors, part of Virtus Fixed Income Advisers, picks the loans. Under normal conditions at least 80% of net assets go into first- and second-lien senior floating-rate loans. These are loans that banks and other large lenders make to companies. A lien is a claim on the borrower's assets, and 'senior' means these loans get repaid before most other debt. Their interest rate floats. It is tied to a benchmark such as the Secured Overnight Financing Rate (SOFR) or the prime rate, or to a set minimum, whichever is higher. The manager focuses on loans rated below investment grade.

Many of these loans are 'covenant lite.' That means they lack the financial tests that let lenders step in early when a borrower weakens. The fund may also own junk bonds, junior debt and restricted Rule 144A securities. Up to 20% may go to non-US borrowers, but only in US dollars, and up to 10% to revolving credit lines. It may use derivatives and may borrow up to 33 1/3% of its assets, though the July 31, 2026 holdings report showed no derivatives.

Trading is frequent: portfolio turnover was 256%. As of July 31, 2026, the fund held 260 positions. The 10 largest made up 10.61% of assets. Average maturity was 4.9 years and the average coupon was 7.04%. As of July 31, 2025, the fund was focused on the communications sector.

• SEIX charges 0.57% a year, versus an average of 0.1% for the similar funds below (8th of 8, cheapest first).
• The fee includes a 0.01% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $58 in the first year and $725 over 10 years (assuming a 5% annual return).

SEIX pays high monthly income from floating-rate corporate loans and has had little interest-rate sensitivity, but it carries meaningful credit risk.

SEIX could add steady monthly income: its trailing 12-month yield was 6.92% as of October 27, 2026. Its record is short. It launched in April 2019, so it missed 2008. In the 2020 COVID crash it fell 15.8%. Its deepest drop, 17.5% from January to March 2020, took about seven months to recover. That is a steep fall for a bond fund, and anyone forced to sell in March 2020 would have locked in losses. In 2022, rising rates hurt most bonds, yet SEIX lost only 1.9%, its worst calendar year, because its loan rates reset higher. The main risk here is borrower defaults, not interest rates. Its cost is high for a bond fund: about $58 in the first year on $10,000, using 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).