At a glance
VPC charges 10.6% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $30.3M in assets, the 8th largest of that group; it paid 15.6% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −13.6% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +0.2% a year. At its worst it fell 20.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 12 months after the low. Its ten largest positions make up 31.6% of the fund, out of 58 in all.
The short version
Virtus Private Credit Strategy ETF (VPC) tracks the Indxx Private Credit Index. It owns shares of business development companies (BDCs) and closed-end funds that invest mainly in loans to companies with below-investment-grade (lower-rated) credit. It stands out for income: a trailing yield of 15.6% as of October 27, 2026, paid quarterly. The trade-offs are steep: as a fund of funds, its expense ratio is 10.6%, and it lost 39.33% in the first quarter of 2020.
Price history
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VPC -13.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VPC official prospectus, to Dec 31, 2025 | — | -6.34% | — | +8.23% | — | +5.83% |
| VPC price data to Oct 27, 2026 | -13.5% | -13.6% | +0.2% | -0.6% | — | +7.2% |
- Over the year to Oct 27, 2026, VPC returned -13.6%, 8th of 8 among similar funds.
- Its 5-year annualized return was -0.6%.
- Its worst full calendar year was 2022 (-11.7%); its best was 2021 (+34.2%).
- The deepest fall in its price history was 24.8% (Feb 20, 2025 to Mar 13, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -13.5% | — |
| 2025 | -6.7% | -6.34% |
| 2024 | +10.5% | +10.54% |
| 2023 | +22.2% | +21.55% |
| 2022 | -11.7% | -11.32% |
| 2021 | +34.2% | +33.03% |
| 2020 | — | -8.92% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 17.7% over that stretch · deepest drop along the way 20.8%, back to its old high 11.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.2500 | |
| 2025 | $2.5500 | +4.1% |
| 2024 | $2.4500 | -4.7% |
| 2023 | $2.5700 | +17.9% |
| 2022 | $2.1800 | +36.3% |
| 2021 | $1.6000 |
What's inside
As of Jul 31, 2026, the fund held 58 securities; the ten largest made up 31.6% of assets, and 21.77% sat in cash and money-market holdings.
| Fund held | Weight | |
|---|---|---|
| OXFORD LANE CAPITAL CORP COM | 4.63% | |
| EAGLE POINT CREDIT COMPANY COMMON SHARE OF BENEFICIAL INTEREST | 4.45% | |
| HORIZON TECHNOLOGY FINANCE CORP COM | 3.59% | |
| OFS CREDIT COMPANY INC COM | 3.18% | |
| PROSPECT CAPITAL CORP COM | 3.01% | |
| XAI OCTAGON FLOATING RATE & ALTERNATIVE INCOME TERM TRUST COM SHS BENF INT | 2.83% | |
| BLACKROCK TCP CAPITAL CORP COM | 2.77% | |
| FS KKR CAPITAL CORP COM | 2.60% | |
| PENNANTPARK INVESTMENT CORP COM | 2.35% | |
| RUNWAY GROWTH FINANCE CORP | 2.18% | |
| CION INVESTMENT CORP | 2.12% | |
| GOLDMAN SACHS BDC INC SHS | 1.92% | |
| SOUND POINT MERIDIAN CAPITAL INC COMMON STOCK | 1.79% | |
| OAKTREE SPECIALTY LENDING CORP COM | 1.79% | |
| INVESCO SENIOR INCOME TRUST COM | 1.73% |
By country
United States 94.5%By asset type
Stocks 94.5%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -2.88%, -2.74%, -0.92%.
How it works
VPC is an index fund that aims to match, before fees, the Indxx Private Credit Index. The index holds U.S.-listed funds focused on private credit, meaning loans made by non-bank lenders rather than traded bonds. Business development companies (BDCs) lend to and invest in small and midsize companies. Closed-end funds trade on an exchange, often above or below the value of their holdings. They qualify only if at least 50% of their portfolio is private credit, such as senior loans or collateralized loan obligations (CLOs, pools of business loans).
To qualify, a fund needs a market value above $100 million, average daily trading of at least $250,000 over six months, and three years of consistent dividends. Every qualifying BDC is included. The quarter of closed-end funds with the widest premiums or discounts is dropped. Holdings are weighted by dividend yield, capped at 5% and floored at 0.3%, with BDCs under $250 million capped at 1%. The index is rebuilt yearly and rebalanced quarterly.
Yield weighting favors the highest payers, which can include funds whose prices have dropped, since a lower price lifts yield. Holders indirectly pay these funds' fees and share the risks of their borrowing and below-investment-grade (lower-rated) loans. The fund will not shift to defensive positions when markets fall.
What it really costs
- VPC charges 10.6% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $1,030 in the first year and $8,059 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VPC | $1,030 | $2,921 | $4,606 | $8,059 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It pays a 15.6% trailing yield from funds that make below-investment-grade loans, but deep losses and a 10.6% expense ratio make it a higher-risk add-on rather than a core income source.
VPC could add a large income stream: a trailing yield of 15.6% as of October 27, 2026, paid quarterly. That income can shrink if interest rates fall, and it has not protected the share price. The fund has no 2008 record. It lost 39.33% in the first quarter of 2020. During the 2022 bear market it fell up to 20.8% and needed about 11.7 months from its low to recover. Its deepest drop since June 2020 was 24.8%, from February 2025 to March 2026, and it had not recovered as of October 27, 2026. Its worst full year was 2022, down 11.32%. Retirees needing money in a bad year could have to part with shares at depressed prices.
Costs are heavy: a 10.6% expense ratio, or $1,030 in year one on $10,000 in the SEC's standard example. Past results don't predict future ones, and a plan needs to weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers comfortable with a 15.6% trailing yield (as of October 27, 2026) drawn from below-investment-grade lending, knowing payouts can fall.
- Investors wanting one fund with 58 holdings in BDCs and closed-end funds (as of July 31, 2026), led by Oxford Lane Capital and Eagle Point Credit.
- Investors who would keep it as a small satellite and can stomach swings like the 39.33% loss in the first quarter of 2020.
Look elsewhere if
- Cost-focused investors: its prospectus expense ratio is 10.6%, far above its 0.75% management fee; the SEC example shows $8,059 in costs over 10 years.
- Retirees needing stable principal: VPC fell 24.8% from February 2025 to March 2026 and had not recovered as of October 27, 2026.
- Those wanting investment-grade bond stability: the underlying funds hold below-investment-grade loans, and closed-end funds may use leverage, which can magnify losses.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| VPC this fund | 10.6% | $30.3M | -13.6% | +0.2% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
What does VPC invest in?
VPC holds shares of U.S.-listed business development companies (BDCs) and closed-end funds that focus on private credit. These are loans, often from non-bank lenders, to small and midsize companies with below-investment-grade ratings. As of July 31, 2026, it had 58 holdings, with 31.6% in the 10 largest, and net assets of about $30.3 million. The largest were Oxford Lane Capital (4.6%), Eagle Point Credit Company (4.4%), Horizon Technology Finance (3.6%), OFS Credit Company (3.2%) and Prospect Capital (3.0%).
Why is VPC's expense ratio so high?
Because it is a fund of funds. VPC's own management fee is 0.75%, but its prospectus lists total annual expenses of 10.6%. Funds that own other funds must count those funds' expenses, including their management and borrowing costs, in that figure. Under the SEC's standard example, $10,000 earning 5% a year would incur about $1,030 in costs over one year, $2,921 over three, $4,606 over five and $8,059 over ten.
Does VPC pay monthly dividends?
No. VPC pays distributions quarterly. It paid $2.21 per share over the 12 months to October 27, 2026, a trailing yield of 15.6%. Trailing yield is the past year's payouts divided by the share price. That money comes from the BDCs and closed-end funds it owns, so it can fall if they cut payouts or interest rates drop. The high yield did not prevent losses: based on market price, VPC lost 13.6% over the same 12 months.
Is VPC good for retirement income?
It can deliver high income, but its share price has swung sharply. Its trailing yield was 15.6% as of October 27, 2026, paid quarterly. Yet it lost 39.33% in the first quarter of 2020. It also fell 24.8% from February 2025 to March 2026 and had not recovered by October 27, 2026. Its 10.6% expense ratio also eats into returns. It may suit retirees who hold it as a small slice next to steadier investments, rather than as a main income source.
How has VPC performed over the long term?
Mixed. As of December 31, 2025, VPC's average annual return was 8.23% over five years, 5.83% since its February 2019 launch and -6.34% over one year. Calendar years ranged from a 33.03% gain in 2021 to an 11.32% loss in 2022. Results weakened afterward. Based on market price, it lost 13.5% from the start of 2026 through October 27, 2026, and averaged 0.2% a year over the three years to that date.