Virtus ETF Solutions and Glovista Investments Introduce ETF Targeting 'Most Favored' Emerging Markets

NEW YORK, Nov. 9, 2017 /PRNewswire/ -- Virtus ETF Solutions, an affiliate of Virtus Investment Partners, Inc. (NASDAQ: VRTS), has partnered with Glovista Investments LLC to introduce the Virtus Glovista Emerging Markets ETF, which begins trading today as "EMEM" on NYSE Arca.

The fund relies on Glovista's proprietary quantitative methodology to provide passive, diversified exposure to stocks in select "most favored" emerging market countries, while seeking to avoid exposure to stocks from the weakest countries.

The fund's underlying rules-based index, the Solactive Most Favored Nations Emerging Markets Index, employs a global macro approach to an investment universe of 15 large, liquid emerging market countries, overweighting equities of the top ten countries and eliminating stocks from the bottom five. The index differs from traditional market-cap weighted emerging markets benchmarks by restricting single country allocations to a maximum of 10 percent of the overall portfolio, thus reducing single-country risks associated with large exposure to countries such as China, Taiwan or South Korea.

"Our global macro philosophy emphasizes choosing countries and currencies within the sector as opposed to relying on stock selection to achieve long-term returns," said Dr. Carlos Asilis, Glovista co-founder, chief investment officer, and co-portfolio manager. "This approach allows us to aggregate multiple models that capture macroeconomic trends, bottom-up fundamental analytics, and relative price momentum dynamics," he said. Darshan Bhatt, CFA, Glovista co-founder and deputy CIO, is also co-portfolio manager of the fund.

"With the launch of the Virtus Glovista Emerging Markets ETF, we can offer investors exposure to the surge in global economic growth, leveraging the specialized knowledge and quantitative analytical skills of Glovista Investments in a passive, tax-efficient vehicle," said William Smalley, executive managing director of Virtus ETF Solutions. "We know emerging markets can be challenging, but by systematizing Glovista's flagship EM strategy, we believe the fund will be well positioned to mitigate the geopolitical risks and uncertainties that often come with investments in this exciting market segment."

About Glovista Investments
Glovista Investments is a Registered investment advisor with offices in New Jersey, Florida and California that provides investment management services to clients including state and municipal pension funds, endowments, foundations, RIAs, family offices and high-net-worth individuals. The company employs global-macro analysis (top-down) to generate risk-adjusted returns for its investors. Glovista manages two flagship strategies: the Emerging Market Equities strategy, which has an 18-year GIPS^®-compliant verified track record, and the Global Tactical Asset Allocation (GTAA) strategy, which has a 10-year track record.

About Virtus ETF Solutions
Virtus ETF Solutions, (VES) is a New York-based, multi-manager ETF sponsor and affiliate of Virtus Investment Partners. With actively managed and index-based investment capabilities across multiple asset classes, VES seeks to deliver a family of complementary exchange-traded funds subadvised by select investment managers.

About Virtus Investment Partners
Virtus Investment Partners (NASDAQ: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. In addition to Virtus ETF Solutions, its affiliated managers include Ceredex Value Advisors, Duff & Phelps Investment Management, Kayne Anderson Rudnick Investment Management, Newfleet Asset Management, Rampart Investment Management, Seix Investment Advisors, and Silvant Capital Management. Additional information can be found at virtus.com

The fund is an exchange-traded fund ("ETF"). The "net asset value" (NAV) of the fund is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV of the fund is not necessarily the same as its intraday trading value. Fund investors should not expect to buy or sell shares at NAV because shares of ETFs such as the fund are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Thus, shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.

Fund Risks
Exchange Traded Funds: The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities. Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk. Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk. Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund. Non-Diversified: The fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the fund's assets. Fund of Funds: Because the fund can invest in other funds, it indirectly bears its proportionate share of the operating expenses and management fees of the underlying fund(s). Correlation to Index: The performance of the fund and its index may vary somewhat due to factors such as fund flows, transaction costs, and timing differences associated with additions to and deletions from its index.

Please consider the fund's objectives, risks, charges, and expenses before investing. Contact Virtus 1.800.243.4361 or visit www.virtus.com for a copy of the fund's prospectus. Read the prospectus carefully before you invest or send money.

Distributed by ETF Distributors LLC, an affiliate of Virtus ETF Advisers LLC.

SOURCE Virtus ETF Solutions