NEW YORK, Nov. 18, 2020 /PRNewswire/ -- Virtus ETF
Solutions, a multi-manager ETF sponsor and affiliate of Virtus
Investment Partners, today announced the introduction of the Virtus
Terranova U.S. Quality Momentum ETF (NASDAQ: JOET), which strives
to deliver exposure to U.S.-listed large-cap companies that combine
strong quality fundamentals with positive momentum technical
trends.
JOET tracks the Terranova U.S. Quality Momentum Index (Ticker
VTUSQM), which was created and developed by Joseph M. Terranova, senior managing director
and chief market strategist for Virtus. The index's methodology
reflects the investment philosophy Terranova has utilized
throughout his career on Wall Street as a professional investor,
risk manager, and trader. In addition to providing Virtus clients
and investment professionals with insights into the domestic and
global investing landscape, Terranova is a CNBC ensemble member,
appearing regularly on the Halftime Report and Squawk
Box. He is also the author of the book, "Buy High, Sell
Higher."
"An essential component for building long-term growth is
maintaining discipline and identifying high-conviction investment
opportunities for portfolio allocation and diversification," said
Terranova. "Throughout my career, I have determined that
high-conviction investment opportunities are rooted in both quality
fundamental strength and positive technical momentum trends."
JOET may serve as a core equity holding in a diversified
portfolio as the ETF strives to provide exposure to the best
performing U.S. large-cap companies with the highest quality
fundamental characteristics, resulting in a distinct portfolio
built for long-term growth. With its quality momentum approach,
JOET systematically seeks to identify and capture returns of high
conviction investment opportunities characterized by fundamental
(quality) and technical (momentum) attributes. It results in a
portfolio of 125 equal stock weightings at the time of quarterly
index rebalance to help ensure balance and diversification, while
also attempting to reduce over-concentration, single event stock
risk, and limitations, relative to traditional cap-weighted
strategies.
"We believe the opportunity to utilize Joe's investment
philosophy and expertise with the launch of the Virtus Terranova
U.S. Quality Momentum ETF delivers a compelling, core domestic
equity strategy for the Virtus ETF suite," added William Smalley, executive managing director of
Virtus ETF Solutions. "Investment professionals and investors will
discover how JOET may serve as a differentiator for their
respective portfolios."
"The methodology behind the Terranova U.S. Quality Momentum
Index, which JOET follows, provides rules-based, systematic
exposure to domestic large-cap companies exhibiting those quality
and momentum characteristics," Terranova said. "It also removes any
emotion from the decision-making process in a modern market
environment proliferated by algorithmic models and a widening gap
between top-performing and bottom-performing companies."
Visit Virtus ETF Solutions to learn more about the Virtus
Terranova U.S. Quality Momentum ETF (JOET) and other ETF
offerings.
About Joe Terranova
Joe Terranova is a senior
managing director and chief market strategist for Virtus Investment
Partners, which he represents as a client facing thought leader,
providing insight into the domestic and global investing landscape
for global multi asset classes such as equities, commodities, fixed
income, and currencies.
Prior to joining Virtus, Terranova spent 18 years at MBF
Clearing Corp., rising to the position of Director of Trading. He
is perhaps best known for his risk management skills, honed while
overseeing MBF's proprietary trading operations during some of the
most calamitous times for the U.S. markets, including the first
Gulf War, the 1998 Asian Crisis, 9/11, and the collapse of Amaranth
Advisors. During those times there was never a loss at MBF due to
market anomalies.
Since 2008, Terranova has been a CNBC ensemble member, appearing
regularly on the Halftime Report, Squawk Box and
contributing financial content throughout the CNBC media and
digital platforms.
About Virtus ETF Solutions
Virtus ETF Solutions is a New
York-based, multi-manager exchange-traded-funds sponsor and
affiliate of Virtus Investment Partners. With actively managed and
index-based investment capabilities across multiple asset classes,
Virtus ETF Solutions offers a range of complementary ETFs
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.
Important Risk Considerations
Exchange-Traded Funds (ETF): The value of an ETF may be
more volatile than the underlying portfolio of securities it is
designed to track. The costs to the fund of owning shares of an 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. Momentum Factor
Investing: Momentum investing is subject to the risk that the
securities may be more volatile than the market as a whole. There
may be periods when the momentum style of investing is out of favor
and therefore, the investment performance of the Fund may suffer.
Passive Strategy/Index Risk: A passive investment strategy
seeking to track the performance of the underlying Index may result
in the fund holding securities regardless of market conditions or
their current or projected performance. This could cause the fund's
returns to be lower than if the fund employed an active strategy.
Market Price/NAV: At the time of purchase and/or sale, an
investor's shares may have a market price that is above or below
the fund's NAV, which may increase the investor's risk of loss.
Correlation to Index: The performance of the fund and its
index may vary due to factors such as fund flows, transaction
costs, whether the fund obtains every security in the index, and
timing differences associated with additions to and deletions from
its index. Market Volatility: Local, regional, or global
events such as war, acts of terrorism, the spread of infectious
illness or other public health issues, recessions, or other events
could have a significant impact on the portfolio and its
investments, including hampering the ability of the portfolio
manager(s) to invest the portfolio's assets as intended.
Prospectus: For additional information on risks, please see
the fund's prospectus.
The Terranova U.S. Quality Momentum Index is an equally
weighted index designed to provide diversified exposure to quality
momentum large cap equities listed in the
United States. The index is calculated on a total return
basis. The index is unmanaged, its returns do not reflect any fees,
expenses, or sales charges, and is not available for direct
investment.
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. NAV returns are calculated using
the Fund's daily 4:00 pm NAV, and
include the reinvestment of all dividends and other distributions
(reinvested at the Fund's NAV on distribution ex-date). Market
price returns are calculated using the 4:00
pm midpoint between the bid and offer, and include the
reinvestment of all dividends and other distributions (reinvested
at the 4:00 pm bid/offer midpoint on
distribution ex-date). Market price returns do not represent the
return you would receive if you traded at other times.
Please consider the Fund's objectives, risks, charges, and
expenses before investing. Contact us at 1.800.243.4361 or
visit www.virtus.com for a prospectus, which
contains this and other information about the Fund. Read the
prospectus carefully before investing.
Not insured by FDIC/NCUSIF or any federal government agency. No
bank guarantee. Not a deposit. May lose value.
ETFs distributed by VP Distributors, LLC, member FINRA
and subsidiary of Virtus Investment Partners, Inc.
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SOURCE Virtus ETF Solutions