Summary

• Virtus Newfleet Securitized Income ETF returned 0.75% at NAV for the quarter versus the ICE BofA 1-3 Year A-BBB US Corporate Index return of 0.31%.
• Subordinate auto and credit cards performed well for the quarter as spreads tightened to risk-free assets.
• Exposure to an airline enhanced equipment certificate (a specialized corporate debt security used primarily by airlines to finance aircraft purchases) lagged.

Market Overview

Securitized credit markets delivered solid performance in 1Q, supported by resilient fundamentals, healthy demand, and selective opportunities for spread pickup across asset classes. While macro volatility challenged risk sentiment, securitized products generally outperformed similarly rated corporate bonds on