Summary

• Virtus Newfleet Multi-Sector Bond ETF (at NAV) returned -0.32% in the first quarter versus the Bloomberg U.S. Aggregate Bond Index return of -0.05%.
• Overweight and issue selection within ABS were positive. Despite ongoing volatility, ABS has remained relatively stable.
• Overweight to HY corporates had a negative impact on performance as fears around AI disruption and oil markets drove volatility.

Fixed Income Market Review

The first quarter of 2026 challenged the prevailing market narrative of above-trend economic growth, moderating inflation, and global central bank expectations. Geopolitical risks, uncertainty around private credit and AI, and volatility in energy markets drove shifting