Virtus SEIX Senior Loan ETF Q2 2026 Commentary
The J.P. Morgan Leveraged Loan Index generated a return of +1.93% for 2Q26, and a year-to-date (YTD) return of +1.48%. Split B/CCC issuers led quarterly returns at +3.37%, followed by B issuers at +1.93% and BB issuers at +1.75%. The Fund that we sub-advise returned +2.10% at NAV, bettering its benchmark, the S&P UBS Leveraged Loan Index, which returned +1.85% in 2Q26.
SEIX: Active Management Alpha Meets A Neutral Macro Environment
Virtus Seix Senior Loan ETF offers classic leveraged loan exposure, overweight single-B credits, and has demonstrated consistent outperformance versus BKLN. SEIX maintains low volatility and drawdowns outside of COVID, but currently yields a modest 6.5% SEC yield. Leveraged loan spreads are at long-term averages, offering no clear buy or sell signal; fundamental deterioration is a growing concern.
