Virtus WMC International Dividend ETF (VWID)

Overview

The fund is an actively managed exchange-traded fund (ETF) focused on investing in equity securities of foreign issuers to achieve a higher dividend yield relative to the broader developed ex-U.S. equity markets, as gauged by the MSCI World ex USA Index. This ETF aims to surpass the typical market dividend yield over a full market cycle while also implementing a risk management framework. It casts a wide net by targeting companies of any market capitalization across various countries outside the United States, emphasizing those believed to offer superior dividend yields.

Products and Services

The fund provides a focused investment strategy aimed at generating higher dividend yields through a carefully selected portfolio of equity securities, including:

• Common and Preferred Stock: The fund invests in both common and preferred shares of foreign companies. Common stocks offer ownership in a company and potential capital appreciation, while preferred stocks provide predictable income through dividends, typically with less volatility.
• ADRs (American Depositary Receipts): ADRs represent shares in foreign companies but are traded on U.S. stock exchanges. This allows the fund to hold shares in overseas companies while offering investors the convenience and regulatory protections of U.S. market trading.
• GDRs (Global Depositary Receipts): Similar to ADRs, GDRs are bank certificates issued in more than one country for shares in foreign companies. These are typically used by the fund to invest in non-U.S. companies while trading in international markets.
• REITs (Real Estate Investment Trusts): The fund invests in REITs to gain exposure to real estate markets without owning the properties directly. REITs are known for distributing most of their income as dividends, aligning with the fund's goal of higher dividend yields.