(SEIX) Virtus Trust II - Virtus - Ratings and Ratios

The Virtus Seix Senior Loan ETF (NYSE Arca: SEIX) is an actively managed exchange-traded fund (ETF) designed to generate income by investing primarily in senior floating-rate loans. Under normal market conditions, the fund allocates at least 80% of its net assets (including borrowings for investment purposes) to first- and second-lien senior loans. These loans are typically issued by banks and large financial institutions to corporations, positioning them at the top of the borrowing companies capital structure, reducing default risk. The fund is non-diversified, allowing it to concentrate its holdings in a smaller number of securities.

The funds investment strategy focuses on senior loans, which are secured by collateral and offer floating interest rates that adjust with market conditions. This structure provides some protection against rising interest rates, as higher rates can lead to increased income from the loans. The funds managers actively assess credit risk, liquidity, and market conditions to select loans with attractive risk-adjusted returns. The portfolio primarily targets leveraged issuers, including middle-market companies and other borrowers seeking flexible financing solutions.

Based on the technical and fundamental data, the three-month forecast for SEIX suggests the following: The funds price has been trading in a narrow range, with its 20-day moving average (SMA20) at 23.85 and its 50-day moving average (SMA23.78) slightly below the current price of 23.86. The 200-day moving average (SMA200) at 23.20 indicates longer-term stability. The average true range (ATR) of 0.03 reflects low volatility. Given the current macroeconomic environment, with potential interest rate hikes and inflation concerns, the funds focus on floating-rate senior loans may provide resilience. However, the short-term technical indicators suggest a potential sideways trend, with support at the SMA200 level and resistance near the SMA20. The funds assets under management (AUM) of $318.58M USD indicate a well-established vehicle in the bank loan ETF category.