ETF Report: Virtus Equity & Convertible Income Fund (NIE)

What this ETF is trying to do

The Virtus Equity & Convertible Income Fund, known by its ticker symbol NIE, is an exchange-traded fund (ETF). This type of fund holds different kinds of investments to try and provide both growth and regular payments to its investors.

What the numbers show

As of July 10, 2026, the current price of one share is $26.74. Looking at how the fund has performed over time, the numbers show growth. The price has gone up by about 11.46% over the last year. If you look at the "total return," which includes both price changes and the money paid out to investors, the one-year return is much higher at 23.48%.

To see how prices change, let’s use a simple example. Imagine you invested $10,000 into this fund exactly one year ago when the estimated price was about $23.99 per share. Before any extra payments were added, your $10,000 would have grown to roughly $11,146 based on the price increase alone.

Income and distribution explanation

Some investors look for ETFs that pay them regular cash, which is called a "distribution." This fund has a distribution yield of 9.74%. This means the amount paid out relative to the share price is quite high. Over the last 12 months, the fund made 5 payments totaling $2.60 per share. These payments usually happen every three months (quarterly).

It is important to remember that a high yield alone can be misleading. A very high percentage might look good, but you must always check if the actual price of the ETF is staying healthy.

NAV erosion explanation

"NAV erosion" is a term used when the value of the fund's underlying assets drops because it is paying out more money than it is actually earning. If an ETF's share price falls significantly over time, it can destroy your "principal," which is the original money you put in.

For this specific fund, there is no "severe erosion" detected. The data shows a "good" erosion score, meaning the price has not been collapsing to pay out those distributions.

Pros

• The fund has shown strong total returns over the last one, three, and many years.

• It provides a high distribution yield for those seeking regular cash payments.

• The share price has been increasing rather than falling.

Cons

• High-yield investments can sometimes be more volatile (meaning the price moves up and down quickly).

• Investors must watch to ensure the high payouts don't eventually lead to a falling share price.

Beginner takeaway

Income investors usually prefer ETFs that go sideways (stay at the same price) or move slightly up. They prefer this because they want their regular cash payments without losing the original money they invested. In the case of NIE, the data shows the price has been moving up along with the total returns, rather than collapsing.