Understanding the VIRTUS Stone Harbor Emerging Markets High Yield Bond ETF (VEMY)

What this ETF is trying to do

The VEMY ETF focuses on "emerging markets." These are countries that are still growing their economies. This fund invests in high-yield bonds from these areas. High-yield bonds are often called "junk bonds" because they pay higher interest rates to make up for the extra risk involved.

What the numbers show

As of July 13, 2026, the current price of VEMY is $28.82. Looking back at the past year, the price has grown by about 7.17%. When you include the money paid out to investors, the total return for the last year was 16.58%.

To see how this works with a real amount of money, let's look at an example. If you had invested $10,000 one year ago when the estimated price was roughly $26.89, your investment would have grown in value before considering any extra payments.

Income and distribution explanation

This ETF is designed to pay out regular income. Over the last 12 months, it made 12 separate payments. These payments usually happen once a month. The "distribution yield" is 8.20%, which tells you how much cash the fund paid out compared to its price.

It is important to remember that a high yield alone can be misleading. A very high percentage might look good, but it doesn't tell the whole story about whether the fund is healthy or if the price is dropping.

NAV erosion explanation

"NAV erosion" happens when the value of the underlying investments drops so much that the share price of the ETF falls consistently. If an ETF's price collapses from a high number to a much lower number, it can destroy your "principal." Principal is the original money you put in.

For example, if you invest $10,000 and the price crashes by half, you only have $5,000 left. Even if the fund pays you high interest, you might not make that money back. This is why income investors usually prefer ETFs that go sideways (stay at the same price) or move slightly up. They want to collect the cash without losing their original investment.

In the case of VEMY, there is "no price erosion detected." The data shows a "good" status for its erosion score.

Pros

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

• It provides regular monthly income.

• The price has been growing rather than shrinking.

Cons

• Investing in emerging markets can be risky.

• High-yield bonds carry more risk than safer government bonds.

Beginner takeaway

VEMY is an ETF that pays regular monthly income from bonds in growing countries. While the high yield looks attractive, always look at the total return and whether the share price is staying steady or falling.