ETF Education Report: VIRTUS SEIX SENIOR LOAN ETF (SEIX)

What this ETF is trying to do

The VIRTUS SEIX SENIOR LOAN ETF (ticker: SEIX) is an exchange-traded fund listed on the NYSE. While the specific investment strategy is not detailed in the provided data, it is categorized as a standard ETF and is not a leveraged, inverse, or crypto-related fund.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price changes and the money paid out through distributions.

For SEIX, the numbers show that the share price has moved differently than the total return:

• Year-to-Date (YTD): The price return is approximately -0.79%, but the total return is approximately 4.13%.

• One Year: The price return is approximately -1.86%, while the total return is approximately 5.23%.

• Three Year: The price return is approximately -2.65%, but the total return is much higher at approximately 22.61%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was about $23.60. The current price is $23.16.

Income and distribution explanation

This ETF provides regular cash payments, known as distributions. The distribution yield is approximately 7.02%. This means the amount of cash paid out is about 7.02% relative to the current ETF price. These payments usually happen monthly, with 12 payments recorded over the last year.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as total return. Total return is the most complete way to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be related to erosion, they are not the same thing.

StockValueFinder uses an "erosion-risk score" to measure this risk. SEIX has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The fund has a high income rating grade of "A."

• The total returns over one, three, and five years are positive, even though the share prices have seen some declines.

Cons

• The share-price return (price return) has been negative over the one-year and three-year periods.

Beginner takeaway

For new investors, SEIX shows how an ETF can have a declining share price while still providing a positive total return through regular distributions. Always look at the total return to see the full picture of how an investment has performed, rather than just looking at the share price or the distribution yield alone.