Virtus Converts Zevenbergen Mutual Funds to Actively Managed ETFs
Event summary
- Virtus converted two Zevenbergen mutual funds into actively managed ETFs: ZINN ($137.7M AUM) and ZDIS ($70.1M AUM).
- The new ETFs retain Zevenbergen's high-growth equity strategies but offer intraday tradability and tax efficiencies.
- ZINN focuses on innovative growth companies, while ZDIS targets early-stage high-growth firms.
- Zevenbergen Capital Investments will continue managing the strategies under Virtus's ETF platform.
The big picture
This conversion reflects the ongoing shift from mutual funds to ETFs in the asset management industry, driven by investor demand for liquidity and cost efficiency. Virtus is leveraging its ETF expertise to expand its product lineup while Zevenbergen gains access to a broader distribution network. The move positions both firms to capitalize on the growing preference for actively managed ETFs in the growth equity space.
What we're watching
- Flow Dynamics
- Whether the ETF structure will attract new capital to Zevenbergen's strategies.
- Performance Differentiation
- How the actively managed ETFs will compete with passive growth ETFs.
- Strategic Expansion
- The pace at which Virtus will convert additional mutual funds to ETFs.
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