VABS ETF: What Is It? Returns, Expense Ratio, Holdings, and Alternative ETFs Explained
The Virtus Newfleet ABS/MBS ETF (VABS) actively selects investment-grade tranches of asset-backed securities (ABS) and mortgage-backed securities (MBS) and pays a monthly dividend. The key point when comparing it with peer CLO-focused ETFs is the difference in credit sector composition.
SubscribeWhat Is the Virtus Newfleet ABS/MBS ETF?
It is an actively managed bond ETF centered on investment-grade tranches of asset-backed securities and mortgage-backed securities. Rather than tracking a specific index, the management team selects holdings directly.
It suits bond investors who prefer active credit sector selection over tracking a fixed index.
It is an ETF run by Virtus using an active management approach.
How Does the Virtus Newfleet ABS/MBS ETF Invest?
| Item | Details |
|---|---|
| Investment strategy | Active selection of investment-grade ABS and MBS tranches |
| Management style | Active (does not track an index) |
| Rebalancing frequency | At the management team's discretion |
| Dividend frequency | Monthly dividend |
| Total expense ratio | 0.39% |
A significant portion of net assets is allocated to investment-grade ABS and MBS tranches, and the fund also holds securities tied to commercial and residential mortgages. Rather than tracking an index, the management team selects holdings directly based on relative value analysis across credit sectors.
- The management team selects holdings directly instead of strictly tracking a specific benchmark index
- A specialized bond management strategy focused on ABS and MBS credit sectors
Virtus Newfleet ABS/MBS ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $111.8M, and the total expense ratio is 0.39% per year.
Peers in the same category, such as JAAA, PAAA, and CLOA, are built mainly around collateralized loan obligations (CLOs). This product, by contrast, has a broader investment scope covering ABS and MBS generally, which results in a different credit sector composition.
Virtus Newfleet ABS/MBS ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAs a bond product, its price tends to move gradually with the interest rate environment and changes in credit spreads, and over the long term it aims for a steady trajectory through accumulated interest income.
While interest in the securitized bond category as a whole continues, the fund's active management means fund flows may occur as the market credit environment changes.
Virtus Newfleet ABS/MBS ETF Pros and Cons
Its strengths are credit sector diversification centered on investment-grade holdings and a monthly dividend. Its relatively small asset size and liquidity compared with CLO-focused peer ETFs are points to keep in mind.
💪 Key Strengths
⚠️ Points to Watch
Virtus Newfleet ABS/MBS ETF Alternative ETFs and Related Products
JAAA, PAAA, CLOA, CLOI, and others shown in the table are peer bond ETFs specializing in collateralized loan obligations (CLOs) from the highest credit rating tranches. Unlike this product, they are composed mainly of collateralized loan obligations, and they also differ in fees and asset size. FSEC and others in the same table hold a broad range of investment-grade securitized bonds, so their investment scope is relatively similar. Investors who want exposure to the entire bond market beyond securitized bonds can consider AGG, a broad bond ETF, while those who want to focus more on mortgage-related products can look at MBB as comparison candidates.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 JAAA | Janus Henderson AAA CLO ETF | $50.61 | +0.0% | $32.6B | 0.20% | 4.84% | -0.1% |
 PAAA | PGIM AAA CLO ETF | $51.46 | +0.1% | $15.0B | 0.19% | 4.64% | +0.2% |
 FSEC | Fidelity Investment Grade Securitized ETF | $42.48 | -0.3% | $4.6B | 0.36% | 4.58% | -4.9% |
 CLOA | iShares AAA CLO Active ETF | $51.89 | +0.0% | $2.8B | 0.20% | 4.78% | +0.1% |
 CLOI | VanEck CLO ETF | $52.91 | +0.0% | $1.8B | 0.36% | 5.08% | -0.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 CAR | Avis Budget Group Inc | 0.04% | $101.34 | -0.2% | $3.6B | - | - |
 EFC | Ellington Financial Inc | 0.02% | $11.73 | +0.9% | $1.5B | 7.2 | 13.3% |
 PLNT | Planet Fitness Inc | 0.01% | $52.52 | -1.4% | $4.0B | 17.8 | - |
 JMKE | Jersey Mike's Subs Inc | 0.01% | $16.76 | -5.3% | $5.3B | - | - |
 JACK | Jack In The Box Inc | 0.01% | $11.03 | -3.3% | $211.6M | 2.6 | - |
 CIK | UBS Asset Management Income Fund Inc | 0.01% | $2.29 | -0.4% | $125.6M | - | 10.83% |
 NYT | New York Times Co | 0.01% | $69.58 | +0.2% | $11.2B | 29.0 | 1.29% |
Virtus Newfleet ABS/MBS ETF Investor Checkpoints
These are the points to review before investing in VABS. Because it is an actively managed securitized bond product rather than an index tracker, you need to check the management team's credit sector selection results together with trading liquidity.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the fee level, given the nature of an active bond product | Needs comparison with the peer category |
| 💧 Trading liquidity | Average daily trading volume and bid-ask spread | Smaller than large peer ETFs |
| 📊 Credit sector composition | Changes in weights across ABS and MBS subsectors | Remains centered on investment grade |
| 📅 Dividend frequency | Whether monthly dividends are paid and how much distributions fluctuate | Monthly dividend maintained |
Interest rate changes and credit spread widening are the main drivers of short-term price swings. Because it is an actively managed product, performance can differ from peer products depending on the management team's credit sector selections.
It is a monthly-dividend active bond ETF centered on investment-grade ABS and MBS, and its defining feature is a broader credit sector composition than CLO-focused peer products. It is recommended to check liquidity and asset size together before deciding whether to invest.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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