ETF Evaluator: Virtus Stone Harbor Emr Mkt Hi Yld BdETF (VEMY) Follow This ETF

Virtus Stone Harbor Emr Mkt Hi Yld BdETF Overview

Virtus Stone Harbor Emr Mkt Hi Yld BdETF (VEMY) is an actively managed Taxable Bond Emerging Markets Bond exchange-traded fund (ETF). Virtus launched the ETF in 2022.

The investment seeks current income and, secondarily, capital appreciation. Under normal market conditions, the fund will invest not less than 80% of its net assets (plus the amount of any borrowings for investment purposes) in high yield bonds that are economically tied to emerging market countries, and in derivatives and other instruments that have economic characteristics similar to such investments. It is non-diversified.

About Virtus Stone Harbor Emr Mkt Hi Yld BdETF (VEMY)

There are 5 members of the management team with an average tenure of 2.93 years: Steffen Reichold (2026), Stuart Sclater-Booth (2022), Richard Lange (2022), Darin Batchman (2022) and James Craige (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg EM USD Aggregate TR USD index with a weighting of 100% and JPM Hard Currency Cr 50-50 HY TR USD index with a weighting of 100%. Virtus Stone Harbor Emr Mkt Hi Yld BdETF has 184 securities in its portfolio. The top 10 holdings constitute 15.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Virtus Stone Harbor Emr Mkt Hi Yld BdETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Virtus Stone Harbor Emr Mkt Hi Yld BdETF has 98.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.5% (0.5% domestic bond, 98.0% foreign bond and 0.0% convertible bond). Virtus Stone Harbor Emr Mkt Hi Yld BdETF has 1.5% of the portfolio in cash.

Assets Under Management

The fund has $49 million in total assets, which is below the $1 billion average for the Emerging Markets Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

VEMY Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Virtus Stone Harbor Emr Mkt Hi Yld BdETF expense ratio is average compared to funds in the Emerging Markets Bond category. Virtus Stone Harbor Emr Mkt Hi Yld BdETF has an expense ratio of 0.55%, which is 19% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Virtus Stone Harbor Emr Mkt Hi Yld BdETF has a portfolio turnover rate of 107%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 56% for the Emerging Markets Bond category.

Recently, in the month of July 2026, Virtus Stone Harbor Emr Mkt Hi Yld BdETF returned -0.6%, which earned it a grade of A, as the Emerging Markets Bond category had an average return of -1.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Virtus Stone Harbor Emr Mkt Hi Yld BdETF has a trailing yield of 7.34%, which is above the 6.13% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Virtus Stone Harbor Emr Mkt Hi Yld BdETF Grades

Year to date, the ETF has returned 5.7%, 3.7 percentage points better than the category, which translates into a grade of A. The fund has returned 12.8% over the past year (grade of A) and 13.6% over the past three years (grade of A).

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