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Virtus and Cumberland launch Municipal Bond ETF


Virtus ETF Solutions, an affiliate of Virtus Investment Partners, Inc has partnered with Cumberland Advisors to introduce the Virtus Cumberland Municipal Bond ETF.

The Virtus Cumberland Municipal Bond ETF seeks to maximise total return of income and capital appreciation by investing in a basket of municipal bonds. By actively managing the portfolio, Cumberland is able to allocate across local, state and federal bonds, placing an emphasis on quality issues and the ability to favour shorter maturities should interest rates rise.

“We believe the current market offers great value in municipal bonds, particularly in intermediate and longer maturity bonds, especially when compared to traditional valuations versus US Treasuries,” says David Kotok, Cumberland Advisors chief investment officer and portfolio manager. “The Virtus Cumberland Municipal Bond ETF will give investors the opportunity to obtain total return and diversification in the municipal bond market while capitalizing on Cumberland’s 40 years of experience in bond management.”
The strategy emphasises both shorter-term and longer-term bonds, which helps the fund benefit from the steepness of the municipal yield curve and capitalise from moves in the municipal bond yield curve and municipal "centric" events.

Kotok leads the management of CUMB along with John Mousseau, CFA, Director of Fixed Income and Portfolio Manager for Cumberland Advisors.
“We are very excited to join Virtus ETF Solutions in launching the Cumberland Municipal Bond ETF and opening the next chapter in our firm’s history,” Kotok adds. “This ETF is a great opportunity for investors to participate in Cumberland’s total return municipal bond management style within the affordable structure of an exchange traded fund.”

CUMB is Cumberland’s first ETF launched in conjunction with Virtus ETF Solutions, a multi-manager ETF sponsor.

"We’re thrilled to add CUMB to our growing ETF family, and we believe municipal bonds is an asset class that is best managed by a blue-chip sector specialist like Cumberland Advisors,” says William Smalley, executive managing director of Virtus ETF Solutions. “We have taken a thoughtful approach to new product origination and will continue to leverage best-of-breed investment managers as we bolster our suite of alpha-seeking ETF solutions."

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