# EDGAR Filing Document

**Accession Number:** 0001559109
**File Stem:** 0001387131-23-000099
**Filing Date:** 2023-1
**Character Count:** 428218
**Document Hash:** dd23c815a33897fe96f3ba4181f0bd54
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001387131-23-000099.hdr.sgml**: 20230105

**ACCESSION NUMBER**: 0001387131-23-000099

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20221031

**FILED AS OF DATE**: 20230105

**DATE AS OF CHANGE**: 20230105

**EFFECTIVENESS DATE**: 20230105

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ETFis Series Trust I
- **CENTRAL INDEX KEY:** 0001559109
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-22819
- **FILM NUMBER:** 23510297

**BUSINESS ADDRESS:**
- **STREET 1:** 1540 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036
- **BUSINESS PHONE:** 347-903-7347

**MAIL ADDRESS:**
- **STREET 1:** 1540 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10036

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ETF Actively Managed Trust
- **DATE OF NAME CHANGE:** 20120926

## Series and Classes Contracts Data

### InfraCap MLP ETF (Series ID: S000045418)

| Class ID   | Class Name       | Ticker Symbol   |
|:---|:---|:---|
| C000141421 | InfraCap MLP ETF | AMZA            |

### Virtus LifeSci Biotech Clinical Trials ETF (Series ID: S000047353)

| Class ID   | Class Name                                 | Ticker Symbol   |
|:---|:---|:---|
| C000148681 | Virtus LifeSci Biotech Clinical Trials ETF | BBC             |

### Virtus LifeSci Biotech Products ETF (Series ID: S000047354)

| Class ID   | Class Name                          | Ticker Symbol   |
|:---|:---|:---|
| C000148682 | Virtus LifeSci Biotech Products ETF | BBP             |

### InfraCap REIT Preferred ETF (Series ID: S000047494)

| Class ID   | Class Name                  | Ticker Symbol   |
|:---|:---|:---|
| C000149129 | InfraCap REIT Preferred ETF | PFFR            |

### Virtus Newfleet Multi-Sector Bond ETF (Series ID: S000048895)

| Class ID   | Class Name                            | Ticker Symbol   |
|:---|:---|:---|
| C000153845 | Virtus Newfleet Multi-Sector Bond ETF | NFLT            |

### Virtus WMC International Dividend ETF (Series ID: S000058304)

| Class ID   | Class Name                            | Ticker Symbol   |
|:---|:---|:---|
| C000191094 | Virtus WMC International Dividend ETF | VWID            |

### Virtus InfraCap U.S. Preferred Stock ETF (Series ID: S000059080)

| Class ID   | Class Name                               | Ticker Symbol   |
|:---|:---|:---|
| C000193703 | Virtus InfraCap U.S. Preferred Stock ETF | PFFA            |

### Virtus Private Credit Strategy ETF (Series ID: S000064727)

| Class ID   | Class Name                         | Ticker Symbol   |
|:---|:---|:---|
| C000209670 | Virtus Private Credit Strategy ETF | VPC             |

### Virtus Real Asset Income ETF (Series ID: S000064728)

| Class ID   | Class Name                   | Ticker Symbol   |
|:---|:---|:---|
| C000209671 | Virtus Real Asset Income ETF | VRAI            |

UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549

**FORM N-CSR**

**CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES**

Investment Company Act file number <u>811-22819</u>

ETFis Series Trust I

&nbsp;&nbsp;&nbsp;&nbsp;(Exact name of registrant as specified in charter)

31 West 52nd Street, 16<sup>th</sup> Floor<br> New York, NY 10019

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Address of principal executive offices) (Zip code)

ETFis Series Trust I

c/o Corporation Service Company

2711 Centerville Road, Suite 400

Wilmington, DE 19808 <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Name and address of agent for service)

Registrant's telephone number, including area code: <u>(212) 593-4383</u>

Date of fiscal year end: <u>October 31</u>

Date of reporting period: <u>October 31, 2022</u>

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

**Item 1. Reports to Stockholders.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Report to Shareholders is attached herewith.

![](etfis-ncsr_103122img001.gif)

**ETFis Series Trust I**

------

**INFRACAP REIT PREFERRED ETF**

**VIRTUS INFRACAP U.S. PREFERRED STOCK ETF**

**VIRTUS LIFESCI BIOTECH CLINICAL TRIALS ETF**

**VIRTUS LIFESCI BIOTECH PRODUCTS ETF**

**VIRTUS NEWFLEET MULTI-SECTOR BOND ETF**

**VIRTUS PRIVATE CREDIT STRATEGY ETF**

**VIRTUS REAL ASSET INCOME ETF**

**Virtus WMC International Dividend ETF**

**INFRACAP MLP ETF**

**ANNUAL REPORT**<br> **October 31, 2022**

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page (s)** |
|  [Shareholder Letter](#etfis-ncsr_103122a5873) | 1 |
|  [Management's Discussion of Fund Performance](#etfis-ncsr_103122a5874) | 2 |
|  [Portfolio Composition](#etfis-ncsr_103122a5875) | 26 |
|  [Shareholder Expense Examples](#etfis-ncsr_103122a5876) | 29 |
|  [*InfraCap REIT Preferred ETF*](#etfis-ncsr_103122a5878) |  |
|  [*Virtus InfraCap U.S. Preferred Stock ETF*](#etfis-ncsr_103122a5879) |  |
|  [*Virtus LifeSci Biotech Clinical Trials ETF*](#etfis-ncsr_103122a5880) |  |
|  [*Virtus LifeSci Biotech Products ETF*](#etfis-ncsr_103122a5881) |  |
|  [*Virtus Newfleet Multi-Sector Bond ETF*](#etfis-ncsr_103122a5882) |  |
|  [*Virtus Private Credit Strategy ETF*](#etfis-ncsr_103122a5883) |  |
|  [*Virtus Real Asset Income ETF*](#etfis-ncsr_103122a5884) |  |
|  [*Virtus WMC International Dividend ETF*](#etfis-ncsr_103122a5885) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; [Schedules of Investments](#etfis-ncsr_103122a5877) | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statements of Assets and Liabilities](#etfis-ncsr_103122a5886) | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statements of Operations](#etfis-ncsr_103122a5887) | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statements of Changes in Net Assets](#etfis-ncsr_103122a5888) | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statement of Cash Flows](#etfis-ncsr_103122a5889) | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Financial Highlights](#etfis-ncsr_103122a5890) | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Notes to Financial Statements](#etfis-ncsr_103122a5891) | 72 |
|  *[InfraCap MLP ETF](#etfis-ncsr_103122a5892)* |  |
| &nbsp;&nbsp;&nbsp;&nbsp; [Schedule of Investments](#etfis-ncsr_103122a5892) | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statement of Assets and Liabilities](#etfis-ncsr_103122a5893) | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statement of Operations](#etfis-ncsr_103122a5894) | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statement of Changes in Net Assets](#etfis-ncsr_103122a5895) | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Statement of Cash Flows](#etfis-ncsr_103122a5896) | 88 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Financial Highlights](#etfis-ncsr_103122a5897) | 89 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Notes to Financial Statements](#etfis-ncsr_103122a5898) | 90 |
|  [Reports of Independent Registered Public Accounting Firm](#etfis-ncsr_103122a5899) | 98 |
|  [Statement Regarding Liquidity Risk Management Program](#etfis-ncsr_103122a5900) | 100 |
|  [Trustees and Officers of the Trust](#etfis-ncsr_103122a5901) | 101 |
|  [Supplemental Information](#etfis-ncsr_103122a5902) | 104 |

---

Shareholder Letter (unaudited)

December 2022

To my fellow shareholders of Virtus ETFs:

On behalf of Virtus ETF Advisers LLC (the "Adviser"), I am pleased to present the shareholder report for the ETFis Series Trust I (the "Trust") for the annual fiscal period ended October 31, 2022.

The Adviser is part of Virtus Investment Partners, a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors.

The report provides financial statements and portfolio information for the following funds within the Trust:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•InfraCap REIT Preferred ETF (PFFR)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Virtus InfraCap U.S. Preferred Stock ETF (PFFA)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Virtus LifeSci Biotech Clinical Trials ETF (BBC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Virtus LifeSci Biotech Products ETF (BBP)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Virtus Newfleet Multi-Sector Bond ETF (NFLT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Virtus Private Credit Strategy ETF (VPC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Virtus Real Asset Income ETF (VRAI)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Virtus WMC International Dividend ETF (VWID)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•InfraCap MLP ETF (AMZA)

On behalf of the Adviser and our fund Sub-Advisers, thank you for your investment. If you have questions, please contact your financial adviser, or call 1-888-383-0553. For more information about the funds and the other ETFs we offer, we invite you to visit our website, www.virtusetfs.com.

Sincerely,

William Smalley<br>President

ETFis Series Trust I

**This material must be accompanied or preceded by** **the prospectus.** 

Management's Discussion of Fund Performance (unaudited)

October 31, 2022

**InfraCap REIT Preferred ETF (PFFR)**

**Management's Discussion of Operations** 

**Overview**

The InfraCap REIT Preferred ETF (the "Fund") seeks to track the investment results, before fees and expenses, of an index composed of preferred shares listed on U.S. Exchanges and issued by Real Estate Investment Trusts ("REITs"), as represented by the Indxx REIT Preferred Stock Index (the "Index"). Although the Fund generally intends to replicate the component securities of the Index, the Fund may utilize a representative sampling strategy when a replication strategy might be detrimental to shareholders. The Fund may invest in a representative sample of securities included in the Index that collectively has a profile similar to the Index. If the Fund uses a representative sampling strategy, the Fund may or may not own all of the securities that are included in the Index.

**Market Update**

In the fiscal year ended October 31, 2022, the Fund's total return based on market price was -27.51%. The Fund's total return based on net asset value was -27.70%. The Fund's benchmark index, the Indxx REIT Preferred Stock Index, returned -27.17% during the same period.

Two of the strongest contributors to the Fund during the period were preferred securities of Annaly Capital Management ("Annaly") and UMH Properties Inc. ("UMH"). Annaly Capital Management, Inc. is one of the largest mortgage real estate investment trusts in the United States. Annaly has a diversified investment strategy, which includes agency mortgage-backed securities, mortgage servicing rights and residential real estate. UMH is a real estate investment trust that, as of their recent annual report, owns and operates a portfolio of 132 manufactured home communities with approximately 25,000 developed home sites. UMH has a 53-year history of providing quality, affordable housing for the US workforce. As home prices continue to rise and available home inventory continues to shrink, the supply of affordable housing becomes an ever-increasing concern. During the period, Annaly, Series F and UMH D were up 2.00% and 0.70%, respectively.

Two of the detractors from Fund performance during the period were preferred securities of Diversified Healthcare Trust, DHCNI and Vornado Realty Trust, VNO N. These preferred securities of both issuers unperformed preferred securities with higher stated yields. DHCI and VNO N were down -46.70% and -39.20%, respectively.

Preferred shares are fixed income securities, and prices are influenced by changes in long-term interest rates. During the fiscal year, the yield on the 30-year U.S. Treasury bond was 1.63% as of November 1, 2021 and increased 259 basis points to 4.22%, as of October 31, 2022. We believe this sharp increase over the fiscal year is a result of the strong U.S. economy and labor market and continue to believe that the economic impacts of the Covid-19 Pandemic are limited.

**Dividend Payment**

In the fiscal year ended October 31, 2022, the Fund made monthly dividend payments in the amount of $0.12 per share. While the Fund plans to continue paying monthly dividends, dividends are not guaranteed. The Fund seeks to maintain relatively stable monthly distributions although the amount of income earned by the Fund varies from period to period. To achieve this objective, the Fund may distribute less than the full amount of income earned during a specific period, preserving income for distribution in future periods. Consequently, the amount of income distributed in any one period may be more or less than the actual amount of income earned in that period.

**Outlook**

We believe REIT preferred securities continue to offer an attractive way to access current market dislocations. Despite the BA.5 variant, economies are continuing to return to normal operations and supportive federal monetary policy and stimulus is winding down. We believe investors can benefit from market rotations by investing in REIT preferreds. As interest rates rise from historically low levels, investors may have difficulty finding higher yielding opportunities. Thus, we believe preferred securities could provide investors with access to attractive yields at discounted prices.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**InfraCap REIT Preferred ETF (continued)**

*The preceding information is the opinion of the investment adviser and sub-adviser. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Statements of fact are from sources considered reliable, but the investment adviser and sub-adviser make no representation or warranty as to their completeness or accuracy. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.*

---

| | | |
|:---|:---|:---|
| **Credit Rating** | **Issue** | **Issuer** |
| A  | 0.00% | 9.45% |
| A-  | 9.33% | 0.00% |
| BBB+  | 0.00% | 5.54% |
| BBB  | 5.47% | 10.01% |
| BBB-  | 7.81% | 9.91% |
| BB+  | 10.57% | 4.44% |
| BB  | 1.36% | 0.00% |
| BB-  | 4.75% | 3.66% |
| B+  | 0.00% | 0.00% |
| B  | 0.00% | 5.44% |
| B-  | 0.00% | 0.00% |
| NR  | 60.71% | 51.55% |

---

Credit quality ratings on underlying securities of the Fund are received from S&P, Moody's, and Fitch and converted to the equivalent S&P major rating category. This breakdown is provided by Infrastructure Capital Advisors, LLC and takes the median rating of the three agencies when all three agencies rate a security, the lower of the two ratings if only two agencies rate a security, and one rating if that is all that is provided. Unrated securities do not necessarily indicate low quality. A credit rating below investment-grade is represented by a rating of BB and below. Ratings and portfolio credit quality may change over time. This discussion includes information based on data and calculations sourced from Bloomberg and index constituents. While we believe that the data is reliable, we have not sought, nor have we received, permission from any third-party to include their information.

**Performance as of 10/31/2022**

---

| | | | |
|:---|:---|:---|:---|
|  | **Average Annual Total Return** | **Average Annual Total Return** | **Average Annual Total Return** |
|  | **Fund<br>Net Asset<br>Value** | **Fund<br>Market<br>Price** | **Indxx REIT<br>Preferred<br>Stock Index<sup>1</sup>** |
|  1 Year  | (27.70)% | (27.51)%  | (27.17)% |
|  5 Year  | (2.61)% | (2.63)%  | (1.58)% |
|  Since Inception<sup>2</sup>  | (1.19)% | (1.19)% | (0.22)% |

---

------

1 The Indxx REIT Preferred Stock Index is a market cap weighted index designed to provide diversified exposure to high yielding liquid preferred securities issued by Real Estate Investment Trusts listed in the U.S. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

2February 7, 2017.

**Performance data quoted represents past performance and past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. Returns do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. For the most current month-end performance data please visit** <u>**<u>www.virtusetfs.com</u>**</u> **or call toll free (800) 243-4361. Market price returns are based on the mid-point of the highest bid and lowest offer for Fund shares as of the scheduled close of regular trading on the New York Stock Exchange Arca ("NYSE"), ordinarily** **4:00 p.m.** **Eastern time, on each day during which the NYSE is open for trading, and do not represent the returns an investor would receive if shares were traded at** **other times.**

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**InfraCap REIT Preferred ETF (continued)** 

**Preferred Stocks:** Preferred stocks may decline in price, fail to pay dividends, or be illiquid.

**Real Estate Investments:** The Fund may be negatively affected by factors specific to the real estate market, including interest rates, leverage, property, and management.

**Industry/Sector Concentration:** A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund.

**Interest Rate Risk:** The value of preferred securities will generally vary inversely with the direction of prevailing interest rates such that, generally, when interest rates rise, the value of preferred securities can be expected to decline.

**Non-Diversified:** The Fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the Fund's assets.

**Passive Strategy/Index Risk:** A passive investment strategy seeking to track the performance of the Underlying Index may result in the fund holding securities regardless of market conditions or their current or projected performance. This could cause the Fund's returns to be lower than if the Fund employed an active strategy.

**Correlation to Index:** The performance of the Fund and its index may vary somewhat due to factors such as Fund flows, transaction costs, and timing differences associated with additions to and deletions from its index.

**Market Volatility:** Securities in the Fund may go up or down in response to the prospects of individual companies and general economic conditions. Price changes may be short or long term.

**Exchange Traded Funds:** The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities.

**Market Price/NAV:** Shares of ETFs often trade at a discount to their net asset value, which may increase investors' risk of loss. At the time of sale, an investor's shares may have a market price that is above or below the Fund's NAV.

**No Guarantee:** There is no guarantee that the Fund will meet its objective.

**Prospectus:** For additional information on risks, please see the Fund's prospectus. The Fund may not be suitable for all investors.

**Value of a $10,000 Investment Since Inception at Net** **Asset Value**

![](etfis-ncsr_103122img002.gif)

**The chart above represents historical performance of a hypothetical investment of $10,000 over the life of the Fund, assuming reinvestment of distributions. Past performance does not guarantee** **future results.** 

**5**

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus InfraCap U.S. Preferred Stock ETF (PFFA)**

**Management's Discussion of Operations**

**Overview**

Virtus InfraCap U.S. Preferred Stock ETF (the "Fund") seeks to provide current income and, secondarily, capital appreciation. Callable preferred securities exhibiting a low or negative yield to call are generally excluded from the portfolio. The Fund may utilize options strategies and leverage to enhance income and total return.

**Market Update**

In the twelve months ending October 31, 2022, the Fund's total return based on market price was -19.13%. The Fund's total return based on net asset value was -19.28%. The Fund's benchmark index, the S&P U.S. Preferred Stock Index, returned -19.61% during the same period.

For the fiscal year ended October 31, 2022, the Federal Reserve aggressively increased interest rates, geopolitical and inflationary pressures remained elevated and the Ukraine-Russia war persisted. Fixed and equity income investments were subject to volatility and the US stock market traded lower over the period. The negative market and economic effects that resulted from the Covid-19 global pandemic largely subsided during the period. Global economies reopened and social distancing measures were reduced. Rates on 10-year and 30-year U.S. Treasury bonds increased, which put pressure on lower yielding income investments. Cyclical segments of the economy outperformed during the period and benefited from rotational allocations away from the Covid-19 or stay-at-home technology related securities.

Two of the Fund's strongest contributors during the period were preferred securities of South Jersey Industries ("SJI") and AES Corporation ("AES"). SJI is a publicly held energy services holding company for a natural gas utility and other, non-regulated companies. Over the period, SJI and the Infrastructure Investments Fund ("IIF"), a private investment vehicle focused on investing in critical infrastructure assets, announced that they have entered into a definitive agreement under which IIF will purchase SJI for $36.00 per share in cash, reflecting an enterprise value of approximately $8.1 billion. As of February 23, 2022, the price represents a 53% premium to SJI's closing price and a 46% premium to SJI's 30-day volume-weighted average price. We maintained a strong conviction in our selection of SJI through each market cycle and benefited from this announcement. AES is a Fortune 500 global utility company. It owns and operates power plants, which it uses to generate and sell electricity to end users and intermediaries like utilities and industrial facilities. During the period, SJI's Series V and AES's Series C were up 40.45% and 12.65%, respectively.

Two of the Fund's weaker contributors during the period were preferred securities of Hudson Pacific Properties, Inc. ("Hudson") and First Republic Bank ("First Republic"). Hudson is a real estate investment trust that owns office buildings, sound stages, and undeveloped rights for additional commercial properties. Hudson acquires, operates, and builds premier office and studio properties in global epicenters for tech and media innovation. First Republic is an American full-service bank and wealth management company, with a focus in serving low-risk, high net worth clientele. Hudson's HPP C, and First Republic's FRC M were down, 46.52% and 35.01%, respectively.

The Fund's portfolio composition emphasizes issuers that own long-lived assets that generate free cash flow. Preferred stocks issued by REITs, Pipelines and Industrials comprised approximately 53.8%, 15.6%, and 13.8% of the Fund's total assets, respectively, at fiscal year-end. This compares to weightings of approximately 10.8%, 2.2%, and 2.3% in the benchmark index. Such overweighting positively contributed to Fund performance during the period. In addition, at fiscal year-end preferred stocks issued by financial companies only comprised about 6.5% of the Fund's total assets, while the Fund's benchmark index was weighted approximately 50.2%. This significant underweighting of financials positively contributed to the Fund's outperformance during the period.

Approximately 51% of the Fund's total assets were fixed-to-floating rate preferred stocks at fiscal year-end. This compares to about 25% for the benchmark index. These securities have a fixed rate coupon at issue but become a floating rate security after a specified period of time, typically five or ten years after issuance. This structure provides investors with some protection from a rising interest rate environment while offering a higher current yield than that available on securities with coupon rates that float currently. During the period, this overweighting positively contributed to fund performance.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus InfraCap U.S. Preferred Stock ETF (continued)**

**Dividend Payments**

In the fiscal year ended October 31, 2022, the Fund made dividend payments in the amount of $0.160 per share in November and December of 2021, while paying monthly dividend payments in 2022 of $0.1625 per share for the remainder the fiscal year.

The Fund's dividend policy is reviewed on an annual basis with the expectation that the announced dividend rate can be sustained for a period of 12 – 24 months. The Fund's targeted dividend is expected to be covered by its investment company taxable income (which includes ordinary income and long and short-term capital gains less expenses). For the purpose of calculating income available for distribution, some cash payments from REITs or MLPs treated as Return of Capital for tax or GAAP purposes may be included. Expenses include an 80 basis point advisory fee, leverage costs, and other miscellaneous fees.

The Fund seeks to maintain relatively stable monthly distributions although the amount of income earned by the Fund varies from period-to-period. To achieve this objective, the Fund may distribute less than the full amount of income earned during a specific period to preserve income for distribution in future periods. Consequently, the amount of income distributed in any one period may be more or less than the actual amount of income earned in that period.

The Fund's current 30-day SEC yield was 11.09% as of fiscal year end. The Fund's distribution rate as of fiscal year end was 9.99%.

**Use of Leverage**

As described in the Fund's prospectus, the Fund may use leverage to help achieve its current income objective. The leverage ratio is expected to be maintained in a range of 10-35% of the Fund's total assets over the long term. As of October 31, 2022, The Fund's leverage was approximately 29% of the Fund's net asset value. The Fund's use of leverage negatively impacted Fund performance during the period.

The Fund's cost of borrowing increased during the fiscal year. The Fund entered into Lending Agreements (each, an "Agreement") with commercial banks (the "Banks") that allow the Fund to borrow cash from the Banks. Borrowings under the Agreements are collateralized by investments in the Fund. If the Fund defaults with respect to any of its obligations under the Agreement, the Banks may foreclose on assets of the Fund and/or the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the Agreement, necessitating the sale of securities at potentially inopportune times. Interest is charged at the OBFR (Overnight Bank Funding Rate) plus an additional percentage rate on the amount borrowed. Each Agreement has an on-demand commitment term. As of October 31, 2022, the current cost is daily OBFR plus 1.10%, which resets daily.

**Use of Options**

As described in the prospectus, the Fund may utilize options strategies to boost the amount of income available to distribute to shareholders. The primary activity is covered call writing, which is focused on a small number of common stocks and ETFs owned by the Fund. However, due to limited use of options during the fiscal year, the option activity did not materially impact the Fund's performance.

**Outlook**

We believe that there continue to be opportunities for active managers to select preferred stocks that are inefficiently priced. We place special emphasis on maximizing the Fund's yield-to-call and believe that avoiding issues that are callable and trading at prices above the call price will assist in achieving that result. We believe many preferred stock investors, especially passive funds, inadvertently ignore the risk of owning issues with a negative yield-to-call.

We believe the market's uncertainty surrounding the duration and magnitude of rising inflation will be a continued leading theme for the forthcoming fiscal year. We have seen the divergence of performance based on credit ratings as lower-rated, higher-yielding credits have outperformed on correlation to equity markets and higher-rated, lower-yielding credits underperformed on correlation to treasury yields. We expect this trend to continue as inflation remains high (yet falling), fiscal and monetary policies remain tight, and interest rates rise. We believe that high-yield preferred stocks will continue to trade higher under these market conditions, and we look to opportunistically add new issues to maintain an above-average yield-to-call versus the Fund's benchmark. We remain optimistic on the outlook of the US stock market and believe for the next fiscal year, non-investment grade preferred securities in sectors including, REITs, Utilities, Pipelines and Industrials will outperform the financial sector and investment grade preferred securities.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus InfraCap U.S. Preferred Stock ETF (continued)**

*The preceding information is the opinion of the investment adviser and sub-adviser. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Statements of fact are from sources considered reliable, but the investment adviser and sub-adviser make no representation or warranty as to their completeness or accuracy. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized. This discussion includes information based on data and calculations sourced from Bloomberg and index constituents. While we believe that the data is reliable, we have not sought, nor have we received, permission from any third-party to include their information.*

**Performance as of 10/31/2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Average Annual Total Return** | **Average Annual Total Return** | **Average Annual Total Return** |
|  | **Fund<br>Net Asset<br>Value** | **Fund<br>Market<br>Price** | **S&P U.S.<br>Preferred<br>Stock Index<sup>1</sup>** |
|  1 Year  | (19.28)% | (19.13)% | (19.61)% |
|  Since Inception<sup>2</sup>  | 2.47% | 2.43% | 1.17% |

---

------

1 The S&P U.S. Preferred Stock Index measures performance of the U.S. preferred stock market. Preferred stocks pay dividends at a specified rate and receive preference over common stocks in terms of dividend payments and liquidation of assets. The index is calculated on a total return basis with dividend reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

2May 15, 2018.

**Performance data quoted represents past performance and past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. Returns do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. For the most current month-end performance data please visit** <u>**<u>www.virtusetfs.com</u>**</u> **or call toll free (800) 243-4361. Market price returns are based on the mid-point of the highest bid and lowest offer for Fund shares as of the scheduled close of regular trading on the New York Stock Exchange Arca ("NYSE"), ordinarily 4:00 p.m. Eastern time, on each day during which the NYSE is open for trading, and do not represent the returns an investor would receive if shares were traded at** **other times.** 

**Preferred Stocks:** Preferred stocks may decline in price, fail to pay dividends, or be illiquid.

**Derivatives:** Investments in derivatives such as futures, options, forwards, and swaps may increase volatility or cause a loss greater than the principal investment.

**Leverage:** When a fund leverages its portfolio, the value of its shares may be more volatile and all other risks may be compounded.

**Non-Diversified:** The Fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the Fund's assets.

**Sector Focus:** To the extent the Fund has significant exposure to one or more sectors, this may make the Fund particularly susceptible to adverse economic, political or regulatory occurrences and changes affecting companies in those sectors.

**Exchange Traded Funds:** The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities.

**Market Price/NAV:** Shares of ETFs often trade at a discount to their net asset value, which may increase investors' risk of loss. At the time of sale, an investor's shares may have a market price that is above or below the Fund's NAV.

**No Guarantee:** There is no guarantee that the Fund will meet its objective.

**Prospectus:** For additional information on risks, please see the Fund's prospectus. The Fund may not be suitable for all investors.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus InfraCap U.S. Preferred Stock** **ETF (continued)**

**Value of a $10,000 Investment Since Inception at Net Asset Value**

![](etfis-ncsr_103122img003.gif)

**The chart above represents historical performance of a hypothetical investment of $10,000 over the life of the Fund, assuming reinvestment of distributions. Past performance does not guarantee future results.** 

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus LifeSci Biotech Clinical Trials ETF (BBC)**

The Virtus LifeSci Biotech Clinical Trials ETF (the Fund) seeks to track the investment results, before fees and expenses, of the LifeSci Biotechnology Clinical Trials Index (the Index), which is composed of U.S.-listed biotechnology stocks with a lead drug in the clinical trial stage of development.

For the fiscal year ended October 31, 2022, the Fund's total return based on market price was -41.70%. The Fund's total return based on net asset value was -41.66%. The LifeSci Biotechnology Clinical Trials returned -41.76% during the same period.

The top contributors to the Fund's performance for the fiscal year included Akero Therapeutics, which operates as a biotechnology company. Akero discovers and develops medicines and therapies that seek to treat metabolic diseases by restoring metabolic balance. Another leading contributor was Turning Point Therapeutics, which operated as a clinical-stage structure-based drug design company for the discovery and development of precision medicines for cancer and other diseases. Turning Point was acquired by Bristol Myers Squibb for a premium of approximately 122% per share, and was deleted from the fund on August 18, 2022. Positive contributors also included Inhibrx, which offers biologic therapeutics for people with life-threatening conditions. The company focuses on developing a diverse pipeline of therapeutic candidates.

The top detractors from Fund performance for the fiscal year were Athira Pharma, Chimerix and I-Mab. Athira operates as a biotechnology company and develops small molecules to restore neuronal health and stop the neurodegeneration brought on by diseases such as Alzheimer's and Parkinson's. Chimerix, operates as a biopharmaceutical company and develops oral antiviral therapeutics to transform patient care in multiple settings including transplant, oncology, acute care, and global health. Chimerix was sold during the fiscal year because the company no longer fits the Fund's underlying index's market capitalization and trading volume criteria. I-Mab operates as a clinical stage biopharmaceutical company and focuses on the discovery, development, and commercialization of novel biologics to treat diseases with significant unmet medical needs, particularly cancers and autoimmune disorders.

*The preceding information is the opinion of the investment adviser. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Statements of fact are from sources considered reliable, but the investment adviser makes no representation or warranty as to their completeness or accuracy. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.*

**Performance as of 10/31/2022**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Average Annual Total Return** | **Average Annual Total Return** | **Average Annual Total Return** | **Average Annual Total Return** |
|  | **Fund<br>Net Asset<br>Value** | **Fund<br>Market<br>Price** | **LifeSci<br>Biotechnology<br>Clinical Trials<br>Index<sup>1</sup>** | **S&P 500<sup>®</sup>** **<br>Index<sup>2</sup>** |
|  1 Year  | (41.66)% | (41.70)% | (41.76)% | (14.61)% |
|  5 Years  | (1.16)% | (1.18)% | (0.69)% | 10.44% |
|  Since Inception<sup>3</sup>  | 0.64% | 0.63% | 1.17% | 11.01% |

---

------

1 The LifeSci Biotechnology Clinical Trials Index is designed to track the performance of U.S.-listed biotechnology stocks with a lead drug in the clinical trial stage of development, typically a Phase 1, Phase 2 or Phase 3 trial, but prior to receiving marketing approval. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

2 The S&P 500<sup>®</sup> Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

3December 16, 2014.

**Performance data quoted represents past performance and past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. Returns do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. For the most current month-end performance data please visit** <u>**<u>www.virtusetfs.com</u>**</u> **or call toll free (800) 243-4361. Market price returns are based on the mid-point of the highest bid and lowest offer for Fund shares as of the scheduled close of regular trading on the New York Stock Exchange Arca ("NYSE"), ordinarily 4:00 p.m. Eastern time, on each day during which the NYSE is open for trading, and do not represent the returns an investor would receive if shares were traded at** **other times.** 

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus LifeSci Biotech Clinical Trials** **ETF (continued)** 

**Biotechnology Industry Risk:** The Fund's assets will be concentrated in investments in the securities of issuers engaged primarily in the biotechnology industry. Companies within the biotechnology industry spend heavily on research and development, which may not necessarily lead to commercially successful products in the near or long term. In order to fund operations, these companies may require financing from the capital markets, which may not always be available on satisfactory terms or at all. The biotechnology industry is also subject to significant governmental regulation, and the need for governmental approvals, including, without limitation, FDA approval. The securities of biotechnology companies, especially those of smaller or newer companies, tend to be more volatile than those of companies with larger capitalizations or markets generally.

**Industry/Sector Concentration:** A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund.

**Correlation to Index:** The performance of the Fund and its index may vary somewhat due to factors such as Fund flows, transaction costs, and timing differences associated with additions to and deletions from its index.

**Exchange Traded Funds:** The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities.

**Market Price/NAV:** Shares of ETFs often trade at a discount to their net asset value, which may increase investors' risk of loss. At the time of sale, an investor's shares may have a market price that is above or below the Fund's NAV.

**No Guarantee:** There is no guarantee that the Fund will meet its objective.

**Prospectus:** For additional information on risks, please see the Fund's prospectus. The Fund may not be suitable for all investors.

**Value of a $10,000 Investment Since Inception at Net Asset Value**![](etfis-ncsr_103122img004.gif)

**The chart above represents historical performance of a hypothetical investment of $10,000 over the life of the Fund, assuming reinvestment of distributions. Past performance does not guarantee** **future results.** 

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus LifeSci Biotech Products ETF (BBP)**

The Virtus LifeSci Biotech Products ETF (the Fund) seeks to track the investment results, before fees and expenses, of the LifeSci Biotechnology Products Index (the Index), which is composed of U.S.-listed biotechnology stocks with at least one drug therapy approved by the U.S. Food & Drug Administration (FDA) for marketing.

For the fiscal year ended October 31, 2022, the Fund's total return based on market price was -9.79%; the Fund's total return based on net asset value was -9.88%. The LifeSci Biotechnology Products Index returned -9.46% for the same period.

Mergers & acquisitions (M&A) were a significant driver of the performance of mid- to large-cap biotechnology stocks during the fiscal year. The top performers for the Fund were Mvoyant Sciences and Global Blood Therapeutics. Both companies were targets of acquisitions during the reporting period. Myovant is a clinical-stage biopharmaceutical company that engages in the development and commercialization of therapies for the treatment of women's health and endocrine diseases. Sumitomo Pharma announced the acquisition of Myovant on October 23, 2022, a transaction that is expected to be completed in the first quarter of 2023. In another deal in the rare hematology space, Pfizer acquired Global Blood Therapeutics on October 6, 2022, which was a positive contributor to the Fund and a combination with good potential to address significant needs in an underserved therapy.

ChemoCentryx was another top contributor to returns after it agreed to be acquired by Amgen. The biopharmaceutical company focused on orally administered therapeutics to treat autoimmune diseases, inflammatory disorders, and cancer. Immunocore Holdings and Axsome Therapeutics were also leading contributors to Fund performance during the fiscal year.

Detractors from Fund performance for the 12-month period included Bluebird Bio and 2Seventy bio. 2seventy, a spinoff from Bluebird, operates as cell and gene therapy company. It is focused on the research, development, and commercialization of transformative treatments for cancer. ADC Therapeutics, a clinical-stage biotechnology company, also detracted from performance. These stocks were sold during the reporting period.

Radius Health detracted from Fund performance. A consortium led by Gurnet Point Capital acquired the company in August of 2022. Other detractors included Nektar Therapeutics, a research-based biopharmaceutical company that engages in discovering and developing medicines in areas of unmet medical need, and Zai Lab Ltd.

*The preceding information is the opinion of the investment adviser. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Statements of fact are from sources considered reliable, but the investment adviser makes no representation or warranty as to their completeness or accuracy. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.*

**Performance as of 10/31/2022** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Average Annual Total Return**  | **Average Annual Total Return**  | **Average Annual Total Return**  | **Average Annual Total Return**  |
|  | **Fund<br>Net Asset<br>Value** | **Fund<br>Market<br>Price** | **LifeSci<br>Biotechnology<br>Products<br>Index<sup>1</sup>** | **S&P 500<sup>®</sup>** **<br>Index<sup>2</sup>** |
|  1 Year  | (9.88)% | (9.79)% | (9.46)% | (14.61)% |
|  5 Years  | 3.53% | 3.52% | 4.31% | 10.44% |
|  Since Inception<sup>3</sup>  | 8.46% | 8.45% | 9.31% | 11.01% |

---

------

1 The LifeSci Biotechnology Products Index is designed to track the performance of U.S.-listed biotechnology stocks with at least one drug therapy approved by the FDA for marketing. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

2 The S&P 500<sup>®</sup> Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

3December 16, 2014.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus LifeSci Biotech Products** **ETF (continued)** 

**Performance data quoted represents past performance and past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. Returns do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. For the most current month-end performance data please visit** <u>**<u>www.virtusetfs.com</u>**</u> **or call toll free (800) 243-4361. Market price returns are based on the mid-point of the highest bid and lowest offer for Fund shares as of the scheduled close of regular trading on the New York Stock Exchange Arca ("NYSE"), ordinarily 4:00 p.m. Eastern time, on each day during which the NYSE is open for trading, and do not represent the returns an investor would receive if shares were traded at** **other times.** 

**Biotechnology Industry Risk:** The Fund's assets will be concentrated in investments in the securities of issuers engaged primarily in the biotechnology industry. Companies within the biotechnology industry spend heavily on research and development, which may not necessarily lead to commercially successful products in the near or long term. In order to fund operations, these companies may require financing from the capital markets, which may not always be available on satisfactory terms or at all. The biotechnology industry is also subject to significant governmental regulation, and the need for governmental approvals, including, without limitation, FDA approval. The securities of biotechnology companies, especially those of smaller or newer companies, tend to be more volatile than those of companies with larger capitalizations or markets generally.

**Industry/Sector Concentration:** A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund.

**Correlation to Index:** The performance of the Fund and its index may vary somewhat due to factors such as Fund flows, transaction costs, and timing differences associated with additions to and deletions from its index.

**Exchange Traded Funds:** The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities.

**Market Price/NAV:** Shares of ETFs often trade at a discount to their net asset value, which may increase investors' risk of loss. At the time of sale, an investor's shares may have a market price that is above or below the Fund's NAV.

**No Guarantee:** There is no guarantee that the Fund will meet its objective.

**Prospectus:** For additional information on risks, please see the Fund's prospectus. The Fund may not be suitable for all investors.

**Value of a $10,000 Investment Since Inception at Net Asset Value**![](etfis-ncsr_103122img005.gif)

**The chart above represents historical performance of a hypothetical investment of $10,000 over the life of the Fund, assuming reinvestment of distributions. Past performance does not guarantee future results.** 

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus** **Newfleet Multi-Sector Bond ETF (NFLT)**

The Virtus Newfleet Multi-Sector Bond ETF (the "Fund") seeks to provide a high level of current income and, secondarily, capital appreciation.

**How did the markets perform during the Fund's fiscal year ended October 31, 2022?**

Central banks embarked on the first meaningful tightening of monetary policy in several years in response to elevated inflation during the fiscal year. Their messaging was consistent: they are focused on fighting high inflation. The monetary backdrop clouded the outlook for global and regional economies, and led to the market anticipating a higher probability of recession. This resulted in negative total returns for most assets. The pandemic remained a global issue, with China's zero-COVID policy continuing to delay the normalization of supply chains, though there were signs that the rigid policy may be eased. Meanwhile, the war between Russia and Ukraine presented an ongoing economic shock to food and energy prices. These unresolved issues made economic forecasting and modeling a challenge and contributed to a volatile investing environment during the fiscal year.

The Federal Reserve (the Fed) and other major central banks shifted their rhetoric sharply hawkish, indicating that keeping inflation under control is their primary goal, in response to elevated inflation measures. The Fed raised its main policy interest rate 3.00% during the fiscal year, including three jumbo moves of 0.75% each, and indicated its intent to restore price stability. The Fed began to shrink its $8.9 trillion balance sheet, and increased its pace in September of 2022. The European Central Bank (ECB) also joined the inflation fight, raising its policy rate to 2.00% over three meetings, marking the first increases from zero interest rates since 2016. The Bank of Japan appeared to be relatively less concerned about inflation given local economic conditions, but weakness in the yen was challenging that stance.

During the 12-month period, volatility in the fixed income markets increased due to both the more hawkish Fed policy and the Russian invasion of Ukraine. U.S. Treasuries generally outperformed spread sectors (non-governmental fixed income investments) on an excess return basis. Excess return refers to the difference in return – positive or negative – between an individual security and a comparable risk-free asset, in this case a U.S. Treasury with the same duration (interest rate sensitivity). With the spike in U.S. Treasury yields, less interest rate-sensitive sectors such as high yield bank loans, and other shorter-duration asset classes, including asset-backed securities, generally outperformed on a total return basis.

During the 12-month period, the U.S. Treasury yield curve shifted higher, with the largest increase on the front end, resulting in an inverted yield curve. This occurs when the yields on longer-term investments drop below the yields on shorter-term investments with the same risk profile.

**What factors affected the Fund's performance during its fiscal year?**

For the fiscal year ended October 31, 2022, the Fund's total return based on market price was -11.91%. The Fund's total return based on net asset value was -11.72%. For the same period, the Fund's benchmark, the Bloomberg U.S. Aggregate Bond Index, returned -15.68%.

The Fund's allocations to high yield bank loans and asset-backed securities, an underweight to corporate high quality securities, and an allocation to non-agency mortgage-backed securities over agency mortgage-backed securities, all had a positive impact on relative performance for the 12-month period. Overall issue selection was positive for the period.

The Fund's underweight to U.S. Treasury securities had a negative relative impact during the period. The Fund's allocations to emerging markets high yield and yankee high quality securities also detracted from Fund performance during the period.

*The preceding information is the opinion of the investment adviser and sub-adviser. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Statements of fact are from sources considered reliable, but the investment adviser makes no representation or warranty as to their completeness or accuracy. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.*

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus Newfleet Multi-Sector Bond ETF (continued)** 

**Performance as of 10/31/2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Average Annual Total Return** | **Average Annual Total Return** | **Average Annual Total Return** |
|  | **Fund<br>Net Asset<br>Value** | **Fund<br>Market<br>Price** | **Bloomberg<br>U.S. Aggregate<br>Bond Index<sup>1</sup>** |
|  1 Year  | (11.72)% | (11.91)% | (15.68)% |
|  5 Years  | 0.66% | 0.72% | (0.54)% |
|  Since Inception<sup>2</sup>  | 2.24% | 2.24% | 0.44% |

---

------

1The Bloomberg U.S. Aggregate Bond Index measures the U.S. investment grade fixed rate bond market. The index is calculated on a total return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

2August 10, 2015.

**Performance data quoted represents past performance and past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. Returns do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. For the most current month-end performance data please visit** <u>**<u>www.virtusetfs.com</u>**</u> **or call toll free (800) 243-4361. Market price returns are based on the mid-point of the highest bid and lowest offer for Fund shares as of the scheduled close of regular trading on the New York Stock Exchange Arca ("NYSE"), ordinarily 4:00 p.m. Eastern time, on each day during which the NYSE is open for trading, and do not represent the returns an investor would receive if shares were traded at** **other times.** 

**Credit & Interest:** Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.

**High Yield-High Risk Fixed Income Securities:** There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities.

**Foreign & Emerging Markets:** Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk.

**ABS/MBS:** Changes in interest rates can cause both extension and prepayment risks for asset- and mortgage-backed securities. These securities are also subject to risks associated with the repayment of underlying collateral.

**Bank Loans:** Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary market. Loans can carry significant credit and call risk, can be difficult to value and have longer settlement times than other investments, which can make loans relatively illiquid at times.

**Market Price/NAV:** Shares of ETFs often trade at a discount to their net asset value, which may increase investors' risk of loss. At the time of sale, an investor's shares may have a market price that is above or below the Fund's NAV.

**No Guarantee:** There is no guarantee that the Fund will meet its objective.

**Prospectus:** For additional information on risks, please see the Fund's prospectus. The Fund may not be suitable for all investors.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus Newfleet Multi-Sector Bond** **ETF (continued)** 

**Value of a $10,000 Investment Since Inception at Net Asset Value**![](etfis-ncsr_103122img006.gif)

**The chart above represents historical performance of a hypothetical investment of $10,000 over the life of the Fund, assuming reinvestment of distributions. Past performance does not guarantee** **future results.** 

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus Private Credit Strategy ETF (VPC)**

The Virtus Private Credit Strategy ETF (the Fund) seeks to track the investment results, before fees and expenses, of the Indxx Private Credit Index (the Index), which provides passive exposure to U.S.-listed instruments that emphasize private credit, including business development companies (BDCs) and closed-end funds (CEFs).

For the fiscal year ended October 31, 2022, the Fund's total return based on market price was -13.02%; the Fund's total return based on net asset value was -12.75%. The Indxx Private Credit Index returned -12.91% during the same period.

The top contributor to Fund performance for the 12-month period was Fidus Investment Corporation. Fidus provides customized mezzanine debt and equity financing solutions to lower middle-market companies in the U.S. The company operates as a BDC and invests in a wide range of industries. Another top performer was Runway Growth Finance, a specialty finance company. Runway focuses on providing senior secured loans to high growth-potential companies in technology, life sciences, health care information and services, business services, select consumer services and products, and other high-growth industries.

Stellus Capital Investment Corp. also made a positive contribution to Fund performance. Stellus, which operates as a BDC, invests in companies located in the U.S. with earnings before interest, taxes, depreciation, and amortization (EBITDA) of $5 to $50 million. The company provides financing in the form of equity, senior secured first lien, unitranche, split lien, and second lien debt financings for buyout transactions.

Top detractors from Fund performance included two CEFs, Nuveen Credit Strategies Income Fund and Oxford Lane Capital Corporation (Oxford Lane). Oxford Lane invests primarily in the debt and equity tranches of collateralized loan obligation (CLO) vehicles. The investment objective of Nuveen Credit Strategies Income Fund is high current income and total return. The Nuveen Credit Strategies Income Fund invests at least 70% of its assets in senior secured and second lien loans, and up to 30% opportunistically over the credit cycle in other types of securities.

Another leading detractor from Fund performance was SLR Investment Corporation (SLR), a BDC that makes investments in the form of senior secured loans, mezzanine loans, and equity securities. SLR invests primarily in senior secured loans of private middle market companies to generate current income, which it distributes to shareholders on a quarterly basis.

*The preceding information is the opinion of the investment adviser. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Statements of fact are from sources considered reliable, but the investment adviser makes no representation or warranty as to their completeness or accuracy. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.*

**Performance as of 10/31/2022**

---

| | | | |
|:---|:---|:---|:---|
|  | **Average Annual Total Return** | **Average Annual Total Return** | **Average Annual Total Return** |
|  | **Fund<br>Net Asset<br>Value** | **Fund<br>Market<br>Price** | **Indxx<br>Private<br>Credit Index<sup>1</sup>** |
|  1 Year  | (12.75)% | (13.02)% | (12.91)% |
|  Since Inception<sup>2</sup>  | 4.00% | 3.95% | 4.77% |

---

------

1 The Indxx Private Credit Index is an index of listed business development companies ("BDCs") and closed end funds ("CEFs") with a private credit focus. The Index is designed to serve as a broad-based benchmark for long-only investments in private credit. The Index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

2February 7, 2019.

**Performance data quoted represents past performance and past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. Returns do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. For the most current month-end performance data please visit** <u>**<u>www.virtusetfs.com</u>**</u> **or call toll free (800) 243-4361. Market price returns are based on the mid-point of the highest bid and lowest offer for Fund shares as of the scheduled close of regular trading on the New York Stock Exchange Arca ("NYSE"), ordinarily 4:00 p.m. Eastern time, on each day during which the NYSE is open for trading, and do not represent the returns an investor would receive if shares were traded at** **other times.** 

**Private Credit Funds:** Private credit funds that invest in closed-end funds and business development companies bear the risk of these underlying assets, including liquidity, industry, currency, valuation and credit risks.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus Private Credit Strategy ETF (continued)** 

**Equity Securities:** The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.

**Credit & Interest:** Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.

**High Yield-High Risk Fixed Income Securities:** There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities.

**Non-Diversified:** The Fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the Fund's assets.

**Passive Strategy/Index Risk:** A passive investment strategy seeking to track the performance of the Underlying Index may result in the fund holding securities regardless of market conditions or their current or projected performance. This could cause the Fund's returns to be lower than if the Fund employed an active strategy.

**Fund of Funds:** Because the Fund can invest in other funds, it indirectly bears its proportionate share of the operating expenses and management fees of the underlying fund(s).

**Correlation to Index:** The performance of the Fund and its index may vary somewhat due to factors such as Fund flows, transaction costs, and timing differences associated with additions to and deletions from its index.

**Closed-End Funds:** Closed-end funds may trade at a discount from their net asset values, which may affect whether the fund will realize gains or losses. They may also employ leverage, which may increase volatility.

**Exchange Traded Funds:** The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities.

**Market Price/NAV:** Shares of ETFs often trade at a discount to their net asset value, which may increase investors' risk of loss. At the time of sale, an investor's shares may have a market price that is above or below the Fund's NAV.

**No Guarantee:** There is no guarantee that the Fund will meet its objective.

**Prospectus:** For additional information on risks, please see the Fund's prospectus. The Fund may not be suitable for all investors.

**Value of a $10,000 Investment Since Inception at Net Asset Value**![](etfis-ncsr_103122img007.gif)

**The chart above represents historical performance of a hypothetical investment of $10,000 over the life of the Fund, assuming reinvestment of distributions. Past performance does not guarantee** **future results.** 

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus Real Asset Income ETF (VRAI)**

The Virtus Real Asset Income ETF (the Fund) aims to provide passive exposure to high income-producing real asset securities. The Fund seeks to track the investment results, before fees and expenses, of the Indxx Real Asset Income Index (the Index), which is composed of U.S.-listed "Real Asset" companies. The index provider of the Index considers Real Asset companies to be those that are classified under certain real estate-related industries, such as:

• real estate development and real estate investment trusts (REITs);

• natural resources, including oil, coal, precious metals, steel, agricultural commodities, and forest products; and

• infrastructure, including electric utilities, telecommunications, transportation, and master limited partnerships (MLPs).

For the fiscal year ended October 31, 2022, the Fund's total return based on market price was -10.24%; the Fund's total return based on net asset value was -10.25%. The Index returned -10.04% during the same period.

The top contributors to Fund performance for the 12-month period included diversified energy companies, producers of iron and steel, and pipeline companies. Coterra Energy, Inc. (Coterra), a diversified energy company, was a positive contributor. Coterra is an independent oil and gas company engaged in the development, exploration, and production of oil, natural gas, and natural gas liquids. Another top performer was Petroleo Brasileiro. Petroleo explores for and produces oil and natural gas. The company refines, markets, and supplies oil products.

Steel Dynamics, a diversified carbon-steel producer and metals recycler, also made a positive contribution to the Fund's returns. The company's operating segments include steel operations, metals recycling and ferrous resources operations, and steel fabrication operations.

The largest detractors from Fund performance for the 12-month period were stocks involved in chemicals, real estate, and horticulture. They included Industrial Logistics Properties Trust, a real estate investment trust that owns and leases industrial and logistics properties. Scotts Miracle-Gro, another detractor from Fund performance, engages in the manufacturing, marketing, and sale of products for lawn and garden care, as well as indoor and hydroponic gardening. Another top detractor was Tronox Holdings, which engages in the mining and inorganic chemical business.

*The preceding information is the opinion of the investment adviser. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Statements of fact are from sources considered reliable, but the investment adviser makes no representation or warranty as to their completeness or accuracy. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.*

**Performance as of 10/31/2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Average Annual Total Return** | **Average Annual Total Return** | **Average Annual Total Return** |
|  | **Fund<br>Net Asset<br>Value** | **Fund<br>Market<br>Price** | **Indxx Real<br>Asset Income<br>Index<sup>1</sup>** |
|  1 Year  | (10.25)% | (10.24)% | (10.04)% |
|  Since Inception<sup>2</sup>  | 2.02% | 1.99% | 2.69% |

---

------

1 The Indxx Real Asset Income Index tracks the performance of US-listed securities in the Real Asset space (Real Estate, Natural Resources and Infrastructure) emphasizing dividend growth. The Index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

2February 7, 2019.

**Performance data quoted represents past performance and past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. Returns do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. For the most current month-end performance data please visit** <u>**<u>www.virtusetfs.com</u>**</u> **or call toll free (800) 243-4361. Market price returns are based on the mid-point of the highest bid and lowest offer for Fund shares as of the scheduled close of regular trading on the New York Stock Exchange Arca ("NYSE"), ordinarily 4:00 p.m. Eastern time, on each day during which the NYSE is open for trading, and do not represent the returns an investor would receive if shares were traded at** **other times.** 

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus Real Asset Income ETF (continued)** 

**Equity Securities:** The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.

**Equity REITs:** The Fund may be negatively affected by factors specific to the real estate market, including interest rates, leverage, property, and management.

**Natural Resources:** A fund that focuses its investments in natural resources companies will be more sensitive to conditions affecting their business or operations.

**Infrastructure:** A fund that focuses its investments in infrastructure-related companies will be more sensitive to conditions affecting their business or operations.

**Non-Diversified:** The Fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the Fund's assets.

**MLPs:** Investments in Master Limited Partnerships may be adversely impacted by tax law changes, regulation, or factors affecting underlying assets.

**Passive Strategy/Index Risk:** A passive investment strategy seeking to track the performance of the Underlying Index may result in the fund holding securities regardless of market conditions or their current or projected performance. This could cause the Fund's returns to be lower than if the Fund employed an active strategy.

**Correlation to Index:** The performance of the Fund and its index may vary somewhat due to factors such as Fund flows, transaction costs, and timing differences associated with additions to and deletions from its index.

**Exchange Traded Funds:** The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities.

**Market Price/NAV:** Shares of ETFs often trade at a discount to their net asset value, which may increase investors' risk of loss. At the time of sale, an investor's shares may have a market price that is above or below the Fund's NAV.

**No Guarantee:** There is no guarantee that the Fund will meet its objective.

**Prospectus:** For additional information on risks, please see the Fund's prospectus. The Fund may not be suitable for all investors.

**Value of a $10,000 Investment Since Inception at Net Asset Value**![](etfis-ncsr_103122img008.gif)

**The chart above represents historical performance of a hypothetical investment of $10,000 over the life of the Fund, assuming reinvestment of distributions. Past performance does not guarantee** **future results.** 

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus WMC International Dividend ETF (VWID)**

The Virtus WMC International Dividend ETF (the "Fund") is an actively managed ETF designed to generate a higher dividend yield than is generally provided by equity markets in developed ex-U.S. countries, as measured by the MSCI World ex USA Index, over a full market cycle within a framework that attempts to manage portfolio risk.

During the period, the high yielding non-US equities, as measured by the MSCI World ex USA High Dividend Yield Index, posted negative absolute returns but outperformed core equities (as measured by MSCI World ex USA Index, respectively). Certain higher yielding and deeper value stocks, which generally make up a larger portion of the equity income universe, outperformed core indexes during the period. Meanwhile, higher growth stocks including technology companies, which are often underrepresented in the equity income universe as these companies tend to not pay dividends, lagged core equity indexes. This backdrop resulted in the strong relative outperformance of dividend paying stocks relative to core equities during the period.

During the period presented, the Fund's total return based on market price was -14.30%. The Fund's total return based on net asset value was -14.03%. The Fund's benchmark index, the MSCI World ex USA High Dividend Yield Index (Net), returned -11.59% during the same period.

Security selection detracted from relative results during the period. The three largest detractors over this period was the portfolio's out-of-benchmark position in Evraz PLC (materials), not holding Nutrien Ltd (materials) and an overweight position in Persimmon PLC (consumer discretionary). The underweight position in Enel (utilities), out-of-benchmark position in TotalEnergies (energy), and not holding Tesco (consumer staples), were the largest relative contributors during the period. The shares in Evraz were sold during the reporting period.

Sector allocation, which is a fallout of our portfolio construction process as we look to provide above market yield over time through a broadly diversified portfolio, detracted from results during the period. The Fund's underweight exposure to the materials sector and overweight exposures to the information technology and the consumer discretionary sectors detracted from relative results during the period. This was partially offset by stronger relative results from overweight exposures to the energy and the industrials sectors, and an underweight exposure to the utilities sector.

From a regional perspective, exposures in the North America, Asia Pacific ex Japan, and United Kingdom detracted from relative results. This was partially offset by exposures in Japan, which contributed to relative performance.

*The preceding information is the opinion of the investment adviser and sub-adviser. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Statements of fact are from sources considered reliable, but the investment adviser makes no representation or warranty as to their completeness or accuracy. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized.*

**Performance as of 10/31/2022** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Average Annual Total Return** | **Average Annual Total Return** | **Average Annual Total Return** |
|  | **Fund<br>Net Asset<br>Value** | **Fund<br>Market<br>Price** | **MSCI World<br>Ex USA High<br>Dividend<br>Yield Index<br>(net)<sup>1</sup>** |
|  1 Year  | (14.03)% | (14.30)% | (11.59)% |
|  5 Year  | 2.57% | 2.54% | 0.36% |
|  Since Inception<sup>2</sup>  | 2.61% | 2.68% | 0.28% |

---

------

1The MSCI World Ex USA High Dividend Yield Index (net) is based on the MSCI World Index, its parent index, and includes large and mid cap stocks across 48 Developed Markets (DM) and Emerging Market (EM) countries. The index is designed to reflect the performance of equities in the parent index (excluding REITs) with higher dividend income and quality characteristics than average dividend yields that are both sustainable and persistent. The index also applies quality screens and reviews 12-month past performance to omit stocks with potentially deteriorating fundamentals that could force them to cut or reduce dividends. The index is calculated on a total return basis with net dividends reinvested; it is unmanaged; its returns do not reflect any fees, expenses or sales charges; and it is not available for direct investment.

2October 10, 2017.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**Virtus WMC International Dividend** **ETF (continued)** 

**Performance data quoted represents past performance and past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. Returns do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. For the most current month-end performance data please visit** <u>**<u>www.virtusetfs.com</u>**</u> **or call toll free (800) 243-4361. Market price returns are based on the mid-point of the highest bid and lowest offer for Fund shares as of the scheduled close of regular trading on the Cboe BZX Exchange, Inc. ("Cboe"), ordinarily 4:00 p.m. Eastern time, on each day during which the Cboe is open for trading, and do not represent the returns an investor would receive if shares were traded at** **other times.** 

**Dividend Paying Securities:** Issuers that have paid regular dividends or distributions may not continue to do so in the future and can fall out of favor with the market, which may cause the portfolio to underperform. Securities with higher dividend yields can be sensitive to interest rate movements: when interest rates rise, the prices of these securities may fall.

**Exchange Traded Funds:** The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities.

**Market Price/NAV:** Shares of ETFs often trade at a discount to their net asset value, which may increase investors' risk of loss. At the time of sale, an investor's shares may have a market price that is above or below the Fund's NAV.

**Equity Securities:** The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.

**Foreign & Emerging Markets:** Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk.

**Geographic Concentration:** Events negatively affecting the fiscal stability of a state, country, or region will cause the value of the Fund's shares to decrease. Because the Fund concentrates its assets in a state, country, or region, the Fund is more vulnerable to those areas' financial, economic, or other political developments.

**Equity REITs:** The Fund may be negatively affected by factors specific to the real estate market, including interest rates, leverage, property, and management.

**Derivatives:** Investments in derivatives such as futures, options, forwards, and swaps may increase volatility or cause a loss greater than the principal investment.

**No Guarantee:** There is no guarantee that the Fund will meet its objective.

**Prospectus:** For additional information on risks, please see the Fund's prospectus. The Fund may not be suitable for all investors.

**Value of a $10,000 Investment Since Inception at Net Asset Value**![](etfis-ncsr_103122img009.gif)

**The chart above represents historical performance of a hypothetical investment of $10,000 over the life of the Fund, assuming reinvestment of distributions. Past performance does not guarantee** **future results.** 

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**InfraCap MLP ETF (AMZA)**

**Management's Discussion of Operations**

**Overview**

InfraCap MLP ETF (the "Fund") is an actively-managed portfolio of midstream energy master limited partnerships ("MLPs") and related general partners. The Fund may utilize options strategies and leverage to enhance income and total return.

The Fund focuses on the midstream MLP sector. These companies are typically involved in the production, gathering, transportation, storage, and processing of oil, natural gas, natural gas liquids, and refined products.

**Market Update**

In the fiscal year ended October 31, 2022, the Fund's total return based on market price was 33.63%. The Fund's total return based on net asset value was 33.13%.The Fund's benchmark index, the Alerian MLP Infrastructure Index, returned 30.31% during same period, while the S&P 500 Index returned -14.61%.

Fiscal year 2022 was relatively supportive for midstream companies. Energy prices remained elevated over the period, and WTI Crude Oil prices were $86.53 as of October 31, 2022.

The return to normal business activity and OPEC+ agreements constraining supply drove oil prices higher and supported MLP stock prices as there is a long-term need for North American oil and gas. Midstream companies benefited from the defensive nature of their business model with fee based contracts and added protections like minimum volume commitments. Many midstream companies have diversified customer bases or significant exposure to investment grade counterparties. During the earnings periods, many management teams remained conservative, continuing to protect their balance sheets with cost saving initiatives and deferring capital spending. Many midstream companies announced actions to strengthen their financial flexibility, including streamlined maintenance capital costs and operating expenses. Cash flows remained stable during the fiscal year, with some MLPs pursuing shareholder friendly actions such as buy-backs, increased distributions or special distributions.

During the period, businesses reopened and the US lifted strict social distancing measures that had been implemented in an effort to slow the spread of Covid-19. Two of the Fund's stronger performing issuers during the period were Western Midstream Partners LP ("Western Midstream") and Energy Transfer LP ("Energy Transfer"). Western Midstream is a Delaware master limited partnership formed to acquire, own, develop, and operate midstream assets. With midstream assets located in the Rocky Mountains, North-central Pennsylvania, Texas, and New Mexico, it is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering and disposing of produced water for its customers. In its capacity as a natural gas processor, Western Midstream also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and as an agent for its customers under certain contracts. Western Midstream reported better than expected earnings over the period and increased its dividend. Energy Transfer is an American company engaged in natural gas and propane pipeline transport. It is organized under Delaware state laws and headquartered in Dallas, Texas. Energy Transfer has one of the largest diversified portfolios of energy assets in North America that includes leading positions in major producing basins, and offer customers wellhead to water accessibility via a wide range of services to both domestic and international markets. Energy Transfer raised its dividend and revised upward 2023 guidance, with the potential to increase dividends to pre-pandemic levels. During the period, Western Midstream and Energy Transfer were up 44.94% and 44.30%, respectively.

Two of the weaker performing positions during the period were Holly Energy Partners LP ("Holly") and Genesis Energy LP ("Genesis"). Holly is a Delaware limited partnership formed in early 2004 by HollyFrontier and is headquartered in Dallas, Texas. Holly provides petroleum product and crude oil transportation, storage and throughput services to the petroleum industry, including subsidiaries of HF Sinclair Corporation. Genesis is a publicly traded, master limited partnership head quartered in Houston, Texas. Genesis operate midstream assets in four business segments offshore pipeline transportation, sodium minerals and sulfur services, onshore facilities and transportation, and marine transportation. Holly was up 10.52%, while Genesis was up 11.32% during the period.

During the period, despite an increase in commodity prices, U.S. producers maintained capital discipline and kept their production outlook largely unchanged.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**InfraCap MLP** **ETF (continued)** 

**Distribution** **Payments**

In the fiscal year ended October 31, 2022, the Fund declared monthly distribution payments in the amount of $0.22 per share. While the Fund plans to continue declaring monthly distributions, distributions are not guaranteed. The Fund seeks to maintain relatively stable monthly distributions although the amount of income earned by the Fund varies from period-to-period. To achieve this objective, the Fund may distribute less than the full amount of income earned during a specific period, preserving income for distribution in future periods. Consequently, the amount of income distributed in any one period may be more or less than the actual amount of income earned in that period.

**Use of Leverage**

The Fund's policy is to maintain its leverage ratio in a range of 10-35% over the long term. The Fund effectively employed leverage over the fiscal year and made efforts to reduce its leverage during periods of increased volatility. The application of leverage positively contributed to Fund performance during the period. Leverage fluctuated within the targeted range during the fiscal year, consistent with the Fund's investment objective to seek total return. Leverage represented approximately 28.67% of net assets at year-end, which was near the upper end of the long-term target range. The Fund's cost of borrowing increased during the fiscal year. The Fund entered into Lending Agreements (each, an "Agreement") with certain commercial banks (the "Banks") that allow the Fund to borrow cash from the Banks. Borrowings under the Agreements are collateralized by investments in the Funds. If a Fund defaults with respect to any of its obligations under the Agreements, the Banks may foreclose on assets of the Fund and/or the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the Agreement, necessitating the sale of securities at potentially inopportune times. Interest is charged at the OBFR (Overnight Bank Funding Rate) plus an additional percentage rate on the amount borrowed. Each Agreement has an on-demand commitment term. As of October 31, 2022, the current cost is daily OBFR plus 1.10%, which resets daily. The yield on the Fund's benchmark index, the Alerian MLP Infrastructure Index, was 7.28% on November 11, 2022.

**Use of Options**

The Fund seeks to generate additional income for distribution to investors by writing call and put options. The primary activity is writing "covered" call options on positions held by the Fund. However, due to high volatility within the asset class at times during the period, market conditions for covered call options were unfavorable to Fund performance for parts of the fiscal year and as a result, the Fund's sub-adviser reduced the frequency of this activity.

During the fiscal year, the Fund's emphasis was on writing short-duration covered call options, and the average maturity of the option portfolio was less than 18 days. The Fund's sub-adviser used these option strategies to seek to maximize the capture of premium decay and manage short term risks.

We believe consolidation within the MLP sector enhanced the liquidity in the single-stock options market as larger MLPs typically have more liquid markets for issued options.

**Outlook**

Midstream MLP companies generally have stable businesses, however, large fluctuations in commodity prices (as witnessed during the Covid-19 pandemic) can have material impacts on their free cash flows. Nonetheless, fee-based contracts utilized in the midstream MLP sector have helped companies protect their cash flow generation. We will continue to monitor rising commodity prices, OPEC+ induced supply shocks, and macroeconomic factors related to infrastructure spending and Federal Reserve policy. Further, we expect US producers to remain disciplined and OPEC+ to slowly increase its output.

We continue to believe that there will be significant asset sales and acquisitions of entire companies over the next year as private equity firms and strategic acquirers take advantage of consolidations in midstream assets. We believe we are positioned to take advantage of M&A activity that we consider likely to occur in the recent future. In addition, we believe proposed increases in corporate taxes will decrease the advantages of MLP C-Corp conversions.

The Fund also maintains positions in large capitalization integrated pipelines and storage companies with stronger contractual protection and visible market demand. We believe these companies are less vulnerable during heightened periods of price volatility and are well positioned to take advantage of opportunities that exist in the current market environment.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**InfraCap MLP ETF (continued)** 

Despite the macroeconomic concerns, we expect upward price pressure on commodities and $85-105 oil prices in 2023 due to OPEC supply cuts founded on a belief that disciplined U.S. producers will not disrupt the cartel by increasing production. Additionally, OPEC recently announced an additional two million barrels per day of cuts, which should result in one million barrels off the market due to OPEC currently producing below its quota. Atop crude supply issues, demand for U.S. LNG exports has increased substantially in Europe as Russian gas exports have been halted with tensions escalating after an explosion on the Nord Stream pipeline. A key focus in 2022 has been the current energy crisis impacting much of Europe. We also believe companies with pipeline and storage facilities with connectivity to export facilities for NGLs, refined products, and crude will benefit as global demand normalizes post-pandemic. We believe companies with integrated footprints spanning from producing regions to exporting facilities are advantageously positioned with a natural hedge against these upstream and downstream fluctuations.

Based on our evaluation, many management teams of midstream companies continue to maintain disciplined and conservative efforts to protect their balance sheet with cost saving initiatives and cancellations of growth and capital spending. Over the fiscal period, we have seen midstream companies pursue shareholder friendly corporate actions, including share buybacks and dividend increases. We believe these shareholder friendly activities will continue in 2023 as energy prices remain elevated.

*The preceding information is the opinion of the investment adviser and sub-adviser. Any such opinions are subject to change at any time based upon market or other conditions and should not be relied upon as investment advice. Statements of fact are from sources considered reliable, but the investment adviser and sub-adviser make no representation or warranty as to their completeness or accuracy. Past performance is no guarantee of future results, and there is no guarantee that market forecasts will be realized. This discussion includes information based on data and calculations sourced from Bloomberg and index constituents. While we believe that the data is reliable, we have not sought, nor have we received, permission from any third-party to include their information.*

**Performance as of 10/31/2022**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Average Annual Total Return** | **Average Annual Total Return** | **Average Annual Total Return** | **Average Annual Total Return** |
|  | **Fund<br>Net Asset<br>Value** | **Fund<br>Market<br>Price** | **Alerian MLP<br>Infrastructure<br>Index<sup>1</sup>** | **S&P 500<sup>®</sup>** **<br>Index<sup>2</sup>** |
|  1 Year  | 33.13% | 33.63% | 30.31% | (14.61)% |
|  5 Years  | (3.04)% | (3.02)% | 4.92% | 10.44% |
|  Since Inception<sup>3</sup>  | (8.66)% | (8.66)% | (2.27)% | 10.96% |

---

------

1 The Alerian MLP Infrastructure Index is a composite of energy infrastructure Master Limited Partnerships (MLPs), whose constituents earn the majority of their cash flow from the transportation, storage, and processing of energy commodities. The index is calculated using a float-adjusted, capitalization-weighted methodology on a total-return basis. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

2 The S&P 500<sup>®</sup> Index is a free-float market capitalization-weighted index of 500 of the largest U.S. companies. The index is calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

3October 1, 2014.

**Performance data quoted represents past performance and past performance does not guarantee future results. Investment returnand principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or lessthan the original cost. Current performance data may be higher or lower than actual data quoted. Returns do not reflect the deductionof taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. For the most current month-endperformance data please visit** <u>**<u>www.virtusetfs.com</u>**</u> **or call toll free (800) 243-4361. Market price returns are based on the mid-pointof the highest bid and lowest offer for Fund shares as of the scheduled close of regular trading on the New York Stock Exchange Arca ("NYSE"), ordinarily 4:00 p.m. Eastern time, on each day during which the NYSE is open for trading, and do not represent the returns an investor would receive if shares were traded at** **other times.** 

**MLPs:** Investments in Master Limited Partnerships may be adversely impacted by tax law changes, regulation, or factors affecting underlying assets.

**Industry/Sector Concentration:** A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund.

Management's Discussion of Fund Performance (unaudited) (continued)

October 31, 2022

**InfraCap MLP** **ETF (continued)**

**Interest Rate Risk:** As yield-based investments, MLPs carry interest rate risk and may underperform in rising interest rate environments. Additionally, when investors have heightened fears about the economy, the risk spread between MLPs and competing investment options can widen, which may have an adverse effect on the stock price of MLPs. Rising interest rates may increase the potential cost of MLPs financing projects or cost of operations, and may affect the demand for MLP investments, either of which may result in lower performance by or distributions from the Fund's MLP investments.

**Leverage:** When a fund leverages its portfolio, the value of its shares may be more volatile and all other risks may be compounded.

**Derivatives:** Investments in derivatives such as futures, options, forwards, and swaps may increase volatility or cause a loss greater than the principal investment.

**Non-Diversified:** The Fund is non-diversified and may be more susceptible to factors negatively impacting its holdings to the extent that each security represents a larger portion of the Fund's assets.

**Short Sales:** The Fund may engage in short sales, and may experience a loss if the price of a borrowed security increases before the date on which the Fund replaces the security.

**Exchange Traded Funds:** The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities.

**Market Price/NAV:** Shares of ETFs often trade at a discount to their net asset value, which may increase investors' risk of loss. At the time of sale, an investor's shares may have a market price that is above or below the Fund's NAV.

**No Guarantee:** There is no guarantee that the Fund will meet its objective.

**Prospectus:** For additional information on risks, please see the Fund's prospectus. The Fund may not be suitable for all investors.

**Value of a $10,000 Investment Since Inception at Net Asset Value**![](etfis-ncsr_103122img010.gif)

**The chart above represents historical performance of a hypothetical investment of $10,000 over the life of the Fund, assuming reinvestment of distributions. Past performance does not guarantee** **future results.**

Portfolio Composition (unaudited)

October 31, 2022

Asset Allocation as of 10/31/2022 (based on net assets)

---

| | |
|:---|:---|
|  **InfraCap REIT Preferred ETF** | **InfraCap REIT Preferred ETF** |
|  Real Estate  | 67.9 |
|  Financials  | 31.6 |
|  Other Assets in Excess of Liabilities  | 0.5 |
|  **Total**  | **100.0** |
|  **Virtus InfraCap U.S. Preferred Stock ETF** | **Virtus InfraCap U.S. Preferred Stock ETF** |
|  Real Estate  | 34.9 |
|  Financials  | 34.4 |
|  Energy  | 22.9 |
|  Utilities  | 12.7 |
|  Industrials  | 16.8 |
|  Consumer Discretionary  | 4.1 |
|  Communication Services  | 3.5 |
|  Health Care  | 0.1 |
|  Liabilities in Excess of Other Assets  | (29.4 |
|  **Total**  | **100.0** |
|  **Virtus LifeSci Biotech Clinical Trials ETF** | **Virtus LifeSci Biotech Clinical Trials ETF** |
|  Health Care  | 98.0 |
|  Materials  | 0.9 |
|  Money Market Fund  | 8.0 |
|  Liabilities in Excess of Other Assets  | (6.9 |
|  **Total**  | **100.0** |
|  **Virtus LifeSci Biotech Products ETF** |  |
|  Health Care  | 99.0 |
|  Money Market Fund  | 1.5 |
|  Liabilities in Excess of Other Assets  | (0.5 |
|  **Total**  | **100.0** |

---

------

\*Amounts represent investments in particular sectors. No industry within these sectors represented more than 25% of the Fund's total assets at the time of investment.

Portfolio Composition (unaudited) (continued)

October 31, 2022

Asset Allocation as of 10/31/2022 (based on net assets)

---

| | |
|:---|:---|
|  **Virtus Newfleet Multi-Sector Bond ETF** | **Virtus Newfleet Multi-Sector Bond ETF** |
|  Corporate Bonds  | 27.6% |
|  U.S. Government Securities  | 14.3% |
|  Foreign Bonds  | 11.1% |
|  Term Loans  | 8.3% |
|  Asset Backed Securities  | 6.4% |
|  Mortgage Backed Securities  | 6.1% |
|  Municipal Bonds  | 0.2% |
|  Money Market Fund  | 11.3% |
|  Other Assets in Excess of Liabilities  | 14.7% |
|  **Total**  | **100.0%** |
|  **Virtus Private Credit Strategy ETF** | **Virtus Private Credit Strategy ETF** |
|  Financials  | 59.0% |
|  Closed-End Funds  | 38.9% |
|  Money Market Fund  | 19.4% |
|  Liabilities in Excess of Other Assets  | (17.3)% |
|  **Total**  | **100.0%** |
|  **Virtus Real Asset Income ETF** |  |
|  Real Estate  | 31.6% |
|  Materials  | 28.2% |
|  Utilities  | 13.8% |
|  Energy  | 13.3% |
|  Communication Services  | 8.2% |
|  Consumer Staples  | 1.1% |
|  Financials  | 1.2% |
|  Money Market Fund  | 7.6% |
|  Liabilities in Excess of Other Assets  | (5.0)% |
|  **Total**  | **100.0%** |

---

------

\*Amount rounds to less than 0.05%.

Portfolio Composition (unaudited) (continued)

October 31, 2022

Asset Allocation as of 10/31/2022 (based on net assets)

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| | |
|:---|:---|
|  **Virtus WMC International Dividend ETF** | **Virtus WMC International Dividend ETF** |
|  Financials  | 24.0% |
|  Health Care  | 12.8% |
|  Materials  | 12.3% |
|  Consumer Staples  | 11.7% |
|  Industrials  | 9.6% |
|  Utilities  | 8.0% |
|  Communication Services  | 6.2% |
|  Consumer Discretionary  | 6.1% |
|  Real Estate  | 3.1% |
|  Information Technology  | 2.9% |
|  Energy  | 2.5% |
|  Other Assets in Excess of Liabilities  | 0.8% |
|  **Total**  | **100.0%** |
|  **InfraCap MLP ETF** | **InfraCap MLP ETF** |
|  Energy  | 129.2% |
|  Written Options  | (0.2)% |
|  Liabilities in Excess of Other Assets  | (29.0)% |
|  **Total**  | **100.0%** |

---

Shareholder Expense Examples (unaudited)

October 31, 2022

We believe it is important for you to understand the impact of costs on your investment. All funds have operating expenses. As a shareholder of the InfraCap REIT Preferred ETF, Virtus InfraCap U .S. Preferred Stock ETF, Virtus LifeSci Biotech Clinical Trials ETF, Virtus LifeSci Biotech Products ETF, Virtus Newfleet Multi-Sector Bond ETF, Virtus Private Credit Strategy ETF, Virtus Real Asset Income ETF, Virtus WMC International Dividend ETF and InfraCap MLP ETF (each, a "Fund") you may incur two types of costs: (1) transaction costs, which include brokerage commissions that you pay when purchasing or selling shares of a Fund; and (2) ongoing costs, which include advisory fees and other fund expenses, if any. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds. The examples are based on an investment of $1,000 invested at the beginning of the period and held throughout the entire period (May 1, 2022 to October 31, 2022).

**Actual expenses**

The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical example for comparison purposes**

The second line under each Fund in the table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the second line under each Fund in the table is useful in comparing ongoing Fund costs only and will not help you determine the relative total costs of owning different funds.

In addition, if these transactional costs were included, your costs would have been higher.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>05/01/22** | **Ending<br>Account Value<br>10/31/22** | **Annualized<br>Expense Ratios<sup>(2)</sup>** | **Expenses Paid<br>During the<br>Period<sup>(3)</sup>** |
|  **InfraCap REIT Preferred ETF** |  |  |  |  |
|  Actual  | $1000.00<br>| $840.24<br>| 0.45% | $2.09<br>|
|  Hypothetical<sup>(1)</sup>  | $1000.00<br>| $1022.94<br>| 0.45% | $2.29<br>|
|  **Virtus InfraCap U.S. Preferred Stock ETF** |  |  |  |  |
|  Actual  | $1000.00<br>| $842.53<br>| 0.80% | $3.72<br>|
|  Hypothetical<sup>(1)</sup>  | $1000.00<br>| $1021.17<br>| 0.80% | $4.08<br>|
|  **Virtus LifeSci Biotech Clinical Trials ETF** |  |  |  |  |
|  Actual  | $1000.00<br>| $1171.50<br>| 0.79% | $4.32<br>|
|  Hypothetical<sup>(1)</sup>  | $1000.00<br>| $1021.22<br>| 0.79% | $4.02<br>|
|  **Virtus LifeSci Biotech Products ETF** |  |  |  |  |
|  Actual  | $1000.00<br>| $1207.06<br>| 0.79% | $4.39<br>|
|  Hypothetical<sup>(1)</sup>  | $1000.00<br>| $1021.22<br>| 0.79% | $4.02<br>|
|  **Virtus Newfleet Multi-Sector Bond ETF** |  |  |  |  |
|  Actual  | $1000.00<br>| $942.00<br>| 0.49% | $2.40<br>|
|  Hypothetical<sup>(1)</sup>  | $1000.00<br>| $1022.74<br>| 0.49% | $2.50<br>|
|  **Virtus Private Credit Strategy ETF** |  |  |  |  |
|  Actual  | $1000.00<br>| $902.67<br>| 0.75% | $3.60<br>|
|  Hypothetical<sup>(1)</sup>  | $1000.00<br>| $1021.42<br>| 0.75% | $3.82<br>|
|  **Virtus Real Asset Income ETF** |  |  |  |  |
|  Actual  | $1000.00<br>| $863.43<br>| 0.55% | $2.58<br>|
|  Hypothetical<sup>(1)</sup>  | $1000.00<br>| $1022.43<br>| 0.55% | $2.80<br>|
|  **Virtus WMC International Dividend ETF** |  |  |  |  |
|  Actual  | $1000.00<br>| $858.09<br>| 0.49% | $2.29<br>|
|  Hypothetical<sup>(1)</sup>  | $1000.00<br>| $1022.74<br>| 0.49% | $2.50<br>|
|  **InfraCap MLP ETF** |  |  |  |  |
|  Actual  | $1000.00<br>| $1169.20<br>| 0.95% | $5.19<br>|
|  Hypothetical<sup>(1)</sup>  | $1000.00<br>| $1020.42<br>| 0.95% | $4.84<br>|

---

------

1Assuming 5% return before expenses.

2Annualized expense ratios reflect expenses net of waived fees or reimbursed expenses, if applicable.

3Expenses are calculated using each Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 184/365 (to reflect the six-month period).

Schedule of Investments — InfraCap REIT Preferred ETF

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

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| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **PREFERRED STOCKS — 99.5%** |  |  |
|  **Financials — 31.6%** |  |  |
|  ACRES Commercial Realty Corp., Series C, 8.63%  | 10438 | $219302<br>|
|  AG Mortgage Investment Trust, Inc., Series B, 8.00%  | 8923 | 138663 |
|  AG Mortgage Investment Trust, Inc., Series C, 8.00%  | 14966 | 235718 |
|  AGNC Investment Corp., Series C, 9.19%  | 28271 | 667196 |
|  AGNC Investment Corp., Series D, 6.88%  | 20426 | 375634 |
|  AGNC Investment Corp., Series E, 6.50%  | 34962 | 685255 |
|  AGNC Investment Corp., Series F, 6.13%  | 50114 | 932120 |
|  Annaly Capital Management, Inc., Series F, 8.67%  | 62602 | 1508082 |
|  Annaly Capital Management, Inc., Series G, 6.50%  | 36952 | 755299 |
|  Annaly Capital Management, Inc., Series I, 6.75%  | 38474 | 801029 |
|  Arbor Realty Trust, Inc., Series D, 6.38%  | 19998 | 349565 |
|  Arbor Realty Trust, Inc., Series E, 6.25%  | 8816 | 148109 |
|  Arbor Realty Trust, Inc., Series F, 6.25%  | 10721 | 200483 |
|  ARMOUR Residential REIT, Inc., Series C, 7.00%  | 14889 | 275447 |
|  Chimera Investment Corp., Series A, 8.00%  | 12607 | 230708 |
|  Chimera Investment Corp., Series B, 8.00%  | 28258 | 525599 |
|  Chimera Investment Corp., Series C, 7.75%  | 22606 | 384302 |
|  Chimera Investment Corp., Series D, 8.00%  | 17398 | 311424 |
|  Dynex Capital, Inc., Series C, 6.90%  | 7057 | 145939 |
|  Ellington Financial, Inc., 6.75%  | 5709 | 114979 |
|  Franklin BSP Realty Trust, Inc., Series E, 7.50%  | 22463 | 382320 |
|  Granite Point Mortgage Trust, Inc., Series A, 7.00%  | 8818 | 175214 |
|  Inpoint Commercial Real Estate Income, Inc., Series A, 6.75%  | 7825 | 144997 |
|  Invesco Mortgage Capital, Inc., Series B, 7.75%  | 9867 | 189446 |
|  Invesco Mortgage Capital, Inc., Series C, 7.50%  | 26032 | 471700 |
|  KKR Real Estate Finance Trust, Inc., Series A, 6.50%  | 28497 | 505822 |
|  MFA Financial, Inc., Series B, 7.50%  | 17389 | 307785 |
|  MFA Financial, Inc., Series C, 6.50%  | 23910 | 425120 |
|  New York Mortgage Trust, Inc., Series D, 8.00%  | 13303 | 242248 |
|  New York Mortgage Trust, Inc., Series E, 7.88%  | 16060 | 291810 |
|  New York Mortgage Trust, Inc., Series F, 6.88%  | 12431 | 212819 |
|  PennyMac Mortgage Investment Trust, Series A, 8.13%  | 9999 | 215478 |
|  PennyMac Mortgage Investment Trust, Series B, 8.00%  | 16961 | 364662 |
|  PennyMac Mortgage Investment Trust, Series C, 6.75%  | 21745 | 369882 |
|  Ready Capital Corp., 5.75%  | 8618 | 188303 |
|  Ready Capital Corp., Series E, 6.50%  | 9999 | 181182 |
|  Rithm Capital Corp., Series A, 7.50%  | 13498 | 247958 |
|  Rithm Capital Corp., Series B, 7.13%  | 24562 | 428361 |
|  Rithm Capital Corp., Series C, 6.38%  | 34996 | 564136 |
|  Rithm Capital Corp., Series D, 7.00%  | 40430 | 709547 |
|  TPG RE Finance Trust, Inc., Series C, 6.25%  | 18211 | 303213 |
|  Two Harbors Investment Corp., Series A, 8.13%  | 12504 | 228823 |
|  Two Harbors Investment Corp., Series B, 7.63%  | 24997 | 446446 |
|  Two Harbors Investment Corp., Series C, 7.25%  | 25649 | 467325 |
|  Total Financials  |  | 17069450 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **PREFERRED STOCKS (continued)** |  |  |
|  **Real Estate — 67.9%** |  |  |
|  Agree Realty Corp., Series A, 4.25%  | 33839 | $538040<br>|
|  American Homes 4 Rent, Series G, 5.88%  | 22246 | 488967 |
|  American Homes 4 Rent, Series H, 6.25%  | 22246 | 499645 |
|  Armada Hoffler Properties, Inc., Series A, 6.75%  | 23871 | 492697 |
|  City Office REIT, Inc., Series A, 6.63%  | 17171 | 333978 |
|  CorEnergy Infrastructure Trust, Inc., Series A, 7.38%  | 25056 | 329486 |
|  DiamondRock Hospitality Co., 8.25%  | 11492 | 281324 |
|  Digital Realty Trust, Inc., Series J, 5.25%  | 38673 | 769206 |
|  Digital Realty Trust, Inc., Series K, 5.85%  | 40606 | 889271 |
|  Digital Realty Trust, Inc., Series L, 5.20%  | 66737 | 1289359 |
|  DigitalBridge Group, Inc., Series H, 7.13%  | 43234 | 817555 |
|  DigitalBridge Group, Inc., Series I, 7.15%  | 66710 | 1268157 |
|  DigitalBridge Group, Inc., Series J, 7.13%  | 60934 | 1133372 |
|  Diversified Healthcare Trust, 5.63%  | 67705 | 826340 |
|  Diversified Healthcare Trust, 6.25%  | 48360 | 617074 |
|  EPR Properties, Series G, 5.75%  | 29016 | 488920 |
|  Federal Realty Investment Trust, Series C, 5.00%  | 29016 | 576548 |
|  Global Net Lease, Inc., Series A, 7.25%  | 32869 | 701424 |
|  Global Net Lease, Inc., Series B, 6.88%  | 20953 | 421784 |
|  Healthcare Trust, Inc., Series A, 7.38%  | 19030 | 405720 |
|  Hersha Hospitality Trust, Series D, 6.50%  | 57558 | 1083242 |
|  Hersha Hospitality Trust, Series E, 6.50%  | 19351 | 354317 |
|  Hudson Pacific Properties, Inc., Series C, 4.75%  | 31544 | 400924 |
|  Kimco Realty Corp., Series L, 5.13%  | 43524 | 835226 |
|  Kimco Realty Corp., Series M, 5.25%  | 51165 | 1004881 |
|  National Storage Affiliates Trust, Series A, 6.00%  | 42234 | 913944 |
|  Necessity Retail REIT, Inc., Series A, 7.50%  | 39514 | 785538 |
|  Necessity Retail REIT, Inc., Series C, 7.38%  | 22209 | 445513 |
|  Office Properties Income Trust, 6.38%  | 31662 | 550602 |
|  Pebblebrook Hotel Trust, Series E, 6.38%  | 15757 | 289929 |
|  Pebblebrook Hotel Trust, Series F, 6.30%  | 29004 | 536574 |
|  Pebblebrook Hotel Trust, Series G, 6.38%  | 44473 | 811188 |
|  Pebblebrook Hotel Trust, Series H, 5.70%  | 48341 | 799560 |
|  PS Business Parks, Inc., Series X, 5.25%  | 44473 | 607946 |
|  PS Business Parks, Inc., Series Y, 5.20%  | 38673 | 528660 |
|  PS Business Parks, Inc., Series Z, 4.88%  | 62843 | 791822 |
|  Public Storage, Series F, 5.15%  | 21379 | 449600 |
|  Public Storage, Series G, 5.05%  | 22906 | 473696 |
|  Public Storage, Series H, 5.60%  | 21750 | 496552 |
|  Public Storage, Series I, 4.88%  | 24147 | 474971 |
|  Public Storage, Series J, 4.70%  | 19747 | 372626 |
|  Public Storage, Series K, 4.75%  | 17553 | 345092 |
|  Public Storage, Series L, 4.63%  | 43119 | 802013 |
|  Public Storage, Series N, 3.88%  | 21559 | 335674 |
|  Public Storage, Series O, 3.90%  | 12974 | 204859 |
|  Public Storage, Series P, 4.00%  | 46095 | 750427 |
|  Public Storage, Series Q, 3.95%  | 10975 | 175271 |
|  Public Storage, Series R, 4.00%  | 9671 | 155606 |
|  SITE Centers Corp., Series A, 6.38%  | 33839 | 678810 |
|  SL Green Realty Corp., Series I, 6.50%  | 12472 | 243204 |

---

Schedule of Investments — InfraCap REIT Preferred ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **PREFERRED STOCKS (continued)** |  |  |
|  **Real Estate (continued)** |  |  |
|  Spirit Realty Capital, Inc., Series A, 6.00%  | 33369 | $715765<br>|
|  Summit Hotel Properties, Inc., Series E, 6.25%  | 30938 | 561215 |
|  Summit Hotel Properties, Inc., Series F, 5.88%  | 12264 | 222592 |
|  Sunstone Hotel Investors, Inc., Series H, 6.13%  | 22246 | 424231 |
|  Sunstone Hotel Investors, Inc., Series I, 5.70%  | 19336 | 344761 |
|  UMH Properties, Inc., Series D, 6.38%  | 41635 | 921799 |
|  Vornado Realty Trust, Series L, 5.40%  | 58009 | 955988 |
|  Vornado Realty Trust, Series M, 5.25%  | 61779 | 989700 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **PREFERRED STOCKS (continued)** |  |  |
|  **Real Estate (continued)** |  |  |
|  Vornado Realty Trust, Series N, 5.25%  | 58009 | $899720<br>|
|  Vornado Realty Trust, Series O, 4.45%  | 58009 | 795883 |
|  Total Real Estate  |  | 36698788 |
|  **TOTAL INVESTMENTS — 99.5%** |  |  |
|  (Cost $68,503,214)  |  | **53768238** |
|  Other Assets in Excess of Liabilities — 0.5%  |  | 296251 |
|  **Net Assets — 100.0%**  |  | **$** **54064489**<br>|

---

The following table summarizes valuation of the Fund's investments under the fair value hierarchy levels as of October 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Asset Valuation Inputs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred Stocks  | $53768238<br>| $—<br>| $—<br>| $53768238<br>|
|  Total  | $53768238<br>| $—<br>| $—<br>| $53768238<br>|

---

Schedule of Investments — Virtus InfraCap U.S. Preferred Stock ETF

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

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| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **PREFERRED STOCKS — 129.4%** |  |  |
|  **Communication Services — 3.5%** |  |  |
|  Liberty Broadband Corp., Series A, 7.00%<sup>(1)</sup>  | 43962 | $972879<br>|
|  Qwest Corp., 6.50%<sup>(1)</sup>  | 15636 | 268157 |
|  Qwest Corp., 6.75%  | 20100 | 361800 |
|  Telephone and Data Systems, Inc., Series UU, 6.63%<sup>(1)</sup>  | 190877 | 3834719 |
|  Telephone and Data Systems, Inc., Series VV, 6.00%<sup>(1)</sup>  | 566271 | 10022997 |
|  United States Cellular Corp., 5.50%<sup>(1)</sup>  | 14710 | 251541 |
|  Total Communication Services  |  | 15712093 |
|  **Consumer Discretionary — 4.1%** |  |  |
|  Ford Motor Co., 6.00%<sup>(1)</sup>  | 477645 | 10555955 |
|  Ford Motor Co., 6.20%<sup>(1)</sup>  | 141119 | 3223158 |
|  Ford Motor Co., 6.50%<sup>(1)</sup>  | 157438 | 3589586 |
|  Franchise Group, Inc., Series A, 7.50%<sup>(1)</sup>  | 60160 | 1398118 |
|  Total Consumer Discretionary  |  | 18766817 |
|  **Energy — 22.9%** |  |  |
|  Crestwood Equity Partners LP, 9.25%<sup>(1)</sup>  | 2497720 | 23053955 |
|  DCP Midstream LP, Series B, 7.88%<sup>(1)</sup>  | 823463 | 19845458 |
|  DCP Midstream LP, Series C, 7.95%<sup>(1)</sup>  | 143085 | 3389684 |
|  Enbridge, Inc., Series 1, 5.95% (Canada)  | 2008 | 45983 |
|  Energy Transfer LP, Series C, 7.38%<sup>(1)</sup>  | 25214 | 564794 |
|  Energy Transfer LP, Series D, 7.63%<sup>(1)</sup>  | 93658 | 2141022 |
|  Energy Transfer LP, Series E, 7.60%<sup>(1)</sup>  | 920 | 21188 |
|  GasLog Partners LP, Series A, 8.63%<br>(Greece)<sup>(1)</sup>  | 279677 | 6628345 |
|  GasLog Partners LP, Series B, 8.20%<br>(Greece)<sup>(1)</sup>  | 204736 | 5056979 |
|  Golar LNG Partners LP, Series A, 8.75%<br>(United Kingdom)<sup>(1)</sup>  | 47750 | 871437 |
|  NuStar Energy LP, Series A, 10.25%<sup>(1)</sup>  | 706482 | 16362123 |
|  NuStar Energy LP, Series B, 9.13%<sup>(1)</sup>  | 593074 | 12596892 |
|  NuStar Energy LP, Series C, 9.00%<sup>(1)</sup>  | 597361 | 14002142 |
|  Total Energy  |  | 104580002 |
|  |  |  |
|  **Financials — 34.4%†** |  |  |
|  Affiliated Managers Group, Inc., 4.20%<sup>(1)</sup>  | 2610 | 38732 |
|  AG Mortgage Investment Trust, Inc., Series C, 8.00%<sup>(1)</sup>  | 165770 | 2610911 |
|  AGNC Investment Corp., Series D, 6.88%<sup>(1)</sup>  | 56058 | 1030907 |
|  AGNC Investment Corp., Series E, 6.50%<sup>(1)</sup>  | 503 | 9859 |
|  AGNC Investment Corp., Series F, 6.13%<sup>(1)</sup>  | 92 | 1711 |
|  AGNC Investment Corp., Series G, 7.75%\*<sup>(1)</sup>  | 165400 | 3437012 |
|  American Equity Investment Life Holding Co., Series A, 5.95%<sup>(1)</sup>  | 3605 | 81221 |
|  Annaly Capital Management, Inc., Series F, 8.67%  | 907 | 21850 |
|  Annaly Capital Management, Inc., Series G, 6.50%  | 2019 | 41268 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  |  |  |
|  **PREFERRED STOCKS (continued)** |  |  |
|  |  |  |
|  **Financials (continued)** |  |  |
|  Annaly Capital Management, Inc., Series I, 6.75%<sup>(1)</sup>  | 955 | $19883<br>|
|  Arbor Realty Trust, Inc., Series E, 6.25%<sup>(1)</sup>  | 25100 | 421680 |
|  ARMOUR Residential REIT, Inc., Series C, 7.00%<sup>(1)</sup>  | 297441 | 5502658 |
|  Athene Holding Ltd., Series D, 4.88%  | 6170 | 106186 |
|  Atlanticus Holdings Corp., Series B, 7.63%<sup>(1)</sup>  | 17934 | 374103 |
|  B Riley Financial, Inc., 5.25%<sup>(1)</sup>  | 38517 | 653633 |
|  B Riley Financial, Inc., 6.00%<sup>(1)</sup>  | 68646 | 1264459 |
|  B Riley Financial, Inc., 6.38%<sup>(1)</sup>  | 94875 | 2073967 |
|  B Riley Financial, Inc., Series B, 7.38%<sup>(1)</sup>  | 33343 | 741882 |
|  Bank of America Corp., Series QQ, 4.25%<sup>(1)</sup>  | 20288 | 338404 |
|  Bank OZK, Series A, 4.63%<sup>(1)</sup>  | 192873 | 3201692 |
|  Brighthouse Financial, Inc., Series D, 4.63%<sup>(1)</sup>  | 42543 | 650057 |
|  Brookfield Finance, Inc., Series 50, 4.63% (Canada)<sup>(1)</sup>  | 16220 | 272172 |
|  Chimera Investment Corp., Series A, 8.00%<sup>(1)</sup>  | 259683 | 4752199 |
|  Chimera Investment Corp., Series B, 8.00%<sup>(1)</sup>  | 293593 | 5460830 |
|  Chimera Investment Corp., Series C, 7.75%<sup>(1)</sup>  | 281690 | 4788730 |
|  Chimera Investment Corp., Series D, 8.00%<sup>(1)</sup>  | 343418 | 6147182 |
|  CNO Financial Group, Inc., 5.13%<sup>(1)</sup>  | 1397 | 25425 |
|  Compass Diversified Holdings, Series A, 7.25%<sup>(1)</sup>  | 221419 | 4621015 |
|  Compass Diversified Holdings, Series B, 7.88%<sup>(1)</sup>  | 4843 | 118314 |
|  Compass Diversified Holdings, Series C,<br>7.88%  | 3351 | 77609 |
|  ConnectOne Bancorp, Inc., Series A, 5.25%<sup>(1)</sup>  | 808 | 16621 |
|  Dynex Capital, Inc., Series C, 6.90%<sup>(1)</sup>  | 5348 | 110597 |
|  Ellington Financial, Inc., 6.75%<sup>(1)</sup>  | 430864 | 8677601 |
|  Enstar Group Ltd., Series D, 7.00%<sup>(1)</sup>  | 67248 | 1478111 |
|  Enterprise Financial Services Corp., Series A, 5.00%<sup>(1)</sup>  | 110686 | 1937005 |
|  First Horizon Corp., Series D, 6.10%<sup>(1)</sup>  | 6190 | 139523 |
|  First Republic Bank, Series M, 4.00%<sup>(1)</sup>  | 134245 | 2015017 |
|  First Republic Bank, Series N, 4.50%<sup>(1)</sup>  | 104781 | 1764512 |
|  Invesco Mortgage Capital, Inc., Series B, 7.75%<sup>(1)</sup>  | 195273 | 3749242 |
|  Invesco Mortgage Capital, Inc., Series C, 7.50%<sup>(1)</sup>  | 244966 | 4438784 |
|  Kemper Corp., 5.88%<sup>(1)</sup>  | 92701 | 1936524 |
|  Merchants Bancorp, 8.25%\*  | 781 | 20501 |
|  Merchants Bancorp, Series B, 6.00%<sup>(1)</sup>  | 18097 | 397953 |
|  Merchants Bancorp, Series C, 6.00%<sup>(1)</sup>  | 78968 | 1736506 |
|  MFA Financial, Inc., Series B, 7.50%<sup>(1)</sup>  | 209735 | 3712309 |
|  MFA Financial, Inc., Series C, 6.50%<sup>(1)</sup>  | 480678 | 8546455 |
|  Midland States Bancorp, Inc., 7.75%\*<sup>(1)</sup>  | 30746 | 778181 |
|  Morgan Stanley, Series O, 4.25%<sup>(1)</sup>  | 58341 | 949791 |
|  Navient Corp., 6.00%<sup>(1)</sup>  | 13668 | 252038 |
|  New York Community Capital Trust V, 6.00%<sup>(1)</sup>  | 4919 | 209953 |

---

Schedule of Investments — Virtus InfraCap U.S. Preferred Stock ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  |  |  |
|  **PREFERRED STOCKS (continued)** |  |  |
|  |  |  |
|  **Financials (continued)** |  |  |
|  New York Mortgage Trust, Inc., Series D, 8.00%<sup>(1)</sup>  | 673467 | $12263834<br>|
|  New York Mortgage Trust, Inc., Series E, 7.88%<sup>(1)</sup>  | 463689 | 8425229 |
|  New York Mortgage Trust, Inc., Series F, 6.88%<sup>(1)</sup>  | 89856 | 1538335 |
|  Oxford Lane Capital Corp., Series 2029,<br>6.00%<sup>(1)</sup>  | 37700 | 816205 |
|  PacWest Bancorp, Series A, 7.75%<sup>(1)</sup>  | 176563 | 4382294 |
|  PennyMac Mortgage Investment Trust, Series A, 8.13%<sup>(1)</sup>  | 119055 | 2565635 |
|  PennyMac Mortgage Investment Trust, Series B, 8.00%<sup>(1)</sup>  | 380211 | 8174537 |
|  PennyMac Mortgage Investment Trust, Series C, 6.75%<sup>(1)</sup>  | 69546 | 1182977 |
|  Prospect Capital Corp., Series A, 5.35%<sup>(1)</sup>  | 306378 | 5009280 |
|  Reinsurance Group of America, Inc., 7.13%\*<sup>(1)</sup>  | 84812 | 2148288 |
|  Rithm Capital Corp., Series A, 7.50%  | 863 | 15853 |
|  Rithm Capital Corp., Series B, 7.13%<sup>(1)</sup>  | 6038 | 105303 |
|  Rithm Capital Corp., Series C, 6.38%<sup>(1)</sup>  | 13687 | 220634 |
|  Rithm Capital Corp., Series D, 7.00%<sup>(1)</sup>  | 49001 | 859968 |
|  RiverNorth Opportunities Fund, Inc., Series A, 6.00%<sup>(1)</sup>  | 50104 | 1150388 |
|  Signature Bank, Series A, 5.00%<sup>(1)</sup>  | 2045 | 36033 |
|  Synchrony Financial, Series A, 5.63%  | 32398 | 549794 |
|  Synovus Financial Corp., Series D, 6.30%<sup>(1)</sup>  | 5383 | 125962 |
|  Texas Capital Bancshares, Inc., Series B, 5.75%<sup>(1)</sup>  | 21137 | 419147 |
|  Two Harbors Investment Corp., Series A, 8.13%<sup>(1)</sup>  | 28162 | 515365 |
|  Two Harbors Investment Corp., Series B, 7.63%<sup>(1)</sup>  | 303387 | 5418492 |
|  Two Harbors Investment Corp., Series C, 7.25%<sup>(1)</sup>  | 486649 | 8866745 |
|  Valley National Bancorp, Series B, 7.86%<sup>(1)</sup>  | 4925 | 118791 |
|  Total Financials  |  | 156661864 |
|  **Health Care — 0.1%** |  |  |
|  XOMA Corp., Series A, 8.63%<sup>(1)</sup>  | 16238 | 369414 |
|  **Industrials — 16.8%** |  |  |
|  Air Lease Corp., Series A, 6.15%<sup>(1)</sup>  | 8871 | 190726 |
|  Alta Equipment Group, Inc., Series A, 10.00%<sup>(1)</sup>  | 2114 | 53643 |
|  Atlas Corp., Series H, 7.88% (Canada)<sup>(1)</sup>  | 35376 | 726655 |
|  Atlas Corp., Series I, 8.00% (Canada)<sup>(1)</sup>  | 474788 | 10193698 |
|  Babcock & Wilcox Enterprises, Inc., 6.50%<sup>(1)</sup>  | 27907 | 577396 |
|  Babcock & Wilcox Enterprises, Inc., 8.13%<sup>(1)</sup>  | 388986 | 8892220 |
|  Babcock & Wilcox Enterprises, Inc., Series A, 7.75%<sup>(1)</sup>  | 979499 | 17993397 |
|  Fortress Transportation and Infrastructure Investors LLC, Series A, 8.25%<sup>(1)</sup>  | 19508 | 396012 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  |  |  |
|  **PREFERRED STOCKS (continued)** |  |  |
|  |  |  |
|  **Industrials (continued)** |  |  |
|  Fortress Transportation and Infrastructure Investors LLC, Series B, 8.00%<sup>(1)</sup>  | 581765 | $11588759<br>|
|  Fortress Transportation and Infrastructure Investors LLC, Series C, 8.25%  | 980 | 18375 |
|  Pitney Bowes, Inc., 6.70%<sup>(1)</sup>  | 322009 | 5235866 |
|  Textainer Group Holdings Ltd., 7.00% (China)  | 1020 | 23460 |
|  Textainer Group Holdings Ltd., Series B, 6.25% (China)<sup>(1)</sup>  | 235799 | 4579217 |
|  Triton International Ltd., 6.88% (Bermuda)<sup>(1)</sup>  | 172012 | 3789424 |
|  Triton International Ltd., 7.38% (Bermuda)<sup>(1)</sup>  | 365047 | 8370528 |
|  Triton International Ltd., 8.00% (Bermuda)<sup>(1)</sup>  | 2941 | 71819 |
|  Triton International Ltd., Series E, 5.75% (Bermuda)<sup>(1)</sup>  | 210004 | 4071978 |
|  Total Industrials  |  | 76773173 |
|  |  |  |
|  **Real Estate — 34.9%<sup>†</sup>** |  |  |
|  Braemar Hotels & Resorts, Inc., Series B, 5.50%<sup>(1)</sup>  | 435997 | 6417876 |
|  Braemar Hotels & Resorts, Inc., Series D, 8.25%<sup>(1)</sup>  | 47117 | 1121385 |
|  Brookfield Property Partners LP, Series A, 5.75%<sup>(1)</sup>  | 101806 | 1540325 |
|  Brookfield Property Partners LP, Series A-1, 6.50%<sup>(1)</sup>  | 3154 | 52514 |
|  Brookfield Property Partners LP, Series A2, 6.38%<sup>(1)</sup>  | 9684 | 157849 |
|  City Office REIT, Inc., Series A, 6.63%<sup>(1)</sup>  | 28317 | 550768 |
|  CTO Realty Growth, Inc., Series A, 6.38%<sup>(1)</sup>  | 70022 | 1390777 |
|  DiamondRock Hospitality Co., 8.25%<sup>(1)</sup>  | 237070 | 5803474 |
|  DigitalBridge Group, Inc., Series H, 7.13%<sup>(1)</sup>  | 330447 | 6248753 |
|  DigitalBridge Group, Inc., Series I, 7.15%<sup>(1)</sup>  | 740402 | 14075042 |
|  DigitalBridge Group, Inc., Series J, 7.13%<sup>(1)</sup>  | 214675 | 3992955 |
|  Diversified Healthcare Trust, 5.63%<sup>(1)</sup>  | 308098 | 3760336 |
|  Diversified Healthcare Trust, 6.25%<sup>(1)</sup>  | 288765 | 3684641 |
|  EPR Properties, Series C, 5.75%<sup>(1)</sup>  | 72897 | 1334015 |
|  EPR Properties, Series E, 9.00%<sup>(1)</sup>  | 449480 | 11978642 |
|  EPR Properties, Series G, 5.75%<sup>(1)</sup>  | 205252 | 3458496 |
|  Equity Commonwealth, Series D, 6.50%<sup>(1)</sup>  | 193073 | 4851925 |
|  Global Net Lease, Inc., Series A, 7.25%<sup>(1)</sup>  | 257891 | 5503394 |
|  Global Net Lease, Inc., Series B, 6.88%<sup>(1)</sup>  | 259592 | 5225587 |
|  Healthcare Trust, Inc., Series B, 7.13%<sup>(1)</sup>  | 188720 | 3683814 |
|  Hersha Hospitality Trust, Series D, 6.50%<sup>(1)</sup>  | 67900 | 1277878 |
|  Hersha Hospitality Trust, Series E, 6.50%<sup>(1)</sup>  | 43049 | 788227 |
|  Hudson Pacific Properties, Inc., Series C,<br>4.75%  | 2551 | 32423 |
|  iStar, Inc., Series I, 7.50%<sup>(1)</sup>  | 189017 | 4213189 |
|  LXP Industrial Trust, Series C, 6.50%<sup>(1)</sup>  | 14659 | 708616 |
|  Necessity Retail REIT, Inc., Series A, 7.50%<sup>(1)</sup>  | 851378 | 16925395 |
|  Necessity Retail REIT, Inc., Series C, 7.38%<sup>(1)</sup>  | 177155 | 3553729 |
|  Office Properties Income Trust, 6.38%  | 7500 | 130425 |
|  Pebblebrook Hotel Trust, Series E, 6.38%<sup>(1)</sup>  | 19766 | 363694 |
|  |  |  |

---

Schedule of Investments — Virtus InfraCap U.S. Preferred Stock ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  |  |  |
|  **PREFERRED STOCKS (continued)** |  |  |
|  |  |  |
|  **Real Estate (continued)** |  |  |
|  Pebblebrook Hotel Trust, Series F, 6.30%<sup>(1)</sup>  | 200175 | $3703238<br>|
|  Pebblebrook Hotel Trust, Series G, 6.38%<sup>(1)</sup>  | 53653 | 978631 |
|  Pebblebrook Hotel Trust, Series H, 5.70%<sup>(1)</sup>  | 26148 | 432488 |
|  Public Storage, Series R, 4.00%<sup>(1)</sup>  | 55066 | 886012 |
|  RLJ Lodging Trust, Series A, 1.95%<sup>(1)</sup>  | 870992 | 19649580 |
|  RPT Realty, Series D, 7.25%<sup>(1)</sup>  | 172171 | 7919866 |
|  Saul Centers, Inc., Series E, 6.00%<sup>(1)</sup>  | 293680 | 5703266 |
|  SITE Centers Corp., Series A, 6.38%<sup>(1)</sup>  | 1474 | 29568 |
|  Summit Hotel Properties, Inc., Series E, 6.25%<sup>(1)</sup>  | 154531 | 2803192 |
|  Summit Hotel Properties, Inc., Series F, 5.88%<sup>(1)</sup>  | 42594 | 773081 |
|  Sunstone Hotel Investors, Inc., Series I, 5.70%<sup>(1)</sup>  | 40538 | 722793 |
|  Urstadt Biddle Properties, Inc., Series K,<br>5.88%<sup>(1)</sup>  | 146945 | 2681746 |
|  Total Real Estate  |  | 159109605 |
|  **Utilities — 12.7%** |  |  |
|  AES Corp., 6.88%  | 1527 | 150425 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **PREFERRED STOCKS (continued)** |  |  |
|  |  |  |
|  **Utilities (continued)** |  |  |
|  Algonquin Power & Utilities Corp., 7.75% (Canada)<sup>(1)</sup>  | 367425 | $13837225<br>|
|  DTE Energy Co., 4.38%<sup>(1)</sup>  | 2975 | 51110 |
|  NextEra Energy, Inc., 6.93%\*  | 3563 | 165680 |
|  NiSource, Inc., 7.75%  | 10006 | 1020312 |
|  SCE Trust II, 5.10%<sup>(1)</sup>  | 3351 | 62831 |
|  SCE Trust III, Series H, 5.75%<sup>(1)</sup>  | 1017212 | 19672880 |
|  SCE Trust IV, Series J, 5.38%<sup>(1)</sup>  | 115656 | 2074869 |
|  SCE Trust V, Series K, 5.45%<sup>(1)</sup>  | 25103 | 481476 |
|  SCE Trust VI, 5.00%<sup>(1)</sup>  | 633379 | 10862450 |
|  South Jersey Industries, Inc., 5.63%<sup>(1)</sup>  | 4936 | 86429 |
|  UGI Corp., 7.25%<sup>(1)</sup>  | 113490 | 9633031 |
|  Total Utilities  |  | 58098718 |
|  **TOTAL INVESTMENTS — 129.4%** |  |  |
|  (Cost $713,163,227)  |  | **590071686** |
|  Liabilities in Excess of Other Assets — (29.4)%  |  | (133935959) |
|  **Net Assets — 100.0%**  |  | **$** **456135727**<br>|

---

------

\*Non-income producing security.

†Amounts represent investments in particular sectors. No industry within these sectors represented more than 25% of the Fund's total assets at the time of investment.

(1)Security, or a portion thereof, has been pledged as collateral for borrowings. The aggregate market value of the collateral at October 31, 2022 was $510,468,433.

The following table summarizes valuation of the Fund's investments under the fair value hierarchy levels as of October 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Asset Valuation Inputs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred Stocks  | $590071686<br>| $—<br>| $—<br>| $590071686<br>|
|  Total  | **$** **590071686**<br>| **$** **—**<br>| **$** **—**<br>| **$** **590071686**<br>|

---

Schedule of Investments — Virtus LifeSci Biotech Clinical Trials ETF

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS — 98.9%** |  |  |
|  **Health Care — 98.0%** |  |  |
|  AbCellera Biologics, Inc. (Canada)\*  | 11876 | $140493<br>|
|  Adicet Bio, Inc.\*  | 9252 | 152565 |
|  Affimed NV (Germany)\*  | 46013 | 80983 |
|  Agenus, Inc.\*  | 80356 | 201694 |
|  Akero Therapeutics, Inc.\*  | 12981 | 548577 |
|  Alector, Inc.\*<sup>(1)</sup>  | 12995 | 119554 |
|  Allogene Therapeutics, Inc.\*<sup>(1)</sup>  | 11462 | 118059 |
|  ALX Oncology Holdings, Inc.\*  | 15756 | 191278 |
|  AnaptysBio, Inc.\*<sup>(1)</sup>  | 5027 | 145029 |
|  Arbutus Biopharma Corp.\*  | 42988 | 100592 |
|  Arcturus Therapeutics Holdings, Inc.\*<sup>(1)</sup>  | 8092 | 143228 |
|  Arcus Biosciences, Inc.\*  | 5068 | 129133 |
|  Arcutis Biotherapeutics, Inc.\*  | 5275 | 93262 |
|  Arrowhead Pharmaceuticals, Inc.\*  | 3742 | 130259 |
|  Arvinas, Inc.\*  | 2900 | 144159 |
|  ATAI Life Sciences NV (Germany)\*  | 32341 | 95406 |
|  Atara Biotherapeutics, Inc.\*  | 20244 | 94337 |
|  Atea Pharmaceuticals, Inc.\*  | 15660 | 93960 |
|  Athira Pharma, Inc.\*  | 13008 | 43056 |
|  Avidity Biosciences, Inc.\*  | 8852 | 126407 |
|  Bicycle Therapeutics PLC (United Kingdom)\*<sup>(1)</sup><sup>(2)</sup> | 8009 | 198223 |
|  Bioxcel Therapeutics, Inc.\*<sup>(1)</sup>  | 11365 | 143085 |
|  C4 Therapeutics, Inc.\*  | 19305 | 185714 |
|  Cara Therapeutics, Inc.\*  | 13395 | 125913 |
|  Caribou Biosciences, Inc.\*  | 20369 | 198394 |
|  Cassava Sciences, Inc.\*<sup>(1)</sup>  | 4267 | 155489 |
|  Celldex Therapeutics, Inc.\*  | 4847 | 170275 |
|  Cerevel Therapeutics Holdings, Inc.\*<sup>(1)</sup>  | 4295 | 120088 |
|  Chinook Therapeutics, Inc.\*  | 6490 | 141157 |
|  Codexis, Inc.\*  | 11779 | 66198 |
|  Compass Pathways PLC (United Kingdom)\*<sup>(1)</sup><sup>(2)</sup>  | 11061 | 116583 |
|  Crinetics Pharmaceuticals, Inc.\*  | 6228 | 114969 |
|  CRISPR Therapeutics AG (Switzerland)\*  | 1795 | 93950 |
|  Cullinan Oncology, Inc.\*  | 8686 | 114134 |
|  CureVac NV (Germany)\*  | 7733 | 56296 |
|  Cytokinetics, Inc.\*  | 2665 | 116354 |
|  Day One Biopharmaceuticals, Inc.\*  | 6601 | 139545 |
|  Denali Therapeutics, Inc.\*  | 4875 | 139815 |
|  Design Therapeutics, Inc.\*<sup>(1)</sup>  | 7775 | 121445 |
|  DICE Therapeutics, Inc.\*  | 7540 | 267745 |
|  Dynavax Technologies Corp.\*<sup>(1)</sup>  | 9970 | 114157 |
|  Edgewise Therapeutics, Inc.\*  | 17469 | 166130 |
|  Editas Medicine, Inc.\*<sup>(1)</sup>  | 10440 | 131022 |
|  EQRx, Inc.\*  | 27494 | 141319 |
|  Erasca, Inc.\*<sup>(1)</sup>  | 21487 | 175549 |
|  Fate Therapeutics, Inc.\*<sup>(1)</sup>  | 5607 | 117298 |
|  FibroGen, Inc.\*  | 11655 | 189743 |
|  Foghorn Therapeutics, Inc.\*  | 8258 | 72175 |
|  Geron Corp.\*  | 81613 | 181181 |
|  GH Research PLC (Ireland)\*<sup>(1)</sup>  | 10026 | 102065 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS (continued)** |  |  |
|  **Health Care (continued)** |  |  |
|  Gossamer Bio, Inc.\*  | 17496 | $194206<br>|
|  Ideaya Biosciences, Inc.\*  | 9156 | 154645 |
|  IGM Biosciences, Inc.\*  | 7319 | 146380 |
|  I-Mab (China)\*<sup>(2)</sup>  | 11531 | 42780 |
|  Imago Biosciences, Inc.\*  | 8189 | 139213 |
|  ImmunityBio, Inc.\*<sup>(1)</sup>  | 35048 | 192764 |
|  ImmunoGen, Inc.\*  | 32341 | 192106 |
|  Immunovant, Inc.\*<sup>(1)</sup>  | 30367 | 340110 |
|  Inhibrx, Inc.\*<sup>(1)</sup>  | 12263 | 394623 |
|  Inovio Pharmaceuticals, Inc.\*  | 72540 | 156686 |
|  Instil Bio, Inc.\*  | 21404 | 70633 |
|  Intellia Therapeutics, Inc.\*  | 2720 | 143562 |
|  Invivyd, Inc.\*  | 39564 | 156278 |
|  Iovance Biotherapeutics, Inc.\*  | 13519 | 126267 |
|  iTeos Therapeutics, Inc.\*  | 5828 | 113529 |
|  IVERIC bio, Inc.\*  | 11075 | 264914 |
|  Karuna Therapeutics, Inc.\*  | 1050 | 230307 |
|  Keros Therapeutics, Inc.\*  | 3825 | 192551 |
|  Kezar Life Sciences, Inc.\*  | 22136 | 166352 |
|  Kodiak Sciences, Inc.\*  | 14555 | 104505 |
|  Krystal Biotech, Inc.\*<sup>(1)</sup>  | 2071 | 158432 |
|  Kura Oncology, Inc.\*  | 7650 | 118728 |
|  Kymera Therapeutics, Inc.\*  | 7222 | 219115 |
|  Lyell Immunopharma, Inc.\*<sup>(1)</sup>  | 23117 | 135928 |
|  Madrigal Pharmaceuticals, Inc.\*<sup>(1)</sup>  | 1519 | 107576 |
|  MeiraGTx Holdings PLC\*  | 14362 | 104412 |
|  Mersana Therapeutics, Inc.\*  | 35048 | 275477 |
|  Merus NV (Netherlands)\*  | 5220 | 107010 |
|  Mirati Therapeutics, Inc.\*  | 1989 | 133899 |
|  Morphic Holding, Inc.\*<sup>(1)</sup>  | 5068 | 141955 |
|  NGM Biopharmaceuticals, Inc.\*  | 8327 | 44466 |
|  Nkarta, Inc.\*  | 8576 | 108143 |
|  Novavax, Inc.\*<sup>(1)</sup>  | 2693 | 59973 |
|  Nurix Therapeutics, Inc.\*  | 10813 | 137649 |
|  Nuvation Bio, Inc.\*  | 30450 | 66990 |
|  Phathom Pharmaceuticals, Inc.\*  | 16847 | 178578 |
|  PMV Pharmaceuticals, Inc.\*  | 11061 | 136161 |
|  Point Biopharma Global, Inc.\*  | 15135 | 141210 |
|  Precigen, Inc.\*  | 85618 | 138701 |
|  Prelude Therapeutics, Inc.\*  | 24180 | 161764 |
|  Prometheus Biosciences, Inc.\*  | 4184 | 219744 |
|  Protagonist Therapeutics, Inc.\*  | 14237 | 115320 |
|  Prothena Corp. PLC (Ireland)\*  | 4557 | 279982 |
|  RAPT Therapeutics, Inc.\*  | 7015 | 153067 |
|  Reata Pharmaceuticals, Inc. Class A\*  | 3604 | 116049 |
|  Recursion Pharmaceuticals, Inc. Class A\*  | 16847 | 177736 |
|  REGENXBIO, Inc.\*  | 5248 | 124220 |
|  Relay Therapeutics, Inc.\*<sup>(1)</sup>  | 7526 | 167228 |
|  Relmada Therapeutics, Inc.\*  | 6118 | 39094 |
|  Repare Therapeutics, Inc. (Canada)\*  | 7637 | 115013 |

---

Schedule of Investments — Virtus LifeSci Biotech Clinical Trials ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS (continued)** |  |  |
|  **Health Care (continued)** |  |  |
|  Replimune Group, Inc.\*  | 7153 | $131329<br>|
|  REVOLUTION Medicines, Inc.\*  | 6214 | 125896 |
|  Rocket Pharmaceuticals, Inc.\*  | 9860 | 183988 |
|  Sangamo Therapeutics, Inc.\*  | 31651 | 138948 |
|  Seres Therapeutics, Inc.\*  | 38694 | 342829 |
|  Sorrento Therapeutics, Inc.\*<sup>(1)</sup>  | 74087 | 116317 |
|  SpringWorks Therapeutics, Inc.\*  | 5151 | 123676 |
|  Stoke Therapeutics, Inc.\*  | 9970 | 148055 |
|  Syndax Pharmaceuticals, Inc.\*  | 6628 | 152179 |
|  TG Therapeutics, Inc.\*<sup>(1)</sup>  | 27135 | 157926 |
|  uniQure NV (Netherlands)\*  | 7802 | 145273 |
|  Vaxart, Inc.\*<sup>(1)</sup>  | 37175 | 62082 |
|  Vaxcyte, Inc.\*  | 5910 | 257735 |
|  Ventyx Biosciences, Inc.\*  | 8023 | 259705 |
|  Vir Biotechnology, Inc.\*  | 4695 | 103196 |
|  Xencor, Inc.\*<sup>(1)</sup>  | 5220 | 146160 |
|  Xenon Pharmaceuticals, Inc. (Canada)\*  | 3673 | 134322 |
|  Zentalis Pharmaceuticals, Inc.\*<sup>(1)</sup>  | 4819 | 120909 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS (continued)** |  |  |
|  **Health Care (continued)** |  |  |
|  Zymeworks, Inc.\*<sup>(1)</sup>  | 17980 | $133591<br>|
|  Total Health Care  |  | 17758189 |
|  **Materials — 0.9%** |  |  |
|  Amyris, Inc.\*<sup>(1)</sup>  | 56770 | 159524 |
|  **Total Common Stocks** |  |  |
|  (Cost $25,295,303)  |  | **17917713** |
|  **SECURITIES LENDING COLLATERAL — 8.0%** | **SECURITIES LENDING COLLATERAL — 8.0%** |  |
|  **Money Market Fund — 8.0%** |  |  |
|  Dreyfus Government Cash Management Fund, Institutional Shares, 2.91%<sup>(3)</sup><sup>(4)</sup> |  |  |
|  (Cost $1,448,554)  | 1448554 | **1448554** |
|  **TOTAL INVESTMENTS — 106.9%** |  |  |
|  (Cost $26,743,857)  |  | **19366267** |
|  Liabilities in Excess of Other Assets — (6.9)%  |  | (1250333) |
|  **Net Assets — 100.0%**  |  | **$** **18115934**<br>|

---

------

\*Non-income producing security.

(1)All or a portion of the security was on loan. The aggregate market value of securities on loan was $3,701,660; total market value of collateral held by the Fund was $3,869,179. Market value of the collateral held includes non-cash U.S. Treasury securities having a value of $2,420,625.

(2)American Depositary Receipts.

(3)Represents securities purchased with cash collateral received for securities on loan.

(4)The rate shown reflects the seven-day yield as of October 31, 2022.

The following table summarizes valuation of the Fund's investments under the fair value hierarchy levels as of October 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Asset Valuation Inputs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks  | $17917713<br>| $—<br>| $—<br>| $17917713<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Money Market Fund  | 1448554 |  |  | 1448554 |
|  Total  | **$** **19366267**<br>| **$** **—**<br>| **$** **—**<br>| **$** **19366267**<br>|

---

Schedule of Investments — Virtus LifeSci Biotech Products ETF

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS — 99.0%** |  |  |
|  **Health Care — 99.0%** |  |  |
|  ACADIA Pharmaceuticals, Inc.\*  | 15710 | $251831<br>|
|  Agios Pharmaceuticals, Inc.\*  | 14964 | 412109 |
|  Alnylam Pharmaceuticals, Inc.\*  | 1909 | 395659 |
|  Amgen, Inc.  | 1091 | 294952 |
|  Amicus Therapeutics, Inc.\*  | 32188 | 321880 |
|  Apellis Pharmaceuticals, Inc.\*  | 6567 | 397238 |
|  Ascendis Pharma A/S (Denmark)\*<sup>(1)</sup>  | 3143 | 361445 |
|  Aurinia Pharmaceuticals, Inc. (Canada)\*  | 27007 | 219567 |
|  Axsome Therapeutics, Inc.\*  | 11282 | 509382 |
|  BeiGene Ltd. (China)\*<sup>(1)</sup><sup>(2)</sup>  | 1931 | 326127 |
|  BioCryst Pharmaceuticals, Inc.\*<sup>(2)</sup>  | 27007 | 360543 |
|  Biogen, Inc.\*  | 1313 | 372157 |
|  BioMarin Pharmaceutical, Inc.\*  | 3574 | 309616 |
|  BioNTech SE (Germany)<sup>(1)</sup>  | 1895 | 260828 |
|  Blueprint Medicines Corp.\*  | 5598 | 290200 |
|  Bridgebio Pharma, Inc.\*<sup>(2)</sup>  | 39208 | 408939 |
|  CTI BioPharma Corp.\*<sup>(2)</sup>  | 47002 | 230310 |
|  Deciphera Pharmaceuticals, Inc.\*  | 23569 | 382289 |
|  Enanta Pharmaceuticals, Inc.\*  | 6380 | 287802 |
|  Exelixis, Inc.\*  | 14447 | 239531 |
|  Gilead Sciences, Inc.  | 4464 | 350245 |
|  Halozyme Therapeutics, Inc.\*  | 5856 | 279975 |
|  Harmony Biosciences Holdings, Inc.\*  | 5742 | 298584 |
|  Immunocore Holdings PLC (United Kingdom)\*<sup>(1)</sup>  | 9366 | 535173 |
|  Incyte Corp.\*  | 3854 | 286506 |
|  Insmed, Inc.\*  | 14677 | 254206 |
|  Intra-Cellular Therapies, Inc.\*  | 4722 | 215654 |
|  Ionis Pharmaceuticals, Inc.\*  | 7615 | 336583 |
|  Ironwood Pharmaceuticals, Inc.\*<sup>(2)</sup>  | 22292 | 243875 |
|  Kiniksa Pharmaceuticals Ltd. Class A\*  | 30789 | 351610 |
|  Legend Biotech Corp.\*<sup>(1)</sup>  | 5799 | 288906 |
|  Ligand Pharmaceuticals, Inc.\*  | 3416 | 299412 |
|  Mirum Pharmaceuticals, Inc.\*  | 13349 | 301020 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS** **(continued)** |  |  |
|  **Health Care** **(continued)** |  |  |
|  Moderna, Inc.\*  | 2103 | $316144<br>|
|  Myovant Sciences Ltd.\*  | 24588 | 657483 |
|  Nektar Therapeutics\*  | 78056 | 293491 |
|  Neurocrine Biosciences, Inc.\*  | 2799 | 322221 |
|  PTC Therapeutics, Inc.\*  | 9947 | 376196 |
|  Regeneron Pharmaceuticals, Inc.\*  | 466 | 348918 |
|  Roivant Sciences Ltd.\*  | 68339 | 351263 |
|  Sage Therapeutics, Inc.\*  | 8009 | 301619 |
|  Sarepta Therapeutics, Inc.\*  | 3954 | 450835 |
|  Seagen, Inc.\*  | 1766 | 224565 |
|  Theravance Biopharma, Inc.\*  | 29820 | 297305 |
|  Travere Therapeutics, Inc.\*  | 10859 | 235423 |
|  Ultragenyx Pharmaceutical, Inc.\*  | 5383 | 217796 |
|  United Therapeutics Corp.\*  | 1170 | 269720 |
|  Vanda Pharmaceuticals, Inc.\*  | 27021 | 282910 |
|  Vertex Pharmaceuticals, Inc.\*  | 1026 | 320112 |
|  Zai Lab Ltd. (China)\*<sup>(1)</sup><sup>(2)</sup>  | 10636 | 236970 |
|  Total Health Care  |  | 16177125 |
|  **Total Common Stocks** |  |  |
|  (Cost $17,656,686)  |  | 16177125 |
|  **SECURITIES LENDING COLLATERAL — 1.5%** |  |  |
|  **Money Market Fund — 1.5%** |  |  |
|  Dreyfus Government Cash Management Fund, Institutional Shares, 2.91%<sup>(3)</sup><sup>(4)</sup> |  |  |
|  (Cost $246,755)  | 246755 | $246755<br>|
|  **TOTAL INVESTMENTS — 100.5%** |  |  |
|  (Cost $17,903,441)  |  | **16423880** |
|  Liabilities in Excess of Other Assets — (0.5)%  |  | (74657) |
|  **Net Assets — 100.0%**  |  | **$** **16349223**<br>|

---

------

\*Non-income producing security.

(1)American Depositary Receipts.

(2)All or a portion of the security was on loan. The aggregate market value of securities on loan was $1,380,978; total market value of collateral held by the Fund was $1,457,851. Market value of the collateral held includes non-cash U.S. Treasury securities having a value of $1,211,096.

(3)Represents securities purchased with cash collateral received for securities on loan.

(4)The rate shown reflects the seven-day yield as of October 31, 2022.

The following table summarizes valuation of the Fund's investments under the fair value hierarchy levels as of October 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Asset Valuation Inputs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks  | $16177125<br>| $—<br>| $—<br>| $16177125<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Money Market Fund  | 246755 |  |  | 246755 |
|  Total  | $16423880<br>| $—<br>| $—<br>| $16423880<br>|

---

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **CORPORATE BONDS — 27.6%** |  |  |
|  **Communication Services — 1.4%** |  |  |
|  CCO Holdings LLC / CCO Holdings Capital Corp., 4.75%, 03/01/30<sup>(1)</sup>  | $30000<br>| $25265<br>|
|  CCO Holdings LLC / CCO Holdings Capital Corp., 4.50%, 08/15/30<sup>(1)</sup>  | 75000 | 60996 |
|  DISH DBS Corp., 7.75%, 07/01/26  | 50000 | 42282 |
|  Level 3 Financing, Inc., 4.25%, 07/01/28<sup>(1)</sup>  | 15000 | 12416 |
|  Level 3 Financing, Inc., 3.63%, 01/15/29<sup>(1)</sup>  | 60000 | 45897 |
|  McGraw-Hill Education, Inc., 5.75%, 08/01/28<sup>(1)</sup>  | 50000 | 44160 |
|  McGraw-Hill Education, Inc., 8.00%, 08/01/29<sup>(1)</sup>  | 90000 | 76830 |
|  Millennium Escrow Corp., 6.63%, 08/01/26<sup>(1)</sup>  | 45000 | 32513 |
|  Nexstar Media, Inc., 4.75%, 11/01/28<sup>(1)</sup>  | 20000 | 17599 |
|  Northwest Fiber LLC / Northwest Fiber Finance Sub, Inc., 10.75%, 06/01/28<sup>(1)</sup>  | 45000 | 42308 |
|  Rackspace Technology Global, Inc., 5.38%, 12/01/28<sup>(1)</sup>  | 65000 | 27453 |
|  T-Mobile USA, Inc., 3.88%, 04/15/30  | 140000 | 123963 |
|  Twitter, Inc., 3.88%, 12/15/27<sup>(1)</sup>  | 40000 | 40412 |
|  Total Communication Services  |  | 592094 |
|  **Consumer Discretionary — 3.2%** |  |  |
|  At Home Group, Inc., 4.88%, 07/15/28<sup>(1)</sup>  | 15000 | 10928 |
|  At Home Group, Inc., 7.13%, 07/15/29<sup>(1)</sup>  | 45000 | 25492 |
|  Brunswick Corp., 2.40%, 08/18/31  | 97000 | 67954 |
|  Caesars Entertainment, Inc., 6.25%, 07/01/25<sup>(1)</sup>  | 35000 | 34204 |
|  Caesars Entertainment, Inc., 8.13%, 07/01/27<sup>(1)</sup>  | 45000 | 43842 |
|  Carriage Services, Inc., 4.25%, 05/15/29<sup>(1)</sup>  | 50000 | 38552 |
|  Clarios Global LP / Clarios US Finance Co., 8.50%, 05/15/27<sup>(1)</sup>  | 50000 | 49085 |
|  Cooper-Standard Automotive, Inc., 13.00%, 06/01/24<sup>(1)</sup>  | 25000 | 25638 |
|  Dick's Sporting Goods, Inc., 3.15%, 01/15/32  | 129000 | 98064 |
|  Dornoch Debt Merger Sub, Inc., 6.63%, 10/15/29<sup>(1)</sup>  | 60000 | 40928 |
|  Ford Motor Co., 3.25%, 02/12/32  | 54000 | 40636 |
|  Ford Motor Co., 4.75%, 01/15/43  | 70000 | 48872 |
|  Jacobs Entertainment, Inc., 6.75%, 02/15/29<sup>(1)</sup>  | 90000 | 79500 |
|  M/I Homes, Inc., 4.95%, 02/01/28  | 90000 | 77354 |
|  Metis Merger Sub LLC, 6.50%, 05/15/29<sup>(1)</sup>  | 75000 | 60368 |
|  Mohegan Gaming & Entertainment, 8.00%, 02/01/26<sup>(1)</sup>  | 55000 | 46498 |
|  NMG Holding Co., Inc. / Neiman Marcus Group LLC, 7.13%, 04/01/26<sup>(1)</sup>  | 65000 | 61905 |
|  Nordstrom, Inc., 4.25%, 08/01/31  | 90000 | 65473 |
|  Premier Entertainment Sub LLC / Premier Entertainment Finance Corp., 5.63%, 09/01/29<sup>(1)</sup>  | 95000 | 70565 |
|  PulteGroup, Inc., 7.88%, 06/15/32  | 95000 | 99100 |
|  PulteGroup, Inc., 6.38%, 05/15/33  | 30000 | 27939 |
|  Royal Caribbean Cruises Ltd., 9.25%, 01/15/29<sup>(1)</sup>  | 4000 | 4067 |
|  Scientific Games International, Inc., 7.00%, 05/15/28<sup>(1)</sup>  | 65000 | 63044 |
|  Station Casinos LLC, 4.50%, 02/15/28<sup>(1)</sup>  | 55000 | 47508 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **CORPORATE BONDS (continued)** |  |  |
|  **Consumer Discretionary (continued)** |  |  |
|  Tenneco, Inc., 5.38%, 12/15/24  | $20000<br>| $19984<br>|
|  Tenneco, Inc., 5.13%, 04/15/29<sup>(1)</sup>  | 45000 | 44694 |
|  Weekley Homes LLC / Weekley Finance Corp., 4.88%, 09/15/28<sup>(1)</sup>  | 75000 | 60529 |
|  Total Consumer Discretionary  |  | 1352723 |
|  **Consumer Staples — 0.6%** |  |  |
|  Albertsons Cos., Inc. / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 3.25%, 03/15/26<sup>(1)</sup>  | 100000 | 89996 |
|  Church & Dwight Co., Inc., 5.60%, 11/15/32  | 37000 | 36932 |
|  HLF Financing Sarl LLC / Herbalife International, Inc., 4.88%, 06/01/29<sup>(1)</sup>  | 90000 | 67068 |
|  Turning Point Brands, Inc., 5.63%, 02/15/26<sup>(1)</sup>  | 65000 | 56926 |
|  Total Consumer Staples  |  | 250922 |
|  **Energy — 3.9%** |  |  |
|  Alliance Resource Operating Partners LP / Alliance Resource Finance Corp., 7.50%, 05/01/25<sup>(1)</sup>  | 110000 | 108065 |
|  Antero Midstream Partners LP / Antero Midstream Finance Corp., 5.75%, 01/15/28<sup>(1)</sup>  | 80000 | 75549 |
|  Antero Resources Corp., 7.63%, 02/01/29<sup>(1)</sup>  | 63000 | 64353 |
|  Antero Resources Corp., 5.38%, 03/01/30<sup>(1)</sup>  | 20000 | 18534 |
|  Ascent Resources Utica Holdings LLC / ARU Finance Corp., 8.25%, 12/31/28<sup>(1)</sup>  | 50000 | 48326 |
|  Callon Petroleum Co., 7.50%, 06/15/30<sup>(1)</sup>  | 75000 | 71365 |
|  Calumet Specialty Products Partners LP / Calumet Finance Corp., 8.13%, 01/15/27<sup>(1)</sup>  | 45000 | 42656 |
|  CITGO Petroleum Corp., 7.00%, 06/15/25<sup>(1)</sup>  | 60000 | 59153 |
|  CrownRock LP / CrownRock Finance, Inc., 5.63%, 10/15/25<sup>(1)</sup>  | 50000 | 48419 |
|  CrownRock LP / CrownRock Finance, Inc., 5.00%, 05/01/29<sup>(1)</sup>  | 20000 | 18197 |
|  DCP Midstream Operating LP, 3.25%, 02/15/32  | 65000 | 51833 |
|  Energy Transfer LP, Series H, 6.50%, (US 5 Year CMT T- Note + 5.69%), perpetual<sup>(2)</sup><sup>(3)</sup>  | 75000 | 64687 |
|  Flex Intermediate Holdco LLC, 3.36%, 06/30/31<sup>(1)</sup> | 100000 | 77241 |
|  Hf Sinclair Corp., 5.88%, 04/01/26  | 85000 | 82738 |
|  Hilcorp Energy I LP / Hilcorp Finance Co., 5.75%, 02/01/29<sup>(1)</sup>  | 65000 | 59623 |
|  Hilcorp Energy I LP / Hilcorp Finance Co., 6.00%, 02/01/31<sup>(1)</sup>  | 50000 | 45559 |
|  Kinder Morgan, Inc., Series G, 7.75%, 01/15/32  | 103000 | 112105 |
|  Magnolia Oil & Gas Operating LLC / Magnolia Oil & Gas Finance Corp., 6.00%, 08/01/26<sup>(1)</sup>  | 75000 | 72962 |
|  Mesquite Energy, Inc., Escrow, 7.25%, 02/15/23  | 12000 | 120 |
|  Nabors Industries Ltd., 7.25%, 01/15/26<sup>(1)</sup>  | 65000 | 62883 |
|  Occidental Petroleum Corp., 6.13%, 01/01/31  | 50000 | 50193 |
|  Parsley Energy LLC / Parsley Finance Corp., 4.13%, 02/15/28<sup>(1)</sup>  | 85000 | 77418 |
|  Sabine Pass Liquefaction LLC, 4.20%, 03/15/28  | 85000 | 77584 |
|  Southwestern Energy Co., 5.38%, 02/01/29  | 75000 | 70051 |

---

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **CORPORATE BONDS (continued)** |  |  |
|  **Energy (continued)** |  |  |
|  Targa Resources Partners LP / Targa Resources Partners Finance Corp., 4.88%, 02/01/31  | $5000<br>| $4418<br>|
|  Transocean, Inc., 11.50%, 01/30/27<sup>(1)</sup>  | 4000 | 4024 |
|  USA Compression Partners LP / USA Compression Finance Corp., 6.88%, 04/01/26  | 63000 | 60560 |
|  Venture Global Calcasieu Pass LLC, 4.13%, 08/15/31<sup>(1)</sup>  | 100000 | 85502 |
|  Total Energy  |  | 1614118 |
|  **Financials — 7.0%** |  |  |
|  Acrisure LLC / Acrisure Finance, Inc., 7.00%, 11/15/25<sup>(1)</sup>  | 40000 | 37685 |
|  Allstate Corp. (The), Series B, 5.75%, (3-Month USD LIBOR + 2.94%), 08/15/53<sup>(2)</sup>  | 135000 | 124072 |
|  Ally Financial, Inc., Series B, 4.70%, (US 5 Year CMT T- Note + 3.87%), perpetual<sup>(2)</sup><sup>(3)</sup>  | 128000 | 93200 |
|  Bank of America Corp., 3.42%, (3-Month USD LIBOR + 1.04%), 12/20/28<sup>(2)</sup>  | 160000 | 141355 |
|  Bank of America Corp., 2.48%, (US 5 Year CMT T- Note + 1.20%), 09/21/36<sup>(2)</sup>  | 60000 | 42943 |
|  Bank of New York Mellon Corp. (The), Series G, 4.70%, (US 5 Year CMT T- Note + 4.36%), perpetual<sup>(2)</sup><sup>(3)</sup>  | 90000 | 86400 |
|  Bank of New York Mellon Corp. (The), 5.83%, (SOFR + 2.07%), 10/25/33<sup>(2)</sup>  | 115000 | 115259 |
|  Blackstone Private Credit Fund, 2.63%, 12/15/26  | 59000 | 48476 |
|  Blue Owl Finance LLC, 3.13%, 06/10/31<sup>(1)</sup>  | 75000 | 54504 |
|  Brighthouse Financial, Inc., 5.63%, 05/15/30  | 50000 | 46569 |
|  BroadStreet Partners, Inc., 5.88%, 04/15/29<sup>(1)</sup>  | 85000 | 68422 |
|  Charles Schwab Corp. (The), Series H, 4.00%, (US 10 Year CMT T- Note + 3.08%), perpetual<sup>(2)</sup><sup>(3)</sup>  | 95000 | 70680 |
|  Citadel LP, 4.88%, 01/15/27<sup>(1)</sup>  | 85000 | 78700 |
|  Citigroup, Inc., 3.98%, (3-Month USD LIBOR + 1.34%), 03/20/30<sup>(2)</sup>  | 210000 | 185233 |
|  Cobra AcquisitionCo. LLC, 6.38%, 11/01/29<sup>(1)</sup>  | 50000 | 33326 |
|  Corebridge Financial, Inc., 6.88%, (US 5 Year CMT T- Note + 3.85%), 12/15/52<sup>(1)</sup><sup>(2)</sup>  | 54000 | 48783 |
|  Goldman Sachs Group, Inc. (The), 1.99%, (SOFR + 1.09%), 01/27/32<sup>(2)</sup>  | 240000 | 175387 |
|  JPMorgan Chase & Co., Series HH, 4.60%, (SOFR + 3.13%), perpetual<sup>(2)</sup><sup>(3)</sup>  | 34000 | 30427 |
|  JPMorgan Chase & Co., 2.96%, (SOFR + 2.52%), 05/13/31<sup>(2)</sup>  | 155000 | 122102 |
|  JPMorgan Chase & Co., 1.95%, (SOFR + 1.07%), 02/04/32<sup>(2)</sup>  | 185000 | 135710 |
|  JPMorgan Chase & Co., 5.72%, (SOFR + 2.58%), 09/14/33<sup>(2)</sup>  | 30000 | 28011 |
|  Ladder Capital Finance Holdings LLLP / Ladder Capital Finance Corp., 4.25%, 02/01/27<sup>(1)</sup>  | 60000 | 50535 |
|  Liberty Mutual Group, Inc., 4.13%, (US 5 Year CMT T- Note + 3.32%), 12/15/51<sup>(1)</sup><sup>(2)</sup>  | 55000 | 41324 |
|  Lincoln National Corp., 6.28%, (3-Month USD LIBOR + 2.04%), 04/20/67<sup>(2)</sup>  | 80000 | 60900 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **CORPORATE BONDS (continued)** |  |  |
|  **Financials (continued)** |  |  |
|  MetLife, Inc., Series D, 5.88%, (3-Month USD LIBOR + 2.96%), perpetual<sup>(2)</sup><sup>(3)</sup>  | $52000<br>| $46688<br>|
|  MetLife, Inc., Series G, 3.85%, (US 5 Year CMT T- Note + 3.58%), perpetual<sup>(2)</sup><sup>(3)</sup>  | 40000 | 35250 |
|  Midcap Financial Issuer Trust, 6.50%, 05/01/28<sup>(1)</sup>  | 190000 | 161954 |
|  Morgan Stanley, 6.34%, (SOFR + 2.56%), 10/18/33<sup>(2)</sup>  | 42000 | 42642 |
|  Navient Corp., 6.75%, 06/25/25  | 49000 | 46969 |
|  Northern Trust Corp., 6.13%, 11/02/32  | 100000 | 100206 |
|  OWL Rock Core Income Corp., 4.70%, 02/08/27  | 38000 | 33450 |
|  Prudential Financial, Inc., 5.63%, (3-Month USD LIBOR + 3.92%), 06/15/43<sup>(2)</sup>  | 85000 | 84170 |
|  Prudential Financial, Inc., 5.13%, (US 5 Year CMT T- Note + 3.16%), 03/01/52<sup>(2)</sup>  | 79000 | 67535 |
|  Prudential Financial, Inc., 6.00%, (US 5 Year CMT T- Note + 3.23%), 09/01/52<sup>(2)</sup>  | 10000 | 9147 |
|  Santander Holdings USA, Inc., 4.40%, 07/13/27  | 59000 | 53366 |
|  Texas Capital Bancshares, Inc., 4.00%, (US 5 Year CMT T- Note + 3.15%), 05/06/31<sup>(2)</sup>  | 70000 | 60672 |
|  Truist Financial Corp., Series Q, 5.10%, (US 10 Year CMT T- Note + 4.35%), perpetual<sup>(2)</sup><sup>(3)</sup>  | 115000 | 101208 |
|  Wells Fargo & Co., Series BB, 3.90%, (US 5 Year CMT T-Note + 3.45%), perpetual<sup>(2)</sup><sup>(3)</sup>  | 130000 | 110451 |
|  Wells Fargo & Co., 2.39%, (SOFR + 2.10%), 06/02/28<sup>(2)</sup>  | 70000 | 59846 |
|  Total Financials  |  | 2933557 |
|  **Health Care — 2.3%** |  |  |
|  Akumin, Inc., 7.00%, 11/01/25<sup>(1)</sup>  | 55000 | 44567 |
|  Bausch Health Cos., Inc., 6.13%, 02/01/27<sup>(1)</sup>  | 5000 | 3296 |
|  Bausch Health Cos., Inc., 11.00%, 09/30/28<sup>(1)</sup>  | 19000 | 14725 |
|  Bausch Health Cos., Inc., 14.00%, 10/15/30<sup>(1)</sup>  | 3000 | 1733 |
|  Bio-Rad Laboratories, Inc., 3.70%, 03/15/32  | 134000 | 111645 |
|  CHS/Community Health Systems, Inc., 6.88%, 04/15/29<sup>(1)</sup>  | 25000 | 10121 |
|  CHS/Community Health Systems, Inc., 6.13%, 04/01/30<sup>(1)</sup>  | 35000 | 14436 |
|  CHS/Community Health Systems, Inc., 5.25%, 05/15/30<sup>(1)</sup>  | 40000 | 27778 |
|  CHS/Community Health Systems, Inc., 4.75%, 02/15/31<sup>(1)</sup>  | 95000 | 63780 |
|  DaVita, Inc., 3.75%, 02/15/31<sup>(1)</sup>  | 90000 | 65251 |
|  DENTSPLY SIRONA, Inc., 3.25%, 06/01/30  | 140000 | 109405 |
|  HCA, Inc., 5.63%, 09/01/28  | 17000 | 16347 |
|  Illumina, Inc., 2.55%, 03/23/31  | 102000 | 77956 |
|  Lannett Co., Inc., 7.75%, 04/15/26<sup>(1)</sup>  | 10000 | 3163 |
|  Legacy LifePoint Health LLC, 6.75%, 04/15/25<sup>(1)</sup>  | 60000 | 53235 |
|  Par Pharmaceutical, Inc., 7.50%, 04/01/27<sup>(1)</sup><sup>(4)</sup>  | 35000 | 26838 |
|  Surgery Center Holdings, Inc., 6.75%, 07/01/25<sup>(1)</sup> | 72000 | 67780 |
|  Surgery Center Holdings, Inc., 10.00%, 04/15/27<sup>(1)</sup> | 35000 | 34019 |
|  Team Health Holdings, Inc., 6.38%, 02/01/25<sup>(1)</sup>  | 45000 | 34074 |
|  Universal Health Services, Inc., 2.65%, 01/15/32<sup>(1)</sup> | 135000 | 96214 |

---

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **CORPORATE BONDS (continued)** |  |  |
|  **Health Care (continued)** |  |  |
|  Viatris, Inc., Series WI, 2.70%, 06/22/30  | $80000<br>| $59916<br>|
|  Total Health Care  |  | 936279 |
|  **Industrials — 2.7%** |  |  |
|  Alaska Airlines 2020-1 Class A Pass-Through Trust, 4.80%, 08/15/27<sup>(1)</sup>  | 92755 | 86900 |
|  Allied Universal Holdco LLC / Allied Universal Finance Corp., 6.63%, 07/15/26<sup>(1)</sup>  | 60000 | 57414 |
|  Aviation Capital Group LLC, 3.50%, 11/01/27<sup>(1)</sup>  | 76000 | 61777 |
|  BlueLinx Holdings, Inc., 6.00%, 11/15/29<sup>(1)</sup>  | 85000 | 69404 |
|  Boeing Co. (The), 5.15%, 05/01/30  | 45000 | 41623 |
|  Boeing Co. (The), 3.75%, 02/01/50  | 20000 | 12834 |
|  Boeing Co. (The), 5.93%, 05/01/60  | 23000 | 19497 |
|  CoStar Group, Inc., 2.80%, 07/15/30<sup>(1)</sup>  | 138000 | 108933 |
|  Deluxe Corp., 8.00%, 06/01/29<sup>(1)</sup>  | 20000 | 16711 |
|  General Electric Co., Series D, 6.62%, (3-Month USD LIBOR + 3.33%), perpetual<sup>(2)</sup><sup>(3)</sup>  | 135000 | 130612 |
|  Global Infrastructure Solutions, Inc., 7.50%, 04/15/32<sup>(1)</sup>  | 95000 | 70444 |
|  Huntington Ingalls Industries, Inc., 2.04%, 08/16/28  | 125000 | 100493 |
|  Icahn Enterprises LP / Icahn Enterprises Finance Corp., 6.25%, 05/15/26  | 25000 | 24046 |
|  Icahn Enterprises LP / Icahn Enterprises Finance Corp., 5.25%, 05/15/27  | 25000 | 23081 |
|  OT Merger Corp., 7.88%, 10/15/29<sup>(1)</sup>  | 15000 | 9711 |
|  Science Applications International Corp., 4.88%, 04/01/28<sup>(1)</sup>  | 55000 | 50157 |
|  Sempra Global, 3.25%, 01/15/32<sup>(1)</sup>  | 143000 | 112097 |
|  SRS Distribution, Inc., 6.13%, 07/01/29<sup>(1)</sup>  | 50000 | 40734 |
|  TransDigm, Inc., 5.50%, 11/15/27  | 100000 | 91384 |
|  Total Industrials  |  | 1127852 |
|  **Information Technology — 2.1%** |  |  |
|  Broadcom, Inc., 4.15%, 11/15/30  | 88000 | 75794 |
|  CDW LLC / CDW Finance Corp., 3.57%, 12/01/31  | 139000 | 109437 |
|  Consensus Cloud Solutions, Inc., 6.00%, 10/15/26<sup>(1)</sup>  | 10000 | 9049 |
|  Consensus Cloud Solutions, Inc., 6.50%, 10/15/28<sup>(1)</sup>  | 50000 | 44210 |
|  Dell International LLC / EMC Corp., 8.10%, 07/15/36  | 92000 | 97616 |
|  Entegris Escrow Corp., 4.75%, 04/15/29<sup>(1)</sup>  | 93000 | 82305 |
|  HP, Inc., 5.50%, 01/15/33  | 95000 | 84609 |
|  Kyndryl Holdings, Inc., 3.15%, 10/15/31  | 95000 | 59471 |
|  Leidos, Inc., 2.30%, 02/15/31  | 130000 | 96003 |
|  Micron Technology, Inc., 6.75%, 11/01/29  | 43000 | 43068 |
|  Motorola Solutions, Inc., 4.60%, 02/23/28  | 30000 | 28135 |
|  Motorola Solutions, Inc., 4.60%, 05/23/29  | 60000 | 55224 |
|  Motorola Solutions, Inc., 5.60%, 06/01/32  | 30000 | 28290 |
|  TD SYNNEX Corp., 2.38%, 08/09/28  | 65000 | 51762 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **CORPORATE BONDS (continued)** |  |  |
|  **Information Technology (continued)** |  |  |
|  Viasat, Inc., 5.63%, 09/15/25<sup>(1)</sup>  | $20000<br>| $18491<br>|
|  Total Information Technology  |  | 883464 |
|  **Materials — 1.8%** |  |  |
|  Albemarle Corp., 5.05%, 06/01/32  | 90000 | 82272 |
|  Avient Corp., 7.13%, 08/01/30<sup>(1)</sup>  | 45000 | 43092 |
|  Bayport Polymers LLC, 5.14%, 04/14/32<sup>(1)</sup>  | 80000 | 69356 |
|  Celanese US Holdings LLC, 5.90%, 07/05/24  | 30000 | 29486 |
|  Celanese US Holdings LLC, 6.17%, 07/15/27  | 25000 | 23605 |
|  Cleveland-Cliffs, Inc., 6.75%, 03/15/26<sup>(1)</sup>  | 40000 | 39777 |
|  Freeport-McMoRan, Inc., 5.45%, 03/15/43  | 125000 | 102873 |
|  International Flavors & Fragrances, Inc., 2.30%, 11/01/30<sup>(1)</sup>  | 90000 | 67735 |
|  LSB Industries, Inc., 6.25%, 10/15/28<sup>(1)</sup>  | 65000 | 59163 |
|  New Enterprise Stone & Lime Co., Inc., 9.75%, 07/15/28<sup>(1)</sup>  | 90000 | 77976 |
|  Trident TPI Holdings, Inc., 9.25%, 08/01/24<sup>(1)</sup>  | 60000 | 56039 |
|  Trident TPI Holdings, Inc., 6.63%, 11/01/25<sup>(1)</sup>  | 65000 | 56300 |
|  WR Grace Holdings LLC, 5.63%, 08/15/29<sup>(1)</sup>  | 55000 | 42651 |
|  Total Materials  |  | 750325 |
|  **Real Estate — 1.6%** |  |  |
|  EPR Properties, 4.75%, 12/15/26  | 65000 | 56030 |
|  EPR Properties, 3.60%, 11/15/31  | 15000 | 10141 |
|  GLP Capital LP / GLP Financing II, Inc., 5.25%, 06/01/25  | 52000 | 50202 |
|  GLP Capital LP / GLP Financing II, Inc., 5.75%, 06/01/28  | 31000 | 28799 |
|  GLP Capital LP / GLP Financing II, Inc., 3.25%, 01/15/32  | 5000 | 3738 |
|  Iron Mountain, Inc., 5.25%, 07/15/30<sup>(1)</sup>  | 65000 | 56180 |
|  Kite Realty Group Trust, 4.75%, 09/15/30  | 80000 | 68435 |
|  MPT Operating Partnership LP / MPT Finance Corp., 4.63%, 08/01/29  | 10000 | 7942 |
|  MPT Operating Partnership LP / MPT Finance Corp., 3.50%, 03/15/31  | 45000 | 31033 |
|  Office Properties Income Trust, 4.50%, 02/01/25  | 75000 | 62395 |
|  Phillips Edison Grocery Center Operating Partnership I LP, 2.63%, 11/15/31  | 170000 | 121856 |
|  Service Properties Trust, 4.95%, 02/15/27  | 25000 | 20276 |
|  Service Properties Trust, 4.38%, 02/15/30  | 60000 | 42835 |
|  VICI Properties LP, 4.95%, 02/15/30  | 60000 | 54308 |
|  VICI Properties LP, 5.13%, 05/15/32  | 60000 | 53298 |
|  VICI Properties LP / VICI Note Co., Inc., 4.63%, 06/15/25<sup>(1)</sup>  | 10000 | 9383 |
|  Total Real Estate  |  | 676851 |
|  **Utilities** **—** **1.0%** |  |  |
|  CMS Energy Corp., 4.75%, (US 5 Year CMT T- Note + 4.12%), 06/01/50<sup>(2)</sup>  | 130000 | 108111 |
|  Ferrellgas LP / Ferrellgas Finance Corp., 5.38%, 04/01/26<sup>(1)</sup>  | 50000 | 45492 |

---

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **CORPORATE BONDS (continued)** |  |  |
|  **Utilities (continued)** |  |  |
|  Ferrellgas LP / Ferrellgas Finance Corp., 5.88%, 04/01/29<sup>(1)</sup>  | $45000<br>| $37820<br>|
|  Puget Energy, Inc., 4.22%, 03/15/32  | 80000 | 68356 |
|  Southern Co. (The), Series 21-A, 3.75%, (US 5 Year CMT T- Note + 2.92%), 09/15/51<sup>(2)</sup>  | 153000 | 121649 |
|  Vistra Corp., 8.00%, (US 5 Year CMT T- Note + 6.93%), perpetual<sup>(1)</sup><sup>(2)</sup><sup>(3)</sup>  | 25000 | 23811 |
|  Total Utilities  |  | 405239 |
|  **Total Corporate Bonds** |  |  |
|  (Cost $13,075,237)  |  | **11523424** |
|  **U.S. GOVERNMENT SECURITIES — 14.3%** |  |  |
|  U.S. Treasury Bond |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.88%, 11/15/51  | 115000 | 70098 |
|  U.S. Treasury Note |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.13%, 03/31/23  | 1395000 | 1370670 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.75%, 04/30/23  | 490000 | 486222 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.13%, 08/31/23  | 2000000 | 1925234 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.50%, 04/30/24  | 155000 | 150241 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.25%, 08/31/24  | 370000 | 348609 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.63%, 12/31/27  | 785000 | 653973 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.88%, 02/15/32  | 1160000 | 964794 |
|  **Total U.S. Government Securities** |  |  |
|  (Cost $6,101,897)  |  | **5969841** |
|  **FOREIGN BONDS — 11.1%** |  |  |
|  Communication Services – 0.4%  |  |  |
|  Telesat Canada / Telesat LLC, 6.50%, 10/15/27 (Canada)<sup>(1)</sup>  | 35000 | 12255 |
|  VZ Secured Financing BV, 5.00%, 01/15/32 (Netherlands)<sup>(1)</sup>  | 190000 | 151752 |
|  Total Communication Services  |  | 164007 |
|  **Consumer Discretionary — 0.4%** |  |  |
|  Ashtead Capital, Inc., 4.38%, 08/15/27<br>(United Kingdom)<sup>(1)</sup>  | 200000 | 181043 |
|  **Consumer Staples — 0.5%** |  |  |
|  Anheuser-Busch InBev Worldwide, Inc., 4.75%, 01/23/29 (Belgium)  | 75000 | 73015 |
|  Bat Capital Corp., 7.75%, 10/19/32<br>(United Kingdom)  | 115000 | 117729 |
|  Central American Bottling Corp. / CBC Bottling Holdco SL / Beliv Holdco SL, 5.25%, 04/27/29 (Guatemala)<sup>(1)</sup>  | 25000 | 22204 |
|  Total Consumer Staples  |  | 212948 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **FOREIGN BONDS (continued)** |  |  |
|  **Energy — 2.4%** |  |  |
|  Aker BP ASA, 2.00%, 07/15/26 (Norway)<sup>(1)</sup>  | $200000<br>| $173822<br>|
|  BP Capital Markets PLC, 4.88%, (US 5 Year CMT T- Note + 4.40%), perpetual (United Kingdom)<sup>(2)</sup><sup>(3)</sup>  | 150000 | 127069 |
|  Coronado Finance Pty Ltd., 10.75%, 05/15/26 (Australia)<sup>(1)</sup>  | 76000 | 79246 |
|  Ecopetrol SA, 4.63%, 11/02/31 (Colombia)  | 100000 | 69375 |
|  Enbridge, Inc., 7.63%, (US 5 Year CMT T- Note + 4.42%), 01/15/83 (Canada)<sup>(2)</sup>  | 85000 | 81925 |
|  Northriver Midstream Finance LP, 5.63%, 02/15/26<br> (Canada)<sup>(1)</sup>  | 40000 | 37926 |
|  Petroleos Mexicanos, 6.50%, 03/13/27 (Mexico)  | 225000 | 196650 |
|  Petroleos Mexicanos, 5.95%, 01/28/31 (Mexico)  | 55000 | 39655 |
|  Petroleos Mexicanos, 6.35%, 02/12/48 (Mexico)  | 55000 | 31698 |
|  Petroleos Mexicanos, 7.69%, 01/23/50 (Mexico)  | 20000 | 12969 |
|  Teine Energy Ltd., 6.88%, 04/15/29 (Canada)<sup>(1)</sup>  | 55000 | 49141 |
|  Transcanada Trust, 5.60%, (US 5 Year CMT T- Note + 3.99%), 03/07/82 (Canada)<sup>(2)</sup>  | 130000 | 111475 |
|  Total Energy  |  | 1010951 |
|  **Financials — 1.3%** |  |  |
|  Ascot Group Ltd., 4.25%, 12/15/30 (Bermuda)<sup>(1)</sup>  | 45000 | 37370 |
|  Banco Santander Chile, 3.18%, 10/26/31 (Chile)<sup>(1)</sup>  | 150000 | 117829 |
|  Barclays, 7.44%, (US 1 Year CMT T- Note + 3.50%), 11/02/33 (United Kingdom)<sup>(2)</sup>  | 200000 | 199795 |
|  Itau Unibanco Holding SA, 3.88%, (US 5 Year CMT T- Note + 3.45%), 04/15/31 (Brazil)<sup>(1)</sup><sup>(2)</sup>  | 200000 | 172296 |
|  Total Financials  |  | 527290 |
|  **Government — 4.0%** | **Government — 4.0%** | **Government — 4.0%** |
|  Angolan Government International Bond, 8.25%, 05/09/28 (Angola)<sup>(1)</sup>  | 200000 | 168500 |
|  Argentine Republic Government International Bond, 3.50%, 07/09/41 (Argentina)<sup>(5)</sup>  | 125000 | 30000 |
|  Dominican Republic International Bond, 4.88%, 09/23/32 (Dominican Republic)<sup>(1)</sup>  | 175000 | 135495 |
|  Ecuador Government International Bond, 2.50%, 07/31/35 (Ecuador)<sup>(1)</sup><sup>(5)</sup>  | 50000 | 18441 |
|  Egypt Government International Bond, 7.60%, 03/01/29 (Egypt)<sup>(1)</sup>  | 200000 | 144000 |
|  Emirate of Dubai Government International Bonds, Series E, 5.25%, 01/30/43 (United Arab Emirates)  | 200000 | 168036 |
|  Guatemala Government Bond, 3.70%, 10/07/33 (Guatemala)<sup>(1)</sup>  | 200000 | 152535 |
|  Ivory Coast Government International Bond, 6.13%, 06/15/33 (Ivory Coast)<sup>(1)</sup>  | 200000 | 156546 |
|  Mexico Government International Bond, 4.50%, 01/31/50 (Mexico)  | 200000 | 142741 |
|  Republic of South Africa Government International Bond, 4.85%, 09/27/27 (South Africa)  | 200000 | 181713 |

---

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **FOREIGN BONDS (continued)** |  |  |
|  **Government (continued)** |  |  |
|  Saudi Government International Bond, 3.63%, 03/04/28 (Saudi Arabia)<sup>(1)</sup>  | $200000<br>| $186471<br>|
|  Turkey Government International Bond, 7.63%, 04/26/29 (Turkey)  | 200000 | 177391 |
|  Total Government  |  | 1661869 |
|  **Health Care — 0.5%** |  |  |
|  1375209 BC Ltd., 9.00%, 01/30/28 (Canada)<sup>(1)</sup>  | 11000 | 10698 |
|  Cheplapharm Arzneimittel GMBH, 5.50%, 01/15/28 (Germany)<sup>(1)</sup>  | 190000 | 157871 |
|  Teva Pharmaceutical Finance Netherlands III BV, 3.15%, 10/01/26 (Israel)  | 70000 | 58800 |
|  Total Health Care  |  | 227369 |
|  **Industrials — 0.6%** |  |  |
|  Avolon Holdings Funding Ltd., 4.38%, 05/01/26 (Ireland)<sup>(1)</sup>  | 77000 | 67751 |
|  Pentair Finance Sarl, 5.90%, 07/15/32 (Luxembourg)  | 125000 | 117945 |
|  Titan Acquisition Ltd. / Titan Co.-Borrower LLC, 7.75%, 04/15/26 (Canada)<sup>(1)</sup>  | 75000 | 61489 |
|  Total Industrials  |  | 247185 |
|  **Materials — 0.6%** | **Materials — 0.6%** | **Materials — 0.6%** |
|  Eldorado Gold Corp., 6.25%, 09/01/29 (Turkey)<sup>(1)</sup>  | 70000 | 56882 |
|  NOVA Chemicals Corp., 5.00%, 05/01/25 (Canada)<sup>(1)</sup>  | 48000 | 45777 |
|  Suzano Austria GmbH, 2.50%, 09/15/28 (Brazil)  | 50000 | 39700 |
|  Taseko Mines Ltd., 7.00%, 02/15/26 (Canada)<sup>(1)</sup>  | 70000 | 58352 |
|  Teck Resources Ltd., 6.13%, 10/01/35 (Canada)  | 80000 | 75240 |
|  Total Materials  |  | 275951 |
|  **Real Estate — 0.4%** |  |  |
|  Ontario Teachers' Cadillac Fairview Properties Trust, 2.50%, 10/15/31 (Canada)<sup>(1)</sup>  | 200000 | 151289 |
|  **Total Foreign Bonds** |  |  |
|  (Cost $5,448,039)  |  | **4659902** |
|  **TERM LOANS — 8.3%** |  |  |
|  **Aerospace** **—** **0.3%** |  |  |
|  Air Canada, 6.42%, (3-Month USD LIBOR + 3.50%), 08/11/28<sup>(2)</sup>  | 7041 | 6888 |
|  Amentum Government Services Holdings LLC, 7.56%, (SOFR + 4.00%), 02/10/29<sup>(2)</sup>  | 7924 | 7692 |
|  Amentum Government Services Holdings LLC, 7.21%, (SOFR + 4.00%), 02/10/29<sup>(2)</sup>  | 7039 | 6834 |
|  Brown Group Holding, LLC, 6.25%, (1-Month USD LIBOR + 2.50%), 06/07/28<sup>(2)</sup>  | 31868 | 31045 |
|  Mileage Plus Holdings LLC, 8.78%, (3-Month USD LIBOR + 5.25%), 06/21/27<sup>(2)</sup>  | 28500 | 29153 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **TERM LOANS (continued)** |  |  |
|  **Aerospace (continued)** |  |  |
|  TransDigm, Inc., 5.92%, (1 Month USD LIBOR + 2.25%), 05/30/25<sup>(2)</sup> | $14772<br>| $14459<br>|
|  TransDigm, Inc., 5.92%, (3-Month USD LIBOR + 2.25%), 12/09/25<sup>(2)</sup>  | 36892 | 36089 |
|  Total Aerospace  |  | 132160 |
|  **Chemicals — 0.2%** |  |  |
|  Aruba Investments Holdings LLC, 7.58%, (1-Month USD LIBOR + 4.00%), 11/24/27<sup>(2)</sup>  | 14776 | 13917 |
|  INEOS US Finance LLC, 4.59%, (1-Month USD LIBOR + 2.00%), 04/01/24<sup>(2)</sup>  | 69145 | 68701 |
|  Total Chemicals  |  | 82618 |
|  **Consumer Non-Durables — 0.2%**  |  |  |
|  DS Parent, Inc., 9.92%, (3-Month USD LIBOR + 5.75%), 12/10/28<sup>(2)</sup>  | 23750 | 22788 |
|  DS Parent, Inc., 9.42%, (3-Month USD LIBOR + 5.75%), 12/10/28<sup>(2)</sup>  | 313 | 300 |
|  Parfums Holding Co., Inc., 7.75%, (1-Month USD LIBOR + 4.00%), 06/30/24<sup>(2)</sup>  | 39598 | 36950 |
|  Zep Inc., 7.67%, (3-Month USD LIBOR + 4.00%), 08/12/24<sup>(2)</sup>  | 28926 | 25310 |
|  Total Consumer Non-Durables  |  | 85348 |
|  **Energy — 0.5%** |  |  |
|  CITGO Petroleum Corp., 9.37%, (1-Month USD LIBOR + 6.25%), 03/28/24<sup>(2)</sup>  | 35188 | 35294 |
|  Hamilton Projects Acquiror LLC, 8.17%, (3-Month USD LIBOR + 4.50%), 06/17/27<sup>(2)</sup>  | 21928 | 21621 |
|  Medallion Midland Acquisition LP, 7.42%, (3-Month USD LIBOR + 3.75%), 10/18/28<sup>(2)</sup>  | 29546 | 29204 |
|  Oryx Midstream Services Permian Basin, LLC, 6.21%, (3-Month USD LIBOR + 3.25%), 09/30/28<sup>(2)</sup>  | 44662 | 44094 |
|  Traverse Midstream Partners LLC, 7.98%, (SOFR + 4.25%), 09/27/24<sup>(2)</sup>  | 66583 | 66000 |
|  Total Energy  |  | 196213 |
|  **Financials — 0.2%** |  |  |
|  Asurion LLC, 7.00%, (1-Month USD LIBOR + 3.25%), 07/31/27<sup>(2)</sup>  | 24537 | 21700 |
|  Blackhawk Network Holdings, Inc., 7.08%, (SOFR + 3.00%), 06/15/25<sup>(2)</sup>  | 29690 | 28614 |
|  Citadel Securities LP, 6.84%, (1-Month USD LIBOR + 3.00%), 02/02/28<sup>(2)</sup>  | 24000 | 23920 |
|  Total Financials  |  | 74234 |
|  **Food/Tobacco — 0.3%** |  |  |
|  Froneri US, Inc., 6.00%, (1-Month USD LIBOR + 2.25%), 01/29/27<sup>(2)</sup>  | 34213 | 33099 |
|  H-Food Holdings, LLC (aka Hearthside Food Solutions, LLC), 6.80%, (1-Month USD LIBOR + 3.69%), 05/23/25<sup>(2)</sup>  | 24364 | 20613 |
|  Pegasus Bidco BV, 6.96%, (SOFR + 4.25%), 05/04/29<sup>(2)</sup>  | 25000 | 24187 |

---

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **TERM LOANS (continued)** |  |  |
|  **Food/Tobacco (continued)** |  |  |
|  Shearer's Foods LLC, 7.25%, (1-Month USD LIBOR + 3.50%), 09/23/27<sup>(2)</sup>  | $19395<br>| $18074<br>|
|  Triton Water Holdings, Inc., 7.17%, (3-Month USD LIBOR + 3.50%), 03/31/28<sup>(2)</sup>  | 29588 | 26463 |
|  Total Food/Tobacco  |  | 122436 |
|  **Forest Prod/Containers — 0.3%** |  |  |
|  Anchor Glass Container Corp., 6.53%, (3-Month USD LIBOR + 2.75%), 12/07/23<sup>(2)</sup>  | 14420 | 10864 |
|  Anchor Glass Container Corp., 6.42%, (3-Month USD LIBOR +2.75 %), 12/07/23<sup>(2)</sup>  | 308 | 232 |
|  BWAY Holding Co., 6.38%, (1-Month USD LIBOR + 3.25%), 04/03/24<sup>(2)</sup>  | 64413 | 61434 |
|  Kloeckner Pentaplast of America, Inc., 8.26%, (6-Month USD LIBOR + 4.75%), 02/12/26<sup>(2)</sup>  | 24476 | 20702 |
|  TricorBraun Holdings, Inc., 7.00%, (1-Month USD LIBOR + 3.25%), 03/03/28<sup>(2)</sup>  | 34624 | 32877 |
|  Total Forest Prod/Containers  |  | 126109 |
|  **Gaming/Leisure — 0.9%** |  |  |
|  Caesars Resort Collection LLC, 6.50%, (1-Month USD LIBOR + 2.75%), 12/23/24<sup>(2)</sup>  | 59994 | 59427 |
|  Carnival Corp., 5.88%, (3-Month USD LIBOR + 3.00%), 06/30/25<sup>(2)</sup>  | 4888 | 4600 |
|  ECL Entertainment LLC, 11.13%, (3-Month USD LIBOR + 7.50%), 05/01/28<sup>(2)</sup>  | 24837 | 24806 |
|  J&J Ventures Gaming, LLC, 7.67%, (3-Month USD LIBOR + 4.00%), 04/26/28<sup>(2)</sup>  | 19750 | 18750 |
|  Playa Resorts Holding B.V., 6.50%, (1-Month USD LIBOR + 2.75%), 04/29/24<sup>(2)</sup>  | 85857 | 83845 |
|  Playtika Holding Corp., 6.50%, (1-Month USD LIBOR + 2.75%), 03/13/28<sup>(2)</sup>  | 49873 | 48630 |
|  Pug LLC, 7.25%, (1-Month USD LIBOR + 3.50%), 02/12/27<sup>(2)</sup>  | 31915 | 27567 |
|  Raptor Acquisition Corp., 7.60%, (3-Month USD LIBOR + 4.00%), 11/01/26<sup>(2)</sup>  | 9975 | 9721 |
|  Scientific Games International, Inc., 6.40%, (SOFR + 3.00%), 04/07/29<sup>(2)</sup>  | 54863 | 54257 |
|  Stars Group Holdings BV, 5.89%, (3-Month USD LIBOR + 2.25%), 07/21/26<sup>(2)</sup>  | 18466 | 18166 |
|  UFC Holdings LLC, 7.11%, (3-Month USD LIBOR + 2.75%), 04/29/26<sup>(2)</sup>  | 39429 | 38631 |
|  Total Gaming/Leisure  |  | 388400 |
|  **Health Care — 1.6%** |  |  |
|  Agiliti Health, 5.94%, (1-Month USD LIBOR + 2.75%), 01/04/26<sup>(2)</sup>  | 59845 | 58947 |
|  CHG Healthcare Services, Inc., 6.37%, (3-Month USD LIBOR + 3.25%), 09/22/28<sup>(2)</sup>  | 39799 | 38705 |
|  Heartland Dental LLC, 7.58%, (1-Month USD LIBOR + 4.00%), 04/30/25<sup>(2)</sup>  | 34563 | 32647 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **TERM LOANS (continued)** |  |  |
|  **Health Care (continued)** |  |  |
|  Horizon Therapeutics USA Inc., 5.38%, (1-Month USD LIBOR + 1.75%), 03/15/28<sup>(2)</sup>  | $64835<br>| $63620<br>|
|  Hunter US Bidco, Inc., 7.92%, (3-Month USD LIBOR + 4.25%), 08/19/28<sup>(2)</sup>  | 15797 | 15244 |
|  Milano Acquisition Corp., 7.67%, (3-Month USD LIBOR + 4.00%), 10/01/27<sup>(2)</sup>  | 34374 | 32763 |
|  Packaging Coordinators Midco, Inc., 7.42%, (3-Month USD LIBOR + 3.75%), 11/30/27<sup>(2)</sup>  | 54398 | 52707 |
|  Perrigo Investments LLC, 6.33%, (SOFR + %), 04/05/29<sup>(2)</sup>  | 104738 | 103559 |
|  PetVet Care Centers LLC, 7.25%, (1-Month USD LIBOR + 3.50%), 02/14/25<sup>(2)</sup>  | 49164 | 46214 |
|  Phoenix Guarantor, Inc., 7.00%, (1-Month USD LIBOR + 3.25%), 03/05/26<sup>(2)</sup>  | 38997 | 37515 |
|  Phoenix Newco, Inc., 6.37%, (1-Month USD LIBOR + 3.25%), 08/11/28<sup>(2)</sup>  | 30897 | 29828 |
|  R1 RCM Inc, 6.73%, (SOFR + %), 05/12/29<sup>(2)</sup>  | 70000 | 69650 |
|  Sunshine Luxembourg VII Sarl, 7.42%, (3-Month USD LIBOR + 3.75%), 10/01/26<sup>(2)</sup>  | 14775 | 14098 |
|  Upstream Newco, Inc., 8.06%, (SOFR + 4.25%), 11/20/26<sup>(2)</sup>  | 22219 | 20150 |
|  Viant Medical Holdings, Inc., 7.50%, (1-Month USD LIBOR + 3.75%), 07/02/25<sup>(2)</sup>  | 38966 | 34655 |
|  Total Health Care  |  | 650302 |
|  **Housing — 0.1%** |  |  |
|  Quikrete Holdings, Inc., 6.75%, (1-Month USD LIBOR + 3.00%), 06/11/28<sup>(2)</sup>  | 29850 | 29149 |
|  SRS Distribution, Inc., 7.25%, (1-Month USD LIBOR + 3.50%), 06/02/28<sup>(2)</sup>  | 14850 | 13835 |
|  SRS Distribution, Inc., 7.33%, (SOFR + 3.50%), 06/02/28<sup>(2)</sup>  | 4963 | 4621 |
|  Total Housing  |  | 47605 |
|  **Information Technology — 1.1%** |  |  |
|  Applied Systems, Inc., 6.67%, (3-Month USD LIBOR + 3.00%), 09/19/24<sup>(2)</sup>  | 25000 | 24726 |
|  Applied Systems, Inc., 9.17%, (3-Month USD LIBOR + 5.50%), 09/19/25<sup>(2)</sup>  | 29460 | 29059 |
|  CCC Intelligent Solutions, Inc., 5.37%, (1-Month USD LIBOR +2.25 %), 09/15/28<sup>(2)</sup>  | 39900 | 39168 |
|  Central Parent, Inc., 8.11%, (SOFR + 4.50%), 06/09/29<sup>(2)</sup>  | 20000 | 19625 |
|  ConnectWise LLC, 7.17%, (3-Month USD LIBOR + 3.50%), 09/24/28<sup>(2)</sup>  | 39700 | 37616 |
|  Epicor Software Corp., 7.00%, (1-Month USD LIBOR + 3.25%), 07/30/27<sup>(2)</sup>  | 34123 | 32562 |
|  Greeneden US Holdings II LLC, 7.75%, (1-Month USD LIBOR + 4.00%), 12/01/27<sup>(2)</sup>  | 14738 | 14401 |
|  Hyland Software, Inc., 7.25%, (1-Month USD LIBOR + 3.50%), 07/01/24<sup>(2)</sup>  | 74000 | 72356 |
|  Infinite Bidco LLC, 6.92%, (3-Month USD LIBOR + 3.25%), 03/02/28<sup>(2)</sup>  | 19675 | 18511 |

---

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **TERM LOANS (continued)** |  |  |
|  **Information Technology (continued)** |  |  |
|  Project Ruby Ultimate Parent Corp., 7.00%, (1-Month USD LIBOR + 3.25%), 03/10/28<sup>(2)</sup>  | $29550<br>| $27899<br>|
|  Proofpoint, Inc., 6.32%, (3-Month USD LIBOR + 3.25%), 06/09/28<sup>(2)</sup>  | 29775 | 28406 |
|  RealPage, Inc., 6.75%, (1-Month USD LIBOR + 3.00%), 04/24/28<sup>(2)</sup>  | 34575 | 32579 |
|  Sophia LP, 7.17%, (3-Month USD LIBOR + 3.50%), 10/07/27<sup>(2)</sup>  | 24564 | 23684 |
|  Uber Technologies Inc., 6.57%, (3-Month USD LIBOR + 3.50%), 02/25/27<sup>(2)</sup>  | 49604 | 49418 |
|  UKG, Inc., 7.00%, (3-Month USD LIBOR + 3.25%), 05/04/26<sup>(2)</sup>  | 18308 | 17708 |
|  Total Information Technology  |  | 467718 |
|  **Manufacturing — 0.5%** |  |  |
|  Alliance Laundry Systems LLC, 7.41%, (3-Month USD LIBOR + 3.50%), 10/08/27<sup>(2)</sup>  | 33869 | 32768 |
|  Arcline FM Holdings LLC, 7.00%, (3-Month USD LIBOR + 4.75%), 06/23/28<sup>(2)</sup>  | 29700 | 28178 |
|  Arcline FM Holdings LLC, 11.89%, (3-Month USD LIBOR + 8.25%), 06/15/29<sup>(2)</sup>  | 15000 | 14100 |
|  Filtration Group Corp., 6.75%, (1-Month USD LIBOR + 3.00%), 03/31/25<sup>(2)</sup>  | 44476 | 43648 |
|  Filtration Group Corp., 6.62%, (1-Month USD LIBOR + 3.50%), 10/19/28<sup>(2)</sup>  | 19750 | 19129 |
|  Safe Fleet Holdings LLC, 7.43%, (SOFR + 3.75%), 02/17/29<sup>(2)</sup>  | 24875 | 23698 |
|  Star US Bidco LLC, 8.00%, (1-Month USD LIBOR + 4.25%), 03/17/27<sup>(2)</sup>  | 24367 | 23027 |
|  Total Manufacturing  |  | 184548 |
|  **Media/Telecom - Cable/Wireless Video — 0.1%** |  |  |
|  Directv Financing LLC, 8.75%, (1-Month USD LIBOR + 5.00%), 08/02/27<sup>(2)</sup>  | 36924 | 35280 |
|  **Media/Telecom - Diversified Media — 0.2%** |  |  |
|  Cinemark USA, Inc., 5.51%, (3-Month USD LIBOR + 1.75%), 03/31/25<sup>(2)</sup>  | 11771 | 11143 |
|  Cinemark USA, Inc., 3.08%, (3-Month USD LIBOR + 1.75%), 03/31/25<sup>(2)</sup>  | 6403 | 6061 |
|  Cinemark USA, Inc., 2.75%, (3-Month USD LIBOR + 1.75%), 03/31/25<sup>(2)</sup>  | 5179 | 4903 |
|  Cinemark USA, Inc., 5.43%, (3-Month USD LIBOR + 1.75%), 03/31/25<sup>(2)</sup>  | 308 | 292 |
|  McGraw-Hill Education, Inc., 7.82%, (3-Month USD LIBOR + 4.75%), 07/21/28<sup>(2)</sup>  | 23760 | 22079 |
|  William Morris Endeavor Entertainment LLC, 6.51%, (1-Month USD LIBOR + 2.75%), 05/18/25<sup>(2)</sup>  | 40379 | 39483 |
|  Total Media/Telecom - Diversified Media  |  | 83961 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **TERM LOANS (continued)** |  |  |
|  **Media/Telecom - Telecommunications — 0.1%** |  |  |
|  Altice France SA/France, 7.77%, (3-Month USD LIBOR + 3.69%), 01/31/26<sup>(2)</sup>  | $29156<br>| $26374<br>|
|  Consolidated Communications, Inc., 7.25%, (1-Month USD LIBOR + 3.50%), 10/02/27<sup>(2)</sup>  | 10710 | 9022 |
|  Total Media/Telecom - Telecommunications  |  | 35396 |
|  **Metals/Minerals — 0.1%** |  |  |
|  Covia Holdings LLC, 7.75%, (3-Month USD LIBOR + 4.00%), 07/31/26<sup>(2)</sup>  | 35000 | 33416 |
|  Peabody Energy Corp., 6.33%, (1-Month USD LIBOR + 2.75%), 03/31/25<sup>(2)</sup>  | 24835 | 23935 |
|  Total Metals/Minerals  |  | 57351 |
|  **Retail — 0.2%** |  |  |
|  CNT Holdings I Corp., 7.24%, (3-Month USD LIBOR + 3.50%), 11/08/27<sup>(2)</sup>  | 29550 | 28841 |
|  Great Outdoors Group LLC, 7.50%, (1-Month USD LIBOR + 3.75%), 03/06/28<sup>(2)</sup>  | 29440 | 27806 |
|  PetSmart, Inc., 7.50%, (1-Month USD LIBOR + 3.75%), 02/11/28<sup>(2)</sup>  | 24737 | 23866 |
|  Rising Tide Holdings, Inc., 8.50%, (1-Month USD LIBOR + 4.75%), 06/01/28<sup>(2)</sup>  | 14813 | 12430 |
|  Total Retail  |  | 92943 |
|  **Service — 1.0%** |  |  |
|  Apex Group Treasury LLC, 6.56%, (3-Month USD LIBOR + 3.75%), 07/27/28<sup>(2)</sup>  | 29675 | 28649 |
|  Brightview Landscapes LLC, 6.98%, (SOFR + 3.25%), 04/07/29<sup>(2)</sup>  | 69825 | 67992 |
|  Carlisle FoodService Products, Inc., 6.57%, (3-Month USD LIBOR + 3.00%), 03/20/25<sup>(2)</sup>  | 29639 | 26527 |
|  Dun & Bradstreet Corp. (The), 6.85%, (1-Month USD LIBOR + 3.25%), 02/06/26<sup>(2)</sup>  | 37885 | 37364 |
|  DXP Enterprises, Inc., 7.87%, (1-Month USD LIBOR + 4.75%), 12/23/27<sup>(2)</sup>  | 14738 | 14090 |
|  Garda World Security Corp., 7.24%, (3-Month USD LIBOR + 4.25%), 10/30/26<sup>(2)</sup>  | 10000 | 9553 |
|  Grab Holdings, Inc., 8.26%, (1-Month USD LIBOR + 4.50%), 01/29/26<sup>(2)</sup>  | 34475 | 32497 |
|  NAB Holdings LLC, 6.70%, (SOFR + 3.00%), 11/17/28<sup>(2)</sup>  | 24763 | 23834 |
|  Peraton Corp., 7.50%, (1-Month USD LIBOR + 3.75%), 02/23/28<sup>(2)</sup>  | 30564 | 29494 |
|  Pike Corp., 6.76%, (1-Month USD LIBOR + 3.00%), 01/21/28<sup>(2)</sup>  | 70000 | 68756 |
|  PODS LLC, 6.75%, (1-Month USD LIBOR + 3.00%), 03/31/28<sup>(2)</sup>  | 29328 | 28301 |
|  University Support Services LLC, 7.00%, (1-Month USD LIBOR + 3.25%), 06/29/28<sup>(2)</sup>  | 27040 | 26390 |
|  Weld North Education LLC, 7.50%, (1-Month USD LIBOR + 3.75%), 12/21/27<sup>(2)</sup>  | 35677 | 35131 |
|  Total Service  |  | 428578 |

---

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **TERM LOANS (continued)** |  |  |
|  **Transportation - Automotive — 0.2%** |  |  |
|  Cooper-Standard Automotive, Inc., 5.75%, (1-Month USD LIBOR + 2.00%), 11/02/23<sup>(2)</sup>  | $38675<br>| $35344<br>|
|  PAI Holdco, Inc., 6.56%, (3-Month USD LIBOR + 3.50%), 10/28/27<sup>(2)</sup>  | 29736 | 27385 |
|  Total Transportation - Automotive  |  | 62729 |
|  **Utilities — 0.2%** |  |  |
|  Brookfield WEC Holdings, Inc., 6.50%, (1-Month USD LIBOR + 2.75%), 08/01/25<sup>(2)</sup>  | 98120 | 96613 |
|  **Total Term Loans** |  |  |
|  (Cost $3,547,487)  |  | **3450542** |
|  **ASSET BACKED SECURITIES — 6.4%** |  |  |
|  Affirm Asset Securitization Trust, Class 1A, Series 2022-A, 4.30%, 05/17/27<sup>(1)</sup>  | 70000 | 66103 |
|  Aqua Finance Trust, Class A, Series 2017-A, 3.72%, 11/15/35<sup>(1)</sup>  | 81809 | 80482 |
|  Arbys Funding LLC, Class A2, Series 2020-1A, 3.24%, 07/30/50<sup>(1)</sup>  | 68425 | 57730 |
|  Avant Credit Card Master Trust, Class A, Series 2021-1A, 1.37%, 04/15/27<sup>(1)</sup>  | 50000 | 45260 |
|  BHG Securitization Trust, Class B, Series 2021-B, 1.67%, 10/17/34<sup>(1)</sup>  | 100000 | 82834 |
|  Business Jet Securities LLC, Class A, Series 2020-1A, 2.98%, 11/15/35<sup>(1)</sup>  | 10255 | 9367 |
|  Carvana Auto Receivables Trust, Class D, Series 2019-2A, 3.28%, 01/15/25<sup>(1)</sup>  | 39982 | 39585 |
|  Carvana Auto Receivables Trust, Class D, Series 2019-3A, 3.04%, 04/15/25<sup>(1)</sup>  | 55000 | 54479 |
|  Carvana Auto Receivables Trust, Class E, Series 2019-3A, 4.60%, 07/15/26<sup>(1)</sup>  | 55000 | 52478 |
|  CCG Receivables Trust, Class B, Series 2019-2, 2.55%, 03/15/27<sup>(1)</sup>  | 100000 | 98715 |
|  Conn Funding II LP, Class B, Series 2022-A, 9.52%, 12/15/26<sup>(1)</sup>  | 65000 | 64437 |
|  CPS Auto Receivables Trust, Class D, Series 2022-D, 8.73%, 01/16/29<sup>(1)</sup>  | 100000 | 100412 |
|  CPS Auto Receivables Trust, Class E, Series 2019-D, 3.86%, 10/15/25<sup>(1)</sup>  | 55000 | 53296 |
|  Encina Equipment Finance LLC, Class B, Series 2022-1A, 5.15%, 01/16/29<sup>(1)</sup>  | 100000 | 96103 |
|  Exeter Automobile Receivables Trust, Class E, Series 2019-2A, 4.68%, 05/15/26<sup>(1)</sup>  | 55000 | 54202 |
|  FAT Brands Royalty LLC, Class A2, Series 2021-1A, 4.75%, 04/25/51<sup>(1)</sup>  | 50000 | 48178 |
|  Flagship Credit Auto Trust, Class C, Series 2019-2, 3.09%, 05/15/25<sup>(1)</sup>  | 70267 | 69764 |
|  GLS Auto Receivables Issuer Trust, Class D, Series 2022-2A, 6.15%, 04/17/28<sup>(1)</sup>  | 65000 | 62975 |
|  Hardee's Funding LLC, Class A2, Series 2020-1A, 3.98%, 12/20/50<sup>(1)</sup>  | 93338 | 78562 |
|  Hertz Vehicle Financing LLC, Class D, Series 2022-4A, 6.56%, 09/25/26<sup>(1)</sup>  | 65000 | 59538 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **ASSET BACKED SECURITIES (continued)** |  |  |
|  Hotwire Funding LLC, Class C, Series 2021-1, 4.46%, 11/20/51<sup>(1)</sup>  | $65000<br>| $53005<br>|
|  Jack in the Box Funding LLC, Class A2I, Series 2022-1A, 3.45%, 02/26/52<sup>(1)</sup>  | 54450 | 46821 |
|  LAD Auto Receivables Trust, Class A, Series 2022-1A, 5.21%, 06/15/27<sup>(1)</sup>  | 86581 | 85028 |
|  LAD Auto Receivables Trust, Class D, Series 2021-1A, 3.99%, 11/15/29<sup>(1)</sup>  | 55000 | 48943 |
|  Lendbuzz Securitization Trust, Class A, Series 2022-1A, 4.22%, 05/17/27<sup>(1)</sup>  | 80849 | 78358 |
|  MAPS Trust, Class A, Series 2021-1A, 2.52%, 06/15/46<sup>(1)</sup>  | 44015 | 35301 |
|  Mercury Financial Credit Card Master Trust, Class A, Series 2021-1A, 1.54%, 03/20/26<sup>(1)</sup>  | 75000 | 70860 |
|  MVW Owner Trust, Class A, Series 2019-1A, 2.89%, 11/20/36<sup>(1)</sup>  | 26953 | 25439 |
|  NMEF Funding LLC, Class B, Series 2021-A, 1.85%, 12/15/27<sup>(1)</sup>  | 65000 | 61902 |
|  Octane Receivables Trust 2020-1, Class B, Series 2020-1A, 1.98%, 06/20/25<sup>(1)</sup>  | 107000 | 103289 |
|  OneMain Direct Auto Receivables Trust, Class C, Series 2022-1A, 5.31%, 06/14/29<sup>(1)</sup>  | 55000 | 51704 |
|  Oportun Funding LLC, Class A, Series 2022-1, 3.25%, 06/15/29<sup>(1)</sup>  | 44874 | 43799 |
|  Pawneee Equipment Receivables Series LLC, Class B, Series 2022-1, 5.40%, 07/17/28<sup>(1)</sup>  | 65000 | 62268 |
|  Santander Drive Auto Receivables Trust 2022-5, Class C, Series 2022-5, 4.74%, 10/16/28  | 100000 | 96159 |
|  Taco Bell Funding LLC, Class A23, Series 2016-1A, 4.97%, 05/25/46<sup>(1)</sup>  | 72958 | 69444 |
|  TRP LLC, Class A, Series 2021-1, 2.07%, 06/19/51<sup>(1)</sup>  | 68519 | 57169 |
|  Upstart Pass-Through Trust, Class A, Series 2021-ST8, 1.75%, 10/20/29<sup>(1)</sup>  | 3)62553 | 57953 |
|  Upstart Securitization Trust, Class A, Series 2022-2, 4.37%, 05/20/32<sup>(1)</sup>  | 64959 | 63362 |
|  Upstart Securitization Trust, Class B, Series 2021-2, 1.75%, 06/20/31<sup>(1)</sup>  | 60000 | 56889 |
|  Veros Automobile Receivables Trust, Class B, Series 2020-1, 2.19%, 06/16/25<sup>(1)</sup>  | 6321 | 6308 |
|  Veros Automobile Receivables Trust, Class B, Series 2022-1, 4.39%, 08/16/27<sup>(1)</sup>  | 75000 | 71796 |
|  Westlake Automobile Receivables Trust, Class C, Series 2020-3A, 1.24%, 11/17/25<sup>(1)</sup>  | 45000 | 43621 |
|  ZAXBY'S Funding LLC, Class A2, Series 2021-1A, 3.24%, 07/30/51<sup>(1)</sup>  | 114550 | 91485 |
|  **Total Asset Backed Securities** |  |  |
|  (Cost $2,805,938)  |  | **2655403** |
|  **MORTGAGE BACKED SECURITIES — 6.1%** | **MORTGAGE BACKED SECURITIES — 6.1%** |  |
|  **Commercial Mortgage Backed Securities — 0.8%** |  |  |
|  BX Trust, Class D, Series 2019-OC11, 3.94%,<br> 12/09/41<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 85000 | 66648 |
|  BX Trust 2022-Cls, Class A, Series 2022-CLS, 5.76%, 10/13/27<sup>(1)</sup>  | 94000 | 93126 |

---

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **MORTGAGE BACKED SECURITIES (continued)** |  |  |
|  **Commercial Mortgage Backed Securities (continued)** |  |  |
|  CF Hippolyta LLC, Class A1, Series 2020-1, 1.69%, 07/15/60<sup>(1)</sup>  | $91436<br>| $80499<br>|
|  Morgan Stanley Bank of America Merrill Lynch Trust, Class AS, Series 2015-C22, 3.56%, 04/15/48  | 60000 | 55422 |
|  Sutherland Commercial Mortgage Loans, Class A, Series 2017-SBC6, 3.19%, 05/25/37<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 2701 | 2695 |
|  WFRBS Commercial Mortgage Trust, Class AS, Series 2014-C24, 3.93%, 11/15/47  | 50000 | 47437 |
|  Total Commercial Mortgage Backed Securities  |  | 345827 |
|  **Mortgage Backed Security — 0.2%** |  |  |
|  COMM Mortgage Trust, Class B, Series 2020-CBM, 3.10%, 02/10/37<sup>(1)</sup>  | 45000 | 40592 |
|  Federal National Mortgage Association, 3.50%, 05/01/49  | 28616 | 25545 |
|  Total Mortgage Backed Security  |  | 66137 |
|  **Residential Mortgage Backed Securities — 5.1%** | **Residential Mortgage Backed Securities — 5.1%** |  |
|  Ajax Mortgage Loan Trust, Class A1, Series 2019-D, 2.96%, 09/25/65<sup>(1)</sup><sup>(5)</sup>  | 60840 | 56389 |
|  AMSR Trust, Class D, Series 2021-SFR3, 2.18%, 10/17/38<sup>(1)</sup>  | 100000 | 83143 |
|  Arroyo Mortgage Trust, Class A1, Series 2019-1, 3.81%, 01/25/49<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 143224 | 133712 |
|  Arroyo Mortgage Trust, Class A1, Series 2019-2, 3.35%, 04/25/49<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 22000 | 20492 |
|  CAFL Issuer LLC, Class A1, Series 2021-RTL1, 2.24%, 03/28/29<sup>(1)</sup><sup>(5)</sup>  | 100000 | 90319 |
|  Cascade MH Asset Trust, Class A1, Series 2021-MH1, 1.75%, 02/25/46<sup>(1)</sup>  | 83016 | 69899 |
|  CIM Trust, Class A1, Series 2022-R2, 3.75%, 12/25/61<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 92446 | 86478 |
|  COLT Mortgage Pass-Through Certificates, Class A1, Series 2021-1R, 0.86%, 05/25/65<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 28546 | 24550 |
|  CSMC, Class A1, Series 2021-NQM1, 0.81%, 05/25/65<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 40276 | 36791 |
|  Ellington Financial Mortgage Trust, Class A1, Series 2022-1, 2.21%, 01/25/67<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 136205 | 108455 |
|  Mill City Mortgage Loan Trust, Class B1, Series 2017-3, 3.25%, 01/25/61<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 98554 | 85363 |
|  New Residential Mortgage Loan Trust, Class A1, Series 2016-1A, 3.75%, 03/25/56<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 44525 | 40913 |
|  New Residential Mortgage Loan Trust, Class M2, Series 2019-RPL2, 3.75%, 02/25/59<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 100000 | 82640 |
|  OBX Trust, Class A1, Series 2021-NQM3, 1.05%, 07/25/61<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 45474 | 33984 |
|  Pretium Mortgage Credit Partners I 2021-NPL1 LLC, Class A1, Series 2021-NPL1, 2.24%, 09/27/60<sup>(1)</sup><sup>(5)</sup>  | 162109 | 153557 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Principal** | **Value** |
|  **MORTGAGE BACKED SECURITIES (continued)** |  |  |
|  **Residential Mortgage Backed Securities (continued)** |  |  |
|  PRPM LLC, Class A1, Series 2021-RPL1, 1.32%, 07/25/51<sup>(1)</sup><sup>(5)</sup>  | $167299<br>| $148727<br>|
|  RCKT Mortgage Trust, Class A1, Series 2020-1, 3.00%, 02/25/50<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 23058 | 18880 |
|  Sequoia Mortgage Trust, Class B1, Series 2013-8, 3.49%, 06/25/43<sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 68384 | 64500 |
|  SG Residential Mortgage Trust, Class A1, Series 2019-3, 2.70%, 09/25/59<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 5346 | 5178 |
|  Starwood Mortgage Residential Trust, Class A1, Series 2020-1, 2.28%, 02/25/50<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 54539 | 54086 |
|  Towd Point Mortgage Trust, Class A2, Series 2017-1, 3.50%, 10/25/56<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 100000 | 95943 |
|  Towd Point Mortgage Trust, Class A2, Series 2017-4, 3.00%, 06/25/57<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 125000 | 110911 |
|  Towd Point Mortgage Trust, Class A2, Series 2018-6, 3.75%, 03/25/58<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 100000 | 88129 |
|  Towd Point Mortgage Trust, Class A1, Series 2018-4, 3.00%, 06/25/58<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 43299 | 39205 |
|  Towd Point Mortgage Trust, Class M1, Series 2020-1, 3.50%, 01/25/60<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 100000 | 76252 |
|  Towd Point Mortgage Trust, Class A2, Series 2021-1, 2.75%, 11/25/61<sup>(1)</sup><sup>(2)</sup><sup>(</sup><sup>6</sup><sup>)</sup>  | 100000 | 76746 |
|  Verus Securitization Trust, Class A1, Series <br>2022-4, 4.47%, 04/25/67<sup>(1)</sup><sup>(5)</sup>  | 89591 | 84236 |
|  Verus Securitization Trust, Class A1, Series <br>2022-5, 3.80%, 04/25/67<sup>(1)</sup><sup>(5)</sup>  | 102222 | 91217 |
|  Verus Securitization Trust, Class A1, Series <br>2022-7, 5.15%, 07/25/67<sup>(1)</sup><sup>(5)</sup>  | 96615 | 91201 |
|  Total Residential Mortgage Backed Securities  |  | 2151896 |
|  **Total Mortgage Backed Securities** |  |  |
|  (Cost $2,829,576)  |  | **2563860** |
|  **MUNICIPAL BONDS — 0.2%** |  |  |
|  Broward County Fl Water & Sewer Utility Revenue, 4.00%, 10/01/47  | 40000 | 35546 |
|  Metropolitan Transportation Authority, 5.00%, 11/15/45  | 60000 | 61083 |
|  Sales Tax Securitization Corp., 3.41%, 01/01/43  | 5000 | 3586 |
|  **Total Municipal Bonds** |  |  |
|  (Cost $118,813)  |  | **100215** |
|  **MONEY MARKET FUND — 11.3%** |  |  |
|  JP Morgan U.S. Government Money Market Institutional Shares, 2.77%<sup>(</sup><sup>7</sup><sup>)</sup><br>(Cost $4,731,742)  | 4731742 | 4731742 |
|  **TOTAL INVESTMENTS — 85.3%** |  |  |
|  (Cost $38,658,729)  |  | **35654929** |
|  Other Assets in Excess of Liabilities — 14.7%  |  | 6137620 |
|  **Net Assets — 100.0%**  |  | **$** **41792549**<br>|

---

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

------

(1)Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid. At October 31, 2022, the aggregate value of these securities was $12,683,551, or 30.3% of net assets.

(2)Variable rate instrument. The interest rate shown reflects the rate in effect at October 31, 2022.

(3)Perpetual security with no stated maturity date.

(4)Security in default, no interest payments are being received during the bankruptcy proceedings.

(5)Represents step coupon bond. Rate shown reflects the rate in effect as of October 31, 2022.

(6)Adjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions.

(7)The rate shown reflects the seven-day yield as of October 31, 2022.

**Abbreviations:**

CMT — Constant Maturity Treasury Index

LIBOR — London InterBank Offered Rate

SOFR — Secured Overnight Financing Rate

USD — United States Dollar

**Currency Abbreviations**

USD — United States Dollar

The following table summarizes valuation of the Fund's investments under the fair value hierarchy levels as of October 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Asset Valuation Inputs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Corporate Bonds  | $—<br>| $11523424<br>| $—<br>| $11523424<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Government Securities  |  | 5969841 |  | 5969841 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign Bonds  |  | 4659902 |  | 4659902 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term Loans  |  | 3450542 |  | 3450542 |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset Backed Securities  |  | 2655403 |  | 2655403 |
| &nbsp;&nbsp;&nbsp;&nbsp; Mortgage Backed Securities  |  | 2563860 |  | 2563860 |
| &nbsp;&nbsp;&nbsp;&nbsp; Municipal Bonds  |  | 100215 |  | 100215 |
| &nbsp;&nbsp;&nbsp;&nbsp; Money Market Fund  | 4731742 |  |  | 4731742 |
|  Total  | $4731742<br>| $30923187<br>| $—<br>| $35654929<br>|

---

Schedule of Investments — Virtus Private Credit Strategy ETF

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS — 59.0%** |  |  |
|  **Financials — 59.0%** |  |  |
|  Ares Capital Corp.<sup>(1)</sup>  | 20048 | $389533<br>|
|  Bain Capital Specialty Finance, Inc.  | 32507 | 409588 |
|  Barings BDC, Inc.  | 36260 | 323076 |
|  BlackRock Capital Investment Corp.<sup>(1)</sup>  | 138633 | 501851 |
|  BlackRock TCP Capital Corp.  | 33233 | 393146 |
|  Blackstone Secured Lending Fund<sup>(1)</sup>  | 4561 | 106226 |
|  Capital Southwest Corp.  | 20898 | 393927 |
|  Carlyle Secured Lending, Inc.  | 32653 | 409795 |
|  CION Investment Corp.  | 12315 | 114653 |
|  Crescent Capital BDC, Inc.<sup>(1)</sup>  | 21644 | 300419 |
|  Fidus Investment Corp.  | 16689 | 314588 |
|  FS KKR Capital Corp.  | 27117 | 520646 |
|  Gladstone Capital Corp.<sup>(1)</sup>  | 37607 | 355386 |
|  Gladstone Investment Corp.<sup>(1)</sup>  | 19550 | 252195 |
|  Goldman Sachs BDC, Inc.<sup>(1)</sup>  | 29460 | 455452 |
|  Golub Capital BDC, Inc.  | 28050 | 363808 |
|  Hercules Capital, Inc.<sup>(1)</sup>  | 29792 | 432878 |
|  Horizon Technology Finance Corp.<sup>(1)</sup>  | 36260 | 419891 |
|  Main Street Capital Corp.<sup>(1)</sup>  | 6738 | 248902 |
|  MidCap Financial Investment Corp.  | 40178 | 440351 |
|  Monroe Capital Corp.  | 26578 | 201461 |
|  New Mountain Finance Corp.  | 34871 | 423683 |
|  Oaktree Specialty Lending Corp.  | 49508 | 326753 |
|  OFS Capital Corp.  | 21644 | 198043 |
|  Oxford Square Capital Corp.  | 63356 | 188167 |
|  PennantPark Floating Rate Capital Ltd.  | 38478 | 426336 |
|  PennantPark Investment Corp.  | 65222 | 388071 |
|  Portman Ridge Finance Corp.  | 10552 | 220959 |
|  Prospect Capital Corp.<sup>(1)</sup>  | 56432 | 409696 |
|  Runway Growth Finance Corp.  | 11506 | 155561 |
|  Saratoga Investment Corp.  | 15777 | 358138 |
|  Sixth Street Specialty Lending, Inc.  | 22142 | 402099 |
|  SLR Investment Corp.<sup>(1)</sup>  | 38665 | 523137 |
|  Stellus Capital Investment Corp.<sup>(1)</sup>  | 31346 | 415961 |
|  SuRo Capital Corp.  | 36820 | 147280 |
|  TriplePoint Venture Growth BDC Corp.<sup>(1)</sup>  | 39183 | 500759 |
|  WhiteHorse Finance, Inc.<sup>(1)</sup>  | 30807 | 387552 |
|  Total Financials  |  | 12819967 |
|  **Total Common Stocks** |  |  |
|  (Cost $15,687,231)  |  | 12819967 |
|  **CLOSED-END FUNDS<sup>(2)</sup>** **— 38.9%** |  |  |
|  BlackRock Debt Strategies Fund, Inc.  | 39349 | 358076 |
|  BlackRock Floating Rate Income Strategies<br>Fund, Inc.  | 28485 | 324159 |
|  BlackRock Floating Rate Income Trust  | 30331 | 333338 |
|  BlackRock Innovation & Growth Trust  | 31637 | 231583 |
|  BlackRock Limited Duration Income Trust  | 31803 | 397856 |
|  Blackstone Senior Floating Rate Term Fund<sup>(1)</sup>  | 25977 | 325232 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **CLOSED-END FUNDS (continued)** |  |  |
|  Blackstone Strategic Credit Fund  | 34518 | $363129<br>|
|  BNY Mellon Alcentra Global Credit Income 2024 Target Term Fund, Inc.<sup>(1)</sup>  | 53903 | 383789 |
|  Eagle Point Credit Co., Inc.<sup>(1)</sup>  | 52140 | 567283 |
|  Eaton Vance Floating-Rate Income Trust  | 27822 | 311328 |
|  Eaton Vance Senior Floating-Rate Trust  | 29356 | 327907 |
|  Eaton Vance Senior Income Trust<sup>(1)</sup>  | 60350 | 319252 |
|  First Trust Senior Floating Rate Income Fund II  | 46978 | 461794 |
|  Invesco Dynamic Credit Opportunity Fund  | 4755 | 53450 |
|  Invesco Senior Income Trust  | 94910 | 356862 |
|  Nuveen Credit Strategies Income Fund  | 130361 | 657019 |
|  Nuveen Floating Rate Income Fund  | 42542 | 338209 |
|  Nuveen Floating Rate Income Opportunity Fund  | 43516 | 343776 |
|  Nuveen Senior Income Fund  | 77102 | 356982 |
|  Oxford Lane Capital Corp.<sup>(1)</sup>  | 143609 | 764000 |
|  Pioneer Floating Rate Fund, Inc.  | 41111 | 352321 |
|  XAI Octagon Floating Rate Alternative Income Term Trust  | 83259 | 522867 |
|  **Total Closed-End Funds** |  |  |
|  (Cost $10,987,376)  |  | **8450212** |
|  **SECURITIES LENDING COLLATERAL — 19.4%** | **SECURITIES LENDING COLLATERAL — 19.4%** |  |
|  **Money Market Fund — 19.4%** |  |  |
|  Dreyfus Government Cash Management Fund, Institutional Shares, 2.91%<sup>(</sup><sup>3</sup><sup>)</sup><sup>(</sup><sup>4</sup><sup>)</sup> |  |  |
|  (Cost $4,216,806)  | 4216806 | **4216806** |
|  **TOTAL INVESTMENTS — 117.3%** |  |  |
|  (Cost $30,891,413)  |  | **25486985** |
|  Liabilities in Excess of Other Assets — (17.3)%  |  | (3751919) |
|  **Net Assets — 100.0%**  |  | **$21735066** |

---

------

(1)All or a portion of the security was on loan. The aggregate market value of securities on loan was $4,182,352; total market value of collateral held by the Fund was $4,316,159. Market value of the collateral held includes non-cash U.S. Treasury securities having a value of $99,353.

(2)Shares of each fund are publicly offered, and each prospectus and annual report are publicly available.

(3)Represents securities purchased with cash collateral received for securities on loan.

(4)The rate shown reflects the seven-day yield as of October 31, 2022.

Schedule of Investments — Virtus Private Credit Strategy ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

The following table summarizes valuation of the Fund's investments under the fair value hierarchy levels as of October 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Asset Valuation Inputs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks  | $12819967<br>| $—<br>| $—<br>| $12819967<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Closed-End Funds  | 8450212 |  |  | 8450212 |
| &nbsp;&nbsp;&nbsp;&nbsp; Money Market Fund  | 4216806 |  |  | 4216806 |
|  Total  | $25486985<br>| $—<br>| $—<br>| $25486985<br>|

---

Schedule of Investments — Virtus Real Asset Income ETF

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS — 97.4%** |  |  |
|  **Communication Services — 8.2%** |  |  |
|  Cogent Communications Holdings, Inc.  | 9809 | $515070<br>|
|  KT Corp. (South Korea)<sup>(1)</sup><sup>(2)</sup>  | 40434 | 513916 |
|  Mobile TeleSystems PJSC (Russia)<sup>(3)</sup>  | 387202 | 6 |
|  Orange SA (France)<sup>(1)</sup><sup>(2)</sup>  | 53600 | 510272 |
|  PLDT, Inc. (Philippines)<sup>(2)</sup>  | 18694 | 514459 |
|  Shenandoah Telecommunications Co.  | 28183 | 638627 |
|  SK Telecom Co., Ltd. (South Korea)<sup>(2)</sup>  | 25559 | 499934 |
|  TELUS Corp. (Canada)  | 24203 | 505601 |
|  Total Communication Services  |  | 3697885 |
|  **Consumer Staples — 1.1%** |  |  |
|  Alico, Inc.  | 16387 | 501770 |
|  **Energy — 13.3%** |  |  |
|  Cheniere Energy Partners LP<sup>(1)</sup>  | 9339 | 561554 |
|  Coterra Energy, Inc.  | 18452 | 574411 |
|  Delek Logistics Partners LP<sup>(1)</sup>  | 9832 | 539089 |
|  Enbridge, Inc. (Canada)  | 12876 | 501520 |
|  Hess Midstream LP Class A  | 19443 | 562680 |
|  Kinder Morgan, Inc.  | 29825 | 540429 |
|  North American Construction Group Ltd. (Canada)  | 50473 | 627884 |
|  Petroleo Brasileiro SA (Brazil)<sup>(2)</sup>  | 37382 | 479237 |
|  Sitio Royalties Corp.<sup>(1)</sup>  | 22124 | 627437 |
|  TC Energy Corp. (Canada)  | 11140 | 489269 |
|  Williams Cos., Inc. (The)  | 16573 | 542434 |
|  Total Energy  |  | 6045944 |
|  **Financials — 1.2%** |  |  |
|  Arbor Realty Trust, Inc.<sup>(1)</sup>  | 38374 | 528410 |
|  **Materials — 28.2%** |  |  |
|  Agnico Eagle Mines Ltd. (Canada)  | 12560 | 552138 |
|  Alamos Gold, Inc. Class A (Canada)  | 72698 | 573587 |
|  AngloGold Ashanti Ltd. (Tanzania)<sup>(2)</sup>  | 39672 | 517720 |
|  Barrick Gold Corp. (Canada)  | 34299 | 515514 |
|  DRDGOLD Ltd. (South Africa)<sup>(1)</sup><sup>(2)</sup>  | 97561 | 495610 |
|  FMC Corp.  | 4821 | 573217 |
|  FutureFuel Corp.  | 84609 | 578726 |
|  Gerdau SA (Brazil)<sup>(2)</sup>  | 107255 | 534130 |
|  Gold Fields Ltd. (South Africa)<sup>(1)</sup><sup>(2)</sup>  | 67405 | 531151 |
|  LyondellBasell Industries NV Class A  | 6895 | 527123 |
|  Mosaic Co. (The)  | 9850 | 529437 |
|  Newmont Corp.  | 12171 | 515077 |
|  Nutrien Ltd. (Canada)  | 5881 | 496944 |
|  Pan American Silver Corp. (Canada)  | 33006 | 527436 |
|  POSCO Holdings, Inc. (South Korea)<sup>(2)</sup>  | 12285 | 532923 |
|  Scotts Miracle-Gro Co. (The)  | 10158 | 466354 |
|  Southern Copper Corp. (Peru)  | 11320 | 531700 |
|  Steel Dynamics, Inc.  | 7096 | 667379 |
|  Ternium SA (Mexico)<sup>(2)</sup>  | 17554 | 505380 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS (continued)** |  |  |
|  **Materials (continued)** |  |  |
|  Tronox Holdings PLC Class A  | 44527 | $534324<br>|
|  Vale SA (Brazil)<sup>(2)</sup>  | 37875 | 490102 |
|  Valvoline, Inc.  | 19160 | 562538 |
|  Wheaton Precious Metals Corp. (Brazil)  | 16455 | 537914 |
|  Yamana Gold, Inc. (Canada)  | 119951 | 525385 |
|  Total Materials  |  | 12821809 |
|  **Real Estate — 31.6%** |  |  |
|  Agree Realty Corp.  | 7290 | 500823 |
|  Alexander & Baldwin, Inc.  | 30733 | 598679 |
|  Americold Realty Trust, Inc.  | 18984 | 460362 |
|  AvalonBay Communities, Inc.  | 2756 | 482631 |
|  CareTrust REIT, Inc.  | 26859 | 501726 |
|  Community Healthcare Trust, Inc.  | 15349 | $531075 |
|  Cousins Properties, Inc.  | 20517 | 487484 |
|  Crown Castle, Inc.  | 3266 | 435227 |
|  CTO Realty Growth, Inc.<sup>(1)</sup>  | 26480 | 532248 |
|  CubeSmart  | 12569 | 526264 |
|  Digital Realty Trust, Inc.  | 4793 | 480498 |
|  Douglas Emmett, Inc.  | 26365 | 463760 |
|  Equity Residential  | 7489 | 471957 |
|  Essential Properties Realty Trust, Inc.  | 24123 | 519127 |
|  Essex Property Trust, Inc.  | 2075 | 461148 |
|  Four Corners Property Trust, Inc.  | 20001 | 512426 |
|  Getty Realty Corp.  | 18201 | 573149 |
|  Industrial Logistics Properties Trust  | 71090 | 332701 |
|  Kilroy Realty Corp.  | 11581 | 494972 |
|  Medical Properties Trust, Inc.  | 40045 | 458515 |
|  National Retail Properties, Inc.  | 12188 | 512262 |
|  National Storage Affiliates Trust  | 11790 | 502961 |
|  Piedmont Office Realty Trust, Inc. Class A  | 45130 | 471609 |
|  RE/MAX Holdings, Inc. Class A  | 27283 | 530927 |
|  Realty Income Corp.  | 8254 | 513977 |
|  SL Green Realty Corp.  | 12089 | 479692 |
|  STORE Capital Corp.  | 16295 | 518181 |
|  UDR, Inc.  | 12301 | 489088 |
|  VICI Properties, Inc.  | 16421 | 525800 |
|  Total Real Estate  |  | 14369269 |
|  **Utilities — 13.8%** |  |  |
|  Algonquin Power & Utilities Corp. (Canada)  | 40801 | 451259 |
|  Alliant Energy Corp.  | 8599 | 448610 |
|  Avista Corp.  | 12841 | 526866 |
|  Cia Energetica de Minas Gerais (Brazil)<sup>(2)</sup>  | 218149 | 477746 |
|  Cia Paranaense de Energia (Brazil)<sup>(1)</sup><sup>(2)</sup>  | 78562 | 555433 |
|  CMS Energy Corp.  | 7851 | 447900 |
|  Evergy, Inc.  | 7818 | 477914 |
|  Fortis, Inc. (Canada)  | 12406 | 483834 |
|  Korea Electric Power Corp. (South Korea)\*<sup>(2)</sup>  | 72307 | 424442 |
|  NRG Energy, Inc.  | 12484 | 554290 |

---

Schedule of Investments — Virtus Real Asset Income ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS (continued)** |  |  |
|  **Utilities (continued)** |  |  |
|  Sempra Energy  | 3141 | $474102<br>|
|  WEC Energy Group, Inc.  | 5154 | 470715 |
|  Xcel Energy, Inc.  | 7124 | 463844 |
|  Total Utilities  |  | 6256955 |
|  **Total Common Stocks** |  |  |
|  (Cost $56,775,457)  |  | 44222042 |
|  **SECURITIES LENDING COLLATERAL — 7.6%** | **SECURITIES LENDING COLLATERAL — 7.6%** |  |
|  **Money Market Fund — 7.6%** |  |  |
|  Dreyfus Government Cash Management Fund, Institutional Shares, 2.91%<sup>(4)</sup><sup>(5)</sup> |  |  |
|  (Cost $3,458,152)  | 3458152 | **3458152** |
|  **TOTAL INVESTMENTS — 105.0%** |  |  |
|  (Cost $60,233,609)  |  | **47680194** |
|  Liabilities in Excess of Other Assets — (5.0)%  |  | (2259789) |
|  **Net Assets — 100.0%**  |  | **$45420405** |

---

------

\*Non-income producing security.

(1)All or a portion of the security was on loan. The aggregate market value of securities on loan was $3,915,605; total market value of collateral held by the Fund was $3,990,047. Market value of the collateral held includes non-cash U.S. Treasury securities having a value of $531,895.

(2)American Depositary Receipts.

(3)Security valued at fair value as determined in good faith by or under the direction of the Trustees. This security is disclosed as a Level 3 security in the Fair Value Hierarchy table located after the Schedule of Investments.

(4)Represents securities purchased with cash collateral received for securities on loan.

(5)The rate shown reflects the seven-day yield as of October 31, 2022.

The following table summarizes valuation of the Fund's investments under the fair value hierarchy levels as of October 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Asset Valuation Inputs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks  | $44222036<br>| $—<br>| $6<br>| $44222042<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Money Market Fund  | 3458152 |  |  | 3458152 |
|  Total  | $47680188<br>| $—<br>| $6<br>| $47680194<br>|

---

Security held by the Fund with an end of year value of $6 was transferred from Level 1 to Level 3 due to a decrease in trading activities at year end. The value represents valuations of Russian Common Stock for which Management has determined include significant unobservable inputs as of October 31, 2022.

Management has determined that the amount of Level 3 securities compared to total net assets is not material; therefore, the rollforward of Level 3 securities and assumptions are not shown for the year ended October 31, 2022.

Schedule of Investments — Virtus WMC International Dividend ETF

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS — 98.2%** |  |  |
|  **Australia — 11.7%** |  |  |
|  BHP Group Ltd.  | 11804 | $282085<br>|
|  Fortescue Metals Group Ltd.  | 4348 | 40884 |
|  Rio Tinto Ltd.  | 2066 | 116558 |
|  Rio Tinto PLC  | 4131 | 214938 |
|  Stockland  | 7676 | 17676 |
|  Wesfarmers Ltd.  | 706 | 20529 |
|  Woodside Energy Group Ltd.  | 3061 | 70448 |
|  Total Australia  |  | 763118 |
|  **Belgium — 0.2%** |  |  |
|  Proximus SADP  | 1478 | 15497 |
|  **Canada — 8.2%** |  |  |
|  Algonquin Power & Utilities Corp.  | 7179 | 79465 |
|  Bank of Nova Scotia (The)  | 162 | 7830 |
|  BCE, Inc.  | 1714 | 77312 |
|  Canadian Imperial Bank of Commerce  | 1266 | 57494 |
|  Great-West Lifeco, Inc.  | 2052 | 47506 |
|  IGM Financial, Inc.  | 1712 | 45830 |
|  Manulife Financial Corp.  | 4517 | 74866 |
|  Royal Bank of Canada  | 139 | 12861 |
|  Sun Life Financial, Inc.  | 665 | 28243 |
|  TELUS Corp.  | 3706 | 77393 |
|  Toronto-Dominion Bank (The)  | 347 | 22208 |
|  Total Canada  |  | 531008 |
|  **China — 1.1%** |  |  |
|  SITC International Holdings Co., Ltd.  | 30819 | 50490 |
|  Xinyi Glass Holdings Ltd.  | 17085 | 21983 |
|  Total China  |  | 72473 |
|  **Denmark — 2.5%** |  |  |
|  AP Moller - Maersk A/S Class A  | 32 | 64048 |
|  AP Moller - Maersk A/S Class B  | 16 | 33468 |
|  Tryg A/S  | 2982 | 64534 |
|  Total Denmark  |  | 162050 |
|  **Finland — 1.2%** |  |  |
|  Kone OYJ Class B  | 1166 | 47763 |
|  Sampo OYJ Class A  | 634 | 28997 |
|  Total Finland  |  | 76760 |
|  **France — 9.0%** |  |  |
|  Amundi SA<sup>(1)</sup>  | 378 | 17849 |
|  AXA SA  | 4250 | 105001 |
|  Bouygues SA  | 1146 | 32708 |
|  Danone SA  | 347 | 17263 |
|  Edenred  | 1140 | 58538 |
|  Pernod Ricard SA  | 94 | 16507 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS (continued)** |  |  |
|  **France (continued)** |  |  |
|  Sanofi  | 3122 | $269441<br>|
|  TotalEnergies SE  | 1228 | 66868 |
|  Total France  |  | 584175 |
|  **Germany — 6.9%** |  |  |
|  Allianz SE  | 1518 | 273330 |
|  BASF SE  | 1863 | 83651 |
|  Bayerische Motoren Werke AG  | 538 | 42279 |
|  Deutsche Post AG  | 1314 | 46631 |
|  Total Germany  |  | 445891 |
|  **Hong Kong — 1.6%** |  |  |
|  CLP Holdings Ltd.  | 1690 | 11346 |
|  HKT Trust & HKT Ltd.  | 28522 | 32230 |
|  Link REIT  | 1066 | 6301 |
|  New World Development Co., Ltd.  | 2859 | $5849 |
|  Power Assets Holdings Ltd.  | 6238 | 29840 |
|  Sino Land Co., Ltd.  | 16469 | 17603 |
|  Total Hong Kong  |  | 103169 |
|  **Israel — 0.1%** |  |  |
|  ICL Group Ltd.  | 722 | 6522 |
|  **Italy — 3.9%** |  |  |
|  Assicurazioni Generali SpA  | 6022 | 90399 |
|  Enel SpA  | 9691 | 43279 |
|  Eni SpA  | 2137 | 27991 |
|  Snam SpA  | 21406 | 95238 |
|  Total Italy  |  | 256907 |
|  **Japan — 14.3%** |  |  |
|  Bandai Namco Holdings, Inc.  | 120 | 7943 |
|  Bridgestone Corp.  | 277 | 9989 |
|  Daito Trust Construction Co., Ltd.  | 106 | 10486 |
|  Daiwa House Industry Co., Ltd.  | 318 | 6441 |
|  Disco Corp.  | 85 | 20408 |
|  Honda Motor Co., Ltd.  | 1170 | 26540 |
|  ITOCHU Corp.  | 534 | 13823 |
|  Itochu Techno-Solutions Corp.  | 267 | 6195 |
|  Japan Metropolitan Fund Invest  | 50 | 36820 |
|  Japan Tobacco, Inc.  | 5206 | 86268 |
|  Mitsubishi HC Capital, Inc.  | 4635 | 19887 |
|  Mitsui & Co., Ltd.  | 5336 | 118171 |
|  Nippon Yusen KK  | 1982 | 35976 |
|  SBI Holdings, Inc.  | 1935 | 34980 |
|  Sekisui House Ltd.  | 3695 | 61503 |
|  Shin-Etsu Chemical Co., Ltd.  | 365 | 38146 |
|  SoftBank Corp.  | 9995 | 98508 |
|  Sumitomo Corp.  | 1694 | 21594 |

---

Schedule of Investments — Virtus WMC International Dividend ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS (continued)** |  |  |
|  **Japan (continued)** |  |  |
|  Takeda Pharmaceutical Co., Ltd.  | 2557 | $67375<br>|
|  Tokio Marine Holdings, Inc.  | 3679 | 66581 |
|  Tokyo Electron Ltd.  | 103 | 27354 |
|  Trend Micro, Inc.  | 1366 | 68991 |
|  USS Co., Ltd.  | 3043 | 45984 |
|  Total Japan  |  | 929963 |
|  **Netherlands — 0.5%** |  |  |
|  Koninklijke Ahold Delhaize NV  | 1204 | 33613 |
|  **Norway — 1.5%** |  |  |
|  Gjensidige Forsikring ASA  | 948 | 17317 |
|  Norsk Hydro ASA  | 1484 | 9418 |
|  Telenor ASA  | 7438 | 67611 |
|  Total Norway  |  | 94346 |
|  **Singapore — 3.2%** |  |  |
|  CapitaLand Ascendas REIT  | 19551 | 36185 |
|  CapitaLand Integrated Commercial Trust  | 40584 | 53898 |
|  Mapletree Logistics Trust  | 7348 | 7890 |
|  Oversea-Chinese Banking Corp. Ltd.  | 3385 | 29005 |
|  Singapore Exchange Ltd.  | 1772 | 10540 |
|  Singapore Technologies Engineering Ltd.  | 27179 | 63359 |
|  Venture Corp. Ltd.  | 571 | 6426 |
|  Total Singapore  |  | 207303 |
|  **South Africa — 0.1%** |  |  |
|  Anglo American PLC  | 247 | 7389 |
|  **Spain — 2.8%** |  |  |
|  ACS Actividades de Construccion y Servicios SA  | 261 | $6693 |
|  Enagas SA  | 4597 | 74619 |
|  Endesa SA  | 1170 | 19523 |
|  Iberdrola SA  | 2762 | 28046 |
|  Industria de Diseno Textil SA  | 729 | 16527 |
|  Red Electrica Corp. SA  | 2181 | 35240 |
|  Total Spain  |  | 180648 |
|  **Sweden — 0.5%** |  |  |
|  Tele2 AB Class B  | 4244 | 34794 |
|  **Switzerland — 10.2%** |  |  |
|  Adecco Group AG  | 368 | 11518 |
|  Kuehne + Nagel International AG  | 52 | 11082 |
|  Novartis AG  | 4747 | 383514 |
|  Zurich Insurance Group AG  | 607 | 259021 |
|  Total Switzerland  |  | 665135 |

---

---

| | | |
|:---|:---|:---|
| **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS (continued)** |  |  |
|  **United Kingdom — 13.5%**  |  |  |
|  Admiral Group PLC  | 3061 | $70804<br>|
|  BAE Systems PLC  | 5069 | 47342 |
|  British American Tobacco PLC  | 6763 | 266296 |
|  Imperial Brands PLC  | 2758 | 67179 |
|  Legal & General Group PLC  | 2377 | 6349 |
|  National Grid PLC  | 6533 | 71055 |
|  Persimmon PLC  | 820 | 12272 |
|  Phoenix Group Holdings PLC  | 10179 | 63316 |
|  Unilever PLC  | 6031 | 274891 |
|  Total United Kingdom  |  | 879504 |
|  **United States — 5.2%** |  |  |
|  Brookfield Renewable Corp. Class A  | 1083 | 33650 |
|  GSK PLC  | 5874 | 96249 |
|  Roche Holding AG  | 39 | 12952 |
|  Stellantis NV  | 6649 | 89758 |
|  Swiss Re AG  | 1457 | 108255 |
|  Total United States  |  | 340864 |
|  **Total Common Stocks** |  |  |
|  (Cost $7,478,680)  |  | **6391129** |
|  **PREFERRED STOCKS - 1.0%** |  |  |
|  **Germany — 1.0%** |  |  |
|  Porsche Automobil Holding SE, 4.48%  | 1118 | 62535 |
|  **Total Preferred Stocks** |  |  |
|  (Cost $64,444)  |  | 62535 |
|  **TOTAL INVESTMENTS — 99.2%** |  |  |
|  (Cost $7,543,124)  |  | **6453664** |
|  Other Assets in Excess of Liabilities — 0.8%  |  | 53621 |
|  **Net Assets — 100.0%**  |  | **$** **6507285**<br>|

---

------

(1)Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid. At October 31, 2022, the aggregate value of these securities was $17,849, or 0.3% of net assets.

Schedule of Investments — Virtus WMC International Dividend ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

The following table summarizes valuation of the Fund's investments under the fair value hierarchy levels as of October 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Asset Valuation Inputs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks  | $6391129<br>| $—<br>| $—<br>| $6391129<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred Stock  | 62535 |  |  | 62535 |
|  Total  | $6453664<br>| $—<br>| $—<br>| $6453664<br>|

---

Statements of Assets and Liabilities

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **InfraCap REIT<br>Preferred ETF** | **Virtus InfraCap U.S.<br>Preferred Stock ETF** | **Virtus LifeSci Biotech<br>Clinical Trials ETF** | **Virtus LifeSci Biotech<br>Products ETF** |
|  **Assets:** |  |  |  |  |
|  Investments, at cost  | $68503214<br>| $713163227<br>| $26743857<br>| $17903441<br>|
|  Investments, at value (including securities<br>on loan)<sup>(a)</sup>  | 53768238 | 590071686 | 19366267 | 16423880 |
|  Cash  | 207846 | 1228387 | 201013 | 181978 |
|  Due from brokers  |  | 9014 |  |  |
|  Receivables: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest  | 75957 | 534515 | 156 | 237 |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment securities sold  | 33362 | 1545843 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending  |  |  | 4894 | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax reclaim  |  | 23203 | 3636 | 284 |
|  Prepaid expenses  | 171 | 171 | 171 | 171 |
|  **Total Assets**  | 54085574 | 593412819 | 19576137 | 16606753 |
|  **Liabilities:** |  |  |  |  |
|  Bank borrowings  |  | 136168929 |  |  |
|  Payables: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment securities purchased  |  | 740172 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities on loan  |  |  | 1448554 | 246755 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense  |  | 55249 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisory fees  | 21085 | 312742 | 11649 | 10775 |
|  **Total Liabilities**  | 21085 | 137277092 | 1460203 | 257530 |
|  **Net Assets**  | **$** **54064489**<br>| **$** **456135727**<br>| **$** **18115934**<br>| **$** **16349223**<br>|
|  **Net Assets Consist of:** |  |  |  |  |
|  Paid-in capital  | $79296638<br>| $572642866<br>| $78150902<br>| $35398789<br>|
|  Total distributable earnings<br>(accumulated deficit)  | (25232149) | (116507139) | (60034968) | (19049566) |
|  **Net Assets**  | **$** **54064489**<br>| **$** **456135727**<br>| **$** **18115934**<br>| **$** **16349223**<br>|
|  Shares outstanding (unlimited number of shares of beneficial interest authorized, no par value)  | 3300004 | 24500004 | 700004 | 350004 |
|  Net asset value per share  | $16.38<br>| $18.62<br>| $25.88<br>| $46.71<br>|
| (a)Market value of securities on loan  | $—<br>| $—<br>| $3701660<br>| $1380978<br>|

---

Statements of Assets and Liabilities (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Virtus Newfleet Multi-Sector<br>Bond ETF** | **Virtus Private Credit<br>Strategy ETF** | **Virtus Real Asset Income ETF** | **Virtus WMC International Dividend ETF** |
|  **Assets:** |  |  |  |  |
|  Investments, at cost  | $38658729<br>| $30891413<br>| $60233609<br>| $7543124<br>|
|  Investments, at value (including securities<br>on loan)<sup>(a)</sup>  | 35654929 | 25486985 | 47680194 | 6453664 |
|  Cash  | 12225 | 428263 | 997166 | 8422 |
|  Foreign currency<sup>(b)</sup>  |  |  |  | 34286 |
|  Receivables: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital shares sold  | 6429489 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment securities sold  | 1092695 |  |  | 3112 |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest  | 278164 | 43683 | 209911 | 22474 |
| &nbsp;&nbsp;&nbsp;&nbsp; Due from Adviser  | 17940 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending  |  | 6356 | 5634 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax reclaim  |  |  | 12715 | 17750 |
|  Prepaid expenses  |  | 114 | 114 | 171 |
|  **Total Assets**  | 43485442 | 25965401 | 48905734 | 6539879 |
|  **Liabilities:** |  |  |  |  |
|  Payables: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment securities purchased  | 1548201 |  |  | 29926 |
| &nbsp;&nbsp;&nbsp;&nbsp; Collateral for securities on loan  |  | 4216806 | 3458152 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisory fees  | 12157 | 13529 | 27177 | 2599 |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional fees  | 33520 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustee fees  | 556 |  |  |  |
|  Other accrued expenses  | 98459 |  |  | 69 |
|  **Total Liabilities**  | 1692893 | 4230335 | 3485329 | 32594 |
|  **Net Assets**  | **$** **41792549**<br>| **$** **21735066**<br>| **$** **45420405**<br>| **$** **6507285**<br>|
|  **Net Assets Consist of:** |  |  |  |  |
|  Paid-in capital  | $48684184<br>| $35715714<br>| $96123151<br>| $7702335<br>|
|  Total distributable earnings<br>(accumulated deficit)  | (6891635) | (13980648) | (50702746) | (1195050) |
|  **Net Assets**  | **$** **41792549**<br>| **$** **21735066**<br>| **$** **45420405**<br>| **$** **6507285**<br>|
|  Shares outstanding (unlimited number of shares of beneficial interest authorized, no par value)  | 1950004 | 1050004 | 1950004 | 300004 |
|  Net asset value per share  | $21.43<br>| $20.70<br>| $23.29<br>| $21.69<br>|
| (a)Market value of securities on loan  | $—<br>| $4182352<br>| $3915605<br>| $—<br>|
| (b)Foreign currency, at cost  | $—<br>| $—<br>| $—<br>| $34282<br>|

---

Statements of Operations

For the Year Ended October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **InfraCap REIT<br>Preferred ETF** | **Virtus InfraCap<br>U.S. Preferred<br>Stock ETF** | **Virtus LifeSci<br>Biotech Clinical<br>Trials ETF** | **Virtus LifeSci<br>Biotech Products<br>ETF** |
|  **Investment Income:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividend income (net of foreign withholding taxes)  | $2712556<br>| $42636698<br>| $—<br>| $28649<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income  | 1379 | 6111 | 741 | 868 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending, net of fees  |  |  | 49147 | 3776 |
|  **Total Investment Income**  | 2713935 | 42642809 | 49888 | 33293 |
|  **Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisory fees  | 330149 | 4245102 | 171768 | 133073 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expenses  |  | 3187792 | 76 |  |
|  **Total Expenses**  | 330149 | 7432894 | 171844 | 133073 |
|  **Net Investment Income (Loss)**  | **2383786** | **35209915** | **(121956)** | **(99780)** |
|  **Net Realized Gain (Loss) on:** |  |  |  |  |
|  Investments  | (7441378 | 15017775 | (17804251) | (4521032) |
|  In-kind redemptions  | 22721 | 5273010 | 1748000 | 985668 |
|  **Total Net Realized Gain (Loss)**  | (7418657 | 20290785 | (16056251) | (3535364) |
|  **Change in Net Unrealized Appreciation (Depreciation) on:** |  |  |  |  |
|  Investments  | (18257024 | (167879060) | 1184424 | 1302023 |
|  **Total Change in Net Unrealized Appreciation (Depreciation)**  | (18257024 | (167879060) | 1184424 | 1302023 |
|  Net Realized and Change in Unrealized Loss  | (25675681 | (147588275) | (14871827) | (2233341) |
|  **Net Decrease in Net Assets Resulting from Operations**  | **$** **(23291895**<br>| **$** **(112378360)** | **$** **(14993783)** | **$** **(2333121)** |
|  Foreign withholding taxes  | $—<br>| $137643<br>| $—<br>| $375<br>|

---

*The accompanying notes are an integral part of these financial statements.*

Statements of Operations (continued)

For the Year Ended October 31, 2022

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Virtus Newfleet<br>Multi-Sector<br>Bond ETF** | **Virtus Private<br>Credit Strategy<br>ETF** | **Virtus Real Asset<br>Income ETF** | **Virtus WMC<br>International<br>Dividend ETF** |
|  **Investment Income:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividend income (net of foreign withholding taxes)  | $15775<br>| $2801777<br>| $5244664<br>| $427883<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income  | 1133619 | 2213 | 5252 | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities lending, net of fees  |  | 125077 | 80704 |  |
|  **Total Investment Income**  | 1149394 | 2929067 | 5330620 | 428001 |
|  **Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisory fees  | 117358 | 225953 | 721180 | 32962 |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional fees  | 39502 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Pricing fees  | 35483 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounting and administration fees  | 24308 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer agent fees  | 17150 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustee fees  | 13931 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Exchange listing fees  | 8475 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Report to shareholders fees  | 4727 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Custody fees  | 3463 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance fees  | 486 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Tax expense  | 201 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other expenses  | 468 |  |  |  |
|  **Total Expenses**  | 265552 | 225953 | 721180 | 32962 |
|  Less expense waivers/reimbursements  | (137763) |  |  |  |
|  **Net Expenses**  | 127789 | 225953 | 721180 | 32962 |
|  **Net Investment Income**  | **1021605** | **2703114** | **4609440** | **395039** |
|  **Net Realized Gain (Loss) on:** |  |  |  |  |
|  Investments  | (999178) | (1146461) | (4407417) | (106398) |
|  In-kind redemptions  |  | (473535) | 15968761 |  |
|  Foreign currency transactions  |  |  | (709) | (7309) |
|  **Total Net Realized Gain (Loss)**  | (999178) | (1619996) | 11560635 | (113707) |
|  **Change in Net Unrealized Appreciation (Depreciation) on:** |  |  |  |  |
|  Investments  | (3244164) | (5277112) | (30510644) | (1270966) |
|  Foreign currency translations  |  |  |  | (1629) |
|  **Total Change in Net Unrealized Depreciation**  | (3244164) | (5277112) | (30510644) | (1272595) |
|  Net Realized and Change in Unrealized Loss  | (4243342) | (6897108) | (18950009) | (1386302) |
|  **Net Decrease in Net Assets Resulting from Operations**  | **$** **(3221737)** | **$** **(4193994)** | **$** **(14340569)** | **$** **(991263)** |
|  Foreign withholding taxes  | $—<br>| $—<br>| $176969<br>| $44159<br>|

---

Statements of Changes in Net Assets

For the Year Ended October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **InfraCap REIT Preferred ETF** | **InfraCap REIT Preferred ETF** | **Virtus InfraCap<br>U.S. Preferred Stock ETF** | **Virtus InfraCap<br>U.S. Preferred Stock ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** |
|  **Increase (Decrease) in Net Assets Resulting from Operations:** |  |  |  |  |
|  Net investment income  | $2383786<br>| $1911648<br>| $35209915<br>| $17718855<br>|
|  Net realized gain (loss)  | (7418657) | 5603453 | 20290785 | 23704476 |
|  Net change in unrealized appreciation (depreciation)  | (18257024) | 3252424 | (167879060) | 53503150 |
|  Net increase (decrease) in net assets resulting from operations  | (23291895) | 10767525 | (112378360) | 94926481 |
|  Distributions to Shareholders  | (3360547) | (4362006) | (45741008) | (28242147) |
|  Distributions to Shareholders from return of capital  | (1673459) |  |  | (699861) |
|  Total distributions  | (5034006) | (4362006) | (45741008) | (28942008) |
|  **Shareholder Transactions:** |  |  |  |  |
|  Proceeds from shares sold  | 11130838 | 45994700 | 132836150 | 340991942 |
|  Cost of shares redeemed  | (16279277) | (16965073) | (45701870) | (26252374) |
|  Net increase (decrease) in net assets resulting<br>from shareholder transactions  | (5148439) | 29029627 | 87134280 | 314739568 |
|  Increase (decrease) in net assets  | (33474340) | 35435146 | (70985088) | 380724041 |
|  **Net Assets:** |  |  |  |  |
|  Beginning of year  | 87538829 | 52103683 | 527120815 | 146396774 |
|  End of year  | $54064489<br>| $87538829<br>| $456135727<br>| $527120815<br>|
|  **Changes in Shares Outstanding:** |  |  |  |  |
|  Shares outstanding, beginning of year  | 3600004 | 2400004 | 20950004 | 7600004 |
|  Shares sold  | 500000 | 1900000 | 5650000 | 14450000 |
|  Shares redeemed  | (800000) | (700000) | (2100000) | (1100000) |
|  Shares outstanding, end of year  | 3300004 | 3600004 | 24500004 | 20950004 |

---

*The accompanying notes are an integral part of these financial statements.*

Statements of Changes in Net Assets (continued)

For the Year Ended October 31, 2022

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Virtus LifeSci<br>Biotech Clinical Trials ETF** | **Virtus LifeSci<br>Biotech Clinical Trials ETF** | **Virtus LifeSci Biotech Products ETF** | **Virtus LifeSci Biotech Products ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** |
|  **Increase (Decrease) in Net Assets Resulting from Operations:** |  |  |  |  |
|  Net investment loss  | $(121956) | $(236222) | $(99780) | $(157426) |
|  Net realized gain (loss)  | (16056251) | 10104055 | (3535364) | 3689056 |
|  Net change in unrealized appreciation (depreciation)  | 1184424 | (4316597) | 1302023 | (1497303) |
|  Net increase (decrease) in net assets resulting from operations  | (14993783) | 5551236 | (2333121) | 2034327 |
|  **Shareholder Transactions:** |  |  |  |  |
|  Proceeds from shares sold  | 5967004 | 30587355 | 2288842 | 13619049 |
|  Cost of shares redeemed  | (8347720) | (37665925) | (6931707) | (18833103) |
|  Net decrease in net assets resulting from<br>shareholder transactions  | (2380716) | (7078570) | (4642865) | (5214054) |
|  Decrease in net assets  | (17374499) | (1527334) | (6975986) | (3179727) |
|  **Net Assets:** |  |  |  |  |
|  Beginning of year  | 35490433 | 37017767 | 23325209 | 26504936 |
|  End of year  | $18115934<br>| $35490433<br>| $16349223<br>| $23325209<br>|
|  **Changes in Shares Outstanding:** |  |  |  |  |
|  Shares outstanding, beginning of year  | 800004 | 950004 | 450004 | 550004 |
|  Shares sold  | 150000 | 600000 | 50000 | 250000 |
|  Shares redeemed  | (250000) | (750000) | (150000) | (350000) |
|  Shares outstanding, end of year  | 700004 | 800004 | 350004 | 450004 |

---

*The accompanying notes are an integral part of these financial statements.*

Statements of Changes in Net Assets (continued)

For the Year Ended October 31, 2022

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Virtus Newfleet<br>Multi-Sector Bond ETF** | **Virtus Newfleet<br>Multi-Sector Bond ETF** | **Virtus Private Credit Strategy ETF** | **Virtus Private Credit Strategy ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** |
|  **Increase (Decrease) in Net Assets Resulting from Operations:** |  |  |  |  |
|  Net investment income  | $1021605<br>| $689080<br>| $2703114<br>| $1910804<br>|
|  Net realized gain (loss)  | (999178) | 320669 | (1619996) | 2064796 |
|  Net change in unrealized appreciation (depreciation)  | (3244164) | 51210 | (5277112) | 6983661 |
|  Net increase (decrease) in net assets resulting from operations  | (3221737) | 1060959 | (4193994) | 10959261 |
|  Distributions to Shareholders  | (988884) | (650084) | (2736879) | (2013183) |
|  **Shareholder Transactions:** |  |  |  |  |
|  Proceeds from shares sold  | 35945947 | 2543464 | 15270250 | 31554269 |
|  Cost of shares redeemed  | (10113540) | (1277994) | (17793017) | (28420454) |
|  Net increase (decrease) in net assets resulting from shareholder transactions  | 25832407 | 1265470 | (2522767) | 3133815 |
|  Increase (decrease) in net assets  | 21621786 | 1676345 | (9453640) | 12079893 |
|  **Net Assets:** |  |  |  |  |
|  Beginning of year  | 20170763 | 18494418 | 31188706 | 19108813 |
|  End of year  | $41792549<br>| $20170763<br>| $21735066<br>| $31188706<br>|
|  **Changes in Shares Outstanding:** |  |  |  |  |
|  Shares outstanding, beginning of year  | 800004 | 750004 | 1200004 | 1100004 |
|  Shares sold  | 1600000 | 100000 | 600000 | 1250000 |
|  Shares redeemed  | (450000) | (50000) | (750000) | (1150000) |
|  Shares outstanding, end of year  | 1950004 | 800004 | 1050004 | 1200004 |

---

*The accompanying notes are an integral part of these financial statements.*

Statements of Changes in Net Assets (continued)

For the Year Ended October 31, 2022

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Virtus Real Asset Income ETF** | **Virtus Real Asset Income ETF** | **Virtus WMC International<br>Dividend ETF** | **Virtus WMC International<br>Dividend ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** |
|  **Increase (Decrease) in Net Assets Resulting from Operations:** |  |  |  |  |
|  Net investment income  | $4609440<br>| $3057015<br>| $395039<br>| $284021<br>|
|  Net realized gain (loss)  | 11560635 | (3269745) | (113707) | 412795 |
|  Net change in unrealized appreciation (depreciation)  | (30510644) | 49551417 | (1272595) | 543871 |
|  Net increase (decrease) in net assets resulting from operations  | (14340569) | 49338687 | (991263) | 1240687 |
|  Distributions to Shareholders  | (4478009) | (5617918) | (825604) | (406622) |
|  **Shareholder Transactions:** |  |  |  |  |
|  Proceeds from shares sold  | 74482507 | 47396037 | 1182444 | 1519791 |
|  Cost of shares redeemed  | (149826507) | (52343914) |  |  |
|  Net increase (decrease) in net assets resulting from shareholder transactions  | (75344000) | (4947877) | 1182444 | 1519791 |
|  Increase (decrease) in net assets  | (94162578) | 38772892 | (634423) | 2353856 |
|  **Net Assets:** |  |  |  |  |
|  Beginning of year  | 139582983 | 100810091 | 7141708 | 4787852 |
|  End of year  | $45420405<br>| $139582983<br>| $6507285<br>| $7141708<br>|
|  **Changes in Shares Outstanding:** |  |  |  |  |
|  Shares outstanding, beginning of year  | 5200004 | 5400004 | 250004 | 200004 |
|  Shares sold  | 2750000 | 2000000 | 50000 | 50000 |
|  Shares redeemed  | (6000000) | (2200000) |  |  |
|  Shares outstanding, end of year  | 1950004 | 5200004 | 300004 | 250004 |

---

Statement of Cash Flows

For the Year Ended October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | |
|:---|:---|
|  | **Virtus InfraCap<br>U.S. Preferred<br>Stock ETF** |
|  **Cash Flows From Operating Activities:** |  |
|  Net increase (decrease) in net assets from operations  | $(112378360) |
|  **Adjustments to reconcile net increase (decrease) in net assets from operations to net cash provided by (us** **ed in** **) operating activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchases of investment securities  | (158313023) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of investments  | 210990065 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized (gain) loss on investments  | (15017775) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized (gain) loss on in-kind redemptions  | (5273010) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized (appreciation) depreciation on investments  | 167879060 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in due from brokers  | 40997 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in dividends and interest receivable  | 700044 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses  | 8142 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in tax reclaim receivable  | (23203) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in advisory fees payable  | (43348) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in interest expense  | (115019) |
|  **Net cash provided by (used in) operating activities**  | **88454570** |
|  **Cash Flows provided by (used in) Financing Activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from borrowings  | (17603869) |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments for fund shares sold in excess of in-kind creations  | (24707912) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions paid  | (45741008) |
|  **Net cash provided by (used in) financing activities**  | **(88052789)** |
|  **Net increase (decrease) in cash**  | 401781 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash, beginning of year  | 826606 |
|  **Cash, end of year**  | $1228387<br>|
|  **Supplemental information:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest paid on borrowings  | $3187792<br>|
|  **Non-cash financing activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; In-kind creations — Issued  | 171358894 |
| &nbsp;&nbsp;&nbsp;&nbsp; In-kind creations — Redeemed  | 59516702 |

---

Financial Highlights

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **InfraCap REIT Preferred ETF** | **InfraCap REIT Preferred ETF** | **InfraCap REIT Preferred ETF** | **InfraCap REIT Preferred ETF** | **InfraCap REIT Preferred ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2020** | **For the<br>Year Ended<br>October 31, 2019** | **For the<br>Year Ended<br>October 31, 2018** |
|  **Per Share Data for a Share Outstanding<br>throughout each year presented:** |  |  |  |  |  |
|  Net asset value, beginning of year  | $24.32<br>| $21.71<br>| $25.26<br>| $23.65<br>| $25.76<br>|
|  Investment operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>1</sup>  | 0.68 | 0.63 | 1.05 | 1.32 | 1.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss)  | (7.18) | 3.42 | (3.14) | 1.83 | (1.85) |
|  Total from investment operations  | (6.50) | 4.05 | (2.09) | 3.15 | (0.64) |
|  **Less Distributions from:** |  |  |  |  |  |
|  Net investment income  | (0.96) | (1.44) | (1.22) | (1.30) | (1.23) |
|  Return of capital  | (0.48) |  | (0.24) | (0.24) | (0.24) |
|  Total distributions  | (1.44) | (1.44) | (1.46) | (1.54) | (1.47) |
|  **Net Asset Value, End of year**  | $16.38<br>| $24.32<br>| $21.71<br>| $25.26<br>| $23.65<br>|
|  Net Asset Value Total Return<sup>2</sup>  | (27.70)% | 18.93% | (8.06)% | 13.78% | (2.60)% |
|  Net assets, end of year (000's omitted)  | $54064<br>| $87539<br>| $52104<br>| $37885<br>| $22468<br>|
|  **RATIOS/SUPPLEMENTAL DATA:** |  |  |  |  |  |
|  **Ratios to Average Net Assets:** |  |  |  |  |  |
|  Expenses  | 0.45% | 0.45% | 0.45% | 0.45%<sup>3</sup> | 0.45%<sup>3</sup> |
|  Net investment income  | 3.25% | 2.61% | 4.75% | 5.42% | 4.93% |
|  Portfolio turnover rate<sup>4</sup>  | 79% | 144% | 38% | 66% | 70% |

---

------

1Based on average shares outstanding.

2Net Asset Value Total Return is calculated assuming an initial investment made at the net asset value on the first day of the year, reinvestment of dividends and distributions at net asset value during the year, and redemptions at net asset value on the last day of the year.

3The ratios of expenses to average net assets includes tax expense fees of less than 0.01%.

4Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund's capital shares.

Financial Highlights (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Virtus InfraCap U.S. Preferred Stock ETF** | **Virtus InfraCap U.S. Preferred Stock ETF** | **Virtus InfraCap U.S. Preferred Stock ETF** | **Virtus InfraCap U.S. Preferred Stock ETF** | **Virtus InfraCap U.S. Preferred Stock ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2020** | **For the<br>Year Ended<br>October 31, 2019** | **For the Period<br>May 15, 2018<sup>1</sup>** **<br>Through<br>October 31, 2018** |
|  **Per Share Data for a Share Outstanding<br>throughout each period presented:** |  |  |  |  |  |
|  Net asset value, beginning of period  | $25.16<br>| $19.26<br>| $26.43<br>| $24.47<br>| $24.96<br>|
|  Investment operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>2</sup>  | 1.50 | 1.18 | 1.40 | 1.44 | 0.72 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss)  | (6.09) | 6.62 | (6.25) | 2.80 | (0.45) |
|  Total from investment operations  | (4.59) | 7.80 | (4.85) | 4.24 | 0.27 |
|  **Less Distributions from:** |  |  |  |  |  |
|  Net investment income  | (1.95) | (1.59) | (1.81) | (2.28) | (0.76) |
|  Net realized gains  |  | (0.26) | (0.43) |  |  |
|  Return of capital  |  | (0.05) | (0.08) |  |  |
|  Total distributions  | (1.95) | (1.90) | (2.32) | (2.28) | (0.76) |
|  **Net Asset Value, End of period**  | $18.62<br>| $25.16<br>| $19.26<br>| $26.43<br>| $24.47<br>|
|  Net Asset Value Total Return<sup>3</sup>  | (19.28)% | 41.52% | (18.37)% | 18.37% | 1.02% |
|  Net assets, end of period (000's omitted)  | $456136<br>| $527121<br>| $146397<br>| $88525<br>| $6118<br>|
|  **RATIOS/SUPPLEMENTAL DATA:** |  |  |  |  |  |
|  **Ratios to Average Net Assets:** |  |  |  |  |  |
|  Expenses  | 1.40%<sup>4</sup> | 1.21%<sup>5</sup> | 1.47%<sup>6</sup> | 2.00 | 2.13%<sup>9,10</sup> |
|  Net investment income  | 6.64% | 4.93% | 6.93% | 5.66% | 6.22%<sup>9</sup> |
|  Portfolio turnover rate<sup>11</sup>  | 22% | 35% | 96% | 150% | 55%<sup>12</sup> |

---

------

1Commencement of operations.

2Based on average shares outstanding.

3Net Asset Value Total Return is calculated assuming an initial investment made at the net asset value on the first day of the period, reinvestment of dividends and distributions at net asset value during the period, and redemptions at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized.

4The ratios of expenses to average net assets include interest expense of 0.60%.

5The ratios of expenses to average net assets include interest expense of 0.41%.

6The ratios of expenses to average net assets include interest expense of 0.63% and dividend expense on securities sold short fees of 0.04%.

7The ratios of expenses to average net assets include interest expense of 0.75% and dividend expense on securities sold short fees of 0.45%.

8The ratios of expenses to average net assets includes tax expense fees of less than 0.01%.

9Annualized.

10The ratios of expenses to average net assets include interest expense of 1.05% and dividend expense on securities sold short fees of 0.28%.

11Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund's capital shares.

12Not annualized.

Financial Highlights (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Virtus LifeSci Biotech Clinical Trials ETF** | **Virtus LifeSci Biotech Clinical Trials ETF** | **Virtus LifeSci Biotech Clinical Trials ETF** | **Virtus LifeSci Biotech Clinical Trials ETF** | **Virtus LifeSci Biotech Clinical Trials ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2020** | **For the<br>Year Ended<br>October 31, 2019** | **For the<br>Year Ended<br>October 31, 2018** |
|  **Per Share Data for a Share Outstanding<br>throughout each year presented:** |  |  |  |  |  |
|  Net asset value, beginning of year  | $44.36<br>| $38.97<br>| $26.42<br>| $26.87<br>| $27.73<br>|
|  Investment operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>1</sup>  | (0.16) | (0.26) | (0.15) | (0.13) | (0.15) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss)  | (18.32) | 5.65 | 12.70 | (0.32) | (0.41) |
|  Total from investment operations  | (18.48) | 5.39 | 12.55 | (0.45) | (0.56) |
|  **Less Distributions from:** |  |  |  |  |  |
|  Net investment income  |  |  |  |  | (0.30) |
|  Total distributions  |  |  |  |  | (0.30) |
|  **Net Asset Value, End of year**  | $25.88<br>| $44.36<br>| $38.97<br>| $26.42<br>| $26.87<br>|
|  Net Asset Value Total Return<sup>2</sup>  | (41.66)% | 13.85% | 47.50% | (1.67)% | (2.05)% |
|  Net assets, end of year (000's omitted)  | $18116<br>| $35490<br>| $37018<br>| $23775<br>| $36269<br>|
|  **RATIOS/SUPPLEMENTAL DATA:** |  |  |  |  |  |
|  **Ratios to Average Net Assets:** |  |  |  |  |  |
|  Expenses  | 0.79% | 0.79% | 0.79% | 0.79%<sup>3</sup> | 0.79%<sup>3</sup> |
|  Net investment loss  | (0.56)% | (0.53)% | (0.41)% | (0.50)% | (0.45)% |
|  Portfolio turnover rate<sup>4</sup>  | 61% | 76% | 81% | 67% | 65% |

---

------

1Based on average shares outstanding.

2Net Asset Value Total Return is calculated assuming an initial investment made at the net asset value on the first day of the year, reinvestment of dividends and distributions at net asset value during the year, and redemptions at net asset value on the last day of the year.

3The ratios of expenses to average net assets includes tax expense fees of less than 0.01%.

4Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund's capital shares.

Financial Highlights (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Virtus LifeSci Biotech Products ETF** | **Virtus LifeSci Biotech Products ETF** | **Virtus LifeSci Biotech Products ETF** | **Virtus LifeSci Biotech Products ETF** | **Virtus LifeSci Biotech Products ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2020** | **For the<br>Year Ended<br>October 31, 2019** | **For the<br>Year Ended<br>October 31, 2018** |
|  **Per Share Data for a Share Outstanding<br>throughout each year presented:** |  |  |  |  |  |
|  Net asset value, beginning of year  | $51.83<br>| $48.19<br>| $37.86<br>| $36.33<br>| $39.34<br>|
|  Investment operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>1</sup>  | (0.26) | (0.30) | (0.19) | (0.20) | (0.21) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss)  | (4.86) | 3.94 | 10.52 | 1.73 | (2.73) |
|  Total from investment operations  | (5.12) | 3.64 | 10.33 | 1.53 | (2.94) |
|  **Less Distributions from:** |  |  |  |  |  |
|  Net investment income  |  |  |  |  | (0.07) |
|  Total distributions  |  |  |  |  | (0.07) |
|  **Net Asset Value, End of year**  | $46.71<br>| $51.83<br>| $48.19<br>| $37.86<br>| $36.33<br>|
|  Net Asset Value Total Return<sup>2</sup>  | (9.88)% | 7.56% | 27.27% | 4.22% | (7.49)% |
|  Net assets, end of year (000's omitted)  | $16349<br>| $23325<br>| $26505<br>| $26505<br>| $27248<br>|
|  **RATIOS/SUPPLEMENTAL DATA:** |  |  |  |  |  |
|  **Ratios to Average Net Assets:** |  |  |  |  |  |
|  Expenses  | 0.79% | 0.79% | 0.79% | 0.79%<sup>3</sup> | 0.79%<sup>3</sup> |
|  Net investment loss  | (0.59)% | (0.57)% | (0.43)% | (0.51)% | (0.49)% |
|  Portfolio turnover rate<sup>4</sup>  | 48% | 44% | 46% | 41% | 32% |

---

------

1Based on average shares outstanding.

2Net Asset Value Total Return is calculated assuming an initial investment made at the net asset value on the first day of the year, reinvestment of dividends and distributions at net asset value during the year, and redemptions at net asset value on the last day of the year.

3The ratios of expenses to average net assets includes tax expense fees of less than 0.01%.

4Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund's capital shares.

Financial Highlights (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Virtus Newfleet Multi-Sector Bond ETF** | **Virtus Newfleet Multi-Sector Bond ETF** | **Virtus Newfleet Multi-Sector Bond ETF** | **Virtus Newfleet Multi-Sector Bond ETF** | **Virtus Newfleet Multi-Sector Bond ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2020** | **For the<br>Year Ended<br>October 31, 2019** | **For the<br>Year Ended<br>October 31, 2018** |
|  **Per Share Data for a Share Outstanding<br>throughout each year presented:** |  |  |  |  |  |
|  Net asset value, beginning of year  | $25.21<br>| $24.66<br>| $24.54<br>| $23.85<br>| $25.84<br>|
|  Investment operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>1</sup>  | 0.90 | 0.89 | 0.96 | 1.06 | 1.12 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss)  | (3.80) | 0.50 | 0.10 | 0.74 | (1.51) |
|  Total from investment operations  | (2.90) | 1.39 | 1.06 | 1.80 | (0.39) |
|  **Less Distributions from:** |  |  |  |  |  |
|  Net investment income  | (0.88) | (0.84) | (0.91) | (1.02) | (1.15) |
|  Net realized gains  |  |  |  |  | (0.45) |
|  Return of capital  |  |  | (0.03) | (0.09) |  |
|  Total distributions  | (0.88) | (0.84) | (0.94) | (1.11) | (1.60) |
|  **Net Asset Value, End of year**  | $21.43<br>| $25.21<br>| $24.66<br>| $24.54<br>| $23.85<br>|
|  Net Asset Value Total Return<sup>2</sup>  | (11.72)% | 5.71% | 4.51% | 7.74% | (1.62)% |
|  Net assets, end of year (000's omitted)  | $41793<br>| $20171<br>| $18494<br>| $24535<br>| $98959<br>|
|  **RATIOS/SUPPLEMENTAL DATA:** |  |  |  |  |  |
|  **Ratios to Average Net Assets:** |  |  |  |  |  |
|  Expenses, net of expense waivers  | 0.49% | 0.49%<sup>3</sup> | 0.55%<sup>3</sup> | 0.80% | 0.80% |
|  Expenses, prior to expense waivers  | 1.02% | 1.21%<sup>3</sup> | 1.15%<sup>3</sup> | 1.06% | 0.86% |
|  Net investment income  | 3.92% | 3.52% | 3.95% | 4.37% | 4.51% |
|  Portfolio turnover rate<sup>4</sup>  | 84% | 107% | 103% | 95% | 82% |

---

------

1Based on average shares outstanding.

2Net Asset Value Total Return is calculated assuming an initial investment made at the net asset value on the first day of the year, reinvestment of dividends and distributions at net asset value during the year, and redemptions at net asset value on the last day of the year.

3The ratios of expenses to average net assets includes tax expense fees of less than 0.01%.

4Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund's capital shares.

Financial Highlights (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Virtus Private Credit Strategy ETF** | **Virtus Private Credit Strategy ETF** | **Virtus Private Credit Strategy ETF** | **Virtus Private Credit Strategy ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2020** | **For the Period<br>February 7, 2019<sup>1</sup>** **<br>Through<br>October 31, 2019** |
|  **Per Share Data for a Share Outstanding<br>throughout ea** **ch period presented:** |  |  |  |  |
|  Net asset value, beginning of period  | $25.99<br>| $17.37<br>| $24.72<br>| $24.85<br>|
|  Investment operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>2</sup>  | 2.13 | 1.71 | 1.89 | 1.70 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss)  | (5.33) | 8.62 | (7.20) | (0.45) |
|  Total from investment operations  | (3.20) | 10.33 | (5.31) | 1.25 |
|  **Less Distributions from:** |  |  |  |  |
|  Net investment income  | (2.09) | (1.71) | (2.04) | (1.38) |
|  Total distributions  | (2.09) | (1.71) | (2.04) | (1.38) |
|  **Net Asset Value, End of period**  | $20.70<br>| $25.99<br>| $17.37<br>| $24.72<br>|
|  Net Asset Value Total Return<sup>3</sup>  | (12.75)% | 61.32% | (21.70)% | 5.03% |
|  Net assets, end of period (000's omitted)  | $21735<br>| $31189<br>| $19109<br>| $211344<br>|
|  **RATIOS/SUPPLEMENTAL DATA:** |  |  |  |  |
|  **Ratios to Average Net Assets:** |  |  |  |  |
|  Expenses  | 0.75% | 0.75% | 0.75%<sup>4</sup> | 0.75%<sup>5</sup> |
|  Net investment income  | 8.97% | 7.27% | 8.59% | 9.24%<sup>5</sup> |
|  Portfolio turnover rate<sup>6</sup>  | 27% | 34% | 24% | 22%<sup>7</sup> |

---

------

1Commencement of operations.

2Based on average shares outstanding.

3Net Asset Value Total Return is calculated assuming an initial investment made at the net asset value on the first day of the period, reinvestment of dividends and distributions at net asset value during the period, and redemptions at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized.

4The ratios of expenses to average net assets includes tax expense fees of less than 0.01%.

5Annualized.

6Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund's capital shares.

7Not annualized.

Financial Highlights (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Virtus Real Asset Income ETF** | **Virtus Real Asset Income ETF** | **Virtus Real Asset Income ETF** | **Virtus Real Asset Income ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2020** | **For the Period<br>February 7, 2019<sup>1</sup>** **<br>Through<br>October 31, 2019** |
|  **Per Share Data for a Share Outstanding<br>throughout each period presented:** |  |  |  |  |
|  Net asset value, beginning of period  | $26.84<br>| $18.67<br>| $24.72<br>| $24.79<br>|
|  Investment operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>2</sup>  | 0.93 | 0.57 | 0.64 | 0.58 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss)  | (3.61) | 8.66 | (5.95) | (0.12) |
|  Total from investment operations  | (2.68) | 9.23 | (5.31) | 0.46 |
|  **Less Distributions from:** |  |  |  |  |
|  Net investment income  | (0.87) | (1.06) | (0.74) | (0.53) |
|  Total distributions  | (0.87) | (1.06) | (0.74) | (0.53) |
|  **Net Asset Value, End of period**  | $23.29<br>| $26.84<br>| $18.67<br>| $24.72<br>|
|  Net Asset Value Total Return<sup>3</sup>  | (10.25)% | 50.16% | (21.53)% | 1.87% |
|  Net assets, end of period (000's omitted)  | $45420<br>| $139583<br>| $100810<br>| $244751<br>|
|  **RATIOS/SUPPLEMENTAL DATA:** |  |  |  |  |
|  **Ratios to Average Net Assets:** |  |  |  |  |
|  Expenses  | 0.55% | 0.55% | 0.55%<sup>4</sup> | 0.55%<sup>5</sup> |
|  Net investment income  | 3.52% | 2.30% | 2.93% | 3.20%<sup>5</sup> |
|  Portfolio turnover rate<sup>6</sup>  | 70% | 66% | 91% | 15%<sup>7</sup> |

---

------

1Commencement of operations.

2Based on average shares outstanding.

3Net Asset Value Total Return is calculated assuming an initial investment made at the net asset value on the first day of the period, reinvestment of dividends and distributions at net asset value during the period, and redemptions at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized.

4The ratios of expenses to average net assets includes tax expense fees of less than 0.01%.

5Annualized.

6Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund's capital shares.

7Not annualized.

Financial Highlights (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Virtus WMC International Dividend ETF** | **Virtus WMC International Dividend ETF** | **Virtus WMC International Dividend ETF** | **Virtus WMC International Dividend ETF** | **Virtus WMC International Dividend ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2020** | **For the<br>Year Ended<br>October 31, 2019** | **For the<br>Year Ended<br>October 31, 2018** |
|  **Per Share Data for a Share Outstanding<br>throughout each year presented:** |  |  |  |  |  |
|  Net asset value, beginning of year  | $28.57<br>| $23.94<br>| $26.41<br>| $24.97<br>| $25.10<br>|
|  Investment operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>1</sup>  | 1.50 | 1.29 | 0.52 | 0.52 | 0.50 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss)  | (5.13) | 5.18 | (2.08) | 1.95 | (0.53) |
|  Total from investment operations  | (3.63) | 6.47 | (1.56) | 2.47 | (0.03) |
|  **Less Distributions from:** |  |  |  |  |  |
|  Net investment income  | (1.69) | (1.15) | (0.91) | (0.49) | (0.10) |
|  Net realized gains  | (1.56) | (0.69) |  | (0.54) |  |
|  Total distributions  | (3.25) | (1.84) | (0.91) | (1.03) | (0.10) |
|  **Net Asset Value, End of year**  | $21.69<br>| $28.57<br>| $23.94<br>| $26.41<br>| $24.97<br>|
|  Net Asset Value Total Return<sup>2</sup>  | (14.03)% | 27.41% | (6.20)% | 10.60% | (0.11)% |
|  Net assets, end of year (000's omitted)  | $6507<br>| $7142<br>| $4788<br>| $5281<br>| $4995<br>|
|  **RATIOS/SUPPLEMENTAL DATA:** |  |  |  |  |  |
|  **Ratios to Average Net Assets:** |  |  |  |  |  |
|  Expenses  | 0.49% | 0.49% | 0.49% | 0.49%<sup>3</sup> | 0.49%<sup>3</sup> |
|  Net investment income  | 5.87% | 4.47% | 2.04% | 2.08% | 1.88% |
|  Portfolio turnover rate<sup>4</sup>  | 50% | 68% | 211% | 88% | 80% |

---

------

1Based on average shares outstanding.

2Net Asset Value Total Return is calculated assuming an initial investment made at the net asset value on the first day of the year, reinvestment of dividends and distributions at net asset value during the year, and redemptions at net asset value on the last day of the year.

3The ratios of expenses to average net assets includes tax expense fees of less than 0.01%.

4Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund's capital shares.

Notes to Financial Statements

October 31, 2022

**1. ORGANIZATION** 

The ETFis Series Trust I (the "Trust") was organized as a Delaware statutory trust on September 20, 2012 and is registered with the U.S. Securities and Exchange Commission (the "SEC") as an open-end management investment company under the Investment Company Act of 1940 (the "1940 Act").

As of October 31, 2022, ten funds of the Trust are offered for sale. The InfraCap REIT Preferred ETF, Virtus InfraCap U.S. Preferred Stock ETF, Virtus LifeSci Biotech Clinical Trials ETF, Virtus LifeSci Biotech Products ETF, Virtus Newfleet Multi-Sector Bond ETF, Virtus Private Credit Strategy ETF, Virtus Real Asset Income ETF and Virtus WMC International Dividend ETF (each a "Fund" and collectively, the "Funds") are presented in this annual report. The offering of each Fund's shares is registered under the Securities Act of 1933 (the "Securities Act").

---

| | |
|:---|:---|
| **Funds** | **Investment objective(s)** |
|  InfraCap REIT Preferred ETF  | Seeks investment results that correspond, before fees and expenses, to the price and yield performance of the Indxx REIT Preferred Stock Index.  |
|  Virtus InfraCap U.S. Preferred Stock ETF  | Seeks current income and, secondarily, capital appreciation.  |
|  Virtus LifeSci Biotech Clinical Trials ETF  | Seeks investment results that correspond, before fees and expenses, to the price and yield performance of the LifeSci Biotechnology Clinical Trials Index.  |
|  Virtus LifeSci Biotech Products ETF  | Seeks investment results that correspond, before fees and expenses, to the price and yield performance of the LifeSci Biotechnology Products Index.  |
|  Virtus Newfleet Multi-Sector Bond ETF  | Seeks to provide a high level of current income and, secondarily, capital appreciation. |
|  Virtus Private Credit Strategy ETF  | Seeks investment results that correspond, before fees and expenses, to the price and yield performance of the Indxx Private Credit Index.  |
|  Virtus Real Asset Income ETF  | Seeks investment results that correspond, before fees and expenses, to the price and yield performance of the Indxx Real Asset Income Index.  |
|  Virtus WMC International Dividend ETF  | Seeks income.  |

---

There is no guarantee that a Fund will achieve its objective(s).

InfraCap REIT Preferred ETF and Virtus InfraCap U.S. Preferred Stock ETF are "non-diversified" Funds, as defined under the 1940 Act, as of the year ended October 31, 2022. Virtus Private Credit Strategy ETF is a "fund of funds," meaning it will generally invest its assets in other registered investment companies.

**2. SIGNIFICANT ACCOUNTING POLICIES** 

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 Financial Services — Investment Companies. Each Fund prepares its financial statements in accordance with generally accepted accounting principles ("GAAP") in the United States of America and follows the significant accounting policies described below.

**(a) Use of Estimates** 

Management makes certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of increases and decreases in the net assets from operations during the reporting period. Actual results could differ from those estimates.

**(b) Indemnification** 

In the normal course of business, the Funds may enter into contracts that contain a variety of representations which provide general indemnifications for certain liabilities. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

**(c) Security Valuation** 

A description of the valuation techniques applied to the Funds' major categories of assets and liabilities measured at fair value on a recurring basis is as follows:

Equity securities and Exchange-Traded Funds are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded. Securities regularly traded in an over the counter market are valued at the latest quoted sale price in such market or in the case of the New York Stock Exchange ("NYSE"), at the NYSE Official Closing Price. Such valuations are typically categorized as Level 1 in the fair value hierarchy. If market quotations are not readily available, or if it is determined that a quotation of

Notes to Financial Statements (continued)

October 31, 2022

a security does not represent fair value, then the security is valued at fair value as determined in good faith using procedures adopted by the Trust's Board of Trustees (the "Board"). Such valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For most bond types, the pricing service utilizes matrix pricing that considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type, and current day trade information, as well as dealer-supplied prices. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. Such valuations are typically categorized as Level 2 in the fair value hierarchy. Debt securities that are not widely traded, are illiquid, or are internally fair valued using procedures adopted by the Board are generally categorized as Level 3 in the hierarchy.

Listed derivatives, such as options, that are actively traded are valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include options, do not require material subjectivity as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.

Investments in other open-end investment companies are valued based on their net asset value each business day. Investments in closed-end funds are valued as of the close of regular trading on the NYSE each business day. Each is categorized as Level 1 in the fair value hierarchy.

**(d) Fair Value Measurement** 

Accounting Standards Codification, Fair Value Measurements and Disclosures ("ASC 820") defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and requires disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction is not orderly, and how that information must be incorporated into fair value measurement. Under ASC 820, various inputs are used in determining the value of the Funds' investments. Each Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. These inputs are summarized in the following hierarchy:

• Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.

• Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

• Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Funds' own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The hierarchy classification of inputs used to value each Fund's investments at October 31, 2022, is disclosed at the end of each Fund's Schedule of Investments.

**(e) Security Transactions and Investment Income** 

Security transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using specific identification. Dividend income is recognized on the ex-dividend date. Expenses and interest income are recognized on the accrual basis. Amortization of premium and accretion of discount on debt securities are included in interest income. Each Fund amortizes premiums and accretes discounts using the effective interest method.

Dividend income from REIT investments is recorded using management's estimate of the income included in distributions received from the REIT investments. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each domestic REIT after its fiscal year-end, and may differ from the estimated amounts.

**(f) Foreign Taxes** 

Certain Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. Each Fund will accrue such taxes and recoveries as applicable based upon current interpretations of the tax rules and regulations that exist in the markets in which it invests.

Notes to Financial Statements (continued)

October 31, 2022

**(g) Expenses** 

Each Fund pays all of its expenses not assumed by its Sub-Adviser, if any, as defined in Note 3, or the Adviser. General Trust expenses that are allocated among and charged to the assets of the Funds and other series of the Trust are done so on a basis that the Board deems fair and equitable, which may be on a basis of relative net assets of each Fund and other series of the Trust or the nature of the services performed and relative applicability to each Fund and other series of the Trust.

**(h) Short Sales** 

The Virtus InfraCap U.S. Preferred Stock ETF may sell securities short. A short sale is a transaction in which the Fund sells a security it does not own in anticipation of a decline in market price. To sell a security short, the Fund must borrow the security. The Fund's obligation to replace the security borrowed and sold short will be fully collateralized at all times by the proceeds from the short sale retained by the broker and by cash and securities deposited in a segregated account with the Fund's custodian. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will realize a loss, and if the price declines during the period, the Fund will realize a gain. Any realized gain will be decreased, and any realized loss increased, by the amount of transaction costs. On the ex-dividend date, dividends on short sales are recorded as an expense to the Fund.

In accordance with the terms of its prime brokerage agreement, the Fund may receive rebate income or be charged a fee on borrowed securities which is reported as "Interest Expense" on the Statement of Operations. Such income or fee is calculated on a daily basis based upon the market value of each borrowed security and a variable rate that is dependent upon the availability of such security.

**(i) Distributions to Shareholders** 

Distributions are recorded by the Funds on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations that may differ from GAAP in the United States of America.

**(j) Foreign Currency Translation** 

Non-U.S. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the foreign currency exchange rate effective at the end of the reporting period. Cost of investments is translated at the currency exchange rate effective at the trade date. The gain or loss resulting from a change in currency exchange rates between the trade and settlement date of a portfolio transaction is treated as a gain or loss on foreign currency. Likewise, the gain or loss resulting from a change in currency exchange rates between the date the income is accrued and the date it is paid is treated as a gain or loss on foreign currency. The Funds do not isolate that portion of the results of operations arising from changes in foreign exchange rates on investments from the fluctuations arising from changes in the market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

**(k) Cash and Cash Equivalents**

Cash is comprised of demand deposits. Cash equivalents are highly liquid investments with original maturities of 90 days or less. The carrying amount of cash equivalents, primarily representing money market funds is a reasonable estimate of fair value. These assets are considered to be Level 1 securities, per Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures.

**(l) Loan Agreements** 

The Virtus Newfleet Multi-Sector Bond ETF may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Loan agreements are generally non-investment grade and often involve borrowers that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. Loan agreements are typically senior in the corporate capital structure of the borrower. A loan is often administered by a bank or other financial institution (the "lender") that acts as agent for all holders. The lender administers the terms of the loan, as specified in the loan agreement. The Fund's investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When investing in loan participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the loan participation and only upon receipt by the lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan.

The Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Loan agreements may involve foreign borrowers, and investments may be denominated in foreign currencies. Direct indebtedness of emerging countries involves a risk that the government entities responsible for the repayment of the debt may be unable, or unwilling, to pay the principal and interest when due.

Notes to Financial Statements (continued)

October 31, 2022

The loan agreements have floating rate loan interests which generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally LIBOR (London Interbank Offered Rate), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a loan agreement is purchased, the Fund may pay an assignment fee. On an ongoing basis, the Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a loan agreement. Prepayment penalty fees are received upon the prepayment of a loan agreement by a borrower. Prepayment penalty, facility, commitment, consent and amendment fees are recorded to income as earned or paid.

**(m) Securities Lending** 

Certain Funds may loan securities to qualified brokers through an agreement with The Bank of New York Mellon ("BNY Mellon"), as a third party lending agent. Under the terms of the agreement, a Fund doing so is required to maintain collateral with a market value not less than 102% of the market value of loaned securities. Collateral is adjusted daily in connection with changes in the market value of securities on loan. Collateral may consist of cash and securities issued by the U.S. Government or its agencies. Cash collateral is invested in a short-term money market fund. Dividends earned on the collateral and premiums paid by the broker are recorded as income by a Fund net of fees and rebates charged by BNY Mellon for its services as securities lending agent and in connection with this securities lending program. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the declining value of the collateral.

At October 31, 2022, the following Funds had securities on loan:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Funds** | **Market Value** | **Cash<br>Collateral** | **Non Cash<br>Collateral<sup>(a)</sup>** | **Net Amount<sup>(b)</sup>** |
|  Virtus LifeSci Biotech Clinical Trials ETF  | $3701660<br>| $1448554<br>| $2420625<br>| $0<br>|
|  Virtus LifeSci Biotech Products ETF  | 1380978 | 246755 | 1211096 | 0 |
|  Virtus Private Credit Strategy ETF  | 4182352 | 4216806 | 99353 | 0 |
|  Virtus Real Asset Income ETF  | 3915605 | 3458152 | 531895 | 0 |

---

------

(a) Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund's statement of assets and liabilities.

(b) Net amount represents the net amount receivable due from the counterparty in the event of default.

Funds not listed in table above did not have any securities on loan at October 31, 2022.

The following table presents the contract value of securities lending transactions and the type of collateral provided to counterparties.

**Remaining Contractual Maturity of the Agreements, as of October 31, 2022**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Overnight and<br>Continuous** | **Between** | **Between** | **Between** | **Total** |
|  | **Overnight and<br>Continuous** | **<30 Days** | **30 & 90 days** | **>90 days** | **Total** |
|  **Virtus LifeSci Biotech Clinical Trials ETF** |  |  |  |  |  |
|  Securities Lending Transactions |  |  |  |  |  |
|  Common Stocks  | $3869179<br>| $—<br>| $—<br>| $—<br>| $3869179<br>|
|  Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | $3869179<br>|
|  **Virtus LifeSci Biotech Products ETF** |  |  |  |  |  |
|  Securities Lending Transactions |  |  |  |  |  |
|  Common Stocks  | $1457851<br>| $—<br>| $—<br>| $—<br>| $1457851<br>|
|  Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | $1457851<br>|
|  **Virtus Private Credit Strategy ETF** |  |  |  |  |  |
|  Securities Lending Transactions |  |  |  |  |  |
|  Common Stocks  | $4316159<br>| $—<br>| $—<br>| $—<br>| $4316159<br>|
|  Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | $4316159<br>|
|  **Virtus Real Asset Income ETF** |  |  |  |  |  |
|  Securities Lending Transactions |  |  |  |  |  |
|  Common Stocks  | $3990047<br>| $—<br>| $—<br>| $—<br>| $3990047<br>|
|  Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | Gross amount of recognized liabilities for securities lending transactions: | $3990047  |

---

Notes to Financial Statements (continued)

October 31, 2022

**3. INVESTMENT MANAGEMENT RELATED PARTIES AND OTHER AGREEMENTS** 

**Investment Advisory Agreements** 

The Trust, on behalf of each Fund, has entered into Investment Advisory Agreements (collectively, the "Advisory Agreement") with Virtus ETF Advisers LLC (the "Adviser"), an indirect wholly owned subsidiary of Virtus Investment Partners, Inc. (Ticker: VRTS) (together with its affiliates, "Virtus"). Pursuant to the Advisory Agreement, the Adviser has overall supervisory responsibility for the general management and investment of the Funds' securities portfolios. The Adviser has agreed to pay all of the ordinary operating expenses of the Virtus LifeSci Biotech Clinical Trials ETF, Virtus LifeSci Biotech Products ETF, Virtus Private Credit Strategy ETF, Virtus Real Asset Income ETF, and Virtus WMC International Dividend ETF, except for each Fund's management fee; payments under any 12b-1 plan; taxes and other governmental fees; brokerage fees, commissions and other transaction expenses; interest and other costs of borrowing; litigation or arbitration expenses; acquired fund fees and expenses; and extraordinary or other non-routine expenses of the Funds. The Adviser is entitled to receive a fee from each Fund (unless otherwise noted below) based on each Fund's average daily net assets, computed and accrued daily and payable monthly, at an annual rate as follows:

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| | |
|:---|:---|
| **Funds** | **Rate** |
|  InfraCap REIT Preferred ETF  | 0.45%, subject to a minimum annual fee of $25,000 per year |
|  Virtus InfraCap U.S. Preferred Stock ETF  | 0.80% |
|  Virtus LifeSci Biotech Clinical Trials ETF  | 0.79% |
|  Virtus LifeSci Biotech Products ETF  | 0.79% |
|  Virtus Newfleet Multi-Sector Bond ETF  | 0.45% |
|  Virtus Private Credit Strategy ETF  | 0.75% |
|  Virtus Real Asset Income ETF  | 0.55% |
|  Virtus WMC International Dividend ETF  | 0.49% |

---

The Advisory Agreement may be terminated by the Trust on behalf of a Fund with the approval of a Fund's Board or by a vote of the majority of a Fund's shareholders. The Advisory Agreement may also be terminated by the Adviser by not more than 60 days' nor less than 30 days' written notice.

**Expense Limitation Agreement** 

The Adviser has contractually agreed to reduce its fees and reimburse expenses in order to limit Virtus Newfleet Multi-Sector Bond ETF's total operating expenses (excluding interest, taxes, brokerage fees and commissions, other expenditures that are capitalized in accordance with generally accepted accounting principles, acquired fund fees and expenses, other extraordinary expenses not incurred in the ordinary course of the Funds' business, and amounts, if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act) from exceeding 0.49% of the Fund's average daily net assets through at least February 28, 2023.

The expense limitation agreement with respect to Virtus Newfleet Multi-Sector Bond ETF will be terminated upon termination of<br>the Advisory Agreement between the Adviser and the Fund. In addition, while the Adviser or the Fund may discontinue the expense<br>limitation agreement after the contractual period, it may only be terminated during its term with the approval of the Fund's Board<br>of Trustees.

Under certain conditions, the Adviser may recapture operating expenses waived or reimbursed under the expense limitation agreement for a period of three years following the date on which such waiver or reimbursement occurred; provided that such recapture may not cause the Fund's total operating expenses to exceed 0.49% of the average daily net assets of the Fund (or any lower expense limitation or limitations to which the Fund and the Adviser may otherwise agree). All or a portion of the following expenses reimbursed by the Adviser may be recaptured during the fiscal years indicated:

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **2023** | **2024** | **2025** |
|  Virtus Newfleet Multi-Sector Bond ETF  | $125300  | $140870  | $137763  |

---

**Sub-Advisory Agreement** 

Each Sub-Adviser provides investment advice and management services to its respective Fund. Pursuant to an investment sub-advisory agreement among the Trust, the respective Sub-Adviser and the Adviser, the Adviser pays each Fund's Sub-Adviser a sub-advisory fee calculated as shown below. The Adviser has delegated to the InfraCap REIT Preferred ETF and Virtus InfraCap U.S. Preferred Stock ETF's sub-adviser the obligation to pay all of the ordinary operating expenses of each of those Funds, except for the management fee paid to the Adviser; payments under any 12b-1 plan adopted by the Fund; taxes and other governmental fees; brokerage fees, commissions and other transaction expenses; interest and other costs of borrowing; litigation or arbitration expenses; acquired fund fees and expenses; and extraordinary or other non-routine expenses of the Fund. The Sub-Advisers and sub-advisory fees for each Fund are listed below.

Notes to Financial Statements (continued)

October 31, 2022

---

| | | |
|:---|:---|:---|
| **Funds** | **Sub-Advisers** | **Sub-Advisory Fees** |
| InfraCap REIT Preferred ETF  | Infrastructure Capital Advisors, LLC | 0.375%\* |
| Virtus InfraCap U.S. Preferred Stock ETF  | Infrastructure Capital Advisors, LLC | 0.66%\* |
| Virtus Newfleet Multi-Sector Bond ETF  | Virtus Fixed Income Advisers, LLC, operating through its division Newfleet Asset Management<sup>(1)</sup> | 50% of the net advisory fee\*+ |
| Virtus WMC International Dividend ETF  | Wellington Management Company LLP | 0.21%\* |

---

------

(1)An indirect wholly owned subsidiary of Virtus.

\*InfraCap REIT Preferred ETF, Virtus InfraCap U.S. Preferred Stock ETF, Virtus Newfleet Multi-Sector Bond ETF and Virtus WMC International Dividend ETF's sub-advisory fees are paid for by the Adviser, not the Funds.

+Net advisory fee: In the event the Adviser waives its entire fee and also assumes expenses of the Trust pursuant to an applicable expense limitation agreement, the Sub-Adviser will similarly waive its entire fee and will share in the expense assumption by promptly paying to the Adviser (or its designee) 50% of the assumed amount. If during the term of the Sub-Advisory Agreement the Adviser later recaptures some or all of fees waived or expenses reimbursed by the Adviser and the Sub-Adviser together, then the Adviser will pay to the Sub-Adviser 50% of the amount recaptured.

**Principal Underwriter** 

Pursuant to the terms of a Distribution Agreement with the Trust, VP Distributors, LLC (the "Distributor") serves as the Funds' principal underwriter. The Distributor receives compensation from the Adviser for the statutory underwriting services it provides to the Funds. The Distributor will not distribute shares in less than Creation Units (as hereinafter defined), and does not maintain a secondary market in shares. The shares are traded in the secondary market. The Distributor is an indirect wholly-owned subsidiary of Virtus.

**Distribution and Service (12b-1 Plan)** 

The Board of Trustees has adopted a distribution and service plan, under which InfraCap REIT Preferred ETF, Virtus InfraCap U.S. Preferred Stock ETF, Virtus LifeSci Biotech Clinical Trials ETF, Virtus LifeSci Biotech Products ETF, Virtus Private Credit Strategy ETF, Virtus Real Asset Income ETF, and Virtus WMC International Dividend ETF (collectively, the "12b-1 Funds") are authorized to pay an amount up to 0.25% of their average daily net assets each year to finance activities primarily intended to result in the sale of Creation Units of the 12b-1 Funds or the provision of investor services. No 12b-1 fees are currently paid by the 12b-1 Funds and there are no current plans to impose these fees.

**Operational Administrator** 

Virtus ETF Solutions LLC (the "Administrator") serves as the Funds' operational administrator. The Administrator supervises the overall administration of the Trust and the Funds including, among other responsibilities, the coordination and day-to-day oversight of the Funds' operations, the service providers' communications with the Funds and each other and assistance with Trust, Board and contractual matters related to the Funds and other series of the Trust. The Administrator also provides persons satisfactory to the Board to serve as officers of the Trust. The Administrator is an indirect wholly-owned subsidiary of Virtus.

**Accounting Services Administrator, Custodian and Transfer Agent** 

The Bank of New York Mellon ("BNY Mellon") provides administrative, accounting, tax and financial reporting for the maintenance and operations of the Trust as the Funds' accounting services administrator. BNY Mellon also serves as the custodian for the Funds' assets, and serves as transfer agent and dividend paying agent for the Funds.

**Affiliated Shareholders** 

At October 31, 2022, Virtus Partners, Inc. held shares of Virtus WMC International Dividend ETF which may be sold at any time that aggregated to the following:

---

| | | |
|:---|:---|:---|
|  | **Shares** | **% of share<br>outstanding** |
|  Virtus WMC International Dividend ETF  | 184507 | 61.5% |

---

At October 31, 2022, the sub-adviser of the below Funds held shares of such Fund which may be redeemed at any time that aggregated to the following:

---

| | | |
|:---|:---|:---|
|  | **Shares** | **% of share outstanding** |
|  InfraCap REIT Preferred ETF  | 4195 | 0.1% |
|  Virtus InfraCap U.S. Preferred Stock ETF  | 597255 | 2.4% |

---

Notes to Financial Statements (continued)

October 31, 2022

**4. CREATION AND REDEMPTION TRANSACTIONS** 

The Funds issue and redeem shares on a continuous basis at Net Asset Value ("NAV") in groups of 50,000 shares called "Creation Units." The Funds' Creation Units may be issued and redeemed generally for cash or an in-kind deposit of securities held by the Funds. In each instance of cash creations or redemptions, the Trust may impose transaction fees based on transaction expenses related to the particular exchange that will be higher than the transaction fees associated with in-kind purchases or redemptions.

Only "Authorized Participants" who have entered into contractual arrangements with the Distributor may purchase or redeem shares directly from the Funds. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Funds. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.

**5. FEDERAL INCOME TAX** 

Each Fund intends to qualify as a "regulated investment company" under Sub-chapter M of the Internal Revenue Code of 1986 (the "Code"), as amended. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders. Therefore, no federal income or excise tax provision is required. Accounting for Uncertainty in Income Taxes as issued by the Financial Accounting Standards Board provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements, and requires the evaluation of tax positions taken or expected to be taken in the course of preparing a Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Interest and penalties related to income taxes would be recorded as income tax expense. Management of the Funds is required to analyze all open tax years (2020, 2021 and 2022), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of October 31, 2022, the Funds did not have a liability for any unrecognized tax benefits or uncertain tax positions that would require recognition in the financial statements. The Funds have no examination in progress and are not aware of any tax positions for which it is reasonably possible that the amounts of unrecognized tax benefits will significantly change in the next twelve months.

The Funds recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. For the year ended October 31, 2022, the Funds had no accrued penalties or interest.

At October 31, 2022, the adjusted cost basis of investments and gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Federal Tax Cost<br>Of Investments** | **Gross Unrealized<br>Appreciation** | **Gross Unrealized<br>Depreciation** | **Net Unrealized<br>Appreciation<br>(Depreciation)** |
|  InfraCap REIT Preferred ETF  | $68581660<br>| $234024<br>| $(15047446) | $(14813422) |
|  Virtus InfraCap U.S. Preferred Stock ETF  | 708618067 | 2541613 | (121087994) | (118546381) |
|  Virtus LifeSci Biotech Clinical Trials ETF  | 28099462 | 3371987 | (12105182) | (8733195) |
|  Virtus LifeSci Biotech Products ETF  | 18895956 | 2225605 | (4697681) | (2472076) |
|  Virtus Newfleet Multi-Sector Bond ETF  | 38712344 | 48658 | (3106073) | (3057415) |
|  Virtus Private Credit Strategy ETF  | 30989132 | 39676 | (5541823) | (5502147) |
|  Virtus Real Asset Income ETF  | 62041783 | 1793980 | (16155569) | (14361589) |
|  Virtus WMC International Dividend ETF  | 7590116 | 157777 | (1294229) | (1136452) |

---

At October 31, 2022, the components of accumulated earnings/loss on a tax-basis were as follows:

Notes to Financial Statements (continued)

October 31, 2022

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Undistributed<br>Ordinary Income** | **Accumulated<br>Capital and<br>Other Gain<br>(Loss)** | **Net Unrealized<br>Appreciation<br>(Depreciation)** | **Total<br>Accumulated<br>Earnings (Loss)** |
|  InfraCap REIT Preferred ETF  | $—<br>| $(10418727) | $(14813422) | $(25232149) |
|  Virtus InfraCap U.S. Preferred Stock ETF  | 2039242  |  | (118546381) | (116507139) |
|  Virtus LifeSci Biotech Clinical Trials ETF  |  | (51301773) | (8733195) | (60034968) |
|  Virtus LifeSci Biotech Products ETF  |  | (16577490) | (2472076) | (19049566) |
|  Virtus Newfleet Multi-Sector Bond ETF  | 52553  | (3886773) | (3057415) | (6891635) |
|  Virtus Private Credit Strategy ETF  | 184934 | (8663434) | (5502148) | (13980648) |
|  Virtus Real Asset Income ETF  | 654062 | (36995219) | (14361589) | (50702746) |
|  Virtus WMC International Dividend ETF  | 20003 | (76723) | (1138330) | (1195050) |

---

Ordinary losses incurred after December 31 ("Late Year Ordinary Losses") within the taxable year are deemed to arise on the first business day of the Funds' next taxable year. During the fiscal year ended October 31, 2022, the following Funds incurred and elected to defer Late Year Ordinary Losses as follows:

---

| | |
|:---|:---|
|  Virtus LifeSci Biotech Clinical Trials ETF  | $83467<br>|
|  Virtus LifeSci Biotech Products ETF  | 80481  |

---

The tax character of dividends and distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
|  | **Distributions<br>Paid From<br>Ordinary<br>Income** | **Return of<br>Capital** | **Distributions<br>Paid From<br>Long-Term<br>Capital Gains** | **Distributions<br>Paid From<br>Ordinary<br>Income** | **Return of<br>Capital** | **Distributions<br>Paid From<br>Long-Term<br>Capital Gains** |
|  InfraCap REIT Preferred ETF  | $3360547<br>| $1673459<br>| $—<br>| $4362006<br>| $—<br>| $—<br>|
|  Virtus InfraCap U.S. Preferred Stock ETF  | 37742883 |  | 7998125 | 24292189 | 699861 | 3949958 |
|  Virtus LifeSci Biotech Clinical Trials ETF  |  |  |  |  |  |  |
|  Virtus LifeSci Biotech Products ETF  |  |  |  |  |  |  |
|  Virtus Newfleet Multi-Sector Bond ETF  | 988884 |  |  | 650084 |  |  |
|  Virtus Private Credit Strategy ETF  | 2736879 |  |  | 2013183 |  |  |
|  Virtus Real Asset Income ETF  | 4478009 |  |  | 5617918 |  |  |
|  Virtus WMC International Dividend ETF  | 809301 |  | 16303 | 406622 |  |  |

---

Short-term gain distributions if any, are reported as ordinary income for federal tax purposes.

At October 31, 2022, for Federal income tax purposes, the following Funds have capital loss carryforwards available to offset future capital gains for an unlimited period. To the extent that these loss carryforwards are utilized, capital gains so offset will not be distributed to shareholders:

---

| | | | |
|:---|:---|:---|:---|
|  | **Short-Term<br>No Expiration** | **Long-Term<br>No Expiration** | **Total** |
|  InfraCap REIT Preferred ETF  | $10418727<br>| $—<br>| $10418727<br>|
|  Virtus InfraCap U.S. Preferred Stock ETF  |  |  |  |
|  Virtus LifeSci Biotech Clinical Trials ETF  | 25488776 | 25729530 | 51218306 |
|  Virtus LifeSci Biotech Products ETF  | 5252218 | 11244791 | 16497009 |
|  Virtus Newfleet Multi-Sector Bond ETF  | 1267771 | 2619002 | 3886773 |
|  Virtus Private Credit Strategy ETF  | 3257094 | 5406340 | 8663434 |
|  Virtus Real Asset Income ETF  | 22284472 | 14710747 | 36995219 |
|  Virtus WMC International Dividend ETF  | 76723 |  | 76723 |

---

Notes to Financial Statements (continued)

October 31, 2022

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Results of operations and net assets were not affected by these reclassifications. Reclassifications are primarily due to tax treatment of redemptions in kind. At October 31, 2022, the effect of permanent book/tax reclassifications resulted in increases (decreases) to the components of net assets as follows:

---

| | | |
|:---|:---|:---|
|  | **Distributable Earnings (Accumulated Deficit)** | **Paid-In-Capital** |
|  InfraCap REIT Preferred ETF  | $946539<br>| $(946539) |
|  Virtus InfraCap U.S. Preferred Stock ETF  | (5638063) | 5638063 |
|  Virtus LifeSci Biotech Clinical Trials ETF  | (953590) | 953590 |
|  Virtus LifeSci Biotech Products ETF  | (376653) | 376653 |
|  Virtus Newfleet Multi-Sector Bond ETF  | (740) | 740 |
|  Virtus Private Credit Strategy ETF  | 613314 | (613314) |
|  Virtus Real Asset Income ETF  | (12526705) | 12526705 |
|  Virtus WMC International Dividend ETF  |  |  |

---

**6. INVESTMENT TRANSACTIONS** 

Purchases and sales of investments (excluding short-term investments), subscription in-kind and redemption in-kind for the year ended October 31, 2022 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Purchases** | **Sales** | **Subscriptions In-Kind** | **Redemptions In-Kind** |
|  InfraCap REIT Preferred ETF  | $58267230<br>| $57557679<br>| $11060844<br>| $16187156<br>|
|  Virtus InfraCap U.S. Preferred Stock ETF  | 153079445 | 201171792 | 171358894 | 59516702 |
|  Virtus LifeSci Biotech Clinical Trials ETF  | 13407990 | 13237886 | 5965720 | 8457802 |
|  Virtus LifeSci Biotech Products ETF  | 8184309 | 7961868 | 2288224 | 6944320 |
|  Virtus Newfleet Multi-Sector Bond ETF  | 26675680 | 16020653 |  |  |
|  Virtus Private Credit Strategy ETF  | 7948135 | 7952890 | 15268849 | 17805995 |
|  Virtus Real Asset Income ETF  | 95325524 | 92061011 | 73907300 | 151074703 |
|  Virtus WMC International Dividend ETF  | 3329005 | 3665589 | 1079021 |  |

---

Purchases and sales of long-term U.S. Government Securities for the year ended October 31, 2022 were as follows:

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Virtus Newfleet Multi-Sector Bond ETF  | $7169252<br>| $4391617<br>|

---

**7. DERIVATIVE FINANCIAL INSTRUMENTS**

**Options** 

The Virtus InfraCap U.S. Preferred Stock ETF may write covered call and put options on portfolio securities and other financial instruments. Premiums received are recorded as liabilities. The liabilities are subsequently adjusted to reflect the current value of the options written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or are closed are added to or offset against the proceeds or amount paid on the transactions to determine the net realized gain or loss. By writing a covered call option, the Fund, in exchange for the premium, foregoes the opportunity for capital appreciation above the exercise price should the market price of the underlying security increase. By writing a put option, the Fund, in exchange for the premium, accepts the risk of having to purchase a security at an exercise price that is above the current price. Changes in value of written options are reported as change in unrealized gain (loss) on written options in the Statement of Operations. When the written option expires, is terminated or is sold, the Fund will record a gain or loss, which is reported as realized gain (loss) on written options in the Statement of Operations. Written covered call options limit the upside potential of a security above the strike price. Written put options subject the Fund to risk of loss if the value of the security declines below the exercise price minus the put premium.

The Virtus InfraCap U.S. Preferred Stock ETF may purchase call and put options on the portfolio securities or other financial instruments. The Fund may purchase call options to protect against an increase in the price of the security or financial instrument it anticipates purchasing. The Fund may purchase put options on securities which it holds or other financial instruments to protect against a decline in the value of the security or financial instrument or to close out covered written positions. Changes in value of purchased options are

Notes to Financial Statements (continued)

October 31, 2022

reported as part of change in unrealized gain (loss) on investments in the Statement of Operations. When the purchased option expires, is terminated or is sold, the Fund will record a gain or loss, which is reported as part of realized gain (loss) on investments in the Statement of Operations. Risks may arise from an imperfect correlation between the change in market value of the securities held by the Fund and the prices of options relating to the securities purchased or sold by the Fund and from the possible lack of liquid secondary market for an option. The maximum exposure to loss for any purchased option is limited to the premium initially paid for the option.

The Virtus InfraCap U.S. Preferred Stock ETF did not engage in options transactions during the year ended October 31, 2022.

**8. BORROWINGS** 

The Virtus InfraCap U.S. Preferred Stock ETF entered into Lending Agreements (the "Agreements") with commercial banks (the "Banks") that allows the Fund to borrow cash from the Banks. Borrowings under the Agreements are collateralized by investments of the Fund. If the Fund defaults with respect to any of its obligations under the Agreements, the Banks may foreclose on assets of the Fund and/or the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the Agreements, necessitating the sale of securities at potentially inopportune times. Interest is charged at the Overnight Bank Funding Rate ("OBFR") plus an additional percentage rate on the amount borrowed. The Agreements have an on-demand commitment term. For the year ended October 31, 2022, the average daily borrowings under the Agreements and the weighted average interest rate were $159,921,802 and 2.24%, respectively.

**9. INVESTMENT RISKS** 

As with any investment, an investment in the Funds could result in a loss or the performance of the Funds could be inferior to that of other investments. An investor should consider each Fund's investment objectives, risks, and charges and expenses carefully before investing. Each Fund's prospectus and statement of additional information contain this and other important information.

**Credit Risk** 

Junk Bonds or High Yield Securities: High yield securities are generally subject to greater levels of credit quality risk than investment grade securities. The retail secondary market for these "junk bonds" may be less liquid than that of higher-rated fixed income securities, and adverse conditions could make it difficult at times to sell these securities or could result in lower prices than higher-rated fixed income securities. These risks can reduce the value of the Fund's shares and the income it earns.

**Cash Concentration Risk** 

At various times, the Funds may have cash and cash collateral balances that exceed federally insured limits.

**Market Risk** 

Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on each Fund and its investments, including hampering the ability of the Fund's portfolio manager(s) to invest the Fund's assets as intended.

**10. LIBOR REPLACEMENT RISK** 

The London Interbank Offered Rate ("LIBOR") historically has been and currently is used extensively in the U.S. and globally as a benchmark" or "reference rate" for various commercial and financial contracts, including corporate and municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other derivatives. For example, debt instruments in which a Fund invests may pay interest at floating rates based on LIBOR or may be subject to interest caps or floors based on LIBOR. A Fund's derivative investments may also reference LIBOR. In addition, issuers of instruments in which a Fund invests may obtain financing at floating rates based on LIBOR, and a Fund may use leverage or borrowings based on LIBOR. In July 2017, the head of the United Kingdom Financial Conduct Authority announced the intention to phase out the use of LIBOR by the end of 2021. However, after subsequent announcements by the FCA, the LIBOR administrator and other regulators, certain of the most widely used LIBORs have been extended and are expected to continue until mid-2023.Currently, the U.S. and other countries are working to replace LIBOR with alternative reference rates. The transition effort in the U.S.is being led by the Alternative Reference Rate Committee (ARRC), a diverse group of market participants convened by the Federal Reserve. After much deliberation, ARRC selected the Secured Overnight Financing Rate ("SOFR") as the preferred LIBOR successor for U.S. dollar markets. SOFR is a volume-weighted median of borrowing rates from the Treasury repurchase agreement market. National working groups in other jurisdictions have similarly identified overnight nearly risk-free rates like SOFR as their preferred alternatives to LIBOR. Although the structured transition to the new rates is designed to mitigate the risks of disruption to financial markets, such risks exist. Abandonment of or modifications to LIBOR could lead to significant short and long-term uncertainty and market instability. The risks associated with this discontinuation and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. It remains uncertain the effects such changes would have on the Funds, issuers of instruments in which the Funds invest, and the financial markets generally.

Notes to Financial Statements (continued)

October 31, 2022

**11. 10% SHAREHOLDERS** 

As of October 31, 2022, certain Funds had individual shareholder account(s) and/or omnibus shareholder account(s) (comprised of a group of individual shareholders), which individually amounted to more than 10% of the total shares outstanding of the Fund as detailed below:

---

| | | |
|:---|:---|:---|
| **Funds** | **% of Shares<br>Outstanding** | **Number of<br>Accounts** |
|  InfraCap REIT Preferred ETF  | 55% | 3 |
|  Virtus InfraCap U.S. Preferred Stock ETF  | 62% | 3 |
|  Virtus LifeSci Biotech Clinical Trials ETF  | 37% | 2 |
|  Virtus LifeSci Biotech Products ETF  | 48% | 3 |
|  Virtus Newfleet Multi-Sector Bond ETF  | 62% | 1 |
|  Virtus Private Credit Strategy ETF  | 62% | 2 |
|  Virtus Real Asset Income ETF  | 87% | 3 |
|  Virtus WMC International Dividend ETF  | 84% | 3\* |

---

------

\*Includes affiliated shareholder account.

**12. RECENT ACCOUNTING PRONOUNCEMENTS** 

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update No.2020-04 ("ASU 2020-04"), Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered based reference rates as of the end of 2021. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

**13. CORONAVIRUS (COVID-19) PANDEMIC** 

The global outbreak of COVID-19 has disrupted economic markets, and the ongoing effects of COVID-19 are unpredictable. The operational and financial performance of the issuers of securities in which the Funds invest may be significantly impacted by COVID-19, which may in turn impact the value of the Funds' investments.

**14. SUBSEQUENT EVENTS** 

Management has evaluated subsequent events through the issuance of these financial statements and has determined that there are no material events that would require disclosure.

Schedule of Investments — InfraCap MLP ETF

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Security Description** | **Shares** | **Value** |
|  **COMMON STOCKS — 128.9%** | **COMMON STOCKS — 128.9%** |  |  |
|  **Energy — 128.9%** | **Energy — 128.9%** |  |  |
|  BP PLC (United Kingdom)<sup>(1)</sup>  | BP PLC (United Kingdom)<sup>(1)</sup>  | 36 | $1198<br>|
|  Cheniere Energy Partners LP<sup>(2)</sup>  | Cheniere Energy Partners LP<sup>(2)</sup>  | 58791 | 3535103 |
|  Cheniere Energy, Inc.<sup>(3)</sup>  | Cheniere Energy, Inc.<sup>(3)</sup>  | 31260 | 5514577 |
|  Crestwood Equity Partners LP<sup>(2)</sup><sup>(3)</sup>  | Crestwood Equity Partners LP<sup>(2)</sup><sup>(3)</sup>  | 874114 | 26835300 |
|  DCP Midstream LP<sup>(2)</sup>  | DCP Midstream LP<sup>(2)</sup>  | 855187 | 33993683 |
|  Delek Logistics Partners LP  | Delek Logistics Partners LP  | 1132 | 62068 |
|  Enbridge, Inc. (Canada)  | Enbridge, Inc. (Canada)  | 1671 | 65085 |
|  Energy Transfer LP<sup>(2)</sup><sup>(3)</sup>  | Energy Transfer LP<sup>(2)</sup><sup>(3)</sup>  | 5117011 | 65344230 |
|  EnLink Midstream LLC\*  | EnLink Midstream LLC\*  | 1088925 | 12936429 |
|  Enterprise Products Partners LP<sup>(3)</sup>  | Enterprise Products Partners LP<sup>(3)</sup>  | 1842457 | 46522039 |
|  Genesis Energy LP  | Genesis Energy LP  | 39997 | 459566 |
|  Hess Midstream LP Class A  | Hess Midstream LP Class A  | 80488 | 2329323 |
|  Holly Energy Partners LP  | Holly Energy Partners LP  | 619384 | 11669195 |
|  Kinder Morgan, Inc.<sup>(3)</sup>  | Kinder Morgan, Inc.<sup>(3)</sup>  | 72454 | 1312866 |
|  Magellan Midstream Partners LP<sup>(3)</sup>  | Magellan Midstream Partners LP<sup>(3)</sup>  | 741296 | 39992919 |
|  Marathon Petroleum Corp.  | Marathon Petroleum Corp.  | 605 | 68740 |
|  MPLX LP<sup>(2)</sup>  | MPLX LP<sup>(2)</sup>  | 1537524 | 51568555 |
|  NuStar Energy LP<sup>(2)</sup>  | NuStar Energy LP<sup>(2)</sup>  | 2161998 | 34808168 |
|  ONEOK, Inc.  | ONEOK, Inc.  | 1061 | 62938 |
|  Phillips 66  | Phillips 66  | 2021 | 210770 |
|  Plains All American Pipeline LP<sup>(2)</sup>  | Plains All American Pipeline LP<sup>(2)</sup>  | 2977207 | 35637168 |
|  Targa Resources Corp.  | Targa Resources Corp.  | 36351 | 2485318 |
|  TC Energy Corp. (Canada)  | TC Energy Corp. (Canada)  | 2060 | 90475 |
|  Western Midstream Partners LP<sup>(2)</sup><sup>(3)</sup>  | Western Midstream Partners LP<sup>(2)</sup><sup>(3)</sup>  | 1867563 | 53617734 |
|  Williams Cos., Inc. (The)  | Williams Cos., Inc. (The)  | 22704 | 743102 |
|  Total Energy  | Total Energy  |  | 429866549 |
|  **Total Common Stocks** | **Total Common Stocks** |  |  |
|  (Cost $316,068,004)  | (Cost $316,068,004)  |  | **429866549** |
|  **PREFERRED STOCK — 0.3%** | **PREFERRED STOCK — 0.3%** |  |  |
|  **Energy — 0.3%** | **Energy — 0.3%** |  |  |
|  Crestwood Equity Partners LP, 9.25% | Crestwood Equity Partners LP, 9.25% |  |  |
|  (Cost $1,218,439)  | (Cost $1,218,439)  | 130898 | 1208188 |
|  **TOTAL INVESTMENTS — 129.2%** | **TOTAL INVESTMENTS — 129.2%** |  |  |
|  (Cost $317,286,443)  | (Cost $317,286,443)  |  | **431074737** |
|  Liabilities in Excess of Other Assets — (29.2)%  | Liabilities in Excess of Other Assets — (29.2)%  |  | (97538387) |
|  **Net Assets — 100.0%**  | **Net Assets — 100.0%**  |  | **$** **333536350**<br>|
| **Security Description** | **Notional<br>Amount** | **Number of<br>contracts** | **Value** |
|  **WRITTEN OPTIONS — (0.2)%** | **WRITTEN OPTIONS — (0.2)%** |  |  |
|  **Written Call Options** | **Written Call Options** | **Written Call Options** | **Written Call Options** |
|  Cheniere Energy, Inc.,<br>Expires 12/16/22,<br>Strike Price $190.00  | (20000) | (200) | $(100600) |
|  Crestwood Equity Partners LP, Expires 01/20/23,<br>Strike Price $30.00  | (41000) | (410) | (76260) |

---

---

| | | | |
|:---|:---|:---|:---|
| **Security Description** | **Security Description** | **Shares** | **Value** |
|  **WRITTEN OPTIONS (continued)** | **WRITTEN OPTIONS (continued)** |  |  |
|  **Written Call Options (continued)** | **Written Call Options (continued)** | **Written Call Options (continued)** | **Written Call Options (continued)** |
|  Energy Transfer LP,<br>Expires 11/04/22,<br>Strike Price $13.00  | (102000) | (1020) | $(12240) |
|  Enterprise Products Partners LP,<br>Expires 11/04/22,<br>Strike Price $27.50  | (101000) | (1010) | (1010) |
|  Enterprise Products Partners LP,<br>Expires 11/04/22,<br>Strike Price $28.00  | (1500) | (15) | 0 |
|  Enterprise Products Partners LP,<br>Expires 11/18/22,<br>Strike Price $28.00  | (10000) | (100) | (100) |
|  Enterprise Products Partners LP,<br>Expires 11/25/22,<br>Strike Price $27.00  | (102000) | (1020) | (10200) |
|  Kinder Morgan, Inc.,<br>Expires 11/04/22,<br>Strike Price $19.00  | (100000) | (1000) | (2000) |
|  Kinder Morgan, Inc.,<br>Expires 11/18/22,<br>Strike Price $20.00  | (101000) | (1010) | (1010) |
|  Kinder Morgan, Inc.,<br>Expires 11/18/22,<br>Strike Price $21.00  | (103000) | (1030) | 0 |
|  Kinder Morgan, Inc.,\|Expires 11/25/22,<br>Strike Price $19.00  | (102000) | (1020) | (19380) |
|  Magellan Midstream Partners LP,<br>Expires 11/18/22,<br>Strike Price $52.50  | (102000) | (1020) | (173400) |
|  Magellan Midstream Partners LP,<br>Expires 11/18/22,<br>Strike Price $55.00  | (102000) | (1020) | (40800) |
|  Western Midstream Partners LP,<br>Expires 11/18/22,<br>Strike Price $30.00  | (191000) | (1910) | (152800) |
|  Western Midstream Partners LP,<br>Expires 11/18/22,<br>Strike Price $31.00  | (235000) | (2350) | (94000) |
|  **Written Put Options** | **Written Put Options** | **Written Put Options** | **Written Put Options** |
|  Cheniere Energy, Inc.,<br>Expires 12/16/22,<br>Strike Price $140.00  | (21000) | (210) | (25410) |
|  Cheniere Energy, Inc.,<br>Expires 01/20/23,<br>Strike Price $140.00  | (25000) | (250) | (60000) |
|  Williams Cos., Inc. (The),<br>Expires 11/04/22,<br>Strike Price $32.00  | (101000) | (1010) | (31310) |
|  **Total Written Options — (0.2)%**  |  |  |  |
|  (Premiums Received $827,575)  |  |  | $(800520) |

---

------

\*Non-income producing security.

(1)American Depositary Receipts.

(2)Security, or a portion thereof, has been pledged as collateral for borrowings. The aggregate market value of the collateral at October 31, 2022 was $78,165,934.

(3)Subject to written call options.

Schedule of Investments — InfraCap MLP ETF (continued)

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

The following table summarizes valuation of the Fund's investments under the fair value hierarchy levels as of October 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Asset Valuation Inputs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stocks  | $429866549<br>| $—<br>| $—<br>| $429866549<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred Stock  | 1208188 |  |  | 1208188 |
|  Total  | $431074737<br>| $—<br>| $—<br>| $431074737<br>|
|  **Liability Valuation Inputs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Written Options  | $799410<br>| $1110<br>| $—<br>| $800520<br>|
|  Total  | $799410<br>| $1110<br>| $—<br>| $800520<br>|

---

Statement of Assets and Liabilities

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | |
|:---|:---|
|  | **InfraCap MLP<br>ETF** |
|  **Assets:** |  |
|  Investments, at cost  | $317286443<br>|
|  Investments, at value  | 431074737 |
|  Cash  | 584201 |
|  Due from brokers  | 150013 |
|  Receivables: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment securities sold  | 2387513 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital shares sold  | 1661041 |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends and interest  | 768091 |
|  Prepaid taxes  | 372826 |
|  **Total Assets**  | 436998422 |
|  **Liabilities:** |  |
|  Bank borrowings  | 95876836 |
|  Payables: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment securities purchased  | 6454032 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense  | 82331 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sub-Advisory fees  | 248353 |
|  Written options, at value<sup>(a)</sup>  | 800520 |
|  **Total Liabilities**  | 103462072 |
|  **Net Assets**  | **$** **333536350**<br>|
|  **Net Assets Consist of:** |  |
|  Paid-in capital  | $499121276<br>|
|  Total distributable earnings (accumulated deficit), net of income taxes  | (165584926) |
|  **Net Assets**  | **$** **333536350**<br>|
|  Shares outstanding (unlimited number of shares of beneficial interest authorized, no par value)  | 10040000 |
|  Net asset value per share  | $33.22<br>|
|  <sup>(a)</sup> Premiums received from written options  | $827575<br>|

---

Statement of Operations

For the Year Ended October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | |
|:---|:---|
|  | **InfraCap MLP<br>ETF** |
|  **Investment Income:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions from master limited partnerships  | $29469247<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Dividend income (net of foreign withholding taxes)  | 2150474 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income  | 4041 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less: Return of capital distributions  | (29854267) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Investment Income  | 1769495 |
|  **Expenses:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sub-Advisory fees  | 2872082 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expenses  | 2088903 |
|  **Total Expenses**  | 4960985 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Net Investment (Loss) Before Income Taxes**  | (3191490) |
|  **Net Investment (Loss), Net of Income Taxes**  | **(3191490)** |
|  **Net Realized Gain (Loss) on:** |  |
|  Investments  | 13978802 |
|  Written options  | 2445475 |
|  Foreign currency transactions  | (1029) |
|  **Total Net Realized Gain**  | 16423248 |
|  **Change in Net Unrealized Appreciation (Depreciation) on:** |  |
|  Investments  | 73652319 |
|  Written options  | 157563 |
|  **Total Change in Net Unrealized Appreciation**  | 73809882 |
|  Net Realized and Change in Unrealized Gain  | 90233130 |
|  **Net Increase in Net Assets Resulting from Operations**  | **$** **87041640**<br>|
|  Foreign withholding taxes  | $8952<br>|

---

Statement of Changes in Net Assets

*The accompanying notes are an integral part of these financial statements.*

---

| | | |
|:---|:---|:---|
|  | **InfraCap MLP ETF** | **InfraCap MLP ETF** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** |
|  **Increase (Decrease) in Net Assets Resulting from Operations:** |  |  |
|  Net investment loss, net of income taxes  | $(3191490) | $(3057400) |
|  Net realized gain (loss)  | 16423248 | (14141380) |
|  Net change in unrealized appreciation  | 73809882 | 147573769 |
|  Net increase in net assets resulting from operations  | 87041640 | 130374989 |
|  Distributions to Shareholders  | (27209601) |  |
|  Distributions to Shareholders from return of capital  |  | (24910601) |
|  Total distributions  | (27209601) | (24910601) |
|  **Shareholder Transactions:** |  |  |
|  Proceeds from shares sold  | 37312474 | 107190162 |
|  Cost of shares redeemed  | (58236660) | (17132576) |
|  Net increase (decrease) in net assets resulting from shareholder transactions  | (20924186) | 90057586 |
|  Increase in net assets  | 38907853 | 195521974 |
|  **Net Assets:** |  |  |
|  Beginning of year  | 294628497 | 99106523 |
|  End of year  | $333536350<br>| $294628497<br>|
|  **Changes in Shares Outstanding:** |  |  |
|  Shares outstanding, beginning of year  | 10790000 | 7190000 |
|  Shares sold  | 1200000 | 4300000 |
|  Shares redeemed  | (1950000) | (700000) |
|  Shares outstanding, end of year  | 10040000 | 10790000 |

---

Statement of Cash Flows

For the Year Ended October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | |
|:---|:---|
|  | **InfraCap MLP<br>ETF** |
|  **Cash Flows From Operating Activities:** |  |
|  Net increase (decrease) in net assets from operations  | $87041640<br>|
|  **Adjustments to reconcile net increase (decrease) in net assets from operations to net cash provided by (u** **sed in** **) operating activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchases of investment securities  | (246301396) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sales of investments  | 350525909 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net proceeds from purchased and written options  | 3931629 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized (gain) loss on investments  | (13978802) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized (gain) loss on written options  | (2445475) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized (appreciation) depreciation on investments  | (73652319) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized (appreciation) depreciation on written options  | (157563) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in due from brokers  | 1183998 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in dividends and interest receivable  | (576882) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses  | 8199 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid taxes  | 7255773 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in tax reclaim receivable  | 9516 |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in sub-advisory fees payable  | (2481) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in interest expense  | (37774) |
|  **Net cash provided by (used in) operating activities**  | **112803972** |
|  **Cash Flows provided by (used in) Financing Activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from borrowings  | (13872372) |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments for fund shares sold in excess of in-kind creations  | (71267625) |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions paid  | (27209601) |
|  **Net cash provided by (used in) financing activities**  | **(112349598)** |
|  **Net increase (decrease) in cash**  | **454374** |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash, beginning of year  | 129827 |
|  **Cash, end of year**  | **$** **584201**<br>|
|  **Supplemental information:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest paid on borrowings  | $2088903<br>|
|  **Non-cash financing activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; In-kind creations — Issued  | 48682398 |
| &nbsp;&nbsp;&nbsp;&nbsp; In-kind creations — Redeemed  |  |

---

Financial Highlights

October 31, 2022

*The accompanying notes are an integral part of these financial statements.*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **InfraCap MLP ETF<sup>1</sup>** | **InfraCap MLP ETF<sup>1</sup>** | **InfraCap MLP ETF<sup>1</sup>** | **InfraCap MLP ETF<sup>1</sup>** | **InfraCap MLP ETF<sup>1</sup>** |
|  | **For the<br>Year Ended<br>October 31, 2022** | **For the<br>Year Ended<br>October 31, 2021** | **For the<br>Year Ended<br>October 31, 2020** | **For the<br>Year Ended<br>October 31, 2019** | **For the<br>Year Ended<br>October 31, 2018** |
|  **Per Share Data for a Share Outstanding<br>throughout each year presented:** |  |  |  |  |  |
|  Net asset value, beginning of year  | $27.31<br>| $13.78<br>| $44.80<br>| $63.87<br>| $83.73<br>|
|  Investment operations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>2</sup>  | (0.31) | (0.33) | (0.09) | (0.96) | (1.52) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain (loss)  | 8.86 | 16.50 | (28.94) | (7.91) | (3.24) |
|  Total from investment operations  | 8.55 | 16.17 | (29.03) | (8.87) | (4.76) |
|  **Less Distributions from:** |  |  |  |  |  |
|  Net realized gains  | (2.64) |  |  |  |  |
|  Return of capital  |  | (2.64) | (1.99) | (10.20)<sup>3</sup> | (15.10) |
|  Total distributions  | (2.64) | (2.64) | (1.99) | (10.20) | (15.10) |
|  **Net Asset Value, End of year**  | $33.22<br>| $27.31<br>| $13.78<br>| $44.80<br>| $63.87<br>|
|  Net Asset Value Total Return<sup>4</sup>  | 33.13% | 121.30% | (62.67)% | (15.62)% | (7.65)% |
|  Net assets, end of year (000's omitted)  | $333536<br>| $294628<br>| $99107<br>| $331936<br>| $537821<br>|
|  **RATIOS/SUPPLEMENTAL DATA:** |  |  |  |  |  |
|  **Ratios to Average Net Assets:** |  |  |  |  |  |
|  Expenses, including deferred income tax expense/benefit  | 1.64%<sup>5</sup> | 1.40%<sup>6</sup> | 2.01%<sup>7</sup> | 2.41%<sup>8</sup> | 2.40%<sup>9</sup> |
|  Expenses, excluding deferred income tax expense/benefit  | 1.64%<sup>5</sup> | 1.40%<sup>6</sup> | 1.89%<sup>7</sup> | 2.40%<sup>8</sup> | 2.39%<sup>9</sup> |
|  Net investment loss  | (1.06)% | (1.31)% | (1.71)% | (1.72)% | (1.96)% |
|  Portfolio turnover rate<sup>10</sup>  | 62% | 99% | 96% | 136% | 255% |

---

------

1Effective March 31, 2020, the Fund had a 1 for 10 reverse stock split. The share amounts for the years ended December 31, 2020, December 31, 2019 and December 31, 2018 have been adjusted as a result of the 1 for 10 reverse stock split (See Note 1).

2Based on average shares outstanding.

3The per share distribution amount of $10.20 was originally misclassified and shown as distributions from net investment income in the Fund's October 31, 2019 Annual Report. This amount has been subsequently reclassified to distributions from return of capital.

4Net Asset Value Total Return is calculated assuming an initial investment made at the net asset value on the first day of the year, reinvestment of dividends and distributions at net asset value during the year, and redemptions at net asset value on the last day of the year.

5The ratios of expenses to average net assets include interest expense of 0.69%.

6The ratios of expenses to average net assets include interest expense of 0.45%.

7The ratios of expenses to average net assets include interest expense of 0.93% and tax expense of 0.01%.

8The ratios of expenses to average net assets include interest expense of 1.28% and dividend expense on securities sold short fees of 0.17%.

9The ratios of expenses to average net assets include interest expense of 1.32% and dividend expense on securities sold short fees of 0.13%.

10Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Fund's capital shares.

Notes to Financial Statements

October 31, 2022

**1. ORGANIZATION** 

The ETFis Series Trust I (the "Trust") was organized as a Delaware statutory trust on September 20, 2012 and is registered with the U.S. Securities and Exchange Commission (the "SEC") as an open-end management investment company under the Investment Company Act of 1940 (the "1940 Act").

As of October 31, 2022, ten funds of the Trust are offered for sale. The InfraCap MLP ETF (the "Fund") is presented in this annual report. The offering of the Fund's shares is registered under the Securities Act of 1933 (the "Securities Act").

---

| | |
|:---|:---|
| **Fund** | **Investment objective** |
| InfraCap MLP ETF  | Seeks total return primarily through investments in equity securities of publicly traded master limited partnerships and limited liability companies taxed as partnerships ("MLPs"). |

---

There is no guarantee that the Fund will achieve its objective(s).

The Fund is "non-diversified," as defined under the 1940 Act, as of the year ended October 31, 2022.

**Reverse Split** 

After the close of the markets on March 30, 2020 (the Record Date), the Fund effected a reverse split of its issued and outstanding shares, with a 1 for 10 ratio. Shares of the Fund began trading on the NYSE Arca on a split-adjusted basis on March 31, 2020.

The effect of the reverse split was reducing the number of Shares outstanding and resulted in a proportionate increase in the NAV per Share of the Fund. Therefore, the reverse split did not change the aggregate value of a shareholder's investment or the total market value of the shares outstanding.

The reverse split was applied retroactively for all periods presented in the financial statements.

**2. SIGNIFICANT ACCOUNTING POLICIES** 

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The Fund prepares its financial statements in accordance with generally accepted accounting principles ("GAAP") in the United States of America and follows the significant accounting policies described below.

**(a) Use of Estimates** 

Management makes certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of increases and decreases in the net assets from operations during the reporting period. Actual results could differ from those estimates.

**(b) Indemnification** 

In the normal course of business, the Fund may enter into contracts that contain a variety of representations which provide general indemnifications for certain liabilities. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

**(c) Security Valuation** 

A description of the valuation techniques applied to the Fund's major categories of assets and liabilities measured at fair value on a recurring basis is as follows:

Equity securities and Exchange-Traded Funds are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded. Securities regularly traded in an over the counter market are valued at the latest quoted sale price in such market or in the case of the New York Stock Exchange ("NYSE"), at the NYSE Official Closing Price. Such valuations are typically categorized as Level 1 in the fair value hierarchy. If market quotations are not readily available, or if it is determined that a quotation of a security does not represent fair value, then the security is valued at fair value as determined in good faith using procedures adopted by the Trust's Board of Trustees (the "Board"). Such valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy.

Listed derivatives, such as options, that are actively traded are valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include options, do not require material subjectivity as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.

Notes to Financial Statements (continued)

October 31, 2022

**(d) Fair Value Measurement** 

Accounting Standards Codification, Fair Value Measurements and Disclosures ("ASC 820") defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and requires disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction is not orderly, and how that information must be incorporated into fair value measurement. Under ASC 820, various inputs are used in determining the value of the Fund's investments. The Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. These inputs are summarized in the following hierarchy:

• Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

• Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

• Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Fund's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The hierarchy classification of inputs used to value the Fund's investments at October 31, 2022, is disclosed at the end of the Fund's Schedule of Investments.

**(e) Security Transactions, Investment Income and Return of Capital Estimates** 

Security transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using specific identification. Dividend income is recognized on the ex-dividend date. Expenses are recognized on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method.

The Fund invests in master limited partnerships ("MLPs") which make distributions that are primarily attributable to return of capital. The Fund records investment income and return of capital in the Statement of Operations using management's estimate of the percentage of income included in the distributions received from each MLP based on historical information from the MLPs and other industry sources. These estimates may be adjusted based on information received from the MLPs after the tax and fiscal year ends.

The return of capital portion of the MLP distributions is a reduction to investment income and a reduction in the cost basis of each investment which increases net realized gain (loss) and net change in unrealized appreciation (depreciation). If the return of capital distributions exceed its cost basis, the distributions are treated as realized gains. The actual amounts of income and return of capital are only determined by each MLP after its fiscal year-end and may differ from the estimated amounts.

**(f) Expenses** 

The Fund pays all of its expenses not assumed by Infrastructure Capital Advisors, LLC (the "Sub-Adviser") or Virtus ETF Advisers LLC (the "Adviser"). General Trust expenses that are allocated among and charged to the assets of the Fund and other series of the Trust are done so on a basis that the Board deems fair and equitable, which may be on a basis of relative net assets of the Fund and other series of the Trust or the nature of the services performed and relative applicability to the Fund and other series of the Trust.

**(g) Short Sales** 

The Fund may sell securities short. A short sale is a transaction in which the Fund sells a security it does not own in anticipation of a decline in market price. To sell a security short, the Fund must borrow the security. The Fund's obligation to replace the security borrowed and sold short will be fully collateralized at all times by the proceeds from the short sale retained by the broker and by cash and securities deposited in a segregated account with the Fund's custodian. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will realize a loss, and if the price declines during the period, the Fund will realize a gain. Any realized gain will be decreased, and any realized loss increased, by the amount of transaction costs. On the ex-dividend date, dividends on short sales are recorded as an expense to the Fund.

In accordance with the terms of its prime brokerage agreement, the Fund may receive rebate income or be charged a fee on borrowed securities which is reported as "Interest Expense" on the Statement of Operations. Such income or fee is calculated on a daily basis based upon the market value of each borrowed security and a variable rate that is dependent upon the availability of such security.

**(h) Distributions to Shareholders** 

Distributions to shareholders are declared and paid on a monthly basis and are recorded on the ex-dividend date. The Fund uses a cash flow-based distribution approach based on the Fund's net cash flow received from portfolio investments.

Notes to Financial Statements (continued)

October 31, 2022

The estimated character of the distributions paid will either be a dividend (ordinary income eligible to be treated as qualified dividend income) or a return of capital. Distributions made from current or accumulated earnings and profits of the Fund will be taxable to shareholders as dividend income. Distributions that are in an amount greater than the Fund's current and accumulated earnings and profits will represent a return of capital to the extent of a shareholder's basis in their common shares, and such distributions will correspondingly increase the realized gain upon the sale of their common shares. Additionally, distributions not paid from current or accumulated earnings and profits that exceed a shareholder's tax basis in their common shares will generally be taxed as a capital gain. This estimate is based on the Fund's operating results during the period.

**(i) Cash and Cash Equivalents**

Cash is comprised of demand deposits. Cash equivalents are highly liquid investments with original maturities of 90 days or less. The carrying amount of cash equivalents, primarily representing money market funds is a reasonable estimate of fair value. These assets are considered to be Level 1 securities, per Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures.

**3. INVESTMENT MANAGEMENT RELATED PARTIES AND OTHER AGREEMENTS** 

**Investment Advisory Agreement** 

The Trust, on behalf of the Fund, has entered into an Investment Advisory Agreement (the "Advisory Agreement") with the Virtus ETF Advisers, LLC (the "Adviser"), an indirect wholly owned subsidiary of Virtus Investment Partners, Inc. (Ticker: VRTS) (together with its affiliates, "Virtus"). Pursuant to the Advisory Agreement, the Adviser has overall supervisory responsibility for the general management and investment of the Fund's securities portfolio. For its services to the Fund, the Adviser is entitled to receive a fee, payable monthly, at an annual rate of 0.075% of the Fund's average daily net assets, subject to a minimum annual fee of $25,000. The Sub-Adviser pays the Adviser's fee out of the Sub-Adviser's fee, pursuant to the Sub-Adviser's unified fee arrangement with the Fund, as described below.

The Advisory Agreement may be terminated by the Trust on behalf of a Fund with the approval of a Fund's Board or by a vote of the majority of a Fund's shareholders. The Advisory Agreement may also be terminated by the Adviser by not more than 60 days' nor less than 30 days' written notice.

**Sub-Advisory Agreement** 

Infrastructure Capital Advisors, LLC (the "Sub-Adviser") provides investment advice and management services to the Fund. Pursuant to an investment sub-advisory agreement among the Trust, the Sub-Adviser and the Adviser, the Fund pays the Sub-Adviser a fee, payable monthly, at an annual rate of 0.95% of the Fund's average daily net assets. The Sub-Adviser has agreed to pay all expenses of the Fund, except the Sub-Adviser's fee, brokerage expenses, taxes, interest, litigation expenses, payments under any 12b-1 plan adopted by the Fund, and other non-routine or extraordinary expenses of the Fund.

**Principal Underwriter** 

Pursuant to the terms of a Distribution Agreement with the Trust, VP Distributors, LLC (the "Distributor") serves as the Fund's principal underwriter. The Distributor receives compensation from the Adviser for the statutory underwriting services it provides to the Fund. The Distributor will not distribute shares in less than Creation Units (as hereinafter defined), and does not maintain a secondary market in shares. The shares are traded in the secondary market. The Distributor is an indirect wholly owned subsidiary of Virtus.

**Operational Administrator** 

Virtus ETF Solutions LLC (the "Administrator") serves as the Fund's operational administrator. The Administrator supervises the overall administration of the Trust and the Fund including, among other responsibilities, the coordination and day-to-day oversight of the Fund's operations, the service providers' communications with the Fund and each other and assistance with Trust, Board and contractual matters related to the Fund. The Administrator also provides persons satisfactory to the Board to serve as officers of the Trust. The Administrator is an indirect wholly owned subsidiary of Virtus.

**Accounting Services Administrator, Custodian and Transfer Agent** 

The Bank of New York Mellon ("BNY Mellon") provides administrative, accounting, tax and financial reporting for the maintenance and operations of the Trust as the Fund's accounting services administrator. BNY Mellon also serves as the custodian for the Fund's assets, and serves as transfer agent and dividend paying agent for the Fund.

Notes to Financial Statements (continued)

October 31, 2022

**Affiliated Shareholders** 

At October 31, 2022, the Sub-Adviser held shares of the Fund which may be redeemed at any time that aggregated to the following:

---

| | | |
|:---|:---|:---|
| **Fund** | **Shares** | **% of shares<br>outstanding** |
|  InfraCap MLP ETF  | 48345 | 0.5% |

---

**4. CREATION AND REDEMPTION TRANSACTIONS** 

The Fund issues and redeems shares on a continuous basis at Net Asset Value ("NAV") in groups of 50,000 shares called "Creation Units." The Fund's Creation Units may be issued and redeemed generally for cash or an in-kind deposit of securities held by the Fund. In each instance of cash creations or redemptions, the Trust may impose transaction fees based on transaction expenses related to the particular exchange that will be higher than the transaction fees associated with in-kind purchases or redemptions.

Only "Authorized Participants" who have entered into contractual arrangements with the Distributor may purchase or redeem shares directly from the Fund. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.

**5. FEDERAL INCOME TAX** 

The Fund is taxed as a regular C-corporation for federal income tax purposes and as such is obligated to pay federal and applicable state and foreign corporate taxes on its taxable income. Currently, the federal income tax rate for a corporation is 21 percent. This treatment differs from most investment companies, which elect to be treated as "regulated investment companies" under the Code in order to avoid paying entity level income taxes. Under current law, the Fund is not eligible to elect treatment as a regulated investment company due to its investments primarily in MLPs invested in energy assets. The Fund expects that substantially all of the distributions it receives from MLPs may be treated as a tax-deferred return of capital, thus reducing the Fund's current tax liability. However, the amount of taxes paid by the Fund will vary depending on the amount of income and gains derived from investments and/or sales of MLP interests and such taxes will reduce your return from an investment in the Fund.

Cash distributions from MLPs to the Fund that exceed the Fund's allocable share of such MLP's net taxable income are considered a tax deferred return of capital that will reduce the Fund's adjusted tax basis in the equity securities of the MLP. These reductions in the Fund's adjusted tax basis in the MLP equity securities will increase the amount of any taxable gain (or decrease the amount of any tax loss) recognized by the Fund on a subsequent sale of the securities. The Fund will accrue deferred income taxes for any future tax liability associated with (i) that portion of MLP distributions considered to be a tax-deferred return of capital as well as (ii) capital appreciation of its investments. Upon the sale of an MLP security, the Fund may be liable for previously deferred taxes. The Fund will rely to some extent on information provided by the MLPs, which is not necessarily timely, to estimate the deferred tax liability for purposes of financial statement reporting and determining the Fund's NAV. From time to time, the Adviser will modify the estimates or assumptions related to the Fund's deferred tax liability as new information becomes available. The Fund will generally compute deferred income taxes based on the federal income tax rate applicable to corporations and an assumed rate attributable to state taxes.

The Fund's income tax expense/(benefit) consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| **As of October 1, 2022** | **Current** | **Deferred** | **Total** |
|  Federal  | $—<br>| 18125460 | 18125460 |
|  State  |  | 1646171 | 1646171 |
|  Valuation Allowance  |  | (19771631) | (19771631) |
|  Total Tax Expense/(Benefit)  | $—<br>| $—<br>| $—<br>|

---

Notes to Financial Statements (continued)

October 31, 2022

Components of the Fund's deferred tax assets and liabilities are as follows:

---

| | |
|:---|:---|
|  | **As of<br>October 31, 2022**  |
|  Deferred Tax Assets:  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Operating Loss Carryforward  | $2 ,569016<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Capital Loss Carryforward  | 54826010 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other  | 10999 |
|  Total Deferred Tax Assets  | 57406025 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less Valuation Allowance  | (26528347) |
|  Net Deferred Tax Assets  | $30877678<br>|
|  Deferred Tax Liabilities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Unrealized Gain on Investment  | $30877678<br>|
|  Total Deferred Tax Liabilities  | 30877678 |
|  Total Net Deferred Tax Asset/(Liability)  | $—<br>|

---

The Fund reviews the recoverability of its deferred tax assets based upon the weight of available evidence. When assessing the recoverability of its deferred tax assets, significant weight was given to the effects of potential future realized and unrealized gains on investments and the period over which these deferred tax assets can be realized. Currently, any capital losses that may be generated by the Fund in the future are eligible to be carried back up to three years and can be carried forward for five years to offset capital gains recognized by the Fund in those years. As of the year ended October 31, 2022, the Fund has a capital loss carryforward of $246,610,757 of which $76,754,062 expires in 2024, $153,290,897 expires in 2025, and $16,565,798 expires in 2026. As of the year ended October 31, 2022, the Fund has a net operating loss (NOL) carryforward of $11,555,592 of which $219,542 can be carried back 2 years and carried forward until expiration in 2036, $8,712,686 can be carried back 2 years and carried forward until expiration in 2038, and $2,623,364 that cannot be carried back and can be carried forward indefinitely. The utilization of the NOL of $2,623,364 is limited to the lesser of the aggregate of available NOLs generated after 2018 or 80% of taxable income. There is no limitation on the $8,712,686 or $219,542 NOLs.

Based upon the Fund's assessment, it has determined that it is "more-likely-than-not" that a portion of its deferred tax assets will not be realized through future taxable income of the appropriate character. Accordingly, a valuation allowance has been established for the Fund's deferred tax assets. The Fund will continue to assess the need for a valuation allowance in the future. Significant changes in the fair value of its portfolio of investments may change the Fund's assessment of the recoverability of these assets and may result in an adjustment of the valuation allowance against all or a portion of the Fund's gross deferred tax assets.

Total income tax (benefit)/expense (current and deferred) differs from the amount computed by applying the federal statutory income tax rate of 21% to net investment and realized and unrealized gain/(losses) on investment before taxes as follows for the Fund:

---

| | | |
|:---|:---|:---|
|  | **Amount** | **Rate** |
|  Income Tax (Benefit) at Statutory Rate  | $18278744<br>| 21.00% |
|  State Income Taxes (Net of Federal Benefit)  | 1072179 | 1.23 |
|  Permanent Differences, Net  | (40492) | (0.05) |
|  Effect of State Tax Rate Change  | 584536 | 0.67 |
|  Provision to Return Adjustment and Other  | (123336) | (0.13) |
|  Valuation Allowance  | (19771631) | (22.72) |
|  Net Income Tax Expense/(Benefit)  | $—<br>| 0% |

---

The Fund recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. For the period from inception to October 31, 2022, the Fund does not have any accrued penalties or interest.

The Fund recognizes the tax benefits of uncertain tax positions only where the position is "more-likely-than-not" to be sustained assuming examination by tax authorities. Management has analyzed the Fund's tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on U.S. tax returns and state tax returns filed since inception of the Fund. The Fund's tax years, October 31, 2019 through October 31, 2021, remain subject to examination by tax authorities in the United States. Due to the nature of the Fund's investments, the Fund may be required to file income tax returns in several states. As of the fiscal year ended October 31, 2022, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially over the next fiscal year.

Notes to Financial Statements (continued)

October 31, 2022

As of the fiscal year ended October 31, 2022, the adjusted cost basis of investments and gross unrealized appreciation and depreciation of investments, excluding written options and securities sold short, for federal income tax purposes were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **Federal Tax<br>Cost Of<br>Investments** | **Gross<br>Unrealized<br>Appreciation** | **Gross<br>Unrealized<br>Depreciation** | **Net Unrealized<br>Appreciation<br>(Depreciation)** |
|  InfraCap MLP ETF  | $292261943<br>| $139360193<br>| $(547399) | $138812794<br>|

---

The tax character of dividends and distributions paid during the fiscal years ended October 31, 2022 and October 31, 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| **Fund** | **D** **istributions<br>Paid From<br>Ordinary<br>Income** | **Return of<br>Capital** |
|  InfraCap MLP ETF  | $27209601<br>| $24910601<br>|

---

**6. INVESTMENT TRANSACTIONS**

Purchases and sales of investments (excluding short-term investments), subscriptions in-kind and redemptions in-kind for the year ended October 31, 2022 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **Purchases** | **Sales** | **Subscriptions<br>In-Kind** | **Redemptions<br>In-Kind** |
|  InfraCap MLP ETF  | $246834740<br>| $318669965<br>| $48682398<br>| $—<br>|

---

**7. DERIVATIVE FINANCIAL INSTRUMENTS** 

**Options** 

The Fund may write covered call and put options on portfolio securities and other financial instruments. Premiums received are recorded as liabilities. The liabilities are subsequently adjusted to reflect the current value of the options written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are exercised or are closed are added to or offset against the proceeds or amount paid on the transactions to determine the net realized gain or loss. By writing a covered call option, the Fund, in exchange for the premium, foregoes the opportunity for capital appreciation above the exercise price should the market price of the underlying security increase. By writing a put option, the Fund, in exchange for the premium, accepts the risk of having to purchase a security at an exercise price that is above the current price. Changes in value of written options are reported as change in unrealized gain (loss) on written options in the Statement of Operations. When the written option expires, is terminated or is sold, the Fund will record a gain or loss, which is reported as realized gain (loss) on written options in the Statement of Operations. Written covered call options limit the upside potential of a security above the strike price. Written put options subject the Fund to risk of loss if the value of the security declines below the exercise price minus the put premium.

The Fund may purchase call and put options on the portfolio securities or other financial instruments. The Fund may purchase call options to protect against an increase in the price of the security or financial instrument it anticipates purchasing. The Fund may purchase put options on securities which it holds or other financial instruments to protect against a decline in the value of the security or financial instrument or to close out covered written positions. Changes in value of purchased options are reported as part of change in unrealized gain (loss) on investments in the Statement of Operations. When the purchased option expires, is terminated or is sold, the Fund will record a gain or loss, which is reported as part of realized gain (loss) on investments in the Statement of Operations. Risks may arise from an imperfect correlation between the change in market value of the securities held by the Fund and the prices of options relating to the securities purchased or sold by the Fund and from the possible lack of liquid secondary market for an option. The maximum exposure to loss for any purchased option is limited to the premium initially paid for the option.

Transactions in derivative instruments reflected on the Statement of Assets and Liabilities at October 31, 2022 are as follows:

---

| | |
|:---|:---|
| **Liabilities** | **Equity Risk** |
|  Written options, at value  | $(800520) |

---

Notes to Financial Statements (continued)

October 31, 2022

Transactions in derivative instruments reflected on the Statement of Operations during the year ended October 31, 2022 were as follows:

---

| | |
|:---|:---|
| **Net Realized Gain (Loss) on:** | **Equity Risk** |
|  Investments\*  | $(18510) |
|  Written options  | 2445475 |

---

---

| | |
|:---|:---|
| **Change in Net Unrealized Appreciation (Depreciation) on** **:** | **Equity Risk** |
|  Written options  | $157563<br>|

---

------

\**Purchased option contracts are included in Net Realized Gain (Loss) on Investments within the Statement of Operations.*

For the year ended October 31, 2022, the monthly average market value of the written options contracts held by the Fund was $(685,471).

**8. BORROWINGS** 

The Fund entered into Lending Agreements (the "Agreements") with commercial banks (the "Banks") that allows the Fund to borrow cash from the Banks. Borrowings under the Agreements are collateralized by investments of the Fund. If the Fund defaults with respect to any of its obligations under the Agreements, the Banks may foreclose on assets of the Fund and/or the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the Agreements, necessitating the sale of securities at potentially inopportune times. Interest is charged at the Overnight Bank Funding Rate ("OBFR") plus an additional percentage rate on the amount borrowed. The Agreements have an on-demand commitment term. For the year ended October 31, 2022, the average daily borrowings under the Agreements and the weighted average interest rate were $97,058,682 and 2.24%, respectively.

**9. INVESTMENT RISKS** 

As with any investment, an investment in the Fund could result in a loss or the performance of the Fund could be inferior to that of other investments. An investor should consider the Fund's investment objectives, risks, and charges and expenses carefully before investing. The Fund's prospectus and statement of additional information contain this and other important information.

**MLP Risk** 

Investments in securities of MLPs involve risks that differ from investments in common stock including risks related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential conflicts of interest between the MLP and the MLP's general partner and cash flow risks. MLP common units and other equity securities can be affected by macro-economic and other factors affecting the stock market in general, expectations of interest rates, investor sentiment towards MLPs or the energy sector, changes in a particular issuer's financial condition or unfavorable or unanticipated poor performance of a particular issuer (in the case of MLPs, generally measured in terms of distributable cash flow). Prices of common units of individual MLPs and other equity securities also can be affected by fundamentals unique to the partnership or company, including earnings power and coverage ratios.

**Market Risk** 

Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issue, recessions, or other events could have a significant impact on the Fund and its investments, including hampering the ability of the Fund's portfolio manager(s) to invest the Fund's assets as intended.

**10. LIBOR** 

The London Interbank Offered Rate ("LIBOR") historically has been and currently is used extensively in the U.S. and globally as a benchmark" or "reference rate" for various commercial and financial contracts, including corporate and municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other derivatives. For example, debt instruments in which the Fund invests may pay interest at floating rates based on LIBOR or may be subject to interest caps or floors based on LIBOR. The Fund's derivative investments may also reference LIBOR. In addition, issuers of instruments in which the Fund invests may obtain financing at floating rates based on LIBOR, and the Fund may use leverage or borrowings based on LIBOR. In July 2017, the head of the United Kingdom Financial Conduct Authority announced the intention to phase out the use of LIBOR by the end of 2021. However, after subsequent announcements by the FCA, the LIBOR administrator and other regulators, certain of the most widely used LIBORs have been extended and are expected to continue until mid-2023. Currently, the U.S. and other countries are working to replace LIBOR with alternative reference rates. The transition effort in the U.S.is being led by the Alternative Reference Rate Committee (ARRC), a diverse group of market participants convened by the Federal Reserve. After much deliberation, ARRC selected the Secured Overnight Financing Rate ("SOFR") as the preferred LIBOR successor for U.S. dollar markets. SOFR is a volume-weighted median of borrowing rates from the Treasury repurchase agreement market. National working groups in other jurisdictions have similarly identified overnight

Notes to Financial Statements (continued)

October 31, 2022

nearly risk-free rates like SOFR as their preferred alternatives to LIBOR. Although the structured transition to the new rates is designed to mitigate the risks of disruption to financial markets, such risks exist. Abandonment of or modifications to LIBOR could lead to significant short and long-term uncertainty and market instability. The risks associated with this discontinuation and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. It remains uncertain the effects such changes would have on the Fund, issuers of instruments in which the Fund invest, and the financial markets generally.

**11. CORONAVIRUS (COVID-19) PANDEMIC** 

The global outbreak of COVID-19 has disrupted economic markets, and the ongoing effects of COVID-19 are unpredictable. The operational and financial performance of the issuers of securities in which the Fund invests may be significantly impacted by COVID-19, which may in turn impact the value of the Fund's investments.

**12. 10% SHAREHOLDERS** 

As of October 31, 2022, the Fund had individual shareholder account(s) and/or omnibus shareholder account(s) (comprised of a group of individual shareholders), which individually amounted to more than 10% of the total shares outstanding of the Fund as detailed below:

---

| | | |
|:---|:---|:---|
| **Fund** | **% of Shares<br>Outstanding** | **Number of<br>Accounts** |
|  InfraCap MLP ETF  | 58% | 3 |

---

**13. RECENT ACCOUNTING PRONOUNCEMENTS** 

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update No.2020-04 ("ASU 2020-04"), Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020-04 provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered based reference rates as of the end of 2021. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

**14. SUBSEQUENT EVENTS** 

Management has evaluated subsequent events through the issuance of these financial statements and has determined that there are no material events that would require disclosure.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of ETFis Series Trust I and Shareholders of InfraCap REIT Preferred ETF, Virtus InfraCap U.S. Preferred Stock ETF, Virtus LifeSci Biotech Clinical Trials ETF, Virtus LifeSci Biotech Products ETF, Virtus Newfleet Multi-Sector Bond ETF, Virtus Private Credit Strategy ETF, Virtus Real Asset Income ETF, and Virtus WMC International Dividend ETF

**Opinions on the Financial Statements**

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of InfraCap REIT Preferred ETF, Virtus InfraCap U.S. Preferred Stock ETF, Virtus LifeSci Biotech Clinical Trials ETF, Virtus LifeSci Biotech Products ETF, Virtus Newfleet Multi-Sector Bond ETF, Virtus Private Credit Strategy ETF, Virtus Real Asset Income ETF and Virtus WMC International Dividend ETF (eight of the funds constituting ETFis Series Trust I, hereafter collectively referred to as the "Funds") as of October 31, 2022, the related statements of operations for the year ended October 31, 2022, the statement of cash flows for Virtus InfraCap U.S. Preferred Stock ETF for the year ended October 31, 2022, the statements of changes in net assets for each of the two years in the period ended October 31, 2022, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2022, the results of each of their operations and the cash flows for Virtus InfraCap U.S. Preferred Stock ETF for the year then ended, the changes in each of their net assets for each of the two years in the period ended October 31, 2022 and each of the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinions**

These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2022, by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

**/s/ PricewaterhouseCoopers LLP<br>Philadelphia, Pennsylvania<br>December** **22, 2022**

We have served as the auditor of one or more investment companies in Virtus ETF Solutions since 2017.

Report of Independent Registered Public Accounting Firm (continued)

To the Board of Trustees of ETFis Series Trust I and Shareholders of InfraCap MLP ETF

**Opinion on the Financial Statements**

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of InfraCap MLP ETF (one of the funds constituting ETFis Series Trust I, hereafter referred to as the "Fund") as of October 31, 2022, the related statements of operations and cash flows for the year ended October 31, 2022, the statement of changes in net assets for each of the two years in the period ended October 31, 2022, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2022, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2022 and the financial highlights for each of the five years in the period ended October 31, 2022 in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2022, by correspondence with the custodian, transfer agent, and broker. We believe that our audits provide a reasonable basis for our opinion.

**/s/ PricewaterhouseCoopers LLP<br>Philadelphia, Pennsylvania<br>December** **22, 2022**

We have served as the auditor of one or more investment companies in Virtus ETF Solutions since 2017.

Statement Regarding Liquidity Risk Management Program (unaudited)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Pursuant to Rule 22e-4 under the 1940 Act, the Funds have adopted a liquidity risk management program (the "Program") to govern the Funds' approach to managing liquidity risk, which is the risk that a Fund would not be able to meet redemption requests without significant dilution of remaining investors' interests in the Fund. The Program is overseen by the Adviser as the Funds' Liquidity Risk Management Program Administrator (the "Program Administrator"), and the Program's principal objectives include assessing, managing and periodically reviewing each Fund's liquidity risk, based on factors specific to the circumstances of the Funds.

Assessment and management of a Fund's liquidity risk under the Program take into consideration certain factors, such as the Fund's investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions, its short- and long-term cash-flow projections under both normal and reasonably foreseeable stressed conditions, and its cash and cash-equivalent holdings and access to other funding sources. As required by the rule, the Program includes policies and procedures for classification of Fund portfolio holdings in four liquidity categories, maintaining certain levels of highly liquid investments, and limiting holdings of illiquid investments.

At a meeting of the Board held on June 6, 2022, the Board received a report from the Program Administrator addressing the operation and management of the Program for the period from January 1, 2021 through December 31, 2021 (the "Review Period"). The Program Administrator's report noted that for the Review Period, the Program Administrator believed that the Program operated effectively in all material respects and that existing procedures, controls and safeguards were appropriately designed to enable the Program Administrator to administer the Program in compliance with Rule 22e-4. The Program Administrator's report noted that during the Review Period, there were no events that created liquidity related concerns for the Funds. The Program Administrator's report further noted that, while changes to the Program had been made during the Review Period and reported to the Board, no material changes were made to the Program as a result of the Program Administrator's annual review.

There can be no assurance that the Program will achieve its objectives in the future. Please refer to a Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other principal risks to which an investment in that Fund may be subject.

Trustees and Officers of the Trust (unaudited)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Information pertaining to the Trustees and officers of the Trust as of the date of issuance of this report is set forth below. The Statement of Additional Information ("SAI") includes additional information about the Fund's Trustees and is available, without charge, upon request, by calling the Adviser (toll-free) at (888)-383-4184.

The address for each Trustee and officer is 31 West 52nd Street, 16th Floor, New York, NY 10019. Each Trustee serves until resignation, death, retirement or removal. Officers are elected yearly by the Trustees.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Name and<br>Year of Birth** | &nbsp;&nbsp; **Position(s) Held<br>with Trust** | &nbsp;&nbsp; **Length of<br>Time Served** | &nbsp;&nbsp; **Principal Occupation(s)<br>During Past Five Years** | &nbsp;&nbsp; **Number of<br>Portfolios in Fund Complex\*<br>Overseen by<br>Trustee** | &nbsp;&nbsp; **Other<br>Directorships<br>Held by Trustee<br>During Past<br>Five Years** |
|  **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** |
|  Myles J. Edwards<br>Year of Birth: 1961 | Trustee | Since 2016 | General Counsel and Chief Compliance Officer (since 2021), Sanctuary Securities, Inc. and Sanctuary Advisors, LLC; Chief Compliance Officer (since 2020), 1776 Wealth, Inc.; General Counsel and Chief Compliance Officer (since 2019), Bruderman Brothers, LLC and Bruderman Asset Management, LLC; Chief Compliance Officer (since 2018), Netrex Capital Markets, LLC; Chief Executive Officer (since 2018), Final Compliance; Chief Compliance Officer (since 2018), Knight Vinke; and General Counsel, Chief Compliance Officer and Chief Operating Officer (2014 to 2018), Shufro, Rose & Co., LLC. | 16 | Trustee (since 2015), Virtus ETF Trust II (6 portfolios) |
|  James A. Simpson<br>Year of Birth: 1970 | Trustee | Since Inception | President (since 2009), ETP Resources, LLC (a financial services consulting company). | 16 | Trustee (since 2018), Asset Management Fund (5 portfolios); Trustee (since 2015), Virtus ETF Trust II (6 portfolios) |
|  Robert S. Tull, Jr.<br> Year of Birth: 1952 | Trustee | Since Inception | President (since 2017), ProcureAM, LLC; President (since 2018), Procure Holdings LLC; President (2005 to 2018), Robert Tull & Co. | 16 | Trustee (since 2015), Virtus ETF Trust II (6 portfolios); Trustee (since 2018), Procure ETF Trust II |
|  **INTERESTED TRUSTEE\*\*** | **INTERESTED TRUSTEE\*\*** | **INTERESTED TRUSTEE\*\*** | **INTERESTED TRUSTEE\*\*** | **INTERESTED TRUSTEE\*\*** | **INTERESTED TRUSTEE\*\*** |
|  William J. Smalley<br>Year of Birth: 1983 | Trustee, President and Chief Executive Officer | Since Inception | President (since 2012), Virtus ETF Solutions LLC; Managing Principal (2012-2019), ETF Distributors LLC; Managing Director (since 2012), Virtus ETF Advisers LLC; President and Chief Executive Officer (since 2012), ETFis Series Trust I; and President and Chief Executive Officer (since 2015), Virtus ETF Trust II. | 10 |  |

---

Trustees and Officers of the Trust (unaudited) (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Name and<br>Year of Birth** | &nbsp;&nbsp; **Position(s) Held<br>with Trust** | &nbsp;&nbsp; **Length of<br>Time Served** | &nbsp;&nbsp; **Principal Occupation(s)<br>During Past Five Years** | &nbsp;&nbsp; **Number of<br>Portfolios in Fund Complex\*<br>Overseen by<br>Trustee** | &nbsp;&nbsp; **Other<br>Directorships<br>Held by Trustee<br>During Past<br>Five Years** |
|  **OTHER EXECUTIVE OFFICERS** | **OTHER EXECUTIVE OFFICERS** | **OTHER EXECUTIVE OFFICERS** | **OTHER EXECUTIVE OFFICERS** | **OTHER EXECUTIVE OFFICERS** | **OTHER EXECUTIVE OFFICERS** |
|  Timothy Branigan<br>Year of Birth: 1976 | Fund Chief<br>Compliance<br>Officer<br> Deputy<br>Fund Chief<br>Compliance<br>Officer<br> Assistant<br>Chief<br>Compliance<br>Officer | Since 2022<br>February<br>2022 to<br>June 2022<br>2020 to 2022 | Various officer positions (since 2019) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. | N/A | N/A |
|  Kevin J. Carr<br>Year of Birth: 1954 | Secretary | Since 2015 | Vice President and Senior Counsel (since 2017) and various senior officer positions (since 2005), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; and various officer positions (since 2005) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc. | N/A | N/A |
|  Brinton W. Frith<br>Year of Birth: 1969 | Treasurer and Chief Financial Officer | Since Inception | President (since 2013), Virtus ETF Advisers LLC; Vice President (since 2016) and Managing Director (since 2013), Virtus ETF Solutions LLC; Treasurer and Chief Financial Officer (since 2013), ETFis Series Trust I; and Treasurer and Chief Financial Officer (since 2015), Virtus ETF Trust II. | N/A | N/A |
|  Julia Short<br>Year of Birth: 1972 | Senior Vice President | Since 2022 | Senior Vice President, Product Development (since 2017), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Senior Vice President (since 2017) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; and Managing Director, Product Manager, RidgeWorth Investments (2004 to 2017). | N/A | N/A |

---

Trustees and Officers of the Trust (unaudited) (continued)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Name and<br>Year of Birth** | &nbsp;&nbsp; **Position(s) Held<br>with Trust** | &nbsp;&nbsp; **Length of<br>Time Served** | &nbsp;&nbsp; **Principal Occupation(s)<br>During Past Five Years** | &nbsp;&nbsp; **Number of<br>Portfolios in Fund Complex\*<br>Overseen by<br>Trustee** | &nbsp;&nbsp; **Other<br>Directorships<br>Held by Trustee<br>During Past<br>Five Years** |
|  Richard W. Smirl<br> Year of Birth: 1967 | Executive Vice President | Since 2022 | Chief Operating Officer (since 2021); Virtus Investment Partners, Inc.; Executive Vice President (since 2021), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; Executive Vice President (since 2021) of various registered funds advised by subsidiaries of Virtus Investment Partners, Inc.; Chief Operating Officer (2018 to 2021), Russell Investments; Executive Director (Jan. to July 2018), State of Wisconsin Investment Board; and Partner and Chief Operating Officer (2004 to 2018), William Blair Investment Management. | N/A | N/A |

---

------

\*As of the date of the issuance of this report, the Fund Complex consisted of the Trust, which consisted of ten portfolios—InfraCap REIT Preferred ETF, Virtus InfraCap U.S. Preferred Stock ETF, Virtus LifeSci Biotech Clinical Trials ETF, Virtus LifeSci Biotech Products ETF, Virtus Newfleet Multi-Sector Bond ETF, Virtus Private Credit Strategy ETF, Virtus Real Asset Income ETF, Virtus Reaves Utilities ETF, Virtus WMC International Dividend ETF and InfraCap MLP ETF, and Virtus ETF Trust II, which consisted of six portfolios—Virtus Duff & Phelps Clean Energy ETF, Virtus Newfleet ABS/MBS ETF, Virtus Newfleet High Yield Bond ETF, Virtus Seix Senior Loan ETF, Virtus Stone Harbor Emerging Markets High Yield Bond ETF and Virtus Terranova U.S. Quality Momentum ETF.

\*\*William J. Smalley is an "interested person" as defined in the Investment Company Act of 1940, because he is an employee of the Adviser.

Supplemental Information (unaudited)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**INFORMATION ABOUT** **PORTFOLIO HOLDINGS** 

The Trust files a complete schedule of portfolio holdings for each Fund with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT-P. Form N-PORT-P is available on the SEC's website at <u><u>https://www.sec.gov</u></u>.

The Funds' premium/discount information for the most recently completed calendar year, and the most recently completed calendar quarters since that year is available by visiting <u><u>www.virtusetfs.com</u></u> or by calling (888) 383-4184.

**INFORMATION ABOUT** **PROXY VOTING** 

A description of the policies and procedures the Funds use to determine how to vote proxies relating to portfolio securities is provided in the Statement of Additional Information ("SAI"). The SAI is available without charge upon request by calling toll-free at (888) 383-0553, by accessing the SEC's website at <u><u>www.sec.gov</u></u> or by accessing the Funds' website at <u><u>www.virtusetfs.com</u></u>.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30th is available by calling toll-free at (888) 383-0553 or by accessing the SEC's website at <u><u>www.sec.gov</u></u>.

**TAX INFORMATION** 

For the fiscal year ended October 31, 2022, the Funds make the following disclosures for federal income tax purposes. Below is listed the percentages, or the maximum amount allowable, of its ordinary income dividends ("QDI") to qualify for the lower tax rates applicable to individual shareholders, and the percentage of ordinary income dividends earned by each Fund which qualifies for the dividends received deduction ("DRD") for corporate shareholders. The actual percentage of QDI and DRD for the calendar year will be designated in year-end tax statements.

---

| | | |
|:---|:---|:---|
| **Funds** | **QDI** | **DRD** |
|  InfraCap REIT Preferred ETF  | 0.00% | 0.00% |
|  Virtus InfraCap U.S. Preferred Stock ETF  | 49.70% | 37.52% |
|  Virtus LifeSci Biotech Clinical Trials ETF  | 0.00% | 0.00% |
|  Virtus LifeSci Biotech Products ETF  | 0.00% | 0.00% |
|  Virtus Newfleet Multi-Sector Bond ETF  | 0.00% | 0.00% |
|  Virtus Private Credit Strategy ETF  | 1.55% | 0.37% |
|  Virtus Real Asset Income ETF  | 78.84% | 30.93% |
|  Virtus WMC International Dividend ETF  | 69.83% | 0.00% |

---

**c/o VP Distributors, LLC**

One Financial Plaza

Hartford, Connecticut 06103

**8572(12/22)**

![](etfis-ncsr_103122img011.gif)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable

**Item 2. Code of Ethics.**

As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. Other than certain non-substantive changes, there have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics described in Item 2(b) of the instructions for completion of Form N-CSR. Pursuant to Item 13(a)(1), a copy of registrant's amended code of ethics has been filed with the Commission. During the period covered by this report, the registrant has not granted any waivers, including implicit waivers, from the provisions of the code of ethics.

**Item 3. Audit Committee Financial Expert.**

The registrant's board of trustees has determined that the registrant does not have an audit committee financial expert serving on its audit committee. At this time, the registrant's board of trustees believes that the collective experience provided by the members of the audit committee together offer the registrant adequate oversight for the registrant's level of financial complexity.

**Item 4. Principal Accountant Fees and Services.**

<u>Audit Fees</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) The aggregate fees billed for professional services rendered by the principal accountant for the audit
of the registrant's annual financial statements or for services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements were $187,663 and $190,003 respectively, for the registrant's fiscal years ended
October 31, 2021 and October 31, 2022.

<u>Audit-Related Fees</u>

&nbsp;&nbsp;&nbsp;&nbsp;(b) The aggregate fees billed for assurance and related services rendered by the principal accountant to the
registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported
under paragraph (a) of this Item were $1,500 and $0, respectively, for the registrant's fiscal years ended October 31, 2021 and
October 31, 2022.

The aggregate fees billed for assurance and related services rendered by the principal accountant to the registered investment company's investment adviser (not including a sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registered investment company, that are reasonably related to the performance of the audit of the registrant's financial statements were $1,500 and $0, respectively, for the registrant's fiscal years ended October 31, 2021 and October 31, 2022.

<u>Tax Fees</u>

&nbsp;&nbsp;&nbsp;&nbsp;(c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the
principal accountant to the registrant for tax compliance, tax advice, and tax planning were $136,625 for 2021 and $133,825 for 2022.

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning to the registered investment company's investment adviser (not including a sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registered investment company were $534,310 for 2021 and $457,604 for 2022.

"Tax Fees" are those primarily associated with review of the Trust's tax provision and qualification as a regulated investment company (RIC) in connection with audits of the Trust's financial statements, review of year-end distributions by the Funds to avoid excise tax for the Trust, periodic discussion with management on tax issues affecting the Trust, and reviewing and signing the Funds' federal income tax returns.

<u>All Other Fees</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the
principal accountant to the registrant, other than the services reported in paragraphs (a) through (c) of this Item were $12,556 for 2021
and $0.00 for 2022.

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the registered investment company's investment adviser (not including a sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registered investment company, other than the services reported in paragraphs (a) through (c) of this Item were $86,093 for 2021 and $1,500 for 2022.

(e)(1) The audit committee has not adopted pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

(e)(2) None of the services described in paragraphs (b) through (d) of this Item were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Less than 50% of hours expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's
full-time, permanent employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) During the fiscal years ended October 31, 2021 and October 31,
2022, aggregate non-audit fees of $769,584 and $0.00, respectively, were billed by the registrant's accountant for services rendered
to the registrant and the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management
and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant.

&nbsp;&nbsp;&nbsp;&nbsp;(h) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Not applicable.

**Item 5. Audit Committee of Listed Registrants.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) The registrant has a separately designated audit committee consisting of all the independent trustees
of the registrant. The members of the audit committee are: James A. Simpson, Robert S. Tull, Jr. and Myles Edwards.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

**Item 6. Investments.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report
to shareholders filed under Item 1 of this Form.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Not applicable.

**Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.**

Not applicable.

**Item 8. Portfolio Managers of Closed-End Management Investment Companies.**

Not applicable.

**Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.**

Not applicable.

**Item 10. Submission of Matters to a Vote of Security Holders.**

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

**Item 11. Controls and Procedures.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) The registrant's principal executive and principal financial officers, or persons performing similar
functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment
Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the
filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act
of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

&nbsp;&nbsp;&nbsp;&nbsp;(b) There were no changes in the registrant's internal control over financial reporting (as defined
in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

**Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.**

Not applicable.

**Item 13. Exhibits.**

[(a)(1)](ex99-coe.htm) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

[(a)(2)](ex99-cert.htm) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(a)(4) Not applicable.

[(b)](ex99-906cert.htm) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

**SIGNATURES**<br>

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) ETFis Series Trust I

---

| | |
|:---|:---|
| By (Signature and Title)\* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ William J. Smalley |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;William J. Smalley, President and Principal Executive Officer |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Executive Officer) |

---

Date <u>January 5, 2023</u>

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By (Signature and Title)\* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ William J. Smalley |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;William J. Smalley, President and Principal Executive Officer |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Executive Officer) |

---

Date <u>January 5, 2023</u>

---

| | |
|:---|:---|
| By (Signature and Title)\* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Brinton W. Frith |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brinton W. Frith, Treasurer and Principal Financial Officer/Principal |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounting Officer |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Financial Officer/Principal Accounting Officer) |

---

Date <u>January 5, 2023</u>

 

<sup>\*</sup> Print the name and title of each signing officer under his or her signature.

## Ex-99.Code

**[EX-99.CODE ETH](etfis-ncsr_103122.htm)**

CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND <br>PRINCIPAL FINANCIAL OFFICERS

&nbsp;&nbsp;&nbsp;&nbsp;**I.** **Covered Officers/Purpose of the Code** 

This code of ethics (this "Code") for ETFis Series Trust I and Virtus ETF Trust II (each, a "Trust") applies to a Trust's Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer(s) (the "Covered Officers", each of whom is set forth in Exhibit A) for the purpose of promoting:

&nbsp;&nbsp;&nbsp;&nbsp;• honest
 and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional
 relationships;

&nbsp;&nbsp;&nbsp;&nbsp;• full,
 fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or
 submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;• compliance
 with applicable laws and governmental rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;• the
 prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;• accountability
 for adherence to the Code.

&nbsp;&nbsp;&nbsp;&nbsp;**II.** **Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest** 

**Overview.** A "conflict of interest" occurs when a Covered Officer's private interest in any material respect interferes with the interests of, or his service to, the Trust. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Trust.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Trust and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property, other than shares of beneficial interest of the Trust) with the Trust because of their status as "affiliated persons" of the Trust. The Trust's and the investment advisor's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Trust and the investment advisor/administrator of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Trust or for the advisor/administrator, or for both), be involved in establishing policies and implementing decisions that may have different effects on the advisor/administrator and the Trust. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Trust and the advisor/administrator and is consistent with the performance by the Covered Officers of their duties as officers of the Trust. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Trust's Board of Trustees ("Board") that the Covered Officers may also be officers or employees of one or more investment companies covered by other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Trust.

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;• not
 use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by
 the Trust whereby the Covered Officer would benefit personally to the detriment of the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;• not
 cause the Trust to take action, or fail to take action, for the individual personal benefit of the Covered Officer to the
 detriment of the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;• not
 use material non-public knowledge of portfolio transactions made or contemplated for the Trust to trade personally or cause
 others to trade personally in contemplation of the market effect of such transactions; and

&nbsp;&nbsp;&nbsp;&nbsp;• report
 at least annually any affiliations or other relationships related to conflicts of interest that the Trust's Trustees and Officers
 Questionnaire covers.

There are some conflict of interest situations that should always be discussed with the Audit Committee of the Trust if such situations might have a material adverse effect on the Trust. Examples of these include:

&nbsp;&nbsp;&nbsp;&nbsp;• service
 as a trustee on the board of any public company;

&nbsp;&nbsp;&nbsp;&nbsp;• the
 receipt of non-nominal gifts (currently gifts in excess of $200.00);

&nbsp;&nbsp;&nbsp;&nbsp;• the
 receipt of entertainment from any company with which the Trust has current or prospective business dealings, including investments
 in such companies, unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and
 not so frequent as to raise any questions of impropriety;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;• any
 ownership interest in, or any consulting or employment relationship with, any of the Trust's service providers, other than
 its investment advisor, principal underwriter, administrator or any affiliated person thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;• a
 direct or indirect financial interest in commissions, transaction charges or spreads paid by the Trust for effecting portfolio
 transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment,
 such as compensation or equity ownership.

&nbsp;&nbsp;&nbsp;&nbsp;**III.** **Disclosure and Compliance** 

&nbsp;&nbsp;&nbsp;&nbsp;• each
 Covered Officer should familiarize himself with the disclosure requirements generally applicable to the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;• each
 Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Trust to others, whether
 within or outside the Trust, including to the Trust's trustees and auditors, and to governmental regulators and self-regulatory
 organizations;

&nbsp;&nbsp;&nbsp;&nbsp;• each
 Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees
 of the Trust and the advisor/administrator with the goal of promoting full, fair, accurate, timely and understandable disclosure
 in the reports and documents the Trust files with, or submits to, the SEC and in other public communications made by the Trust;
 and

&nbsp;&nbsp;&nbsp;&nbsp;• it
 is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable
 laws, rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **Reporting and Accountability** 

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;• upon
 adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he
 has received, read, and understands the Code;

&nbsp;&nbsp;&nbsp;&nbsp;• annually
 thereafter affirm to the Board that he has complied with the requirements of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;• not
 retaliate against any other Covered Officer or any employee of the Trust or their affiliated persons for reports of potential
 violations that are made in good faith; and

&nbsp;&nbsp;&nbsp;&nbsp;• notify
 the Audit Committee for the Trust promptly if he/she knows of any material violation of this Code.

The Audit Committee is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. In addition, the Audit Committee will consider any approvals or waivers sought by a Covered Officer.

The Trust will follow these procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;• the
 compliance officer of the investment advisor to the Trust, Etfis Capital, LLC, (or such other Trust officer or other investigator
 as the Audit Committee may from time to time designate) (the "Investigator"), shall take appropriate action to investigate
 any potential violations reported to him;

&nbsp;&nbsp;&nbsp;&nbsp;• if,
 after such investigation, the Investigator believes that no violation has occurred, the Investigator is not required
 to take any further action;

&nbsp;&nbsp;&nbsp;&nbsp;• if
 the Audit Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will
 consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures;
 notification to appropriate personnel of the investment advisor/administrator or its board; or a recommendation to dismiss
 the Covered Officer;

&nbsp;&nbsp;&nbsp;&nbsp;• the
 Board will be responsible for granting waivers, as appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;• any
 changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

Any potential violation of this Code by the Investigator shall be reported to the Audit Committee and the Audit Committee shall appoint an alternative Trust officer or other investigator to investigate the matter.

&nbsp;&nbsp;&nbsp;&nbsp;**V.** **Other Policies and Procedures** 

This Code shall be the sole code of ethics adopted by the Trust for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Trust, the Trust's advisor, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Trust's and its investment adviser's and principal underwriter's codes of ethics under Rule 17j-1 under the Investment Company Act are separate requirements applying to the Covered Officers and others, and are not part of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;**VI.** **Amendments** 

Any material amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Board, including a majority of independent trustees.

&nbsp;&nbsp;&nbsp;&nbsp;**VII.** **Confidentiality** 

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or regulation or this Code, such matters shall not be disclosed to anyone other than the Board and the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** **Internal Use** 

The Code is intended solely for the internal use by the Trust and does not constitute an admission, by or on behalf of the Trust, as to any fact, circumstance, or legal conclusion.

Date: October 8, 2020

**Exhibit A**

<u>Persons Covered by this Code of Ethics</u>

William J. Smalley, President and Principal Executive Officer <br>Brinton W. Frith, Treasurer and Principal Financial Officer

## Ex-99.Cert

**[EX-99.CERT](etfis-ncsr_103122.htm)**

**Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act**

I, William J. Smalley, certify that:

1. I have reviewed this report on Form N-CSR of ETFis Series Trust I;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this
report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting
(as defined in Rule 30a-3 (d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing
date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the
audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report
financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | &nbsp;&nbsp;&nbsp;January 5, 2023 | /s/ William J. Smalley |
|  |  | William J. Smalley, President and Principal Executive Officer |
|  |  | (Principal Executive Officer) |

---

**Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act**

I, Brinton W. Frith, certify that:

1. I have reviewed this report on Form N-CSR of ETFis Series Trust I;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this
report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting
(as defined in Rule 30a-3 (d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing
date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the
audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report
financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | &nbsp;&nbsp;&nbsp;January 5, 2023 | /s/ Brinton W. Frith |
|  |  | Brinton W. Frith, Treasurer and Principal Financial Officer/Principal Accounting Officer |
|  |  | (Principal Financial Officer/Principal Accounting Officer) |

---

## Exhibit 99.906

**[EX-99.906 CERT](etfis-ncsr_103122.htm)**

**Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act**

I, William J. Smalley, President and Principal Executive Officer of ETFis Series Trust I (the "Registrant"), certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section
13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition
and results of operations of the Registrant.

---

| | | |
|:---|:---|:---|
| Date: | &nbsp;&nbsp;&nbsp;January 5, 2023 | /s/ William J. Smalley |
|  |  | William J. Smalley, President and Principal Executive Officer |
|  |  | (Principal Executive Officer) |

---

I, Brinton W. Frith, Treasurer and Principal Financial Officer of ETFis Series Trust I (the "Registrant"), certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section
13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition
and results of operations of the Registrant.

---

| | | |
|:---|:---|:---|
| Date: | &nbsp;&nbsp;&nbsp;January 5, 2023 | /s/ Brinton W. Frith |
|  |  | Brinton W. Frith, Treasurer and Principal Financial Officer/Principal Accounting Officer |
|  |  | (Principal Financial Officer/Principal Accounting Officer) |

---