VIRTUS LIFESCI BIOTECH CLINI Business Summary

The Virtus LifeSci Biotech Clinical Trials ETF (BBC) operates as a passively managed investment vehicle designed to track the LifeSci Biotechnology Clinical Trials Index. The fund generates revenue primarily through management fees, maintaining a total expense ratio of 0.79% as of early 2026. Its business model focuses on providing targeted exposure to the clinical-stage biotechnology segment, specifically U.S.-listed companies with lead drug candidates in Phase 1, 2, or 3 clinical trials that have not yet received regulatory marketing approval. By utilizing an equal-weighted indexing strategy, BBC ensures that smaller, high-growth firms with breakthrough potential contribute significantly to the portfolio's performance. Direct competitors include the iShares Biotechnology ETF (IBB), the SPDR S&P Biotech ETF (XBI), and the First Trust NYSE Arca Biotechnology Index Fund (FBT); BBC distinguishes itself by offering a pure-play focus on clinical-stage development rather than commercial-stage pharmaceutical giants. The fund is managed by Virtus Investment Advisers, LLC, under the leadership of George R. Aylward, who serves as President and CEO of the parent company, Virtus Investment Partners. Day-to-day portfolio management is led by Matthew B. Brown, Executive Managing Director and COO of Virtus ETF Solutions, and Seth Kadushin, Director of Capital Markets, both of whom possess extensive backgrounds in the creation and administration of complex financial products. The underlying index is provided by LifeSci Index Partners, LLC, founded by Andrew McDonald, Ph.D., and Michael Rice. McDonald brings significant industry pedigree as a former medicinal chemist at Pfizer and Cytokinetics, where he specialized in anti-cancer agent discovery. This leadership team combines institutional asset management expertise with specialized scientific research, supported by the broader Virtus platform and its board of directors, which includes independent chairman Timothy A. Holt.