N-CSR 1 e2962ncsr.htm FORM N-CSR

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22819

ETFis Series Trust I
(Exact name of registrant as specified in charter)

1540 Broadway, 16^th Floor
New York, NY 10036
(Address of principal executive offices) (Zip code)

ETFis Series Trust I

c/o Corporation Service Company

2711 Centerville Road, Suite 400

Wilmington, DE 19808
(Name and address of agent for service)

Registrant’s telephone number, including area code: (212) 593-4383

Date of fiscal year end: October 31

Date of reporting period: October 31 , 2018

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, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

ETFis Series Trust I

INFRACAP REIT PREFERRED ETF
VIRTUS CUMBERLAND MUNICIPAL BOND ETF
VIRTUS GLOVISTA EMERGING MARKETS 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 WMC GLOBAL FACTOR OPPORTUNITIES ETF
INFRACAP MLP ETF

ANNUAL REPORT

October 31, 2018

Table of Contents

October 31, 2018

	Page (s)
Shareholder Letter		3
Management’s Discussion of Fund Performance		4
Portfolio Composition		27
Shareholder Expense Examples		30
InfraCap REIT Preferred ETF
Virtus Cumberland Municipal Bond ETF
Virtus Glovista Emerging Markets 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 WMC Global Factor Opportunities ETF
Schedules of Investments		31
Statements of Assets and Liabilities		61
Statements of Operations		63
Statements of Changes in Net Assets		65
Statement of Cash Flows		69
Financial Highlights		70
Notes to Financial Statements		78
InfraCap MLP ETF
Schedule of Investments		89
Statement of Assets and Liabilities		93
Statement of Operations		94
Statement of Changes in Net Assets		95
Statement of Cash Flows		96
Financial Highlights		97
Notes to Financial Statements		98
Reports of Independent Registered Public Accounting Firm		106
Approval of Advisory Agreements & Board Considerations		109
Trustees and Officers of the Trust		114
Supplemental Information		116

Shareholder Letter (unaudited)

October 31, 2018

Dear Fellow ETFis Funds Shareholder:

I am pleased to present this annual report for ETFis Series Trust I, which reviews the performance of the following funds within the Trust, including a recent addition, for the twelve months ended October 31, 2018:

•

InfraCap REIT Preferred ETF (PFFR)

•

Virtus Cumberland Municipal Bond ETF (CUMB)

•

Virtus Glovista Emerging Markets ETF (EMEM) - Commenced operations on November 7, 2017.

•

Virtus InfraCap U.S. Preferred Stock ETF (PFFA) - Commenced operations on May 15, 2018.

•

Virtus LifeSci Biotech Clinical Trials Fund (BBC)

•

Virtus LifeSci Biotech Products Fund (BBP)

•

Virtus Newfleet Multi-Sector Bond ETF (NFLT)

•

Virtus WMC Global Factor Opportunities ETF (VGFO)

•

InfraCap MLP ETF (AMZA)

The report provides financial statements and portfolio information for the above funds. For the funds with a performance history of more than six months, the report also provides commentary from the portfolio manager on how the fund performed relative to the markets in which it invests.

On behalf of Virtus ETF Advisers LLC (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. We invite you to visit our website, www.virtusetfs.com, to learn more about the funds.

Sincerely,

William Smalley
President

ETFis Series Trust I

This material must be accompanies or preceded by the prospectus.

Management’s Discussion of Fund Performance (unaudited)

October 31, 2018

InfraCap REIT Preferred ETF

Management’s Discussion of Operations

Overview

The InfraCap REIT Preferred ETF (“the Fund”) seeks to track the investment results of an index composed of preferred shares listed on U.S. Exchanges and issued by Real Estate Investment Trusts, as represented by the Indxx REIT Preferred Stock Index (“the Index”). The Fund invests in a representative sample of securities included in the Index that collectively has a profile similar to the Index. Due to the use of representative sampling, the Fund may or may not own all of the securities that are included in the Index.

Update

In the fiscal year ended October 31, 2018, the Fund had a net loss of 2.72% on a market value basis (NYSE price change plus dividends). On a Net Asset Value (NAV) basis, the net loss was 2.60%.

Preferred shares tend to behave fixed income securities, and prices are influenced by changes in long-term interest rates. During the year, the yield on the 30-year U.S. Treasury bond rose 51 basis points, from 2.88% to 3.39%. Yields on preferred shares rose in response, with prices slipping accordingly.

The Fund was further influenced by relatively strong performance in the following three holdings: Chimera Investment Corp Cumulative Pfd. Registered Series B; Armour Residential Reit Inc. 7.875% Cumulative Pfd. Series B; and Invesco Mortgage Capital Inc. Cumulative Pfd. Series A.

The Fund’s total returns were negatively impacted by relatively weak performance in the following three holdings: CBL & Associates Properties Inc. 6⁵⁄₈% Perpetual; Farmland Partners Inc 6% Pfd. Registered Series B; and Hersha Hospitality Trust 6¹⁄₂% Cumulated Pfd. Series D.

EXPOSURE BY SECTOR (%) as of 10/31/18
Mortgage REITs					30.60
Property REITs					69.40
Diversified					19.08
Storage					10.79
Office Property					1.08
Regional Malls					6.67
Shopping Centers					9.83
Health Care					4.91
Apartments					3.96
Hotels					6.25
Single Tenant					4.03
Warehouse/Industrial					2.07
Farmlands					0.73
Total					100.00

TOP 10 HOLDINGS (%) as of 10/31/18
Welltower Inc					4.9
Annaly Capital Management					4.0
Annaly Capital Management					2.2
Kimco Realty Corporation					2.2
KKR & Co Inc					2.0
Chimera Investment Corp					1.9
AGNC Investment Corp					1.8
Colony Capital Inc					1.7
National Realty Properties Inc					1.7
Arch Capital Group Ltd					1.7

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

October 31, 2018

InfraCap REIT Preferred ETF (continued)

EXPOSURE BY RATING (%) as of 10/31/18
A-	9.9	%
BBB+	5.3	%
BBB	23.6	%
BBB-	6.7	%
BB+	4.0	%
BB	1.3	%
BB-	2.1	%
NR	47.0	%

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 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. Below investment-grade is represented by a rating of BB and below. Ratings and portfolio credit quality may change over time.

Performance as of 10/31/2018

	Average Annual Total Return
	Fund Net Asset Value			Fund Market Price			Index REIT Preferred Stock Index¹
1 Year		(2.60	)%		(2.72	)%		(1.69	)%
Since Inception²		2.16	%		2.16	%		2.96	%

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.

February 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 www.virtusetfs.com 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.

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.

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.

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.

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

October 31, 2018

InfraCap REIT Preferred ETF (continued)

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.

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

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.

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

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, 2018

Virtus Cumberland Municipal Bond ETF

Management’s Discussion of Operations

For the fiscal year ended October 31, 2018, the Virtus Cumberland Municipal Bond ETF (the “Fund”) produced a negative 1% total return while the Fund’s benchmark index, the Bloomberg Barclays Municipal Bond Index (the “Index”), produced a negative 0.51% return. The Index is a market value-weighted index designed to represent the long-term investment-grade (bonds rated BBB/Baa and above) tax-exempt bond market.

For the fiscal year, the Fund paid quarterly dividends totaling 91.274 cents per share.

The Fund’s managers continued to invest with a “barbell” approach concentrating positions in tax-exempt bonds with both longer and shorter durations. This approach tends to struggle during periods when the yield curve flattens somewhat and was the primary detractor from Fund performance relative to the Index during the fiscal year.

At the close of the fiscal year, the Fund’s portfolio was well diversified across municipal issuers, the highest concentration by state was Massachusetts at 10.6% followed by New York at 8.6%. Kansas was represented by a single issuer and was the smallest concentration at 0.9%.

Performance as of 10/31/2018

	Average Annual Total Return
	Fund Net Asset Value			Fund Market Price			Bloomberg Barclays Municipal Bond Index¹
1 Year		(1.00	)%		(0.32	)%		(0.51	)%
Since Inception²		1.60	%		1.83	%		1.67	%

The Bloomberg Barclays Municipal Bond Index is a market capitalization-weighted index that measures the long-term tax-exempt 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.

January 17, 2017.

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.

Municipal Market: Events negatively impacting a municipal security, or the municipal bond market in general, may cause the Fund to decrease in value.

State & AMT Tax: A portion of income may be subject to some state and/or local taxes and, for certain investors, a portion may be subject to the federal alternative minimum tax.

Tax Liability Risk: Noncompliant conduct by a municipal bond issuer, or adverse interpretations, could cause interest from a security to become taxable, subjecting shareholders to increased tax liability.

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

October 31, 2018

Virtus Cumberland Municipal Bond ETF (continued)

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

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

October 31, 2018

Virtus Glovista Emerging Markets ETF

The Virtus Glovista Emerging Markets ETF (the “Fund”) (NYSE: EMEM) is an ETF that seeks to provide passive diversified exposure to stocks in “most favored” Emerging Market countries as identified by a proprietary quantitative methodology. The Fund passively replicates the Solactive Most Favored Nations Emerging Market Index (the “Index”). For the period covering from inception on November 7, 2017 and ended October 31, 2018 the Fund posted a negative 13.58% return compared with the Index’s return of negative 13.24%.

Emerging Market Equities in general have underperformed the S&P 500 and international developed market equities during the fiscal year ended October 31, 2018. After a strong performance in 2017 and January 2018, Emerging Market equities as an asset class encountered a challenging environment owing to: a deterioration in investor sentiment following adverse macroeconomic developments in Argentina and Turkey; an escalation in trade conflict between the United States and China; and a strengthening of the US Dollar on the back of a strong performance by the US economy.

It is important to note the effect of currency movements on the Fund’s performance. In general, if the value of the U.S. dollar goes up compared with foreign currencies then investments traded in that foreign currency will go down in value. This can have a negative effect on Fund performance. Conversely, if the U.S. dollar weakens in relation to a foreign currency then investments traded in that foreign currency will tend to increase in value, which can contribute to Fund performance. From the Fund’s inception through October 31, 2018, the U.S. dollar rose in value relative to most of the currencies relevant to the Fund. As a result, the Fund’s performance was negatively affected.

Key holdings that contributed to the Fund’s performance included American Movil, Taiwan Semiconductor Manufacturing Co. and Samsung Electronics. Conversely, HonHai Precision Industry, Naspers LTD. and Cia Hering were notable detractors from the Fund’s returns.

At fiscal year end the Fund’s portfolio was invested in 16 different countries, in line with the Index.

Performance as of 10/31/2018

	Cumulative Total Return
	Fund Net Asset Value			Fund Market Price			Solactive Most Favored Nations Emerging Markets Index (net)¹
Since Inception²		(13.58	)%		(13.27	)%		(13.24	)%

The Solactive Most Favored Nations Emerging Markets Index (net) is an index of stocks from most favored countries selected from a universe of large liquid Emerging Market countries (currently fifteen). The index is designed to provide diversified exposure to stocks within large liquid countries in Emerging Markets while avoiding exposure to the stocks within weakest countries based on Glovista’s proprietary quantitative methodology. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

November 7, 2017.

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

October 31, 2018

Virtus Glovista Emerging Markets 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.

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

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

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

October 31, 2018

Virtus InfraCap U.S. Preferred Stock ETF

Management’s Discussion of Operations

Overview

Virtus InfraCap U.S. Preferred Stock ETF (“the Fund”) seeks current income and, secondarily, capital appreciation through an actively managed portfolio of high quality, U.S. preferred stocks. Callable preferred securities exhibiting a low or negative yield to call are generally excluded from the portfolio. The Fund utilizes options strategies and modest leverage to enhance income and total return.

Update

The Fund commenced operations on May 15, 2018, entering an environment of rising interest rates and stock market volatility. Since launch, the Federal Reserve has raised its benchmark interest rate twice for a total of 0.50%, and the stock market has had a wild ride, rising more than 8% and then falling more than 10%, before settling almost unchanged as of October 31, 2018. Rates on 10-year and 30-year U.S. Treasury bonds have risen modestly, as the yield curve flattens.

In the period from May 15, 2018 to October 31, 2018, the Fund’s market value total return (NYSE price change plus dividends) was 0.99%. The total return on Net Asset Value (NAV) was 1.02%. The Fund’s benchmark index, the S&P U.S. Preferred Stock Index, earned a total return of 0.49% during this period.

The portfolio composition emphasizes issuers that own long-lived assets that generate free cash flow. Preferred stocks issued by real estate investment trusts (REITs) and energy companies (primarily pipelines) comprised about 31% and 13% of total assets, respectively, at fiscal year-end. This compares to weightings of approximately 14% and 3% in the benchmark index. The Fund was underweight financial companies relative to the benchmark index (25% vs. 65% of total assets) but overweight mortgage REITs (20% vs. almost 4% of total assets). The Fund’s portfolio composition had limited impact on Fund returns relative to the Index during the period. The Fund manager believes the high level of liquidity in the mortgage-backed securities market presents a more moderate risk profile than that of traditional bank issuers.

Approximately 34% of total assets were fixed-to-floating rate preferred stocks at fiscal year-end. 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 rate environment while offering a higher current yield than that which is available on securities with coupon rates that float currently.

Dividend Payments

In the period ending October 31, the Fund initiated monthly dividend payments in the amount of $0.19 per share ($2.28 per year). Four payments, totaling $0.76 per share, were made. The Fund plans to continue paying monthly dividends but dividends are not guaranteed.

The Fund’s dividend policy will be 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 dividend is expected to be covered by its investment company taxable income (which includes ordinary income and short-term capital gains less expenses). For the purpose of calculating income available for distribution, some cash payments from REITs or MLPs that are subsequently treated as Return of Capital for tax or GAAP purposes may be included. Expenses include an 80 basis point advisory fee, other miscellaneous fees and leverage costs.

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 from time-to-time distribute less than the full amount of income earned during a specific period, withholding some 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 indicated yield based on its closing price on the New York Stock Exchange on October 31, 2018 ($24.34) was 9.36%. The Fund’s current indicated yield based on its Net Asset Value (NAV) per share ($24.47) was 9.31%.

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

October 31, 2018

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

Use of Leverage

As described in the Fund’s prospectus, the Fund may use modest leverage to help achieve its current income objective. The leverage ratio is expected to be maintained in a range of 10-35% of total assets over the long term. As of October 31, 2018, borrowing amounted to 20.1% of total assets.

During the period, the Fund’s leverage was a small but noticeable contributor to total returns.

The Fund’s cost of borrowing is rising, but borrowed funds still generate an attractive positive spread. The Fund borrows at a 120 basis point premium to the 3-month LIBOR rate. The 3-month LIBOR rate rose from 2.33% at launch to 2.54% at fiscal year-end.

Use of Options

As described in the prospectus, the Fund utilizes options strategies to boost the amount of income available to distribute to shareholders. The primary activity is covered call writing. The activity is focused on a small number of common stocks and ETFs owned by the Fund.

The Fund’s use of options provided a slight enhancement to total returns from inception to fiscal year end.

Outlook

The Fund manager believes the preferred stock asset class is inefficiently priced and offers active managers the opportunity to add to benchmark returns. Over the years, special emphasis will be placed on maximizing the Fund’s yield-to-call. Avoiding issues that are callable and trading at prices above the call price are intended to help assure that result. Many preferred stock investors, especially passive funds, ignore the risk of owning issues with a negative yield-to-call.

Fears of rising long-term interest rates are dominating fixed income investors’ market outlook today, but the Fund manager believes wide interest rate spreads over long-duration U.S. Treasury bonds offer substantial protection from rate rises. The Fund manager believes that the correlation between Treasury bond price moves and price swings in preferred stocks is likely to be moderated by the wide spreads.

Moreover, the Fund manager anticipates a better environment for long-duration fixed income securities than the current market consensus. U.S. inflation indicators suggest aggressive action by the Federal Reserve is unnecessary, and the Fund manager believes long-term U.S. interest rates remain very attractive to global investors. In a stable interest rate environment, preferred stock investors should earn very attractive risk-adjusted returns.

Performance as of 10/31/2018

	Cumulative Total Return
	Fund Net Asset Value			Fund Market Price			S&P U.S. Preferred Stock Index¹
Since Inception²		1.02	%		0.99	%		0.49%

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.

May 15, 2018.

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

October 31, 2018

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

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

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.

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.

Prospectus: For additional information on risks, please see the Fund’s prospectus.

For the fiscal period ended October 31, 2018, the Fund did not have six months of performance and therefore graph lines are not presented.

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

October 31, 2018

Virtus LifeSci Biotech Clinical Trials ETF

For the fiscal year 2018 from 11/1/2017 through 10/31/18, the LifeSci Biotechnology Clinical Trials Index was down 1.81% compared to down 2.05% for the Virtus LifeSci Biotech Clinical Trials ETF (the “Fund”). There was also a .2972 cent dividend made to shareholders. Fund performance has significantly been influenced by exposure to biomedical gene therapies including ECYT and VKTX on the upside (Endocyte is being acquired by Swiss drug maker Novartis AG). Other positive contributors to performance included companies involved in NASH or Non-alcoholic Steatohepatitis. This progressive liver disease can destroy the organ and is projected to become the leading cause of all liver transplant needs in the near future. The Fund’s position in Madrigal Pharmaceuticals with its lead product, MGL-3196, exhibited positive results in early clinical trials and was a significant contributor to the Fund’s performance.

Immuno-Oncology, while a promising approach to treating cancer by exploiting the body’s own immune system to attach tumors, has proven to detract from the Fund’s performance. Companies such as GERN, which terminated a collaboration and license agreement with Janssen Biotech and Jounce Therapeutics, failed to produce positive stock performance. Other detractors of performance include, SGYP, PRTA, MLNT and Selecta Biosciences, SELB, which engages in the research and development of nanoparticle immunomodulatory drugs for the treatment and prevention of human diseases.

Some headwinds that were unexpected this year was the slowing of consolidation (M&A activity) in Biotech, as Healthcare companies need to grow and are sitting on historically large positions of cash. Going forward constituents of the LifeSci Biotechnology Clinical Trials Index are expected to exhibit compelling industry valuations vs. the broader market and strong corporate buybacks.

Performance as of 10/31/2018

	Average Annual Total Return
	Fund Net Asset Value			Fund Market Price			LifeSci Biotechnology Clinical Trials Index¹			S&P 500^® Index²
1 Year		(2.05	)%		(2.08	)%		(1.81	)%		7.35	%
Since Inception³		2.29	%		2.29	%		2.83	%		10.79	%

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.

The S&P 500^® 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.

December 16, 2014.

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

October 31, 2018

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.

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

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

October 31, 2018

Virtus LifeSci Biotech Products ETF

For the fiscal year 2018 from 11/1/2017 through 10/31/18, the LifeSci Biotechnology Products Index was down 7.04% compared to down 7.49% for the Virtus LifeSci Biotech Products ETF (the “Fund”). There was a .0723 distribution made to shareholders.

Much of the focus in Biotech this year has benefited from strong drug discovery, compelling valuations after a poor performance last year and positive advancement in gene therapy.

The Fund underperformed some of its peers due to its relatively high weight in biomedical technologies in the gene editing space. Another negative contribution to performance was exposure to therapeutics, including cancer treatment drugs that target against tumor metabolism and immunity. Lastly, the Fund had solid performance via the major biotech averages due to its exposure to companies involved in immunology, strong drug pipelines and promising clinical trials data.

While the political climate in 2018 was just as volatile as last year, it did contribute to a more business friendly outlook for biotechnology companies. Large Capitalization and big pharmaceutical companies are still looking for less mature companies and technologies to invigorate their slowing drug pipelines. Stock buybacks put in some technical support for a number of stocks in the Biotech space as they look attractive due to their lower valuation than sector peers and the S&P 500 Index.

Positions that contributed to significant positive performance during the fiscal year include Sarepta Therapeutics, Inc. (SRPT), Neurocrine Biosciences, Inc. (NBIX), Nektar Therapeutics, Inc. (NKTR) and Enanta Pharmaceuticals, Inc. (ENTA). Positions that detracted from performance during the fiscal year include Clovis Oncology, Inc. (CLVS), Tesaro, Inc. (TSRO), Puma Biotechnology, Inc. (PBYI) and Portola Pharmaceuticals, Inc. (PTLA).

Performance as of 10/31/2018

	Average Annual Total Return
	Fund Net Asset Value			Fund Market Price			LifeSci Biotechnology Products Index¹			S&P 500^® Index²
1 Year		(7.49	)%		(7.53	)%		(7.04	)%		7.35	%
Since Inception³		10.54	%		10.53	%		11.37	%		10.79	%

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 U.S. Food and Drug Administration for marketing. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

December 16, 2014.

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

October 31, 2018

Virtus LifeSci Biotech Products ETF (continued)

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

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

October 31, 2018

Virtus Newfleet Multi-Sector Bond ETF

How did the markets perform during the Fund’s fiscal year ended October 31, 2018?

Performance of spread sectors was mixed during the fiscal year, with shorter duration sectors, led by corporate high yield and high yield bank loans, outperforming their longer duration counterparts. Within spread sectors, assets with longer duration underperformed on a total return basis, as yields rose and bond prices fell. Non-U.S. dollar-denominated securities and emerging markets high yield were the largest underperformers during the period.

The 12-month period presented multiple challenges, including several bouts of elevated volatility. Market participants continued to wrestle with periods of instability caused by geopolitical developments, trade rhetoric, mixed global economic signals, and the evolution of the various quantitative easing (QE) programs that began after the now decade-old financial crisis. During the period, oil prices continued their ascent, driven higher by the outlook for supply/demand dynamics. U.S. economic data stayed on a positive trend, which contrasted with other global economies.

As anticipated, the Federal Reserve (the Fed) raised its target rate 0.25% on four separate occasions during the 12 months to a range of 2.00% to 2.25%. Over the last 12 months, yields increased overall, but more so for shorter maturity bonds than for longer term securities.

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

The outperformance of shorter duration asset classes relative to most fixed income spread sectors was the key driver of the Fund’s outperformance for the fiscal year ended October 31, 2018.

Among fixed income sectors, the Fund’s allocations to corporate high yield, bank loans, and asset-backed securities were the largest positive contributors to performance for the fiscal year.

During the fiscal year, the Fund’s allocations to emerging market high yield and non-U.S. dollar-denominated securities were the largest detractors from performance.

Performance as of 10/31/2018

	Average Annual Total Return
	Fund Net Asset Value			Fund Market Price			Bloomberg Barclays U.S. Aggregate Bond Index¹
1 Year		(1.62	)%		(1.51	)%		(2.05)%
Since Inception²		3.49	%		3.43	%		1.20%

The Bloomberg Barclays 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.

August 10, 2015.

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

October 31, 2018

Virtus Newfleet Multi-Sector Bond ETF (continued)

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.

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.

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.

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

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

October 31, 2018

Virtus WMC Global Factor Opportunities ETF

The Virtus WMC Global Factor Opportunities ETF (“the Fund”) (NYSE: VGFO) is an actively managed ETF that employs a dynamic, global multi-factor strategy that combines a quantitative investment approach with active management. Wellington Management’s proprietary factors are used to drive stock selection within four distinct world regions — the U.S., Japan, Europe, and Emerging Markets — to create a diversified portfolio which seeks to adapt to changes in the risk environment.

While global equity returns were flat over the trailing twelve month period ended October 31, 2018, as measured by the MSCI All Country World Index, there was a large divide between the performances of underlying equity markets. U.S. equities significantly outperformed, while Japanese, European, and Emerging Market equities posted negative returns. Equity markets globally experienced a resurgence of volatility during the period. Strong equity fundamentals and continued economic growth encouraged optimism. However, rising global trade tensions, political risk in Europe and expected monetary policy tightening provoked concerns that the recent “bull run” in equities might be nearing its end.

During the fiscal year ended October 31, 2018, the Fund’s net asset value declined by 0.11%, outperforming its benchmark, the MSCI All Country World Index (Net), which declined by 0.52%. The most significant contributor to Fund relative outperformance was positioning within Emerging Markets, while positioning in the United States was the most significant relative detractor.

Within Emerging Markets, exposure to quality names, such as Infosys Limited (Information Technology) contributed to outperformance. The Fund also benefited from being underweight underperforming Emerging Market momentum names such as Tencent (Communication Services) and Alibaba (Consumer Discretionary). In the United States, underweight exposure to outperforming momentum names, such as Microsoft (Information Technology) and Amazon.com (Consumer Discretionary) detracted from performance. Not owning Apple (Information Technology) also detracted on a relative basis. Positions in Tencent and Alibaba were eliminated prior to the end of the period.

Performance as of 10/31/2018

	Average Annual Total Return
	Fund Net Asset Value			Fund Market Price			MSCI AC World Index (net)¹
1 Year		(0.11	)%		(0.36	)%		(0.52)%
Since Inception²		0.26	%		0.45	%		0.24%

The MSCI AC World Index (net) is a free float-adjusted market capitalization-weighted index that measures equity performance of developed and emerging markets. The index is calculated on a total return basis with net dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment.

October 10, 2017.

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

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

October 31, 2018

Virtus WMC Global Factor Opportunities ETF (continued)

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.

Prospectus: For additional information on risks, please see the Fund’s prospectus.

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

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

October 31, 2018

InfraCap MLP ETF

Management’s Discussion of Operations

Overview

InfraCap MLP ETF (“the Fund”) seeks total return. The Fund is an actively managed portfolio of high quality, midstream energy master limited partnerships (MLPs) and related general partners. The Fund also utilizes options strategies and modest leverage to enhance income and total return. As a result, some of the Fund’s performance, both positive and negative, can be attributed to these strategies.

The Fund focuses on the midstream MLP sector because most of these companies have a long-term history of relatively stable and growing cash distributions. These companies are typically involved in the production, gathering, transportation, storage, and processing of oil, natural gas, natural gas liquids and refined products.

Update

In the twelve months ended October 31, 2018, there were many signs of improving fundamentals for the U.S. energy infrastructure industry. Global economic growth accelerated, driving strong demand for crude oil, natural gas and related products. Crude oil prices showed strength, leading to a brisk level of activity in U.S. oil fields. U.S. domestic crude oil production rose from 10 million to more than 11 million barrels per day. A shortage of crude oil pipeline transportation capacity plagued producers, and a shortage of natural gas pipeline capacity led to a surge in gas prices. Export activity became a significant contributor to growth in the U.S. energy industry. As the year ended, the industry was gathering momentum for an extended phase of expansion.

Despite improving fundamentals, the industry continued the trend toward simplification, with nine companies consolidating the general partners with the limited partners and extinguishing the incentive distribution rights (IDRs). The outcome was an improvement in the industry’s financial position, with reduced leverage, better coverage of distributions, the elimination of the IDRs, and a backlash from selling shareholders that did not like the resulting distribution cuts.

In the fiscal year ended October 31, 2018, the Fund had a net loss of 7.30% on a market value basis (NYSE price change plus dividends). On a net asset value (NAV) basis, the net loss was 7.65%. The Fund’s benchmark index, the Alerian MLP Infrastructure Index, had a net loss of 5.13% during this period. During this same period, the total return on the S&P 500 index was 7.35%.

The Fund’s holdings in Marathon Petroleum Corporation and Phillips 66 were both additive to total returns. Although the Fund was slightly underweight Enbridge Energy Partners, the Fund’s total return was still negatively impacted by that holding’s relatively sizable exposure to an adverse ruling by the Federal Energy Regulatory Commission (FERC).

The Fund manager believes the industry is at an inflection point, ending a period of widespread distribution cuts resulting from restructurings and entering a period of growth for the industry’s distributions to investors. Importantly, the Fund manager believes that elimination of IDR payments is likely to create an environment of improved governance, where the interests of the limited partners is paramount. The Fund manager also believes that the weighted-average distribution for the companies owned by the Fund is expected to increase by over 7% in 2019.

Dividend Payments

In January 2018, the Fund’s annual dividend rate was reduced to $1.32 per share ($0.11 per month) from a rate of $2.08 per year ($0.52 per quarter). The reset was based on distributable cash flow (DCF) projections made at the time, and the dividend was expected to be covered by DCF. Actual results fell short of projections, as widespread distribution cuts in the sector had a negative impact on the Fund’s investment income. Consequently, the distribution was not fully covered in subsequent periods, and the Fund paid out a return of capital to cover the shortfall.

The distribution of return of capital to meet the targeted dividend rate exacerbated the decline in the Fund’s NAV related to the sector’s poor stock performance. In an environment of positive stock returns, NAV per share may be sustained despite the distribution of net capital. But during three of the Fund’s four years of existence, the midstream stock sector has had negative returns.

The dividend rate is reviewed on an annual basis, with the expectation that the dividend rate can be sustained for 12 – 24 months. An important consideration in determining the level of dividend payments is the estimated amount of DCF, which is investment income less expenses. Investment income includes cash distributions from master limited partnerships, dividends received from stocks, and net realized gains (losses) from written and purchased options contracts. Expenses include advisory fees, other miscellaneous fees and leverage costs. Capital gains and losses on securities positions are not included in the DCF calculation regardless of whether the position was the result of an open market purchase or through the exercise of options in the Fund.

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

October 31, 2018

InfraCap MLP ETF (continued)

The Supplemental Financial Data table includes the calculation of DCF and should be reviewed as part of this discussion. It should be noted that this calculation differs from the Statement of Operations because of the following factors: 1) GAAP does not include MLP distributions in investment income because these distributions are typically treated as return of capital; and 2) GAAP does not include net realized gains (losses) on written and purchased options contracts as investment income but reports them separately as realized and unrealized gains (losses). The Supplemental Financial Data table also includes a calculation of the dividend coverage ratio. It indicates the portion of the dividend that was covered by cash income and option premium income. The coverage ratio is calculated by dividing DCF by total distributions paid.

Use of Leverage

The Fund’s policy is to maintain its leverage ratio in a range of 10-33¹⁄₃% of total assets over the long term. Additional leverage may be used when attractive investment opportunities arise but such leverage would be reduced over time. This leverage policy is consistent with the Fund’s investment objective to seek total return. Total leverage represented 32.7% of net assets at year-end, which was near the high-end of the long-term target range.

The Fund’s use of leverage was a significant detractor from the Fund’s total returns as the industry, and many of the Fund’s holdings, delivered weak performance during the period.

During the Fund’s fiscal year, the Federal Reserve hiked the Federal funds rate four times for a total increase of 100 basis points. The Fund’s borrowing cost moved commensurately higher with the effective rate, averaging 3.31% as compared to 2.37% in the prior year. The borrowing rate at the end of the fiscal year was 3.74%. In comparison, the average yield on midstream stocks, as measured by the Alerian MLP Infrastructure Index, was 8.16% at the end of the fiscal year. The Fund manager believes the spread over the cost of funds justifies continued borrowing.

Use of Options

The Fund writes call and put option premium on securities to generate additional income for distribution to investors. The primary activity is writing “covered” calls on positions held by the Fund. It may also use options for hedging purposes.

During the year, the Fund manager modified its option strategies in response to changing market conditions. A high level of volatility in the stock sector, in combination with a decreased level of correlation between the stock sector and commodity markets, added risk to market hedges. At the same time, consolidation activity in the midstream sector led to increased liquidity in the single-stock options market, with new opportunities being created.

The primary change in strategy was an increased emphasis on writing short-duration, covered call options. This change was made possible by the increased availability of weekly option issues on midstream stocks, which was one of the consequences of the high level of merger and acquisition activity in the sector. Larger companies typically have more liquid markets for issued options. Positions in ETFs tied to commodity prices, and their related options, were phased out over the second half of the fiscal year.

The Fund has a weighting of almost 55% in stocks with liquid options names and weekly calls. During the fiscal year, the average maturity of the option portfolio was reduced from about 40 days to 20 or fewer days. The Fund manager’s objective is to use options to reduce risk while adding income, and the increased liquidity in midstream options makes it easier to accomplish this objective. Activity involving the commodity-related ETFs became risk additive and was eliminated.

During the period, the Fund’s use of options was substantially beneficial to the Fund’s total return.

Outlook

The U.S. energy industry has entered a golden age of surging crude oil and natural gas production, earning a leadership role in the global economy. The backlog of demand for pipeline capacity, storage and processing facilities is building, and midstream MLPs are the beneficiaries. The Fund manager believes that strong cash flow growth and increasing distributions to investors are likely over the next several years.

The Fund was in a taxable loss position at the end of the year, so taxable income in future periods may be sheltered by these realized and unrealized losses. Moreover, as a C-corporation, the Fund is a beneficiary of the tax reform act of 2017, which lowered the corporate tax rate from 35% to 21%.

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

October 31, 2018

InfraCap MLP ETF (continued)

Performance as of 10/31/2018

	Average Annual Total Return
	Fund Net Asset Value			Fund Market Price			Alerian MLP Infrastructure Index¹			S&P 500^{^®} Index²
1 Year		(7.65	)%		(7.32	)%		(0.54	)%		7.35	%
Since Inception³		(14.87	)%		(14.82	)%		(10.03	)%		10.70	%

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.

October 1, 2014.

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.

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.

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.

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

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, 2018

InfraCap MLP ETF (continued)

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

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

October 31, 2018

InfraCap MLP ETF (continued)

Supplemental Financial Data

The information presented below regarding Distributable Cash Flow is supplemental non — GAAP financial information, which is meaningful to understanding the operating performance of the Fund. DCF is the functional equivalent of EBITDA for non — investment companies. The Fund manager believes it is an important supplemental measure of performance. This information is supplemental, is not inclusive of required financial disclosures (such as Total Expense Ratio), and should be read in conjunction with our full financial statements.

	Year ended Oct 31, 2018			Year ended Oct 31, 2017			Year ended Oct 31, 2016
Investment Income
Distributions from master limited partnerships	$	53,597,522		$	28,081,000		$	4,391,084
Dividend income (net of foreign withholding taxes)		2,774,933			764,352			354,815
Net realized gain (loss) from written and purchased option contracts		40,949,800			24,504,456			3,057,069
Total Investment Income		97,322,255			53,349,808			7,802,968
Operating Expenses
Sub-Advisory Fees		5,771,439			3,225,917			515,252
Franchise Tax Expense		12,675			5,088			—
Total		5,784,114			3,231,005			515,252
Distributable cash flow before leverage costs		91,538,141			50,118,803			7,287,716
Dividend and interest expenses		8,734,418			3,203,804			339,703
Distributable Cash Flow	$	82,803,723		$	46,914,999		$	6,948,013
Distributions to Shareholders	$	119,404,506		$	78,416,009			11,752,009
Dividend Coverage Ratio		69	%		60	%		60	%

	3 months ended Oct 31, 2018			3 months ended Jul 31, 2018			3 months ended Apr 30, 2018			3 months ended Jan 31, 2018
Investment Income
Distributions from master limited partnerships	$	13,976,449		$	12,705,022		$	13,465,490		$	13,450,561
Dividend income (net of foreign withholding taxes)		1,525,333			582,968			422,372			244,260
Net realized gain (loss) from written and purchased option contracts		8,394,080			10,619,883			10,836,979			11,098,858
Total Investment Income		23,895,862			23,907,873			24,724,841			24,793,679
Operating Expenses
Sub-Advisory Fees		1,534,826			1,510,183			1,352,869			1,373,561
Franchise Tax Expense		12,675			—			—			—
Total		1,547,501			1,510,183			1,352,869			1,373,561
Distributable cash flow before leverage costs		22,348,361			22,397,690			23,371,972			23,420,118
Dividend and interest expenses		3,649,138			1,963,119			1,426,153			1,696,008
Distributable Cash Flow	$	18,699,223		$	20,434,571		$	21,945,819		$	21,724,110
Distributions to Shareholders	$	27,284,506		$	27,945,500		$	25,954,500		$	38,220,000
Dividend Coverage Ratio		69	%		73	%		85	%		57	%

Portfolio Composition

October 31, 2018 (unaudited)

Asset Allocation as of 10/31/2018 (based on net assets)

InfraCap REIT Preferred ETF
Real Estate	68.2	%
Financials	30.1	%
Other Assets in Excess of Liabilities	1.7	%
Total	100.0	%

Virtus Cumberland Municipal Bond ETF
Municipal Bonds	97.9	%
Other Assets in Excess of Liabilities	2.1	%
Total	100.0	%

Virtus Glovista Emerging Markets ETF
Common Stocks	92.6	%
Exchange Traded Fund	3.1	%
Preferred Stocks	0.9	%
Rights	0.0	%*
Warrant	0.0	%*
Other Assets in Excess of Liabilities	3.4	%
Total	100.0	%

Amount rounds to less than 0.05%.

Portfolio Composition (continued)

October 31, 2018 (unaudited)

Asset Allocation as of 10/31/2018 (based on net assets)

Virtus InfraCap U.S. Preferred Stock ETF
Financials	56.6	%*
Real Estate	39.0	%*
Energy	20.9	%
Utilities	4.1	%
Health Care	2.2	%
Industrials	1.9	%
Communication Services	0.5	%
Purchased Options	0.0	%**
Equity Fund	(1.3	)%
Written Options	(0.2	)%
Liabilities in Excess of Other Assets	(23.7	)%
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.

Amount rounds to less than 0.05%.

Virtus LifeSci Biotech Clinical Trials ETF
Health Care	97.1	%
Money Market Fund	10.4	%
Liabilities in Excess of Other Assets	(7.5	)%
Total	100.0	%

Virtus LifeSci Biotech Products ETF
Health Care	98.5	%
Money Market Fund	11.1	%
Liabilities in Excess of Other Assets	(9.6	)%
Total	100.0	%

Portfolio Composition (continued)

October 31, 2018 (unaudited)

Virtus Newfleet Multi-Sector Bond ETF
Corporate Bonds	35.9	%
Foreign Bonds	21.8	%
Term Loans	18.0	%
Mortgage Backed Securities	11.1	%
Asset Backed Securities	6.9	%
U.S. Treasury Notes	3.0	%
Other Assets in Excess of Liabilities	3.3	%
Total	100.0	%

Virtus WMC Global Factor Opportunities ETF
Common Stocks	97.6	%
Preferred Stocks	1.9	%
Right	0.0	%*
Other Assets in Excess of Liabilities	0.5	%
Total	100.0	%

* Amount rounds to less than 0.05%.

InfraCap MLP ETF
Energy	143.8	%
Debt Fund	3.1	%
Equity Fund	0.9	%
Purchased Options	0.8	%
Commodity Funds	(6.6	)%
Written Options	(1.1	)%
Liabilities in Excess of Other Assets	(40.9	)%
Total	100.0	%

Shareholder Expense Examples (unaudited)

As a shareholder of a Fund, you incur ongoing costs, including 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, 2018 to October 31, 2018), except as noted in footnotes below.

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 Account Value 5/01/18		Ending Account Value 10/31/18		Annualized Expense Ratios⁽²⁾			Expenses Paid During the Period
InfraCap REIT Preferred ETF
Actual	$	1000.00	$	1,017.18		0.45	%	$	2.29⁽³⁾
Hypothetical⁽¹⁾	$	1000.00	$	1,022.94		0.45	%	$	2.29⁽⁴⁾
Virtus Cumberland Municipal Bond ETF
Actual	$	1000.00	$	999.96		0.59	%	$	2.97⁽³⁾
Hypothetical⁽¹⁾	$	1000.00	$	1,022.23		0.59	%	$	3.01⁽⁴⁾
Virtus Glovista Emerging Markets ETF
Actual	$	1000.00	$	845.77		0.65	%	$	3.02⁽³⁾
Hypothetical⁽¹⁾	$	1000.00	$	1,021.93		0.65	%	$	3.31⁽⁴⁾
Virtus InfraCap U.S. Preferred Stock ETF
Actual	$	1000.00	$	1,010.23		0.80	%	$	3.72⁽⁵⁾
Hypothetical⁽¹⁾	$	1000.00	$	1,021.17		0.80	%	$	4.08⁽⁴⁾
Virtus LifeSci Biotech Clinical Trials ETF
Actual	$	1000.00	$	867.39		0.79	%	$	3.72⁽³⁾
Hypothetical⁽¹⁾	$	1000.00	$	1,021.22		0.79	%	$	4.02⁽⁴⁾
Virtus LifeSci Biotech Products ETF
Actual	$	1000.00	$	902.26		0.79	%	$	3.79⁽³⁾
Hypothetical⁽¹⁾	$	1000.00	$	1,021.22		0.79	%	$	4.02⁽⁴⁾
Virtus Newfleet Multi-Sector Bond ETF
Actual	$	1000.00	$	996.25		0.80	%	$	4.03⁽³⁾
Hypothetical⁽¹⁾	$	1000.00	$	1,021.17		0.80	%	$	4.08⁽⁴⁾
Virtus WMC Global Factor Opportunities ETF
Actual	$	1000.00	$	942.62		0.49	%	$	2.40⁽³⁾
Hypothetical⁽¹⁾	$	1000.00	$	1,022.74		0.49	%	$	2.50⁽⁴⁾
InfraCap MLP ETF
Actual	$	1000.00	$	956.34		0.95	%	$	4.68⁽³⁾
Hypothetical⁽¹⁾	$	1000.00	$	1,020.42		0.95	%	$	4.84⁽⁴⁾

Assuming 5% return before expenses.

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

Expenses 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).

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

Actual expenses are calculated using the Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 169/365 (to reflect the period May 16, 2018 to October 31, 2018).

Schedule of Investments — InfraCap REIT Preferred ETF

October 31, 2018

Security Description	Shares		Value
PREFERRED STOCKS — 98.3%
Financials — 30.1%
AGNC Investment Corp., Series B, 7.75%		8,577	$	217,942
AGNC Investment Corp., Series C, 7.00%		15,929		403,004
Annaly Capital Management, Inc., Series F, 6.95%		35,288		886,787
Annaly Capital Management, Inc., Series G, 6.50%		20,830		496,171
Apollo Global Management LLC, Series B, 6.38%		14,703		363,017
Arch Capital Group Ltd., Series F, 5.45%		16,174		364,562
ARMOUR Residential REIT, Inc., Series B, 7.88%		7,804		195,100
Capstead Mortgage Corp., Series E, 7.50%		12,656		313,236
Chimera Investment Corp., Series A, 8.00%		7,107		180,660
Chimera Investment Corp., Series B, 8.00%		15,929		412,083
Invesco Mortgage Capital, Inc., Series A, 7.75%		6,862		171,824
Invesco Mortgage Capital, Inc., Series C, 7.50%		14,091		350,020
KKR & Co., Inc., Series A, 6.75%		16,909		446,228
KKR & Co., Inc., Series B, 6.50%		7,597		198,054
New York Mortgage Trust, Inc., Series D, 8.00%		7,045		161,683
PennyMac Mortgage Investment Trust, Series A, 8.13%		5,636		139,773
PennyMac Mortgage Investment Trust, Series B, 8.00%		9,557		234,825
Two Harbors Investment Corp., Series A, 8.13%		7,045		181,831
Two Harbors Investment Corp., Series B, 7.63%		14,091		347,766
Two Harbors Investment Corp., Series C, 7.25%		14,458		350,751
Wells Fargo Real Estate Investment Corp., Series A, 6.38%		13,478		343,285
Total Financials				6,758,602
Real Estate — 68.2%
American Homes 4 Rent, Series D, 6.50%		13,172		315,074
American Homes 4 Rent, Series E, 6.35%		11,273		266,381
American Homes 4 Rent, Series F, 5.88%		7,597		169,413
American Homes 4 Rent, Series G, 5.88%		5,636		124,668
Ashford Hospitality Trust, Inc., Series F, 7.38%		5,881		136,086
Ashford Hospitality Trust, Inc., Series G, 7.38%		7,597		173,971
Ashford Hospitality Trust, Inc., Series H, 7.50%		4,656		108,950
Ashford Hospitality Trust, Inc., Series I, 7.50%		6,616		153,822
Boston Properties, Inc., Series B, 5.25%		9,802		237,699
Brookfield Property REIT, Inc., Series A, 6.38%		12,253		293,459
CBL & Associates Properties, Inc., Series D, 7.38%		22,239		341,369
CBL & Associates Properties, Inc., Series E, 6.63%		8,454		121,653
Cedar Realty Trust, Inc., Series C, 6.50%		6,126		130,729
Colony Capital, Inc., Series E, 8.75%		12,253		316,373
Colony Capital, Inc., Series H, 7.13%		14,091		318,034
Colony Capital, Inc., Series I, 7.15%		16,909		373,689
Colony Capital, Inc., Series J, 7.13%		15,500		342,550
Digital Realty Trust, Inc., Series C, 6.63%		9,863		258,805
Digital Realty Trust, Inc., Series I, 6.35%		12,253		315,760
Digital Realty Trust, Inc., Series J, 5.25%		9,802		216,232
EPR Properties, Series G, 5.75%		7,352		168,728
Farmland Partners, Inc., Series B, 6.00%		7,398		162,016
Federal Realty Investment Trust, Series C, 5.00%		7,352		174,095
Security Description	Shares		Value
PREFERRED STOCKS (continued)
Real Estate (continued)
Global Net Lease, Inc., Series A, 7.25%		6,630	$	165,021
Hersha Hospitality Trust, Series D, 6.50%		9,437		199,121
Hersha Hospitality Trust, Series E, 6.50%		4,904		104,504
Kimco Realty Corp., Series I, 6.00%		19,604		488,532
Kimco Realty Corp., Series J, 5.50%		11,027		248,659
Kimco Realty Corp., Series K, 5.63%		8,577		196,671
Kimco Realty Corp., Series L, 5.13%		11,027		231,567
Kimco Realty Corp., Series M, 5.25%		12,963		270,149
LaSalle Hotel Properties, Series J, 6.30%		7,352		175,345
Monmouth Real Estate Investment Corp., Series C, 6.13%		13,599		326,376
National Retail Properties, Inc., Series E, 5.70%		14,091		335,507
National Retail Properties, Inc., Series F, 5.20%		16,909		366,249
National Storage Affiliates Trust, Series A, 6.00%		8,454		205,010
Pebblebrook Hotel Trust, Series D, 6.38%		6,126		148,628
Pennsylvania Real Estate Investment Trust, Series B, 7.38%		4,227		97,855
Pennsylvania Real Estate Investment Trust, Series C, 7.20%		8,454		189,708
Pennsylvania Real Estate Investment Trust, Series D, 6.88%		5,881		128,941
PS Business Parks, Inc., Series U, 5.75%		11,273		268,185
PS Business Parks, Inc., Series V, 5.70%		5,391		126,473
PS Business Parks, Inc., Series W, 5.20%		9,300		201,531
PS Business Parks, Inc., Series X, 5.25%		11,273		245,413
PS Business Parks, Inc., Series Y, 5.20%		9,802		211,037
Public Storage, Series A, 5.88%		5,682		144,096
Public Storage, Series B, 5.40%		8,972		212,726
Public Storage, Series C, 5.13%		5,981		137,443
Public Storage, Series D, 4.95%		9,719		214,984
Public Storage, Series E, 4.90%		10,467		229,646
Public Storage, Series F, 5.15%		8,374		190,843
Public Storage, Series G, 5.05%		8,972		206,356
Public Storage, Series V, 5.38%		14,803		346,242
Public Storage, Series W, 5.20%		14,953		341,676
Public Storage, Series X, 5.20%		6,729		153,219
QTS Realty Trust, Inc., Series A, 7.13%		5,244		131,100
SITE Centers Corp., Series A, 6.38%		8,577		201,817
SITE Centers Corp., Series J, 6.50%		9,802		228,877
Spirit Realty Capital, Inc., Series A, 6.00%		8,454		188,440
Summit Hotel Properties, Inc., Series E, 6.25%		7,842		179,974
Taubman Centers, Inc., Series K, 6.25%		8,332		197,052
Vornado Realty Trust, Series L, 5.40%		14,703		342,580
Vornado Realty Trust, Series M, 5.25%		15,659		343,245
Washington Prime Group, Inc., Series H, 7.50%		4,901		102,774
Welltower, Inc., Series I, 6.50%		17,607		1,084,591
Total Real Estate				15,327,719
TOTAL INVESTMENTS — 98.3%
(Cost $23,212,307)				22,086,321
Other Assets in Excess of Liabilities — 1.7%				382,150
Net Assets — 100.0%			$	22,468,471

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

Schedule of Investments — InfraCap REIT Preferred ETF (continued)

October 31, 2018

The following table summarizes valuation of the Fund’s investments under the fair value hierarchy levels as of October 31, 2018:

	Level 1		Level 2		Level 3		Total
Asset Valuation Inputs
Preferred Stocks	$	22,086,321	$	—	$	—	$	22,086,321
Total	$	22,086,321	$	—	$	—	$	22,086,321

There were no Level 3 securities as of October 31, 2018.

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

Schedule of Investments — Virtus Cumberland Municipal Bond ETF

October 31, 2018

Security Description	Principal		Value
MUNICIPAL BONDS — 97.9%
ALABAMA — 1.0%
Auburn University, Series A, 5.00%, 06/01/26 (Call 6/01/21)	$	100,000	$	107,167
ARIZONA — 5.2%
Arizona Department of Transportation State Highway Fund Revenue, Series A, 5.25%, 07/01/29 (Call 7/01/21)		200,000		215,800
City of Phoenix Civic Improvement Corp., Series A, 5.00%, 07/01/22 (Call 7/01/20)		130,000		136,085
Salt River Project Agricultural Improvement & Power District, Series A, 5.00%, 01/01/38 (Call 1/01/27)		200,000		223,544
Total Arizona				575,429
ARKANSAS — 1.9%
State of Arkansas, 5.00%, 04/01/20		200,000		208,092
CALIFORNIA — 5.7%
Beverly Hills Unified School District CA, 4.00%, 08/01/40 (Call 8/01/26)		150,000		153,610
California Health Facilities Financing Authority, Series A, 5.00%, 08/15/52 (Call 8/15/23)		100,000		106,688
County of Sacramento CA Airport System Revenue, 5.00%, 07/01/40 (Call 7/01/20)		200,000		208,894
State of California, 5.00%, 10/01/41 (Call 10/01/21)		150,000		161,129
Total California				630,321
COLORADO — 4.1%
City & County of Denver Co. Airport System Revenue, Series A, 5.00%, 11/15/31 (Call 11/15/26)		175,000		197,031
Regional Transportation District, Series A, 4.50%, 06/01/44 (Call 6/01/23)		250,000		259,630
Total Colorado				456,661
CONNECTICUT — 2.1%
State of Connecticut Clean Water Fund — State Revolving Fund, Series A, 5.00%, 05/01/27		200,000		235,884
DISTRICT OF COLUMBIA — 2.1%
District of Columbia, Series G, 5.00%, 12/01/36 (Call 12/01/21)		100,000		106,783
District of Columbia Water & Sewer Authority, Series A, 5.00%, 10/01/52 (Call 4/01/27)		110,000		121,090
Total District of Columbia				227,873
FLORIDA — 5.9%
Central Florida Expressway Authority, Series B, 4.00%, 07/01/38 (Call 7/01/26)		200,000		200,910
City of Tampa FL, Series A, 4.00%, 11/15/46 (Call 5/15/26)		100,000		97,689
Florida Housing Finance Corp., Series 1, (GNMA/FNMA/FHLMC), 3.80%, 07/01/47 (Call 1/01/27)		145,000		137,699
Orange County School Board, Series A, (AGC Insured), 5.50%, 08/01/34 (Call 8/01/19)		100,000		102,663
Sarasota County Public Hospital District, 5.00%, 07/01/37 (Call 7/01/28)		100,000		109,965
Total Florida				648,926
Security Description	Shares		Value
MUNICIPAL BONDS (continued)
GEORGIA — 2.0%
State of Georgia, Series C-1, 4.00%, 07/01/25	$	200,000	$	218,820
HAWAII — 4.7%
City & County Honolulu HI Wastewater System Revenue, Series A, 5.00%, 07/01/45 (Call 7/01/25)		150,000		164,948
State of Hawaii Department of Budget & Finance, Series A, 5.50%, 07/01/43 (Call 7/01/23)		200,000		218,414
State of Hawaii State Highway Fund, Series A, 5.00%, 01/01/28 (Call 7/01/24)		115,000		129,186
Total Hawaii				512,548
INDIANA — 2.2%
Ball State University, Series R, 5.00%, 07/01/36 (Call 7/01/27)		220,000		245,516
KANSAS — 0.9%
Geary County Unified School District No 475, Series A, 4.00%, 09/01/43 (Call 9/01/25)		100,000		100,233
LOUISIANA — 1.4%
State of Louisiana Gasoline & Fuels Tax Revenue, Series A, 4.50%, 05/01/39 (Call 5/01/25)		150,000		155,470
MAINE — 1.0%
Maine Turnpike Authority, 5.00%, 07/01/47 (Call 7/01/28)		100,000		111,078
MARYLAND — 3.1%
City of Baltimore MD, Series C, 3.00%, 07/01/19		185,000		186,138
University System of Maryland, Series A, 4.00%, 04/01/37 (Call 4/01/27)		150,000		154,428
Total Maryland				340,566
MASSACHUSETTS — 10.6%
Commonwealth of Massachusetts, (NATL Insured), 5.25%, 01/01/21		160,000		170,218
Commonwealth of Massachusetts, Series A, 4.50%, 12/01/43 (Call 12/01/21)		185,000		191,832
Commonwealth of Massachusetts, Series B, 5.00%, 08/01/25 (Call 8/01/20)		200,000		209,964
Massachusetts Development Finance Agency, Series M-4, 5.00%, 07/01/44 (Call 7/01/23)		105,000		111,858
Massachusetts Health & Educational Facilities Authority, Series I, 5.75%, 07/01/36 (Call 7/01/19)		150,000		153,817
Massachusetts School Building Authority, Series B, 5.00%, 10/15/41 (Call 10/15/21)		200,000		212,326
Massachusetts School Building Authority, Series B, 5.25%, 02/15/48 (Call 2/15/28)		100,000		113,089
Total Massachusetts				1,163,104
MICHIGAN — 2.5%
Michigan Finance Authority, 4.00%, 12/01/46 (Call 6/01/27)		75,000		72,538
Michigan State Housing Development Authority, Series A, 3.63%, 10/01/52 (Call 10/01/25)		120,000		107,581
Michigan State Housing Development Authority, Series A, 4.15%, 10/01/53 (Call 10/01/27)		100,000		98,007
Total Michigan				278,126

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

Schedule of Investments — Virtus Cumberland Municipal Bond ETF (continued)

October 31, 2018

Security Description	Principal		Value
MUNICIPAL BONDS (continued)
MISSOURI — 1.1%
Missouri Highway & Transportation Commission, Series A, 5.00%, 05/01/26	$	100,000	$	116,475
NEBRASKA — 2.7%
Omaha Public Power District, Series A, 4.00%, 02/01/42 (Call 12/01/27)		100,000		100,985
Omaha Public Power District, Series B, 4.00%, 02/01/39 (Call 8/01/24)		190,000		191,740
Total Nebraska				292,725
NEVADA — 2.9%
County of Clark NV, 5.00%, 11/01/24		150,000		170,496
Las Vegas Valley Water District, Series A, 4.00%, 02/01/38 (Call 2/01/27)		150,000		151,675
Total Nevada				322,171
NEW JERSEY — 2.4%
New Jersey Economic Development Authority, 5.00%, 06/15/46 (Call 6/15/23)		150,000		163,658
New Jersey Housing & Mortgage Finance Agency, Series D, 4.45%, 11/01/48 (Call 5/01/26)		100,000		96,312
Total New Jersey				259,970
NEW YORK — 8.6%
Metropolitan Transportation Authority, Series D, 5.00%, 11/15/43 (Call 11/15/23)		100,000		106,395
New York City Water & Sewer System, Series BB, 5.00%, 06/15/46 (Call 6/15/23)		150,000		160,971
New York City Water & Sewer System, Series DD, 5.00%, 06/15/39 (Call 6/15/24)		150,000		164,103
New York State Dormitory Authority, Series A, 5.00%, 07/01/43 (Call 7/01/23)		200,000		218,008
New York State Environmental Facilities Corp., Series A, 5.00%, 06/15/30 (Call 6/15/23)		100,000		109,741
New York State Housing Finance Agency, Series D, (SONYMA FNMA), 4.20%, 11/01/49 (Call 5/01/26)		75,000		75,335
Port Authority of New York & New Jersey, 6.13%, 06/01/94 (Call 6/01/24)		100,000		116,056
Total New York				950,609
OHIO — 2.1%
Ohio Housing Finance Agency, Series A, (GNMA/ FNMA/FHLMC), 4.10%, 03/01/42 (Call 9/01/26)		135,000		137,377
Ohio Housing Finance Agency, Series A, (GNMA/ FNMA/FHLMC), 4.00%, 09/01/48 (Call 9/01/27)		100,000		97,778
Total Ohio				235,155
OKLAHOMA — 0.9%
Oklahoma Development Finance Authority, (AGM Insured), 4.13%, 08/15/57 (Call 8/15/28)		100,000		97,815
PENNSYLVANIA — 3.4%
Berks County Municipal Authority, Series A-3, 5.50%, 11/01/31 (Call 11/01/19)		125,000		128,996
Security Description	Shares		Value
MUNICIPAL BONDS (continued)
PENNSYLVANIA — (continued)
City of Philadelphia PA, (AGM Insured), 4.00%, 08/01/39 (Call 8/01/27)	$	75,000	$	74,473
Commonwealth Financing Authority, (AGM), 4.00%, 06/01/39 (Call 6/01/28)		100,000		98,479
Delaware River Joint Toll Bridge Commission, 4.00%, 07/01/47 (Call 7/01/27)		75,000		75,106
Total Pennsylvania				377,054
PUERTO RICO — 1.1%
Commonwealth of Puerto Rico, Series A, (AGM Insured), 5.00%, 07/01/35 (Call 7/01/22)		120,000		126,895
TENNESSEE — 1.9%
Metropolitan Government of Nashville & Davidson County TN, 4.00%, 07/01/30 (Call 7/01/27)		100,000		105,853
Rutherford County Health & Educational Facilities Board, Series C, 5.00%, 11/15/47 (Call 11/15/21)		100,000		106,090
Total Tennessee				211,943
TEXAS — 5.9%
City of Houston TX Combined Utility System Revenue, Series D, 5.00%, 11/15/19		150,000		154,606
Grand Parkway Transportation Corp., Series B, 5.00%, 04/01/53 (Call 10/01/23)		100,000		107,463
Lower Colorado River Authority, 5.00%, 05/15/39 (Call 5/15/23)		150,000		161,840
Red River Education Finance Corp., 5.00%, 03/15/43 (Call 3/15/23)		205,000		221,144
Total Texas				645,053
UTAH — 1.0%
Salt Lake City Corp. Airport Revenue, Series B, 5.00%, 07/01/42 (Call 7/01/27)		100,000		109,479
VIRGINIA — 2.8%
County of Fairfax VA, Series A, (ST AID WITHHLDG), 4.00%, 10/01/36 (Call 4/01/27)		100,000		103,836
University of Virginia, Series A, 4.00%, 04/01/42 (Call 4/01/27)		200,000		203,286
Total Virginia				307,122
WASHINGTON — 3.1%
City of Seattle WA Water System Revenue, 4.00%, 08/01/35 (Call 2/01/27)		100,000		102,684
State of Washington, Series 2010-A, 5.00%, 08/01/28 (Call 8/01/19)		140,000		143,212
Washington State Convention Center Public Facilities District, 4.00%, 07/01/58 (Call 7/01/28)		100,000		92,875
Total Washington				338,771

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

Schedule of Investments — Virtus Cumberland Municipal Bond ETF (continued)

October 31, 2018

Security Description	Principal		Value
MUNICIPAL BONDS (continued)
WISCONSIN — 1.6%
State of Wisconsin, Series A, (ST APPROP), 6.00%, 05/01/36 (Call 5/01/19)	$	100,000	$	102,055
Wisconsin Health & Educational Facilities Authority, 4.00%, 12/01/46 (Call 11/01/26)		75,000		72,179
Total Wisconsin				174,234
Total Municipal Bonds
(Cost $10,945,168)				10,781,285
Security Description	Principal		Value
TOTAL INVESTMENTS — 97.9%
(Cost $10,945,168)			$	10,781,285
Other Assets in Excess of Liabilities — 2.1%				228,492
Net Assets — 100.0%			$	11,009,777

Abbreviations:

AGC — Assured Guaranty Corp.

AGM — Assured Guaranty Municipal Corp.

FHLMC — Federal Home Loan Mortgage Corp.

FNMA — Federal National Mortgage Association.

GNMA — Government National Mortgage Association.

NATL — National Public Finance Guarantee Corp.

SONYMA — State of New York Mortgage Agency.

ST AID WITHHLDG — State Aid Withholding.

ST APPROP — State Appropriation.

The following table summarizes valuation of the Fund’s investments under the fair value hierarchy levels as of October 31, 2018:

	Level 1		Level 2		Level 3		Total
Asset Valuation Inputs
Municipal Bonds	$	—	$	10,781,285	$	—	$	10,781,285
Total	$	—	$	10,781,285	$	—	$	10,781,285

There were no Level 3 securities as of October 31, 2018.

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

Schedule of Investments — Virtus Glovista Emerging Markets ETF

October 31, 2018

Security Description	Shares		Value
Common Stocks — 92.6%
Brazil — 7.5%
Ambev SA⁽¹⁾		13,585	$	58,823
Atacadao Distribuicao Comercio e Industria Ltda		1,153		4,722
B2W Cia Digital*		537		4,978
B3 SA-Brasil Bolsa Balcao		5,923		42,240
Banco Bradesco SA⁽¹⁾		9,552		87,592
Banco do Brasil SA		3,119		35,829
Banco Santander Brasil SA		9,416		106,773
BB Seguridade Participacoes SA		2,022		14,387
BR Malls Participacoes SA*		1,789		6,105
BRF SA*		1,607		9,457
CCR SA		2,410		7,104
Cia de Saneamento Basico do Estado de Sao Paulo		711		5,340
Cielo SA		2,358		8,364
CVC Brasil Operadora e Agencia de Viagens SA		305		4,639
Embraer SA⁽¹⁾		350		7,794
Engie Brasil Energia SA		427		4,567
Equatorial Energia SA		415		7,582
Fibria Celulose SA		738		14,248
Gerdau SA⁽¹⁾		2,161		9,400
Hapvida Participacoes e Investimentos SA*⁽²⁾		2,076		14,214
Hypera SA		829		6,634
IRB Brasil Resseguros SA		389		7,574
Itau Unibanco Holding SA⁽¹⁾		9,478		124,825
Kroton Educacional SA		4,806		14,748
Localiza Rent a Car SA		1,083		8,367
Lojas Renner SA		2,047		20,682
Magazine Luiza SA		140		6,350
Multiplan Empreendimentos Imobiliarios SA		1,126		6,959
Petrobras Distribuidora SA		684		4,407
Petroleo Brasileiro SA⁽¹⁾		6,554		97,130
Raia Drogasil SA		465		7,849
Rumo SA*		3,037		13,588
Sul America SA		811		5,404
Suzano Papel e Celulose SA		1,421		14,452
TIM Participacoes SA		1,678		5,226
Transmissora Alianca de Energia Eletrica SA		714		4,271
Ultrapar Participacoes SA		759		9,025
Vale SA⁽¹⁾		9,625		145,338
Via Varejo SA		875		3,966
WEG SA		2,474		11,966
Total Brazil				972,919
Chile — 6.0%
Aguas Andinas SA Class A		34,601		17,997
AntarChile SA		1,038		15,480
Banco de Chile		291,926		40,437
Banco de Credito e Inversiones		520		32,694
Banco Santander Chile		760,887		55,842
Cencosud SA		17,463		36,348
Cia Cervecerias Unidas SA		2,001		24,875
Colbun SA		90,905		17,055
Empresa Nacional de Telecomunicaciones SA		1,557		11,313
Empresas CMPC SA		16,290		55,767
Empresas COPEC SA		4,653		65,221
Enel Americas SA		364,599		57,461
Enel Chile SA		380,402		33,110
Engie Energia Chile SA		6,815		11,337
Itau CorpBanca		1,922,522		17,816
Security Description	Shares		Value
Common Stocks (continued)
Chile (continued)
Latam Airlines Group SA		3,960	$	36,014
Parque Arauco SA		8,457		19,185
SACI Falabella		12,834		96,809
Sociedad Matriz del Banco de Chile SA Class B		150,418		66,054
Sociedad Quimica y Minera de Chile SA⁽¹⁾		1,420		62,210
Total Chile				773,025
China — 4.9%
AAC Technologies Holdings, Inc.		411		3,126
Agricultural Bank of China Ltd. Class H		16,865		7,398
Alibaba Group Holding Ltd.*⁽¹⁾		467		66,445
Anhui Conch Cement Co. Ltd. Class H		681		3,517
ANTA Sports Products Ltd.		575		2,361
Autohome, Inc.⁽¹⁾		67		4,849
Baidu, Inc.*⁽¹⁾		153		29,079
Bank of China Ltd. Class H		49,280		20,989
Bank of Communications Co. Ltd. Class H		9,278		6,957
BeiGene Ltd.*⁽¹⁾		35		4,408
BYD Co. Ltd. Class H		477		3,090
China CITIC Bank Corp. Ltd. Class H		5,077		3,140
China Communications Construction Co. Ltd. Class H		2,547		2,329
China Conch Venture Holdings Ltd.		924		2,592
China Construction Bank Corp. Class H		142,172		112,766
China Evergrande Group		1,071		2,554
China Life Insurance Co. Ltd. Class H		4,356		8,676
China Merchants Bank Co. Ltd. Class H		2,117		8,153
China Minsheng Banking Corp. Ltd. Class H		3,618		2,667
China Pacific Insurance Group Co. Ltd. Class H		1,619		6,028
China Petroleum & Chemical Corp. Class H		14,709		11,929
China Shenhua Energy Co. Ltd. Class H		1,926		4,362
China Telecom Corp. Ltd. Class H		8,193		3,866
Country Garden Holdings Co. Ltd.		3,362		3,597
Ctrip.com International Ltd.*⁽¹⁾		165		5,491
Dali Foods Group Co. Ltd.⁽²⁾		8,000		5,713
ENN Energy Holdings Ltd.		443		3,765
Hengan International Group Co. Ltd.		376		2,977
Huazhu Group Ltd.⁽¹⁾		569		14,885
Industrial & Commercial Bank of China Ltd. Class H		51,527		34,825
JD.com, Inc.*⁽¹⁾		700		16,464
Momo, Inc.*⁽¹⁾		93		3,122
NetEase, Inc.⁽¹⁾		75		15,589
New China Life Insurance Co. Ltd. Class H		603		2,818
New Oriental Education & Technology Group, Inc.*⁽¹⁾		64		3,745
PetroChina Co. Ltd. Class H		13,218		9,675
PICC Property & Casualty Co. Ltd. Class H		2,716		2,632
Ping An Insurance Group Co. of China Ltd. Class H		3,323		31,294
Shenzhou International Group Holdings Ltd.		390		4,307
Sinopharm Group Co. Ltd. Class H		663		3,196
Sunac China Holdings Ltd.		1,279		3,474
Sunny Optical Technology Group Co. Ltd.		360		3,122
TAL Education Group*⁽¹⁾		105		3,043
Tencent Holdings Ltd.		3,734		127,134
Want Want China Holdings Ltd.		3,086		2,204
Wuxi Biologics Cayman, Inc.*⁽²⁾		281		2,001
Total China				626,354

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

Schedule of Investments — Virtus Glovista Emerging Markets ETF (continued)

October 31, 2018

Security Description	Shares		Value
Common Stocks (continued)
India — 0.9%
Axis Bank Ltd.*⁽³⁾		136	$	5,358
Dr Reddy’s Laboratories Ltd.⁽¹⁾		5		170
HDFC Bank Ltd.⁽¹⁾		591		52,546
ICICI Bank Ltd.⁽¹⁾		2,764		26,230
Larsen & Toubro Ltd.⁽³⁾		802		14,083
Mahindra & Mahindra Ltd.⁽³⁾		202		2,091
Reliance Industries Ltd.⁽²⁾⁽³⁾		246		7,023
State Bank of India*⁽³⁾		183		6,927
Tata Motors Ltd.*⁽¹⁾		110		1,343
Vedanta Ltd.⁽¹⁾		5		56
Total India				115,827
Indonesia — 6.8%
Adaro Energy Tbk PT		104,833		11,378
Astra International Tbk PT		163,581		85,005
Bank Central Asia Tbk PT		85,517		133,036
Bank Danamon Indonesia Tbk PT		79,025		38,596
Bank Mandiri Persero Tbk PT		154,784		69,743
Bank Negara Indonesia Persero Tbk PT		55,174		26,584
Bank Rakyat Indonesia Persero Tbk PT		1,008,482		208,960
Barito Pacific Tbk PT		59,094		7,288
Charoen Pokphand Indonesia Tbk PT		28,024		10,139
Gudang Garam Tbk PT		3,336		15,865
Hanjaya Mandala Sampoerna Tbk PT		64,582		15,846
Indah Kiat Pulp & Paper Corp Tbk PT		20,056		16,788
Indocement Tunggal Prakarsa Tbk PT		12,448		14,166
Indofood CBP Sukses Makmur Tbk PT		16,782		9,852
Indofood Sukses Makmur Tbk PT		32,483		12,767
Jasa Marga Persero Tbk PT		50,969		13,914
Kalbe Farma Tbk PT		140,262		12,640
Pabrik Kertas Tjiwi Kimia Tbk PT		8,237		5,581
Perusahaan Gas Negara Persero Tbk		70,790		10,337
Semen Indonesia Persero Tbk PT		20,902		12,374
Telekomunikasi Indonesia Persero Tbk PT		360,596		91,320
Unilever Indonesia Tbk PT		8,334		23,696
United Tractors Tbk PT		11,393		25,105
Total Indonesia				870,980
Malaysia — 7.6%
AirAsia Group Bhd		12,725		7,998
Alliance Bank Malaysia Bhd		8,008		7,578
AMMB Holdings Bhd		9,133		8,294
Axiata Group Bhd		49,210		40,102
British American Tobacco Malaysia Bhd		971		7,217
Bursa Malaysia Bhd		3,069		5,369
CIMB Group Holdings Bhd		57,958		79,226
Dialog Group Bhd		28,678		23,233
DiGi.Com Bhd		19,934		20,532
Fraser & Neave Holdings Bhd		805		6,483
Gamuda Bhd		11,592		6,621
Genting Bhd		14,387		25,236
Genting Malaysia Bhd		20,938		22,467
Genting Plantations Bhd		2,145		4,947
HAP Seng Consolidated Bhd		2,662		6,266
Hartalega Holdings Bhd		9,333		13,962
Hong Leong Bank Bhd		4,055		20,059
Hong Leong Financial Group Bhd		897		3,940
IHH Healthcare Bhd		41,352		49,411
IJM Corp. Bhd		18,817		7,330
Security Description	Shares		Value
Common Stocks (continued)
Malaysia (continued)
Inari Amertron Bhd		14,437	$	6,762
IOI Corp. Bhd		15,067		16,203
Kuala Lumpur Kepong Bhd		2,558		15,234
Malayan Banking Bhd		40,272		91,333
Malaysia Airports Holdings Bhd		11,049		21,916
Malaysia Building Society Bhd		32,227		7,239
Maxis Bhd		12,794		15,991
MISC Bhd		6,283		9,159
Nestle Malaysia Bhd		373		12,818
Petronas Chemicals Group Bhd		15,902		35,532
Petronas Dagangan Bhd		1,324		8,226
Petronas Gas Bhd		3,809		16,640
PPB Group Bhd		3,683		14,751
Press Metal Aluminium Holdings Bhd		9,177		10,614
Public Bank Bhd		20,613		121,180
QL Resources Bhd		3,656		6,160
RHB Bank Bhd		21,264		26,577
Sime Darby Bhd		18,975		9,976
Sime Darby Plantation Bhd		24,216		30,440
SP Setia Bhd Group		10,303		5,170
Telekom Malaysia Bhd		17,714		10,075
Tenaga Nasional Bhd		31,804		111,726
Top Glove Corp. Bhd		5,279		7,494
YTL Corp. Bhd		18,141		4,595
Total Malaysia				982,082
Mexico — 6.7%
Alfa SAB de CV Class A		21,151		22,293
Alpek SAB de CV*		9,046		11,908
Alsea SAB de CV		2,163		5,531
America Movil SAB de CV Class L⁽¹⁾		8,420		121,164
Arca Continental SAB de CV		3,900		19,612
Banco del Bajio SA⁽²⁾		4,785		9,406
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand Class B		13,939		17,382
Becle SAB de CV		2,267		2,785
Bolsa Mexicana de Valores SAB de CV		2,458		3,704
Cemex SAB de CV*⁽¹⁾		4,931		24,852
Coca-Cola Femsa SAB de CV, Series L		2,069		11,801
Concentradora Fibra Danhos SA de CV		5,751		7,573
Corp. Inmobiliaria Vesta SAB de CV		2,436		2,974
El Puerto de Liverpool SAB de CV		778		4,930
Fibra Uno Administracion SA de CV		12,434		13,363
Fomento Economico Mexicano SAB de CV⁽¹⁾		884		75,202
Gentera SAB de CV		6,552		5,309
GMexico Transportes SAB de CV⁽²⁾		16,279		22,287
Gruma SAB de CV Class B		837		8,735
Grupo Aeroportuario del Centro Norte SAB de CV		1,253		6,556
Grupo Aeroportuario del Pacifico SAB de CV Class B		1,386		11,466
Grupo Aeroportuario del Sureste SAB de CV Class B		809		13,447
Grupo Bimbo SAB de CV, Series A		5,803		10,870
Grupo Carso SAB de CV, Series A1		8,747		25,742
Grupo Cementos de Chihuahua SAB de CV		519		2,797
Grupo Comercial Chedraui SA de CV		3,687		6,518
Grupo Elektra SAB DE CV		847		35,849
Grupo Financiero Banorte SAB de CV Class O		12,843		70,660

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

Schedule of Investments — Virtus Glovista Emerging Markets ETF (continued)

October 31, 2018

Security Description	Shares		Value
Common Stocks (continued)
Mexico (continued)
Grupo Financiero Inbursa SAB de CV Class O		26,223	$	33,990
Grupo Lala SAB de CV		9,561		8,355
Grupo Mexico SAB de CV, Series B		14,454		33,351
Grupo Televisa SAB⁽¹⁾		2,406		34,598
Industrias Bachoco SAB de CV, Series B		2,448		8,979
Industrias Penoles SAB de CV		1,667		23,495
Infraestructura Energetica Nova SAB de CV		2,102		8,240
Kimberly-Clark de Mexico SAB de CV Class A		6,310		9,095
Macquarie Mexico Real Estate Management SA de CV*		2,967		2,889
Megacable Holdings SAB de CV		3,518		15,599
Mexichem SAB de CV		4,206		11,111
Nemak SAB de CV⁽²⁾		11,794		8,587
PLA Administradora Industrial S de RL de CV*		3,222		3,918
Prologis Property Mexico SA de CV		2,502		4,411
Promotora y Operadora de Infraestructura SAB de CV		1,555		14,151
Qualitas Controladora SAB de CV		1,694		3,413
Regional SAB de CV		1,341		6,531
Telesites SAB de CV*		13,251		8,174
Wal-Mart de Mexico SAB de CV		21,358		54,548
Total Mexico				868,151
Philippines — 3.0%
Aboitiz Equity Ventures, Inc.		11,540		10,137
Aboitiz Power Corp.		8,354		5,262
Alliance Global Group, Inc.*		23,602		5,011
Ayala Corp.		1,462		25,139
Ayala Land, Inc.		44,271		32,807
Bank of the Philippine Islands		12,030		18,471
BDO Unibank, Inc.		12,124		27,735
Bloomberry Resorts Corp.		62,817		9,862
DMCI Holdings, Inc.		21,007		5,041
Globe Telecom, Inc.		750		29,296
GT Capital Holdings, Inc.		511		7,258
International Container Terminal Services, Inc.		8,778		14,847
JG Summit Holdings, Inc.		19,864		17,560
Jollibee Foods Corp.		2,496		12,875
Manila Electric Co.		1,313		9,026
Megaworld Corp.		61,698		5,085
Metro Pacific Investments Corp.		64,112		5,752
Metropolitan Bank & Trust Co.		13,679		16,758
PLDT, Inc.		615		15,977
San Miguel Corp.		2,003		6,402
Security Bank Corp.		2,636		7,114
SM Investments Corp.		2,815		47,351
SM Prime Holdings, Inc.		53,913		34,058
Universal Robina Corp.		5,953		14,464
Wilcon Depot, Inc.		23,423		4,947
Total Philippines				388,235
Poland — 8.8%
Alior Bank SA*		1,774		26,699
Asseco Poland SA		1,467		18,466
Bank Millennium SA*		11,861		27,294
Bank Polska Kasa Opieki SA		3,235		88,270
CCC SA		719		31,292
CD Projekt SA*		1,315		54,250
Cyfrowy Polsat SA*		4,910		28,279
Security Description	Shares		Value
Common Stocks (continued)
Poland (continued)
Dino Polska SA*⁽²⁾		924	$	20,348
Grupa Lotos SA		1,703		30,748
Jastrzebska Spolka Weglowa SA*		1,068		20,597
KGHM Polska Miedz SA*		2,738		61,993
KRUK SA		342		16,453
LPP SA		26		53,191
mBank SA		241		23,490
Orange Polska SA*		12,548		14,192
PGE Polska Grupa Energetyczna SA*		17,082		46,788
Polski Koncern Naftowy ORLEN SA		6,043		145,266
Polskie Gornictwo Naftowe i Gazownictwo SA*		33,954		55,393
Powszechna Kasa Oszczednosci Bank Polski SA		17,854		185,792
Powszechny Zaklad Ubezpieczen SA		12,152		124,080
Santander Bank Polska SA		634		56,243
Total Poland				1,129,124
Russia — 8.9%
Aeroflot PJSC		2,837		4,188
Alrosa PJSC		16,247		24,639
Gazprom Neft PJSC		1,798		10,508
Gazprom PJSC		58,963		139,160
Lenta Ltd.*⁽³⁾		2,626		9,401
LUKOIL PJSC		3,511		263,563
Magnit PJSC		303		16,513
Magnitogorsk Iron & Steel Works PJSC		9,649		7,023
MegaFon PJSC*		705		6,272
MMC Norilsk Nickel PJSC		534		89,171
Mobile TeleSystems PJSC		5,678		22,204
Moscow Exchange MICEX-RTS PJSC		9,814		13,095
Novatek PJSC		4,697		74,854
Novolipetsk Steel PJSC		5,252		12,790
PhosAgro PJSC		188		7,049
Polyus PJSC		125		7,879
Rosneft Oil Co PJSC		6,660		46,553
RusHydro PJSC		971,468		8,108
Sberbank of Russia PJSC		57,572		165,880
Severstal PJSC		923		14,432
Surgutneftegas PJSC		201,303		81,195
Tatneft PJSC		8,510		101,334
VTB Bank PJSC		28,007,843		15,553
Total Russia				1,141,364
South Africa — 7.3%
Anglo American Platinum Ltd.		149		4,867
AngloGold Ashanti Ltd.⁽¹⁾		1,312		12,346
Aspen Pharmacare Holdings Ltd.		1,172		12,393
AVI Ltd.		825		5,592
Barloworld Ltd.		528		4,295
Bid Corp. Ltd.		1,285		24,101
Bidvest Group Ltd. (The)		1,070		13,329
Capitec Bank Holdings Ltd.		117		7,857
Clicks Group Ltd.		625		7,965
Discovery Ltd.		1,238		13,253
Exxaro Resources Ltd.		623		6,373
FirstRand Ltd.		11,436		49,853
Fortress REIT Ltd. Class A		2,710		3,106
Foschini Group Ltd. (The)		558		6,098
Gold Fields Ltd.		2,050		5,446
Growthpoint Properties Ltd.		8,703		13,362

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

Schedule of Investments — Virtus Glovista Emerging Markets ETF (continued)

October 31, 2018

Security Description	Shares		Value
Common Stocks (continued)
South Africa (continued)
Hyprop Investments Ltd.		624	$	3,818
Impala Platinum Holdings Ltd.*		2,229		4,110
Imperial Holdings Ltd.		379		4,185
Investec Ltd.		648		4,031
KAP Industrial Holdings Ltd.		5,054		2,672
Kumba Iron Ore Ltd.		248		4,858
Life Healthcare Group Holdings Ltd.		3,563		5,917
MMI Holdings Ltd.*		2,532		3,064
Mr Price Group Ltd.		964		15,093
MTN Group Ltd.		6,170		35,759
Naspers Ltd. Class N		1,757		308,784
Nedbank Group Ltd.		1,381		23,302
Netcare Ltd.		4,627		7,788
Pick n Pay Stores Ltd.		865		3,995
PSG Group Ltd.		372		5,547
Rand Merchant Investment Holdings Ltd.		2,476		5,763
Redefine Properties Ltd.		12,577		8,176
Remgro Ltd.		1,649		21,258
RMB Holdings Ltd.		2,754		13,900
Sanlam Ltd.		6,722		33,837
Sappi Ltd.		1,607		9,035
Sasol Ltd.		2,291		75,163
Shoprite Holdings Ltd.		1,870		22,854
Sibanye Gold Ltd.*		5,941		4,124
SPAR Group Ltd. (The)		486		5,792
Standard Bank Group Ltd.		5,933		65,686
Super Group Ltd./South Africa*		1,106		2,999
Telkom SA SOC Ltd.		1,107		4,026
Tiger Brands Ltd.		557		9,952
Truworths International Ltd.		1,089		5,973
Vodacom Group Ltd.		2,179		18,374
Vukile Property Fund Ltd.		2,507		3,450
Woolworths Holdings Ltd.		3,270		11,289
Total South Africa				944,810
South Korea — 7.9%
Amorepacific Corp.		56		7,519
Celltrion Healthcare Co. Ltd.*		105		5,869
Celltrion, Inc.*		138		26,339
CJ ENM Co. Ltd.		34		6,743
Coway Co. Ltd.		91		5,614
DB Insurance Co. Ltd.		87		5,482
E-MART, Inc.		32		5,743
Hana Financial Group, Inc.		577		19,393
Hyundai Engineering & Construction Co. Ltd.		130		5,219
Hyundai Heavy Industries Co. Ltd.*		62		6,774
Hyundai Heavy Industries Holdings Co. Ltd.*		16		5,005
Hyundai Mobis Co. Ltd.		113		18,841
Hyundai Motor Co.		256		23,925
Hyundai Steel Co.		137		5,019
Industrial Bank of Korea		435		5,669
Kakao Corp.		101		8,119
Kangwon Land, Inc.		207		5,213
KB Financial Group, Inc.		728		30,281
Kia Motors Corp.		447		11,140
Korea Electric Power Corp.		948		22,545
Korea Zinc Co. Ltd.		14		4,656
KT Corp.⁽¹⁾		738		10,214
KT&G Corp.		212		18,883
Security Description	Shares		Value
Common Stocks (continued)
South Korea (continued)
LG Chem Ltd.		77	$	23,447
LG Corp.		162		9,425
LG Display Co. Ltd.		384		5,560
LG Electronics, Inc.		196		10,887
LG Household & Health Care Ltd.		17		15,575
LG Uplus Corp.		489		6,930
Lotte Chemical Corp.		29		6,680
NAVER Corp.		278		27,933
NCSoft Corp.		31		11,684
POSCO		142		32,149
Samsung Biologics Co. Ltd.*⁽²⁾		29		9,861
Samsung C&T Corp.		148		14,092
Samsung Card Co. Ltd.		190		5,611
Samsung Electro-Mechanics Co. Ltd.		95		9,837
Samsung Electronics Co. Ltd.		9,235		343,613
Samsung Fire & Marine Insurance Co. Ltd.		55		13,442
Samsung Life Insurance Co. Ltd.		128		10,334
Samsung SDI Co. Ltd.		84		17,359
Samsung SDS Co. Ltd.		64		10,811
Shinhan Financial Group Co. Ltd.		833		31,104
SillaJen, Inc.*		119		7,195
SK Holdings Co. Ltd.		56		12,851
SK Hynix, Inc.		885		52,966
SK Innovation Co. Ltd.		99		18,548
SK Telecom Co. Ltd.		90		21,166
S-Oil Corp.		72		7,835
Woori Bank		868		11,997
Total South Korea				1,013,097
Taiwan — 3.0%
Advantech Co. Ltd.		252		1,735
ASE Technology Holding Co. Ltd.*		2,308		4,654
Asia Cement Corp.		1,784		1,888
Asustek Computer, Inc.		508		3,759
AU Optronics Corp.		5,885		2,320
Catcher Technology Co. Ltd.		520		5,235
Cathay Financial Holding Co. Ltd.		6,224		9,856
Chailease Holding Co. Ltd.		676		1,927
Chang Hwa Commercial Bank Ltd.		3,688		2,092
Cheng Shin Rubber Industry Co. Ltd.		1,504		2,117
China Development Financial Holding Corp.		8,800		2,824
China Life Insurance Co. Ltd.		2,136		2,029
China Steel Corp.		8,301		6,546
Chunghwa Telecom Co. Ltd.		3,456		12,230
Compal Electronics, Inc.		3,212		1,770
CTBC Financial Holding Co. Ltd.		14,136		9,434
Delta Electronics, Inc.		1,415		5,945
E.Sun Financial Holding Co. Ltd.		7,454		4,938
Far Eastern New Century Corp.		2,453		2,461
Far EasTone Telecommunications Co. Ltd.		1,384		3,296
First Financial Holding Co. Ltd.		7,276		4,597
Formosa Chemicals & Fibre Corp.		2,779		10,059
Formosa Petrochemical Corp.		894		3,525
Formosa Plastics Corp.		3,022		9,864
Fubon Financial Holding Co. Ltd.		4,883		7,646
Hon Hai Precision Industry Co. Ltd.		13,027		33,175
Hua Nan Financial Holdings Co. Ltd.		5,609		3,163
Innolux Corp.		6,482		1,963
Largan Precision Co. Ltd.		79		8,553

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

Schedule of Investments — Virtus Glovista Emerging Markets ETF (continued)

October 31, 2018

Security Description	Shares		Value
Common Stocks (continued)
Taiwan (continued)
Lite-On Technology Corp.		1,498	$	1,719
MediaTek, Inc.		1,128		8,293
Mega Financial Holding Co. Ltd.		8,447		7,139
Nan Ya Plastics Corp.		3,697		9,188
Novatek Microelectronics Corp.		464		2,047
Pegatron Corp.		1,448		2,635
President Chain Store Corp.		401		4,523
Quanta Computer, Inc.		2,004		3,164
Shanghai Commercial & Savings Bank Ltd. (The)		3,014		3,745
Shin Kong Financial Holding Co. Ltd.		7,557		2,479
SinoPac Financial Holdings Co. Ltd.		7,420		2,518
Taishin Financial Holding Co. Ltd.		6,609		2,937
Taiwan Cement Corp.		3,393		3,805
Taiwan Cooperative Financial Holding Co. Ltd.		6,426		3,613
Taiwan Mobile Co. Ltd.		1,188		4,242
Taiwan Semiconductor Manufacturing Co. Ltd.		18,930		143,154
Uni-President Enterprises Corp.		3,676		8,898
United Microelectronics Corp.		8,467		3,229
Yageo Corp.		170		1,733
Yuanta Financial Holding Co. Ltd.		7,478		3,625
Total Taiwan				392,287
Thailand — 7.5%
Advanced Info Service PCL		5,740		33,938
Airports of Thailand PCL		23,317		45,016
Bangchak Corp. PCL		4,886		4,864
Bangkok Bank PCL		10,403		64,960
Bangkok Dusit Medical Services PCL		49,800		36,805
Bangkok Expressway & Metro PCL		34,483		8,842
Bangkok Life Assurance PCL		4,344		4,161
Banpu PCL		19,274		10,117
Berli Jucker PCL		4,110		6,912
BTS Group Holdings PCL		34,310		9,470
Bumrungrad Hospital PCL		2,428		14,136
Central Pattana PCL		14,665		34,948
CH Karnchang PCL		5,458		4,198
Charoen Pokphand Foods PCL		17,173		13,080
CP ALL PCL		30,172		61,209
CPN Retail Growth Leasehold REIT		6,653		5,268
Delta Electronics Thailand PCL		5,636		11,731
Electricity Generating PCL		1,120		7,805
Energy Absolute PCL		9,691		14,471
Glow Energy PCL		1,700		4,295
Gulf Energy Development PCL		2,907		6,840
Home Product Center PCL		22,387		10,062
Indorama Ventures PCL		11,980		19,605
Intouch Holdings PCL		11,231		17,956
IRPC PCL		49,023		9,021
Kasikornbank PCL		13,997		84,235
KCE Electronics PCL		3,175		3,568
Kiatnakin Bank PCL		3,139		6,747
Krung Thai Bank PCL		27,628		16,752
Land & Houses PCL		35,101		10,906
Minor International PCL		18,529		20,401
Muangthai Capital PCL		2,866		4,517
PTT Exploration & Production PCL		7,677		32,306
PTT Global Chemical PCL		12,243		28,530
PTT PCL		77,941		119,909
Security Description	Shares		Value
Common Stocks (continued)
Thailand (continued)
Ratchaburi Electricity Generating Holding PCL		3,024	$	4,470
Robinson PCL		2,104		4,141
Siam Cement PCL (The)		4,136		52,152
Siam Commercial Bank PCL (The)		14,741		61,143
Srisawad Corp. PCL		3,253		4,367
Supalai PCL		5,684		3,755
Thai Oil PCL		4,878		12,471
Thai Union Group PCL		13,014		6,517
Tisco Financial Group PCL		2,915		6,925
TMB Bank PCL		94,475		6,498
Total Access Communication PCL		2,926		4,193
True Corp. PCL		71,776		12,775
WHA Corp. PCL		36,095		4,486
Total Thailand				971,474
Turkey — 5.7%
Akbank T.A.S.		66,297		78,400
Aselsan Elektronik Sanayi Ve Ticaret AS		7,710		34,842
BIM Birlesik Magazalar AS		5,942		84,406
Eregli Demir ve Celik Fabrikalari TAS		37,306		60,468
Ford Otomotiv Sanayi AS		2,286		24,538
Haci Omer Sabanci Holding AS		34,393		43,810
KOC Holding AS		29,764		82,962
TAV Havalimanlari Holding AS		4,679		19,471
Tekfen Holding AS		5,678		21,576
Tupras Turkiye Petrol Rafinerileri AS		3,345		78,814
Turk Hava Yollari AO*		20,261		50,928
Turkcell Iletisim Hizmetleri AS		27,798		56,445
Turkiye Garanti Bankasi AS		56,865		71,112
Turkiye Is Bankasi AS Class C		36,110		25,776
Total Turkey				733,548
United Kingdom — 0.1%
Mondi Ltd.		373		8,922
United States — 0.0%⁽⁴⁾
JBS SA		2,013		5,544
Total Common Stocks
(Cost $13,127,805)				11,937,743
Exchange Traded Fund — 3.1%
United States — 3.1%
Franklin FTSE India ETF		19,986		401,883
Total Exchange Traded Fund
(Cost $470,605)				401,883
PREFERRED STOCKS — 0.9%
Brazil — 0.7%
Azul SA, 0.00%*		693		5,696
Bradespar SA, 6.36%		460		4,272
Braskem SA, 5.90% Class A		392		5,493
Centrais Eletricas Brasileiras SA, 0.00% Class B*		722		5,161
Cia Brasileira de Distribuicao, 1.70%		309		6,495
Cia Energetica de Minas Gerais, 4.34%		2,763		8,189
Itausa-Investimentos Itau SA, 4.87%		12,857		38,832
Lojas Americanas SA, 0.41%		1,545		7,805
Telefonica Brasil SA, 9.39%		845		9,813
Total Brazil				91,756

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

Schedule of Investments — Virtus Glovista Emerging Markets ETF (continued)

October 31, 2018

Security Description	Shares		Value
PREFERRED STOCKS (continued)
Russia — 0.2%
Transneft PJSC, 4.41%		9	$	23,349
Total Preferred Stocks
(Cost $110,013)				115,105
Rights — 0.0%⁽⁴⁾
Chile — 0.0%⁽⁴⁾
Banco de Credito e Inversiones SA, expiring 12/3/2018*		25		72
SACI Falabella, expiring 11/21/2018*		289		29
Total Chile				101
Taiwan — 0.0%⁽⁴⁾
Taishin Financial Holding Co. Ltd., expiring 11/28/2018*		282		27
Total Rights
(Cost $0)				128
Warrant — 0.0%⁽⁴⁾
Thailand — 0.0%⁽⁴⁾
BTS Group Holdings PCL, expiring 12/31/2019* (Cost $0)		5,645		0
Security Description	Shares		Value
TOTAL INVESTMENTS — 96.6%
(Cost $13,708,423)			$	12,454,859
Other Assets in Excess of Liabilities — 3.4%				437,399
Net Assets — 100.0%			$	12,892,258

Non-income producing security.

(1)

American Depositary Receipts.

(2)

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, 2018, the aggregate value of these securities was $99,440, or 0.8% of net assets.

(3)

Global Depositary Receipts.

(4)

Amount rounds to less than 0.05%.

Industry Breakdown
As of October 31, 2018 (based on net assets)
Financials	29.7	%
Energy	12.1	%
Communication Services	10.4	%
Materials	9.1	%
Consumer Staples	7.4	%
Industrials	6.1	%
Consumer Discretionary	5.8	%
Information Technology	5.7	%
Utilities	3.4	%
Real Estate	1.9	%
Health Care	1.9	%
Equity Fund	3.1	%
Other Assets in Excess of Liabilities	3.4	%
Total	100.0	%

The following table summarizes valuation of the Fund’s investments under the fair value hierarchy levels as of October 31, 2018:

	Level 1		Level 2		Level 3		Total
Asset Valuation Inputs
Common Stocks	$	11,937,743	$	—	$	—	$	11,937,743
Exchange Traded Fund		401,883		—		—		401,883
Preferred Stocks		115,105		—		—		115,105
Rights		101		27		—		128
Warrant		0		—		—		—
Total	$	12,454,832	$	27	$	—	$	12,454,859

There were no Level 3 securities as of October 31, 2018.

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

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

October 31, 2018

Security Description	Shares		Value
PREFERRED STOCKS — 123.0%⁽¹⁾
Communication Services — 0.5%
Telephone & Data Systems, Inc., 5.88%		1,276	$	28,608
Energy — 20.1%
DCP Midstream LP, Series B, 7.88%		15,363		376,393
Energy Transfer Operating LP, Series C, 7.38%		16,716		413,554
GasLog Partners LP, Series A, 8.63% (Monaco)		1,196		30,558
GasLog Partners LP, Series B, 8.20% (Monaco)		1,206		30,439
Golar LNG Partners LP, Series A, 8.75% (United Kingdom)		1,236		31,543
Hoegh LNG Partners LP, Series A, 8.75% (Bermuda)		1,241		31,670
NuStar Energy LP, Series A, 8.50%		2,719		62,755
NuStar Energy LP, Series B, 7.63%		2,844		59,610
NuStar Energy LP, Series C, 9.00%		6,855		163,286
Targa Resources Partners LP, Series A, 9.00%		1,176		31,470
Total Energy				1,231,278
Financials — 56.6%
AGNC Investment Corp., Series B, 7.75%		4,171		105,985
AGNC Investment Corp., Series C, 7.00%		2,964		74,989
Annaly Capital Management, Inc., Series F, 6.95%		15,771		396,325
Annaly Capital Management, Inc., Series G, 6.50%		1,316		31,347
Apollo Global Management LLC, Series A, 6.38%		1,256		31,199
Arch Capital Group Ltd., Series E, 5.25%		1,321		29,339
Ares Management LP, Series A, 7.00%		1,181		30,694
ARMOUR Residential REIT, Inc., Series B, 7.88%		5,053		126,325
Axis Capital Holdings Ltd., Series E, 5.50%		1,281		29,591
Banc of California, Inc., Series D, 7.38%		1,211		31,014
Banc of California, Inc., Series E, 7.00%		1,221		31,258
Bank of America Corp., Series CC, 6.20%		1,216		31,458
Bank of America Corp., Series EE, 6.00%		1,236		31,370
Capital One Financial Corp., Series G, 5.20%		1,276		29,488
Capital One Financial Corp., Series H, 6.00%		1,211		30,941
Carlyle Group LP, Series A, 5.88%		2,004		44,168
Charles Schwab Corp., Series D, 5.95%		1,201		31,046
Chimera Investment Corp., Series A, 8.00%		4,938		125,524
Chimera Investment Corp., Series B, 8.00%		4,923		127,358
Citigroup, Inc., Series K, 6.88%		2,659		72,670
Citigroup, Inc., Series S, 6.30%		1,206		31,404
Compass Diversified Holdings, Series A, 7.25%		1,448		32,305
Exantas Capital Corp., 8.63%		1,221		30,952
First Republic Bank, Series F, 5.70%		1,226		30,074
First Republic Bank, Series G, 5.50%		1,251		29,674
Goldman Sachs Group, Inc., Series K, 6.38%		1,156		30,356
Goldman Sachs Group, Inc., Series N, 6.30%		1,201		30,685
Invesco Mortgage Capital, Inc., Series B, 7.75%		2,469		63,577
Invesco Mortgage Capital, Inc., Series C, 7.50%		2,619		65,056
KeyCorp, Series E, 6.13%		1,156		30,403
KKR & Co., Inc., Series B, 6.50%		810		21,117
Maiden Holdings Ltd., Series C, 7.13%		1,689		28,375
Maiden Holdings Ltd., Series D, 6.70%		5,904		93,815
Morgan Stanley, Series E, 7.13%		1,096		29,888
Morgan Stanley, Series F, 6.88%		1,141		30,590
Morgan Stanley, Series I, 6.38%		1,176		30,788
Morgan Stanley, Series K, 5.85%		2,214		55,793
Security Description	Shares		Value
PREFERRED STOCKS (continued)
Financials (continue)
National General Holdings Corp., Series B, 7.50%		14,047	$	335,723
National General Holdings Corp., Series C, 7.50%		3,630		86,902
Navient Corp., 6.00%		1,396		28,269
New York Community Bancorp, Inc., Series A, 6.38%		1,161		29,443
New York Mortgage Trust, Inc., Series D, 8.00%		2,714		62,286
Oaktree Capital Group LLC, Series A, 6.63%		2,629		66,014
PennyMac Mortgage Investment Trust, Series A, 8.13%		2,444		60,611
PennyMac Mortgage Investment Trust, Series B, 8.00%		2,494		61,280
People’s United Financial, Inc., Series A, 5.63%		1,226		30,687
Regions Financial Corp., Series B, 6.38%		1,146		30,529
State Street Corp., Series G, 5.35%		1,221		30,940
Stifel Financial Corp., Series A, 6.25%		1,196		29,996
Two Harbors Investment Corp., Series B, 7.63%		1,498		36,971
Two Harbors Investment Corp., Series C, 7.25%		1,306		31,684
Two Harbors Investment Corp., Series E, 7.50%		5,143		123,278
Wells Fargo & Co., 5.20%		1,271		29,589
Wells Fargo & Co., Series P, 5.25%		1,271		30,034
Wells Fargo & Co., Series W, 5.70%		8,649		216,571
Wells Fargo & Co., Series X, 5.50%		1,261		30,920
Total Financials				3,458,668
Health Care — 2.2%
Becton Dickinson and Co., Series A, 6.13%		2,309		135,469
Industrials — 1.9%
Pitney Bowes, Inc., 6.70%		5,054		114,726
Real Estate — 39.0%
American Homes 4 Rent, Series D, 6.50%		7,732		184,950
American Homes 4 Rent, Series E, 6.35%		1,246		29,443
American Homes 4 Rent, Series F, 5.88%		1,341		29,904
American Homes 4 Rent, Series G, 5.88%		1,366		30,216
Ashford Hospitality Trust, Inc., Series F, 7.38%		1,336		30,915
Ashford Hospitality Trust, Inc., Series G, 7.38%		1,331		30,480
Ashford Hospitality Trust, Inc., Series I, 7.50%		4,463		103,765
Boston Properties, Inc., Series B, 5.25%		1,281		31,064
CBL & Associates Properties, Inc., Series D, 7.38%		1,714		26,310
CBL & Associates Properties, Inc., Series E, 6.63%		1,924		27,686
City Office REIT, Inc., Series A, 6.63%		1,306		31,684
Colony Capital, Inc., Series E, 8.75%		1,231		31,784
Colony Capital, Inc., Series I, 7.15%		5,123		113,218
CorEnergy Infrastructure Trust, Inc., Series A, 7.38%		10,973		265,327
Digital Realty Trust, Inc., Series J, 5.25%		1,351		29,803
EPR Properties, Series G, 5.75%		7,077		162,417
Federal Realty Investment Trust, Series C, 5.00%		1,423		33,697
Global Net Lease, Inc., Series A, 7.25%		9,426		234,613
Hersha Hospitality Trust, Series D, 6.50%		1,341		28,295
Hersha Hospitality Trust, Series E, 6.50%		1,351		28,790
Kimco Realty Corp., Series J, 5.50%		1,458		32,878
Kimco Realty Corp., Series K, 5.63%		1,428		32,744

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

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

October 31, 2018

Security Description	Shares		Value
PREFERRED STOCKS (continued)
Real Estate (continued)
Kimco Realty Corp., Series M, 5.25%		1,508	$	31,427
LaSalle Hotel Properties, Series J, 6.30%		1,291		30,790
Monmouth Real Estate Investment Corp., Series C, 6.13%		1,301		31,224
National Retail Properties, Inc., Series F, 5.20%		1,361		29,479
Pebblebrook Hotel Trust, Series D, 6.38%		1,286		31,201
Pennsylvania Real Estate Investment Trust, Series C, 7.20%		2,089		46,877
Pennsylvania Real Estate Investment Trust, Series D, 6.88%		1,518		33,282
PS Business Parks, Inc., Series W, 5.20%		3,835		83,105
Public Storage, Series W, 5.20%		1,316		30,071
Public Storage, Series X, 5.20%		1,321		30,079
QTS Realty Trust, Inc., Series A, 7.13%		1,246		31,150
RLJ Lodging Trust, Series A, 1.95%		1,236		31,518
SITE Centers Corp., Series A, 6.38%		1,341		31,554
Summit Hotel Properties, Inc., Series E, 6.25%		8,772		201,317
Urstadt Biddle Properties, Inc., Series H, 6.25%		2,959		68,501
Vornado Realty Trust, Series L, 5.40%		1,361		31,711
Washington Prime Group, Inc., Series H, 7.50%		1,443		30,260
Welltower, Inc., Series I, 6.50%		545		33,572
Total Real Estate				2,387,101
Utilities — 2.7%
NextEra Energy Capital Holdings, Inc., 5.00%		1,291		28,467
NextEra Energy Capital Holdings, Inc., Series I, 5.13%		1,281		29,232
SCE Trust II, 5.10%		1,356		29,086
SCE Trust VI, 5.00%		1,386		29,272
Sempra Energy, Series A, 6.00%		492		48,787
Total Utilities				164,844
Total Preferred Stocks
(Cost $7,730,840)				7,520,694
Common Stocks — 2.2%⁽¹⁾
Energy — 0.8%
Kinder Morgan, Inc.⁽²⁾		3,000		51,060
Utilities — 1.4%
Sempra Energy⁽²⁾		750		82,590
Total Common Stocks
(Cost $139,550)				133,650

Security Description

Notional
Amount

Number of
contracts

Value

Purchased Options — 0.0%⁽³⁾

Purchased Call Options

iShares 20+ Year Treasury Bond ETF,

Expires 11/30/18,

Strike Price $120.00

4,000

320

iShares 20+ Year Treasury Bond ETF,

Expires 01/18/19,

Strike Price $130.00

8,000

320

Total Purchased Options

(Cost $1,629)

640

TOTAL INVESTMENTS — 125.2%

(Cost $7,872,019)

7,654,984

Shares

Securities Sold Short — (1.3)%

Exchange Traded Fund — (1.3)%

Equity Fund — (1.3)%

iShares U.S. Real Estate ETF

(1,000

)

(78,110

)

Total Exchange Traded Fund

(Proceeds $(76,100))

(78,110

)

Total Securities Sold Short — (1.3)%

(Proceeds $ (76,100))

(78,110

)

Liabilities in Excess of
Other Assets — (23.9)%

(1,459,361

)

Net Assets — 100.0%

6,117,513

			Number of contracts
Written Options — (0.2)%
Written Call Options
iShares 20+ Year Treasury Bond ETF,
Expires 11/02/18,
Strike Price $117.00	(1,000	)		(10	)	(10	)
iShares 20+ Year Treasury Bond ETF,
Expires 11/16/18,
Strike Price $118.00	(1,000	)		(10	)	(80	)
iShares 20+ Year Treasury Bond ETF,
Expires 11/23/18,
Strike Price $119.00	(1,000	)		(10	)	(70	)

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

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

October 31, 2018

Security Description	Notional Amount			Number of contracts			Value
Written Options (continued)
Written Call Options (continued)
iShares 20+ Year Treasury Bond ETF,
Expires 11/30/18,
Strike Price $119.00		(7,000	)		(70	)	$	(700	)
iShares 20+ Year Treasury Bond ETF,
Expires 01/18/19,
Strike Price $121.00		(1,000	)		(10	)		(300	)
iShares 7-10 Year Treasury Bond ETF,
Expires 11/16/18,
Strike Price $101.00		(2,000	)		(20	)		(540	)
iShares 7-10 Year Treasury Bond ETF,
Expires 11/16/18,
Strike Price $102.00		(3,000	)		(30	)		(210	)
iShares 7-10 Year Treasury Bond ETF,
Expires 11/16/18,
Strike Price $103.00		(1,000	)		(10	)		(50	)
iShares 7-10 Year Treasury Bond ETF,
Expires 12/21/18,
Strike Price $102.00		(2,000	)		(20	)		(660	)
iShares U.S. Real Estate ETF,
Expires 11/02/18,
Strike Price $81.00		(1,000	)		(10	)		(10	)
iShares U.S. Real Estate ETF,
Expires 11/09/18,
Strike Price $81.50		(1,000	)		(10	)		(95	)
iShares U.S. Real Estate ETF,
Expires 11/16/18,
Strike Price $81.00		(1,000	)		(10	)		(290	)
iShares U.S. Real Estate ETF,
Expires 11/23/18,
Strike Price $81.00		(1,000	)		(10	)		(345	)
Kinder Morgan, Inc.,
Expires 12/07/18,
Strike Price $18.00		(1,000	)		(10	)		(230	)
Kinder Morgan, Inc.,
Expires 12/21/18,
Strike Price $18.00		(1,000	)		(10	)		(320	)
Security Description	Notional Amount			Number of contracts			Value
Written Options (continued)
Written Call Options (continued)
Sempra Energy,
Expires 11/16/18,
Strike Price $120.00		(500	)		(5	)	$	(50	)
Sempra Energy,
Expires 12/21/18,
Strike Price $120.00		(200	)		(2	)		(75	)
Written Put Options
iShares U.S. Real Estate ETF,
Expires 11/02/18,
Strike Price $77.00		(1,000	)		(10	)		(190	)
iShares U.S. Real Estate ETF,
Expires 11/02/18,
Strike Price $79.50		(1,000	)		(10	)		(1,100	)
iShares U.S. Real Estate ETF,
Expires 11/09/18,
Strike Price $76.00		(1,000	)		(10	)		(425	)
Kinder Morgan, Inc.,
Expires 11/02/18,
Strike Price $17.50		(2,000	)		(20	)		(1,000	)
Kinder Morgan, Inc.,
Expires 11/09/18,
Strike Price $18.00		(2,000	)		(20	)		(2,080	)
Kinder Morgan, Inc.,
Expires 11/16/18,
Strike Price $17.00		(3,000	)		(30	)		(1,110	)
Kinder Morgan, Inc.,
Expires 11/23/18,
Strike Price $17.00		(1,000	)		(10	)		(425	)
TOTAL WRITTEN OPTIONS — (0.2)%
(Premiums Received $10,223)							$	(10,365	)

(1)

Substantially all the securities, or a portion thereof, have been pledged as collateral for line of credit borrowings, short sales and open written option contracts. The aggregate market value of the collateral at October 31, 2018 was $7,109,756.

(2)

Subject to written call options.

(3)

Amount rounds to less than 0.05%.

The following table summarizes valuation of the Fund’s investments under the fair value hierarchy levels as of October 31, 2018:

	Level 1		Level 2		Level 3		Total
Asset Valuation Inputs
Preferred Stocks	$	7,520,694	$	—	$	—	$	7,520,694
Common Stocks		133,650		—		—		133,650
Purchased Options		640		—		—		640
Total	$	7,654,984	$	—	$	—	$	7,654,984
Liability Valuation Inputs
Exchange Traded Fund	$	78,110	$	—	$	—	$	78,110
Written Options		10,355		10		—		10,365
Total	$	88,465	$	10	$	—	$	88,475

There were no Level 3 securities as of October 31, 2018.

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

Schedule of Investments — Virtus LifeSci Biotech Clinical Trials ETF

October 31, 2018

Security Description	Shares		Value
Common Stocks — 97.1%
Health Care — 97.1%
Abeona Therapeutics, Inc.*⁽¹⁾		29,767	$	255,996
Acceleron Pharma, Inc.*⁽¹⁾		13,104		665,290
Achaogen, Inc.*⁽¹⁾		39,040		150,304
Achillion Pharmaceuticals, Inc.*		158,277		452,672
Adaptimmune Therapeutics PLC*⁽²⁾		37,603		233,139
Aduro Biotech, Inc.*		61,463		260,603
Adverum Biotechnologies, Inc.*		82,998		348,592
Agenus, Inc.*⁽¹⁾		168,009		267,134
Aimmune Therapeutics, Inc.*⁽¹⁾		15,893		422,436
Akcea Therapeutics, Inc.*		19,429		433,655
Akebia Therapeutics, Inc.*⁽¹⁾		42,037		314,857
Albireo Pharma, Inc.*⁽¹⁾		14,240		380,350
Alder Biopharmaceuticals, Inc.*⁽¹⁾		28,599		363,207
Alnylam Pharmaceuticals, Inc.*⁽¹⁾		4,427		356,064
Amicus Therapeutics, Inc.*⁽¹⁾		28,845		322,487
AnaptysBio, Inc.*⁽¹⁾		6,314		471,782
Apellis Pharmaceuticals, Inc.*		20,895		292,321
Arcus Biosciences, Inc.*		28,669		288,124
Arena Pharmaceuticals, Inc.*⁽¹⁾		9,533		339,947
ArQule, Inc.*⁽¹⁾		86,753		335,734
Array BioPharma, Inc.*		26,284		425,801
Arrowhead Pharmaceuticals, Inc.*⁽¹⁾		39,546		503,025
Assembly Biosciences, Inc.*		10,261		234,772
Atara Biotherapeutics, Inc.*⁽¹⁾		10,370		354,343
Athenex, Inc.*		26,416		318,841
Audentes Therapeutics, Inc.*⁽¹⁾		12,131		342,094
AVEO Pharmaceuticals, Inc.*⁽¹⁾		212,917		521,647
Axovant Sciences Ltd.*⁽¹⁾		124,456		232,733
BeiGene Ltd. (China)*⁽²⁾		2,649		333,615
Bellicum Pharmaceuticals, Inc.*⁽¹⁾		48,283		196,512
BioCryst Pharmaceuticals, Inc.*⁽¹⁾		83,470		611,000
Biohaven Pharmaceutical Holding Co., Ltd.*⁽¹⁾		11,625		419,081
Bluebird Bio, Inc.*⁽¹⁾		2,410		276,427
Blueprint Medicines Corp.*		6,320		384,066
Cara Therapeutics, Inc.*		28,233		529,086
Catalyst Biosciences, Inc.*⁽¹⁾		17,917		159,461
ChemoCentryx, Inc.*		36,802		398,198
Clearside Biomedical, Inc.*		43,920		238,046
Corbus Pharmaceuticals Holdings, Inc.*⁽¹⁾		77,428		515,671
Cymabay Therapeutics, Inc.*		36,120		381,066
Cytokinetics, Inc.*⁽¹⁾		50,077		335,015
CytomX Therapeutics, Inc.*		18,850		268,801
Deciphera Pharmaceuticals, Inc.*⁽¹⁾		11,418		230,529
Denali Therapeutics, Inc.*⁽¹⁾		25,718		372,140
Endocyte, Inc.*		31,923		754,979
Epizyme, Inc.*⁽¹⁾		29,855		240,333
Security Description	Shares		Value
Common Stocks (continued)
Health Care (continued)
Esperion Therapeutics, Inc.*⁽¹⁾		11,297	$	513,223
Fate Therapeutics, Inc.*⁽¹⁾		38,094		474,651
FibroGen, Inc.*⁽¹⁾		8,014		343,560
Five Prime Therapeutics, Inc.*⁽¹⁾		26,824		325,643
G1 Therapeutics, Inc.*⁽¹⁾		10,561		422,546
Geron Corp.*		121,346		185,659
Global Blood Therapeutics, Inc.*⁽¹⁾		10,053		352,760
GlycoMimetics, Inc.*⁽¹⁾		28,805		362,367
Idera Pharmaceuticals, Inc.*⁽¹⁾		34,596		230,755
ImmunoGen, Inc.*		45,112		244,958
Immunomedics, Inc.*⁽¹⁾		19,666		443,075
Inovio Pharmaceuticals, Inc.*⁽¹⁾		104,004		512,740
Insmed, Inc.*⁽¹⁾		16,751		244,565
Intra-Cellular Therapies, Inc.*⁽¹⁾		22,258		377,941
Iovance Biotherapeutics, Inc.*⁽¹⁾		36,120		327,970
Karyopharm Therapeutics, Inc.*		26,238		276,549
Kura Oncology, Inc.*⁽¹⁾		25,438		276,511
La Jolla Pharmaceutical Co.*⁽¹⁾		15,261		248,754
Loxo Oncology, Inc.*⁽¹⁾		2,638		402,717
MacroGenics, Inc.*⁽¹⁾		21,029		346,137
Madrigal Pharmaceuticals, Inc.*⁽¹⁾		1,578		301,177
Marinus Pharmaceuticals, Inc.*⁽¹⁾		63,966		299,361
MediciNova, Inc.*⁽¹⁾		54,054		527,567
Melinta Therapeutics, Inc.*⁽¹⁾		55,858		146,907
Mirati Therapeutics, Inc.*⁽¹⁾		9,575		357,818
MyoKardia, Inc.*		9,666		511,718
Novavax, Inc.*		292,125		514,140
Paratek Pharmaceuticals, Inc.*⁽¹⁾		42,584		317,251
Pieris Pharmaceuticals, Inc.*⁽¹⁾		88,958		366,507
Progenics Pharmaceuticals, Inc.*⁽¹⁾		51,998		260,510
Prothena Corp. PLC (Ireland)*⁽¹⁾		31,339		388,604
PTC Therapeutics, Inc.*		12,326		474,798
Reata Pharmaceuticals, Inc. Class A*		11,939		703,565
REGENXBIO, Inc.*		8,452		563,495
resTORbio, Inc.*⁽¹⁾		42,419		469,154
Rhythm Pharmaceuticals, Inc.*⁽¹⁾		14,044		393,372
Rocket Pharmaceuticals, Inc.*		21,774		344,900
Sage Therapeutics, Inc.*⁽¹⁾		2,871		369,440
Sangamo Therapeutics, Inc.*⁽¹⁾		30,135		381,810
Selecta Biosciences, Inc.*⁽¹⁾		38,458		197,674
Solid Biosciences, Inc.*		18,668		597,376
Sorrento Therapeutics, Inc.*⁽¹⁾		62,691		199,984
Stemline Therapeutics, Inc.*⁽¹⁾		26,741		400,580
Synergy Pharmaceuticals, Inc.*⁽¹⁾		254,541		106,067
Syros Pharmaceuticals, Inc.*⁽¹⁾		35,601		234,255
TG Therapeutics, Inc.*⁽¹⁾		34,423		156,625

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

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

October 31, 2018

Security Description	Shares		Value
Common Stocks (continued)
Health Care (continued)
uniQure N.V. (Netherlands)*		13,451	$	346,094
Verastem, Inc.*⁽¹⁾		82,558		418,569
Viking Therapeutics, Inc.*⁽¹⁾		39,960		543,456
Voyager Therapeutics, Inc.*		21,869		296,762
Xencor, Inc.*⁽¹⁾		11,509		376,575
ZIOPHARM Oncology, Inc.*⁽¹⁾		110,837		219,457
Total Health Care				35,230,625
Total Common Stocks
(Cost $48,255,783)				35,230,625
SECURITIES LENDING COLLATERAL — 10.4%
Money Market Fund — 10.4%
Dreyfus Government Cash Management Fund, 2.05%⁽³⁾⁽⁴⁾
(Cost $3,750,281)		3,750,281		3,750,281
Security Description	Shares		Value
TOTAL INVESTMENTS — 107.5%
(Cost $52,006,064)			$	38,980,906
Liabilities in Excess of Other Assets — (7.5)%				(2,711,762	)
Net Assets — 100.0%			$	36,269,144

Non-income producing security.

(1)

All or a portion of the security was on loan. The aggregate market value of securities on loan was $10,360,445; total market value of collateral held by the Fund was $10,442,084. Market value of the collateral held includes non-cash U.S. Treasury securities having a value of $6,691,803.

(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, 2018.

The following table summarizes valuation of the Fund’s investments under the fair value hierarchy levels as of October 31, 2018:

	Level 1		Level 2		Level 3		Total
Asset Valuation Inputs
Common Stocks	$	35,230,625	$	—	$	—	$	35,230,625
Money Market Fund		3,750,281		—		—		3,750,281
Total	$	38,980,906	$	—	$	—	$	38,980,906

There were no Level 3 securities as of October 31, 2018.

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

Schedule of Investments — Virtus LifeSci Biotech Products ETF

October 31, 2018

Security Description	Shares		Value
Common Stocks — 98.5%
Health Care — 98.5%
ACADIA Pharmaceuticals, Inc.*⁽¹⁾		50,150	$	976,922
Acorda Therapeutics, Inc.*⁽¹⁾		24,849		474,864
Agios Pharmaceuticals, Inc.*⁽¹⁾		8,215		518,038
Alexion Pharmaceuticals, Inc.*		6,515		730,136
Amgen, Inc.		4,213		812,224
Biogen, Inc.*		2,561		779,236
BioMarin Pharmaceutical, Inc.*		8,700		801,879
Celgene Corp.*		9,832		703,971
Clovis Oncology, Inc.*⁽¹⁾		17,101		198,885
Dova Pharmaceuticals, Inc.*⁽¹⁾		25,375		470,960
Dynavax Technologies Corp.*⁽¹⁾		49,231		486,895
Enanta Pharmaceuticals, Inc.*		7,052		544,132
Exelixis, Inc.*⁽¹⁾		39,851		552,733
Gilead Sciences, Inc.		11,002		750,116
Halozyme Therapeutics, Inc.*⁽¹⁾		41,199		639,821
Incyte Corp.*		10,559		684,434
Intercept Pharmaceuticals, Inc.*⁽¹⁾		9,618		923,424
Ionis Pharmaceuticals, Inc.*⁽¹⁾		16,532		819,161
Ironwood Pharmaceuticals, Inc.*		42,130		551,903
Keryx Biopharmaceuticals, Inc.*⁽¹⁾		155,009		430,925
Lexicon Pharmaceuticals, Inc.*⁽¹⁾		60,728		475,500
Ligand Pharmaceuticals, Inc.*⁽¹⁾		4,075		671,601
Medicines Co. (The)*⁽¹⁾		21,335		496,252
Momenta Pharmaceuticals, Inc.*		34,033		425,753
Nektar Therapeutics*		13,877		536,762
Neurocrine Biosciences, Inc.*⁽¹⁾		7,823		838,235
Omeros Corp.*⁽¹⁾		39,755		607,059
Portola Pharmaceuticals, Inc.*⁽¹⁾		18,861		371,373
Puma Biotechnology, Inc.*⁽¹⁾		14,227		527,110
Radius Health, Inc.*⁽¹⁾		25,465		403,111
Regeneron Pharmaceuticals, Inc.*		2,480		841,315
Retrophin, Inc.*⁽¹⁾		28,067		720,199
Rigel Pharmaceuticals, Inc.*⁽¹⁾		234,017		671,629
Security Description	Shares		Value
Common Stocks (continued)
Health Care (continued)
Sarepta Therapeutics, Inc.*⁽¹⁾		7,925	$	1,060,048
Seattle Genetics, Inc.*		11,953		670,922
Spark Therapeutics, Inc.*⁽¹⁾		10,162		457,188
TESARO, Inc.*⁽¹⁾		18,590		536,879
Theravance Biopharma, Inc. (Cayman Islands)*⁽¹⁾		32,226		782,125
Ultragenyx Pharmaceutical, Inc.*⁽¹⁾		9,441		457,417
United Therapeutics Corp.*		6,856		760,056
Vanda Pharmaceuticals, Inc.*		42,777		811,480
Vertex Pharmaceuticals, Inc.*		5,051		855,943
Total Health Care				26,828,616
Total Common Stocks
(Cost $32,019,563)				26,828,616
SECURITIES LENDING COLLATERAL — 11.1%
Money Market Fund — 11.1%
Dreyfus Government Cash Management Fund, 2.05%⁽²⁾⁽³⁾
(Cost $3,038,226)		3,038,226		3,038,226
TOTAL INVESTMENTS — 109.6%
(Cost $35,057,789)				29,866,842
Liabilities in Excess of Other Assets — (9.6)%				(2,619,297	)
Net Assets — 100.0%			$	27,247,545

Non-income producing security.

(1)

All or a portion of the security was on loan. The aggregate market value of securities on loan was $7,867,787; total market value of collateral held by the Fund was $8,133,066. Market value of the collateral held includes non-cash U.S. Treasury securities having a value of $5,094,840.

(2)

Represents securities purchased with cash collateral received for securities on loan.

(3)

The rate shown reflects the seven-day yield as of October 31, 2018.

The following table summarizes valuation of the Fund’s investments under the fair value hierarchy levels as of October 31, 2018:

	Level 1		Level 2		Level 3		Total
Asset Valuation Inputs
Common Stocks	$	26,828,616	$	—	$	—	$	26,828,616
Money Market Fund		3,038,226		—		—		3,038,226
Total	$	29,866,842	$	—	$	—	$	29,866,842

There were no Level 3 securities as of October 31, 2018.

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

Schedule of Investments — Virtus Newfleet Multi-Sector Bond ETF

October 31, 2018

Security Description	Principal		Value
CORPORATE BONDS — 35.9%
Communication Services — 4.3%
AT&T, Inc., 3.51%, (3-Month USD LIBOR + 1.18%), 06/12/24⁽¹⁾	$	225,000	$	225,795
AT&T, Inc., 4.25%, 03/01/27		195,000		189,456
AT&T, Inc., 5.25%, 03/01/37		95,000		91,134
Cequel Communications Holdings I LLC / Cequel Capital Corp., 7.50%, 04/01/28⁽²⁾		275,000		286,060
Charter Communications Operating, LLC / Charter Communications Operating Capital, 4.91%, 07/23/25		435,000		438,683
Cincinnati Bell, Inc., 7.00%, 07/15/24⁽²⁾		320,000		289,600
Clear Channel Worldwide Holdings, Inc., Series B, 7.63%, 03/15/20		335,000		335,837
Comcast Corp., 3.95%, 10/15/25		147,000		146,721
Comcast Corp., 4.15%, 10/15/28		70,000		69,514
Discovery Communications LLC, 3.95%, 03/20/28		405,000		377,894
DISH DBS Corp., 5.88%, 07/15/22		175,000		166,031
DISH DBS Corp., 7.75%, 07/01/26		150,000		134,812
Frontier Communications Corp., 8.50%, 04/15/20		90,000		90,675
Frontier Communications Corp., 7.63%, 04/15/24		240,000		145,200
Frontier Communications Corp., 8.50%, 04/01/26⁽²⁾		85,000		79,263
iHeartCommunications, Inc., 9.00%, 12/15/19⁽³⁾		265,000		192,125
McGraw-Hill Global Education Holdings LLC / McGraw-Hill Global Education Finance, 7.88%, 05/15/24⁽²⁾		245,000		209,475
Meredith Corp., 6.88%, 02/01/26⁽²⁾		155,000		155,388
Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC, 5.15%, 03/20/28⁽²⁾		435,000		436,088
West Corp., 8.50%, 10/15/25⁽²⁾		100,000		90,750
Windstream Services LLC / Windstream Finance Corp., 10.50%, 06/30/24⁽²⁾		125,000		101,875
Total Communication Services				4,252,376
Consumer Discretionary — 5.4%
American Axle & Manufacturing, Inc., 6.25%, 03/15/26		15,000		14,212
Beazer Homes USA, Inc., 6.75%, 03/15/25		210,000		185,062
Beazer Homes USA, Inc., 5.88%, 10/15/27		135,000		109,688
Boyd Gaming Corp., 6.00%, 08/15/26		65,000		63,050
Bunge Ltd. Finance Corp., 4.35%, 03/15/24		285,000		280,053
Caesars Resort Collection LLC / CRC Finco, Inc., 5.25%, 10/15/25⁽²⁾		135,000		125,972
Dollar Tree, Inc., 4.00%, 05/15/25		198,000		190,530
Downstream Development Authority of the Quapaw Tribe of Oklahoma, 10.50%, 02/15/23⁽²⁾		100,000		102,250
Eldorado Resorts, Inc., 6.00%, 09/15/26⁽²⁾		85,000		83,619
frontdoor, Inc., 6.75%, 08/15/26⁽²⁾		205,000		209,613
GLP Capital LP / GLP Financing II, Inc., 5.25%, 06/01/25		195,000		196,464
Graham Holdings Co., 5.75%, 06/01/26⁽²⁾		295,000		297,950
Hilton Domestic Operating Co., Inc., 5.13%, 05/01/26⁽²⁾		250,000		245,000
Lear Corp., 3.80%, 09/15/27		510,000		463,222
Lennar Corp., 5.25%, 06/01/26		245,000		234,908
M/I Homes, Inc., 5.63%, 08/01/25		245,000		226,625
Marriott Ownership Resorts, Inc. / ILG LLC, 6.50%, 09/15/26⁽²⁾		155,000		156,938
Security Description	Shares		Value
CORPORATE BONDS (continued)
Consumer Discretionary (continued)
MDC Holdings, Inc., 5.50%, 01/15/24	$	270,000	$	264,600
MGM Resorts International, 5.75%, 06/15/25		300,000		294,000
Neiman Marcus Group Ltd. LLC, 8.00%, 10/15/21⁽²⁾		170,000		102,850
Scientific Games International, Inc., 6.63%, 05/15/21		110,000		106,975
Tenneco, Inc., 5.00%, 07/15/26		340,000		283,900
Viking Cruises Ltd., 5.88%, 09/15/27⁽²⁾		285,000		272,175
Vista Outdoor, Inc., 5.88%, 10/01/23		295,000		284,675
Weekley Homes LLC / Weekley Finance Corp., 6.63%, 08/15/25		315,000		299,250
William Lyon Homes, Inc., 6.00%, 09/01/23		315,000		289,013
Total Consumer Discretionary				5,382,594
Consumer Staples — 0.7%
Albertsons Cos. LLC / Safeway, Inc. / New Albertsons LP / Albertson’s LLC, 5.75%, 03/15/25		140,000		123,900
CVS Health Corp., 4.30%, 03/25/28		410,000		400,693
Safeway, Inc., 7.25%, 02/01/31		190,000		188,575
Total Consumer Staples				713,168
Energy — 5.3%
Alta Mesa Holdings LP / Alta Mesa Finance Services Corp., 7.88%, 12/15/24		165,000		148,500
Blue Racer Midstream LLC / Blue Racer Finance Corp., 6.63%, 07/15/26⁽²⁾		345,000		351,900
Bristow Group, Inc., 8.75%, 03/01/23⁽²⁾		100,000		94,500
Callon Petroleum Co., 6.13%, 10/01/24		275,000		269,500
Cheniere Corpus Christi Holdings LLC, 5.88%, 03/31/25		210,000		216,300
Cheniere Energy Partners LP, 5.63%, 10/01/26⁽²⁾		140,000		138,250
Chesapeake Energy Corp., 8.00%, 06/15/27		310,000		308,838
Citgo Holding, Inc., 10.75%, 02/15/20⁽²⁾		205,000		214,225
Denbury Resources, Inc., 9.25%, 03/31/22⁽²⁾		211,000		220,759
Denbury Resources, Inc., 7.50%, 02/15/24⁽²⁾		115,000		112,988
Energy Transfer LP, 5.88%, 01/15/24		130,000		136,825
EP Energy LLC / Everest Acquisition Finance, Inc., 9.38%, 05/01/24⁽²⁾		120,000		91,800
EP Energy LLC / Everest Acquisition Finance, Inc., 8.00%, 11/29/24⁽²⁾		210,000		203,700
Jagged Peak Energy LLC, 5.88%, 05/01/26⁽²⁾		260,000		254,150
Kinder Morgan, Inc., Series G, 7.75%, 01/15/32		235,000		289,013
MPLX LP, 4.00%, 03/15/28		160,000		150,567
Nabors Industries, Inc., 5.50%, 01/15/23		240,000		226,779
Nabors Industries, Inc., 5.75%, 02/01/25		70,000		64,784
Range Resources Corp., 4.88%, 05/15/25		210,000		195,300
Rowan Cos., Inc., 5.40%, 12/01/42		270,000		193,725
Sanchez Energy Corp., 7.25%, 02/15/23⁽²⁾		125,000		114,531
Targa Resources Partners LP / Targa Resources Partners Finance Corp., 5.88%, 04/15/26⁽²⁾		255,000		257,709
Transocean, Inc., 9.00%, 07/15/23⁽²⁾		85,000		89,356
Transocean, Inc., 6.80%, 03/15/38		395,000		319,456
USA Compression Partners LP / USA Compression Finance Corp., 6.88%, 04/01/26⁽²⁾		230,000		234,888
Vine Oil & Gas LP / Vine Oil & Gas Finance Corp., 8.75%, 04/15/23⁽²⁾		210,000		196,350
Weatherford International Ltd., 9.88%, 02/15/24		160,000		124,800
Total Energy				5,219,493

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

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

October 31, 2018

Security Description	Principal		Value
CORPORATE BONDS (continued)
Financials — 9.2%
Acrisure, LLC / Acrisure Finance, Inc., 7.00%, 11/15/25⁽²⁾	$	310,000	$	278,225
Ares Capital Corp., 3.50%, 02/10/23		200,000		191,092
Athene Holding Ltd., 4.13%, 01/12/28		370,000		340,024
Aviation Capital Group LLC, 3.50%, 11/01/27⁽²⁾		335,000		301,686
Bank of America Corp., 4.20%, 08/26/24		255,000		253,431
Bank of New York Mellon Corp. (The), Series E, 4.95%, (3–Month USD LIBOR + 3.42%), perpetual⁽¹⁾⁽⁴⁾		495,000		498,713
Brighthouse Financial, Inc., 3.70%, 06/22/27		540,000		466,202
BrightSphere Investment Group PLC, 4.80%, 07/27/26		625,000		602,424
Discover Bank, 4.68%, (USD 5 Year Swap + 1.73%), 08/09/28⁽¹⁾		315,000		311,639
E*TRADE Financial Corp., 4.50%, 06/20/28		385,000		379,165
FS Investment Corp., 4.25%, 01/15/20		490,000		491,612
Goldman Sachs Group, Inc. (The), 3.78%, (3-Month USD LIBOR + 1.17%), 05/15/26⁽¹⁾		310,000		309,283
Huntington Bancshares, Inc., Series E, 5.70%, (3-Month USD LIBOR + 2.88%), perpetual⁽¹⁾⁽⁴⁾		200,000		196,375
Icahn Enterprises LP / Icahn Enterprises Finance Corp., 6.38%, 12/15/25		335,000		333,744
iStar, Inc., 5.25%, 09/15/22		110,000		106,700
JPMorgan Chase & Co., Series V, 5.00%, (3-Month USD LIBOR + 3.32%), perpetual⁽¹⁾⁽⁴⁾		285,000		285,356
KeyCorp, Series D, 5.00%, (3-Month USD LIBOR + 3.61%), perpetual⁽¹⁾⁽⁴⁾		485,000		462,266
M&T Bank Corp., Series F, 5.13%, (3-Month USD LIBOR + 3.52%), perpetual⁽¹⁾⁽⁴⁾		190,000		186,675
MetLife, Inc., Series D, 5.88%, (3-Month USD LIBOR + 2.96%), perpetual⁽¹⁾⁽⁴⁾		186,000		185,768
Navient Corp., 6.75%, 06/25/25		250,000		244,375
Prudential Financial, Inc., 5.63%, (3-Month USD LIBOR + 3.92%), 06/15/43⁽¹⁾		425,000		433,011
Santander Holdings USA, Inc., 4.40%, 07/13/27		265,000		247,810
Springleaf Finance Corp., 6.88%, 03/15/25		115,000		110,400
Springleaf Finance Corp., 7.13%, 03/15/26		90,000		85,444
Synchrony Financial, 3.95%, 12/01/27		635,000		560,951
Teachers Insurance & Annuity Association of America, 4.38%, (3-Month USD LIBOR + 2.66%), 09/15/54⁽¹⁾⁽²⁾		550,000		548,717
Tempo Acquisition, LLC / Tempo Acquisition Finance Corp., 6.75%, 06/01/25⁽²⁾		180,000		171,846
Wells Fargo & Co., Series S, 5.90%, (3-Month USD LIBOR + 3.11%), perpetual⁽¹⁾⁽⁴⁾		520,000		521,934
Total Financials				9,104,868
Health Care — 3.0%
Anthem, Inc., 3.65%, 12/01/27		82,000		76,808
Avantor, Inc., 6.00%, 10/01/24⁽²⁾		130,000		130,000
Avantor, Inc., 9.00%, 10/01/25⁽²⁾		210,000		212,625
Bausch Health Cos., Inc., 6.50%, 03/15/22⁽²⁾		40,000		41,500
Bausch Health Cos., Inc., 7.00%, 03/15/24⁽²⁾		40,000		41,988
Bausch Health Cos., Inc., 5.50%, 11/01/25⁽²⁾		205,000		201,669
Bausch Health Cos., Inc., 9.25%, 04/01/26⁽²⁾		110,000		115,638
Centene Corp., 5.38%, 06/01/26⁽²⁾		80,000		81,400
Security Description	Shares		Value
CORPORATE BONDS (continued)
Health Care (continued)
DJO Finance LLC / DJO Finance Corp., 8.13%, 06/15/21⁽²⁾	$	115,000	$	116,437
Eagle Holding Co. II LLC, 7.63%, 05/15/22⁽²⁾⁽⁵⁾		165,000		166,237
Endo Dac / Endo Finance LLC / Endo Finco, Inc., 6.00%, 07/15/23⁽²⁾		250,000		216,800
Halfmoon Parent, Inc., 4.13%, 11/15/25⁽²⁾		240,000		237,610
Halfmoon Parent, Inc., 4.38%, 10/15/28⁽²⁾		24,000		23,484
HCA, Inc., 5.63%, 09/01/28		165,000		163,762
HLF Financing S.a r.l. LLC / Herbalife International, Inc., 7.25%, 08/15/26⁽²⁾		295,000		299,056
MPH Acquisition Holdings LLC, 7.13%, 06/01/24⁽²⁾		90,000		91,649
Ortho–Clinical Diagnostics, Inc. / Ortho–Clinical Diagnostics SA, 6.63%, 05/15/22⁽²⁾		120,000		115,200
Surgery Center Holdings, Inc., 8.88%, 04/15/21⁽²⁾		170,000		175,525
Surgery Center Holdings, Inc., 6.75%, 07/01/25⁽²⁾		55,000		51,838
Tenet Healthcare Corp., 5.13%, 05/01/25		65,000		62,725
Tenet Healthcare Corp., 7.00%, 08/01/25		215,000		211,693
West Street Merger Sub, Inc., 6.38%, 09/01/25⁽²⁾		180,000		169,650
Total Health Care				3,003,294
Industrials — 1.9%
Hillman Group, Inc. (The), 6.38%, 07/15/22⁽²⁾		195,000		172,575
New Enterprise Stone & Lime Co., Inc., 10.13%, 04/01/22⁽²⁾		130,000		136,500
Oshkosh Corp., 4.60%, 05/15/28		410,000		402,103
Pitney Bowes, Inc., 4.38%, 05/15/22		448,000		408,800
United Rentals North America, Inc., 6.50%, 12/15/26		45,000		45,619
US Airways 2012–1 Class B Pass–Through Trust, 8.00%, 10/01/19		409,695		423,584
Wrangler Buyer Corp., 6.00%, 10/01/25⁽²⁾		257,000		276,275
Total Industrials				1,865,456
Information Technology — 2.1%
Banff Merger Sub, Inc., 9.75%, 09/01/26⁽²⁾		35,000		33,906
Broadcom Corp. / Broadcom Cayman Finance Ltd., 3.63%, 01/15/24		285,000		273,198
CDK Global, Inc., 5.88%, 06/15/26		270,000		272,363
Citrix Systems, Inc., 4.50%, 12/01/27		375,000		356,155
Dell International LLC / EMC Corp., 5.45%, 06/15/23⁽²⁾		145,000		150,327
Dell International LLC / EMC Corp., 8.10%, 07/15/36⁽²⁾		160,000		181,260
Everi Payments, Inc., 7.50%, 12/15/25⁽²⁾		70,000		69,825
Exela Intermediate LLC / Exela Finance, Inc., 10.00%, 07/15/23⁽²⁾		205,000		214,164
Radiate Holdco LLC / Radiate Finance, Inc., 6.63%, 02/15/25⁽²⁾		290,000		271,875
VMware, Inc., 3.90%, 08/21/27		290,000		265,648
Total Information Technology				2,088,721
Materials — 1.1%
Hexion, Inc., 10.38%, 02/01/22⁽²⁾		225,000		203,344
Kraton Polymers LLC / Kraton Polymers Capital Corp., 7.00%, 04/15/25⁽²⁾		105,000		98,962
PQ Corp., 5.75%, 12/15/25⁽²⁾		95,000		91,794

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

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

October 31, 2018

Security Description	Principal		Value
CORPORATE BONDS (continued)
Materials (continued)
Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu, 7.00%, 07/15/24⁽²⁾	$	265,000	$	266,159
Trident Merger Sub, Inc., 6.63%, 11/01/25⁽²⁾		175,000		164,063
U.S. Steel Corp., 6.25%, 03/15/26		245,000		231,525
Total Materials				1,055,847
Real Estate — 2.2%
EPR Properties, 4.75%, 12/15/26		505,000		488,240
ESH Hospitality, Inc., 5.25%, 05/01/25⁽²⁾		240,000		227,700
Healthcare Trust of America Holdings LP, 3.75%, 07/01/27		220,000		205,612
Hospitality Properties Trust, 4.38%, 02/15/30		365,000		332,678
Life Storage LP, 3.88%, 12/15/27		75,000		69,788
LifeStorage LP, 3.50%, 07/01/26		205,000		188,849
MPT Operating Partnership LP / MPT Finance Corp., 6.38%, 03/01/24		110,000		114,400
MPT Operating Partnership LP / MPT Finance Corp., 5.00%, 10/15/27		130,000		122,486
Physicians Realty LP, 4.30%, 03/15/27		465,000		443,622
Total Real Estate				2,193,375
Utilities — 0.7%
Calpine Corp., 5.38%, 01/15/23		245,000		233,056
Ferrellgas Partners LP / Ferrellgas Partners Finance Corp., 8.63%, 06/15/20		255,000		231,731
TerraForm Power Operating LLC, 5.00%, 01/31/28⁽²⁾		225,000		201,938
Total Utilities				666,725
Total Corporate Bonds
(Cost $36,744,018)				35,545,917
FOREIGN BONDS — 21.8%
Communication Services — 0.9%
Altice France SA, 7.38%, 05/01/26 (France)⁽²⁾		220,000		212,025
Altice Luxembourg SA, 7.63%, 02/15/25 (Luxembourg)⁽²⁾		400,000		342,500
Digicel Ltd., 6.75%, 03/01/23 (Jamaica)⁽²⁾		235,000		189,762
Telenet Finance Luxembourg Notes S.a.r.l., 5.50%, 03/01/28 (Belgium)⁽²⁾		200,000		186,500
Total Communication Services				930,787
Consumer Discretionary — 0.3%
Gateway Casinos & Entertainment Ltd., 8.25%, 03/01/24 (Canada)⁽²⁾		245,000		257,863
Consumer Staples — 1.1%
Bacardi Ltd., 4.70%, 05/15/28 (Bermuda)⁽²⁾		260,000		251,743
BAT Capital Corp., 3.56%, 08/15/27 (United Kingdom)⁽²⁾		350,000		321,524
Kronos Acquisition Holdings, Inc., 9.00%, 08/15/23 (Canada)⁽²⁾		275,000		241,312
Sigma Finance Netherlands BV, 4.88%, 03/27/28 (Mexico)⁽²⁾		330,000		311,850
Total Consumer Staples				1,126,429

Security Description		Principal		Value
FOREIGN BONDS (continued)
Energy — 2.6%
Ecopetrol SA, 5.88%, 09/18/23 (Colombia)		$	100,000	$	104,800
Ecopetrol SA, 5.38%, 06/26/26 (Colombia)			160,000		161,952
Encana Corp., 8.13%, 09/15/30 (Canada)			305,000		388,136
Geopark Ltd., 6.50%, 09/21/24 (Colombia)⁽²⁾			245,000		244,694
KazMunayGas National Co. JSC, 4.75%, 04/19/27 (Kazakhstan)⁽²⁾			300,000		294,372
Petrobras Global Finance BV, 7.38%, 01/17/27 (Brazil)			565,000		587,515
Petroleos Mexicanos, 4.88%, 01/24/22 (Mexico)			205,000		203,387
Petroleos Mexicanos, 6.50%, 03/13/27 (Mexico)			200,000		194,300
Petroleos Mexicanos, 6.50%, 06/02/41 (Mexico)			195,000		167,466
Seven Generations Energy Ltd., 5.38%, 09/30/25 (Canada)⁽²⁾			270,000		252,787
Total Energy					2,599,409
Financials — 3.9%
AerCap Ireland Capital DAC / AerCap Global Aviation Trust, 3.65%, 07/21/27 (Ireland)			495,000		445,001
Australia & New Zealand Banking Group Ltd., 4.40%, 05/19/26 (Australia)⁽²⁾			290,000		282,298
Bank of Montreal, 3.80%, (USD 5 Year Swap + 1.43%), 12/15/32 (Canada)⁽¹⁾			263,000		241,387
BBVA Bancomer SA, 5.13%, (US 5 Year CMT T-Note + 2.65%), 01/18/33 (Mexico)⁽¹⁾⁽²⁾			200,000		177,202
Development Bank of Kazakhstan JSC, 8.95%, 05/04/23 (Kazakhstan)⁽²⁾	KZT		70,000,000		164,042
Fairfax Financial Holdings Ltd., 4.85%, 04/17/28 (Canada)⁽²⁾			380,000		370,914
Grupo de Inversiones Suramericana SA, 5.50%, 04/29/26 (Colombia)⁽²⁾			450,000		454,500
Guanay Finance Ltd., 6.00%, 12/15/20 (Chile)⁽²⁾			611,483		617,598
Societe Generale SA, 4.75%, 11/24/25 (France)⁽²⁾			765,000		750,669
Toronto-Dominion Bank (The), 3.63%, (USD 5 Year Swap + 2.21%), 09/15/31 (Canada)⁽¹⁾			335,000		312,261
Total Financials					3,815,872
Government — 7.4%
Angolan Government International Bond, 9.38%, 05/08/48 (Angola)⁽²⁾			200,000		201,606
Argentine Republic Government International Bond, 6.88%, 01/26/27 (Argentina)			380,000		319,057
Brazil Notas Do Tesouro Nacional, Series NTNF, 10.00%, 01/01/25 (Brazil)	BRL		430,000		117,348

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

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

October 31, 2018

Security Description		Principal		Value
FOREIGN BONDS (continued)
Government (continued)
Brazilian Government International Bond, 10.25%, 01/10/28 (Brazil)	BRL		270,000	$	80,259
Colombia Government International Bond, 4.38%, 03/21/23 (Colombia)	COP		1,195,000,000		356,422
Costa Rica Government International Bond, 4.38%, 04/30/25 (Costa Rica)⁽²⁾		$	375,000		309,877
Dominican Republic International Bond, 6.88%, 01/29/26 (Dominican Republic)⁽²⁾			190,000		199,975
Dominican Republic International Bond, 6.00%, 07/19/28 (Dominican Republic)⁽²⁾			150,000		149,062
Ecuador Government International Bond, 8.88%, 10/23/27 (Ecuador)⁽²⁾			315,000		278,066
Indonesia Government International Bond, 8.50%, 10/12/35 (Indonesia)⁽²⁾			495,000		649,679
Indonesia Treasury Bond, Series FR70, 8.38%, 03/15/24 (Indonesia)	IDR		4,780,000,000		312,064
Jordan Government International Bond, 5.75%, 01/31/27 (Jordan)⁽²⁾			275,000		253,409
Mexican Bonos, Series M, 6.50%, 06/09/22 (Mexico)	MXN		7,000,000		322,066
Mexico Government International Bond, 4.15%, 03/28/27 (Mexico)			480,000		457,620
Nigeria Government International Bond, 6.50%, 11/28/27 (Nigeria)⁽²⁾			355,000		326,829
Oman Government International Bond, 5.38%, 03/08/27 (Oman)⁽²⁾			650,000		613,639
Philippine Government International Bond, 9.50%, 02/02/30 (Philippines)			310,000		447,376
Provincia De Buenos Aire, 9.13%, 03/16/24 (Argentina)⁽²⁾			450,000		403,879
Republic of South Africa Government Bond, Series 2023, 7.75%, 02/28/23 (South Africa)	ZAR		3,500,000		229,632
Republic of South Africa Government International Bond, 5.65%, 09/27/47 (South Africa)			200,000		169,000
Russian Federal Bond — OFZ, Series 6216, 6.70%, 05/15/19 (Russia)	RUB		9,145,000		138,382
Russian Federal Bond — OFZ, Series 6215, 7.00%, 08/16/23 (Russia)	RUB		6,795,000		98,457
Turkey Government International Bond, 5.63%, 03/30/21 (Turkey)			200,000		195,432
Turkey Government International Bond, 4.88%, 10/09/26 (Turkey)			305,000		258,700
Ukraine Government International Bond, 7.75%, 09/01/23 (Ukraine)⁽²⁾			100,000		95,409
Ukraine Government International Bond, 7.75%, 09/01/26 (Ukraine)⁽²⁾			355,000		321,838
Total Government					7,305,083
Health Care — 0.2%
Concordia International Corp., 8.00%, 09/06/24 (Canada)			67,000		65,828
Security Description		Principal		Value
FOREIGN BONDS (continued)
Health Care (continued)
Teva Pharmaceutical Finance Netherlands III BV, 3.15%, 10/01/26 (Israel)		$	160,000	$	130,571
Total Health Care					196,399
Industrials — 1.9%
Ashtead Capital, Inc., 4.38%, 08/15/27 (United Kingdom)⁽²⁾			380,000		350,436
Bombardier, Inc., 6.13%, 01/15/23 (Canada)⁽²⁾			235,000		233,238
British Airways Pass-Through Trust, Class B, Series 2013-1, 5.63%, 06/20/20 (United Kingdom)⁽²⁾			113,452		115,154
CNH Industrial NV, 4.50%, 08/15/23 (United Kingdom)			362,000		365,620
Garda World Security Corp., 8.75%, 05/15/25 (Canada)⁽²⁾			280,000		264,600
Hulk Finance Corp., 7.00%, 06/01/26 (Canada)⁽²⁾			190,000		175,275
Titan Acquisition Ltd. / Titan Co. — Borrower LLC, 7.75%, 04/15/26 (Canada)⁽²⁾			175,000		146,125
Topaz Marine SA, 9.13%, 07/26/22 (United Arab Emirates)⁽²⁾			255,000		264,774
Total Industrials					1,915,222
Materials — 2.6%
Anglo American Capital PLC, 4.00%, 09/11/27 (South Africa)⁽²⁾			355,000		323,841
BHP Billiton Finance USA Ltd., 6.75%, (USD 5 Year Swap + 5.09%), 10/19/75 (Australia)⁽¹⁾⁽²⁾			440,000		477,400
Equate Petrochemical BV, 4.25%, 11/03/26 (Kuwait)⁽²⁾			300,000		291,585
Glencore Funding LLC, 4.00%, 03/27/27 (Switzerland)⁽²⁾			380,000		350,089
NOVA Chemicals Corp., 4.88%, 06/01/24 (Canada)⁽²⁾			105,000		96,863
NOVA Chemicals Corp., 5.00%, 05/01/25 (Canada)⁽²⁾			250,000		228,125
Rusal Capital DAC, 5.13%, 02/02/22 (Russia)⁽²⁾			695,000		493,450
SABIC Capital II BV, 4.50%, 10/10/28 (Saudi Arabia)⁽²⁾			290,000		284,751
Total Materials					2,546,104
Utilities — 0.9%
ENEL Finance International NV, 4.63%, 09/14/25 (Italy)⁽²⁾			250,000		236,699
Perusahaan Listrik Negara PT, 4.13%, 05/15/27 (Indonesia)⁽²⁾			360,000		324,911
Transportadora de Gas Internacional SA ESP, 5.55%, 11/01/28 (Colombia)⁽²⁾			280,000		282,128
Total Utilities					843,738
Total Foreign Bonds
(Cost $23,053,220)					21,536,906

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

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

October 31, 2018

Security Description	Principal		Value
TERM LOANS — 18.0%
Aerospace — 0.4%
TransDigm, Inc., 4.80%, (1-Month USD LIBOR + 2.50%), 06/09/23⁽¹⁾	$	369,389	$	368,218
TransDigm, Inc., 4.80%, (1-Month USD LIBOR + 2.50%), 05/30/25⁽¹⁾		59,700		59,500
Total Aerospace				427,718
Chemicals — 0.2%
New Arclin U.S. Holding Corp., 5.89%, (3-Month USD LIBOR + 3.50%), 02/14/24⁽¹⁾		233,571		233,279
Consumer Durables — 0.3%
Global Appliance, Inc. (aka SharkNinja Operating LLC), 6.31%, (1-Month USD LIBOR + 4.00%), 09/29/24⁽¹⁾		297,000		295,329
Consumer Non-Durables — 1.0%
American Greetings Corp., 6.80%, (1-Month USD LIBOR + 4.50%), 04/06/24⁽¹⁾		324,475		325,489
Herbalife Nutrition Ltd., 5.49%, (1-Month USD LIBOR + 3.25%), 08/18/25⁽¹⁾		50,000		50,292
Kronos Acquisition Intermediate, Inc. (aka KIK Custom Products), 6.30%, (1-Month USD LIBOR + 4.00%), 05/15/23 (Nigeria)⁽¹⁾		121,202		119,763
Parfums Holding Co., Inc., 6.53%, (3-Month USD LIBOR + 4.25%), 06/30/24⁽¹⁾		192,592		192,833
Rodan & Fields, LLC, 6.28%, (PRIME + 3.00%), 06/16/25 (Kazakhstan)⁽¹⁾		279,300		281,220
Total Consumer Non-Durables				969,597
Energy — 0.6%
Medallion Midland Acquisition, LLC, 5.55%, (1-Month USD LIBOR + 3.25%), 10/30/24⁽¹⁾		253,088		251,980
Moda Ingleside Energy Center, LLC, 5.54%, (1-Month USD LIBOR + 3.25%), 09/29/25⁽¹⁾		20,000		20,183
Traverse Midstream Partners LLC, 6.60%, (3-Month USD LIBOR + 4.00%), 09/27/24 (Turkey)⁽¹⁾		275,000		277,192
Total Energy				549,355
Financials — 2.2%
Asurion, LLC (fka Asurion Corp.), 8.80%, (1-Month USD LIBOR + 6.50%), 08/04/25⁽¹⁾		326,228		335,403
Blackhawk Network Holdings, Inc., 5.39%, (3-Month USD LIBOR + 3.00%), 06/15/25⁽¹⁾		174,563		175,136
Ditech Holding Corp., 8.30%, (1-Month USD LIBOR + 6.00%), 06/30/22⁽¹⁾		517,627		482,687
Financial & Risk US Holdings, Inc. (aka Refinitiv), 0.00%, 10/01/25⁽¹⁾⁽⁶⁾		335,000		332,069
FinCo I, LLC (aka Fortress Investment Group), 4.30%, (1-Month USD LIBOR + 2.00%), 12/27/22⁽¹⁾		133,435		133,539
Genworth Holdings, Inc., 6.83%, (2-Month USD LIBOR + 4.50%), 03/07/23⁽¹⁾		24,875		25,435
iStar, Inc. (fka iStar Financial, Inc.), 5.03%, (1-Month USD LIBOR + 2.75%), 06/28/23⁽¹⁾		254,363		254,839
PI UK Holdco II Limited, 5.80%, (1-Month USD LIBOR + 3.50%), 01/03/25⁽¹⁾		412,925		412,281
Total Financials				2,151,389
Security Description	Principal		Value
TERM LOANS (continued)
Food and Drug — 0.2%
Albertson’s LLC, 5.38%, (3-Month USD LIBOR + 3.00%), 12/21/22⁽¹⁾	$	219,545	$	219,331
Food/Tobacco — 0.2%
H-Food Holdings, LLC (aka Hearthside Food Solutions, LLC), 5.30%, (1-Month USD LIBOR + 3.00%), 05/23/25⁽¹⁾		44,888		44,186
Milk Specialties Co., 6.24%, (1-Month USD LIBOR + 4.00%), 08/16/23⁽¹⁾		207,855		207,985
Total Food/Tobacco				252,171
Gaming/Leisure — 0.6%
Playa Resorts Holding B.V., 5.05%, (1-Month USD LIBOR + 2.75%), 04/29/24⁽¹⁾		226,986		224,148
Scientific Games International, Inc., 5.05%, (2-Month USD LIBOR + 2.75%), 08/14/24⁽¹⁾		129,350		128,276
UFC Holdings, LLC, 5.56%, (1-Month USD LIBOR + 3.25%), 08/18/23⁽¹⁾		273,529		275,467
Total Gaming/Leisure				627,891
Health Care — 1.9%
Accelerated Health Systems LLC, 0.00%, 10/31/25⁽¹⁾⁽⁶⁾		150,000		150,750
AHP Health Partners, Inc. (aka Ardent Health Partners, LLC), 6.80%, (1-Month USD LIBOR + 4.50%), 06/30/25⁽¹⁾		189,525		190,680
Auris Lux Co. (aka Sivantos Group), 0.00%, 07/24/25 (Luxembourg)⁽¹⁾⁽⁶⁾		30,000		30,256
Bausch Health Companies, Inc. (fka Valeant Pharmaceuticals International, Inc.), 5.27%, (1-Month USD LIBOR + 3.00%), 06/02/25 (Canada)⁽¹⁾		175,283		175,591
CCS-CMGC Holdings, Inc., 7.80%, (1-Month USD LIBOR + 5.50%), 10/01/25⁽¹⁾		160,000		159,400
CHG Healthcare Services, Inc. (fka CHG Buyer Corp.), 5.30%, (1-Month USD LIBOR + 3.00%), 06/07/23⁽¹⁾		322,533		324,002
Concordia Healthcare Corp., 7.78%, (1-Month USD LIBOR + 5.50%), 09/06/24 (Canada)⁽¹⁾		159,000		156,218
Envision Health Care Corp., 6.05%, (1-Month USD LIBOR + 3.75%), 10/10/25⁽¹⁾		236,145		231,662
Ortho-Clinical Diagnostics, Inc., 5.54%, (1-Month USD LIBOR + 3.25%), 06/30/25⁽¹⁾		198,000		197,604
Prospect Medical Holdings, Inc., 7.81%, (1-Month USD LIBOR + 5.50%), 02/22/24⁽¹⁾		144,275		145,537
U.S. Renal Care, Inc., 6.64%, (3-Month USD LIBOR + 4.25%), 12/30/22⁽¹⁾		134,654		130,838
Universal Health Services, Inc., 0.00%, 10/31/25⁽¹⁾⁽⁶⁾		25,000		25,094
Total Health Care				1,917,632
Housing — 1.0%
84 Lumber Co., 7.53%, (1-Month USD LIBOR + 5.25%), 10/25/23 (South Africa)⁽¹⁾		215,625		217,422
American Builders & Contractors Supply Co., Inc., 4.30%, (1-Month USD LIBOR + 2.00%), 10/31/23 (Mexico)⁽¹⁾		213,448		211,714
Capital Automotive L.P., 8.31%, (1-Month USD LIBOR + 6.00%), 03/24/25 (Chile)⁽¹⁾		243,153		247,712

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

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

October 31, 2018

Security Description	Principal		Value
TERM LOANS (continued)
Housing (continued)
CPG International LLC (fka CPG International, Inc.), 6.25%, (3-Month USD LIBOR + 3.75%), 05/05/24⁽¹⁾	$	300,867	$	302,122
Total Housing				978,970
Information Technology — 2.0%
Applied Systems, Inc., 9.39%, (3-Month USD LIBOR + 7.00%), 09/19/25⁽¹⁾		50,000		51,000
BMC Software Finance, Inc., 6.65%, (3-Month USD LIBOR + 4.25%), 10/02/25⁽¹⁾		310,000		311,454
Intralinks, Inc., 6.31%, (1-Month USD LIBOR + 4.00%), 11/14/24⁽¹⁾		118,322		118,692
Kronos, Inc., 5.34%, (3-Month USD LIBOR + 3.00%), 11/01/23 (Oman)⁽¹⁾		194,025		194,586
Kronos, Inc., 10.59%, (3-Month USD LIBOR + 8.25%), 11/01/24⁽¹⁾		178,000		181,189
Renaissance Holding Corp., 5.55%, (1-Month USD LIBOR + 3.25%), 05/30/25 (Canada)⁽¹⁾		334,163		333,327
SS&C Technologies, Inc., 4.55%, (1-Month USD LIBOR + 2.25%), 04/16/25⁽¹⁾		389,144		387,657
SS&C Technologies, Inc., 4.55%, (1-Month USD LIBOR + 2.25%), 04/16/25⁽¹⁾		150,833		150,257
Vertafore, Inc., 5.55%, (1-Month USD LIBOR + 3.25%), 07/02/25⁽¹⁾		300,000		299,437
Total Information Technology				2,027,599
Manufacturing — 1.0%
Accudyne Industries Borrower SCA, 5.30%, (1-Month USD LIBOR + 3.00%), 08/18/24⁽¹⁾		237,981		237,429
CPI Acquisition, Inc., 7.02%, (3-Month USD LIBOR + 4.50%), 08/17/22⁽¹⁾		535,000		354,055
Deliver Buyer, Inc. (aka MHS Holdings, Inc.), 7.31%, (3-Month USD LIBOR + 5.00%), 05/01/24⁽¹⁾		169,144		169,989
Filtration Group Corp., 5.30%, (1-Month USD LIBOR + 3.00%), 03/29/25 (Israel)⁽¹⁾		74,625		75,031
Hillman Group, Inc. (The), 6.30%, (1-Month USD LIBOR + 4.00%), 05/30/25⁽¹⁾		134,663		132,508
Total Manufacturing				969,012
Media/Telecom – Cable/Wireless Video — 0.7%
Altice US Finance I Corp., 4.55%, (1-Month USD LIBOR + 2.25%), 07/28/25⁽¹⁾		198,992		198,931
CSC Holdings, LLC, 0.00%, 01/15/26⁽¹⁾⁽⁶⁾		270,000		269,874
Telenet Financing USD LLC, 4.53%, (1-Month USD LIBOR + 2.25%), 08/15/26⁽¹⁾		200,000		199,602
Total Media/Telecom – Cable/Wireless Video				668,407
Media/Telecom – Diversified Media — 0.4%
Cineworld Finance US, Inc., 4.80%, (1-Month USD LIBOR + 2.50%), 02/28/25 (Kazakhstan)⁽¹⁾		373,125		372,056
Media/Telecom – Telecommunications — 0.7%
CenturyLink, Inc., 5.05%, (1-Month USD LIBOR + 2.75%), 01/31/25⁽¹⁾		203,112		201,208
Securus Technologies Holdings, Inc., 6.80%, (1-Month USD LIBOR + 4.50%), 11/01/24⁽¹⁾		111,113		111,577
Securus Technologies Holdings, Inc., 0.00%, 11/01/24⁽¹⁾⁽⁶⁾		52,000		52,130
Security Description	Principal		Value
TERM LOANS (continued)
Media/Telecom – Telecommunications (continued)
Securus Technologies Holdings, Inc., 10.55%, (1-Month USD LIBOR + 8.25%), 11/01/25 (Turkey)⁽¹⁾	$	210,000	$	210,699
West Corp., 6.03%, (1-Month USD LIBOR + 3.50%), 10/10/24 (Ukraine)⁽¹⁾		129,675		128,405
Total Media/Telecom – Telecommunications				704,019
Media/Telecom – Wireless Communications — 0.1%
Digicel International Finance Ltd., 5.57%, (3-Month USD LIBOR + 3.25%), 05/27/24⁽¹⁾		74,250		71,373
Metals/Minerals — 0.7%
Contura Energy, Inc., 7.30%, (2-Month USD LIBOR + 5.00%), 03/18/24⁽¹⁾		266,474		266,474
Covia Holdings Corp. (fka Unimin Corp.), 6.14%, (1-Month USD LIBOR + 3.75%), 06/01/25⁽¹⁾		264,338		222,787
GrafTech Finance, Inc., 5.80%, (1-Month USD LIBOR + 3.50%), 02/12/25⁽¹⁾		227,125		227,693
Total Metals/Minerals				716,954
Retail — 0.3%
Neiman Marcus Group, Inc. (The), 5.53%, (1-Month USD LIBOR + 3.25%), 10/25/20⁽¹⁾		301,831		275,629
Service — 2.4%
Advantage Sales & Marketing, Inc., 5.55%, (1-Month USD LIBOR + 3.25%), 07/23/21⁽¹⁾		257,023		234,320
GFL Environmental, Inc., 0.00%, 05/30/25⁽¹⁾⁽⁶⁾		215,000		212,044
Hoya Midco, LLC, 0.00%, 06/30/24⁽¹⁾⁽⁶⁾		348,021		347,005
Laureate Education, Inc., 6.03%, (3-Month USD LIBOR + 3.50%), 04/26/24⁽¹⁾		222,186		222,908
NAB Holdings, LLC, 5.39%, (3-Month USD LIBOR + 3.00%), 07/01/24⁽¹⁾		287,754		284,757
One Call Corp., 7.53%, (1-Month USD LIBOR + 5.25%), 11/27/22⁽¹⁾		114,386		107,972
Red Ventures, LLC, 0.00%, 11/08/24⁽¹⁾⁽⁶⁾		15,000		15,094
Red Ventures, LLC, 6.30%, (1-Month USD LIBOR + 3.75%), 11/08/24 (Mexico)⁽¹⁾		323,097		325,117
Sedgwick Claims Management Services, Inc., 8.06%, (3-Month USD LIBOR + 5.75%), 02/28/22⁽¹⁾		330,000		330,929
Spin Holdco, Inc., 5.69%, (3-Month USD LIBOR + 3.25%), 11/14/22⁽¹⁾		55,000		55,120
TKC Holdings, Inc., 6.06%, (1-Month USD LIBOR + 3.75%), 02/01/23⁽¹⁾		220,431		220,864
Total Service				2,356,130
Utilities — 1.1%
APLP Holdings Limited Partnership, 5.24%, (1-Month USD LIBOR + 3.00%), 04/13/23 (Canada)⁽¹⁾		195,438		196,074
Brookfield WEC Holdings, Inc. (aka Westinghouse Electric Co. LLC), 6.05%, (1-Month USD LIBOR + 3.75%), 08/01/25⁽¹⁾		200,000		201,514
Brookfield WEC Holdings, Inc. (aka Westinghouse Electric Co. LLC), 9.05%, (1-Month USD LIBOR + 6.75%), 08/03/26⁽¹⁾		115,000		117,099
Talen Energy Supply, LLC, 6.30%, (1-Month USD LIBOR + 4.00%), 04/15/24⁽¹⁾		234,010		234,924

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

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

October 31, 2018

Security Description	Principal		Value
TERM LOANS (continued)
Utilities (continued)
Vistra Operations Company LLC (fka Tex Operations Company LLC), 4.30%, (1-Month USD LIBOR + 2.00%), 08/04/23⁽¹⁾	$	318,811	$	318,478
Total Utilities				1,068,089
Total Term Loans
(Cost $18,011,295)				17,851,930
MORTGAGE BACKED SECURITIES — 11.1%
Commercial Mortgage Backed Securities — 0.4%
Caesars Palace Las Vegas Trust, Class C, Series 2017-VICI, 4.14%, 10/15/34⁽²⁾		285,000		284,886
Sutherland Commercial Mortgage Loans, Class A, Series 2017-SBC6, 3.19%, 05/25/37^(1)(2)(7)(8)		106,882		107,185
Total Commercial Mortgage Backed Securities				392,071
Mortgage Securities — 1.1%
Fannie Mae Pool, 4.00%, 09/01/47		1,095,918		1,097,051
Residential Mortgage Backed Securities — 9.6%
American Homes 4 Rent Trust, Class C, Series 2015-SFR2, 4.69%, 10/17/45⁽²⁾		510,000		521,240
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates, Class M4, Series 2003-AR3, 3.66%, (1-Month USD LIBOR + 5.85%), 06/25/33⁽¹⁾		456,911		453,621
Banc of America Funding Trust, Class 5A1, Series 2004-D, 3.64%, 01/25/35⁽¹⁾⁽⁷⁾		383,710		384,522
Bayview Opportunity Master Fund IVa Trust, Class B1, Series 2016-SPL1, 4.25%, 04/28/55⁽²⁾		350,000		353,687
Bayview Opportunity Master Fund IVb Trust, Class B1, Series 2016-SPL2, 4.25%, 06/28/53^(1)(2)(7)		290,000		292,988
Bear Stearns ARM Trust, Class 22A1, Series 2004-9, 4.73%, 11/25/34⁽¹⁾⁽⁷⁾		284,190		289,253
Chase Mortgage Trust, Class M2, Series 2016-1, 3.69%, 04/25/45^(1)(2)(7)		365,642		358,569
Chase Mortgage Trust, Class M2, Series 2016-2, 3.65%, 12/25/45^(1)(2)(7)		437,270		428,158
Colony Starwood Homes Trust, Class C, Series 2016-2A, 4.43%, (1-Month USD LIBOR + 2.15%), 12/17/33⁽¹⁾⁽²⁾		430,000		431,357
COLT Mortgage Loan Trust, Class A3, Series 2017-1, 3.07%, 05/27/47^(1)(2)(7)		103,376		102,575
CSMC Mortgage-Backed Trust, Class 3A1, Series 2006-8, 6.00%, 10/25/21		65,133		59,196
Deephaven Residential Mortgage Trust, Class A2, Series 2017-1A, 2.93%, 12/26/46^(1)(2)(7)		47,916		47,536
Deephaven Residential Mortgage Trust, Class A2, Series 2017-2A, 2.61%, 06/25/47^(1)(2)(7)		85,874		84,575
Galton Funding Mortgage Trust, Class A21, Series 2017-1, 3.50%, 07/25/56^(1)(2)(7)		237,847		234,510
Home Equity Mortgage Trust, Class M7, Series 2005-2, 3.96%, (1-Month USD LIBOR + 1.68%), 07/25/35⁽¹⁾		77,536		77,635
JPMorgan Mortgage Trust, Class A3, Series 2018-8, 4.00%, 01/25/49^(1)(2)(7)		108,491		107,362
New Residential Mortgage Loan Trust, Class A1, Series 2016-1A, 3.75%, 03/25/56^(1)(2)(7)		134,731		134,601
Security Description	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Residential Mortgage Backed Securities (continued)
New Residential Mortgage Loan Trust, Class B1A, Series 2016-4A, 4.50%, 11/25/56^(1)(2)(7)	$	607,370	$	614,533
Pretium Mortgage Credit Partners I LLC, Class A1, Series 2017-NPL5, 3.33%, 12/30/32^(1)(2)(7)		115,819		115,288
Pretium Mortgage Credit Partners I LLC, Class A1, Series 2017-NPL2, 3.25%, 03/28/57⁽²⁾⁽⁹⁾		186,339		185,499
Progress Residential Trust, Class B, Series 2017-SFR1, 3.02%, 08/17/34⁽²⁾		275,000		264,242
Progress Residential Trust, Class B, Series 2018-SFR1, 3.48%, 03/17/35⁽²⁾		400,000		392,825
Resecuritization Pass-Through Trust, Class A5, Series 2005-8R, 6.00%, 10/25/34		94,007		94,391
Sequoia Mortgage Trust, Class B1, Series 2013-8, 3.53%, 06/25/43⁽¹⁾⁽⁷⁾		275,429		267,049
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-4, 4.38%, 04/25/34⁽¹⁾⁽⁷⁾		133,893		136,261
Towd Point Mortgage Trust, Class A2, Series 2014-1, 3.25%, 10/25/53^(1)(2)(7)		340,000		335,377
Towd Point Mortgage Trust, Class M1, Series 2015-6, 3.75%, 04/25/55^(1)(2)(7)		500,000		493,054
Towd Point Mortgage Trust, Class A2, Series 2015-5, 3.50%, 05/25/55^(1)(2)(7)		425,000		419,741
Towd Point Mortgage Trust, Class 1M1, Series 2015-2, 3.25%, 11/25/60^(1)(2)(7)		1,195,000		1,149,474
Towd Point Mortgage Trust 2016-4, Class A2, Series 2016-4, 3.00%, 07/25/56^(1)(2)(7)		250,000		240,017
Tricon American Homes Trust, Class A, Series 2017-SFR1, 2.72%, 09/17/34⁽²⁾		125,000		119,541
VOLT LX LLC, Class A1, Series 2017-NPL7, 3.25%, 06/25/47⁽²⁾⁽⁹⁾		161,228		160,338
VOLT LXXI LLC, Class A1A, Series 2018-NPL7, 3.97%, 09/25/48^(2)(8)(9)		164,762		164,920
Total Residential Mortgage Backed Securities				9,513,935
Total Mortgage Backed Securities
(Cost $11,087,534)				11,003,057
ASSET BACKED SECURITIES — 6.9%
Aqua Finance Trust, Class A, Series 2017-A, 3.72%, 11/15/35⁽²⁾		377,430		368,546
Arbys Funding LLC, Class A2, Series 2015-1A, 4.97%, 10/30/45⁽²⁾		329,800		332,027
Carnow Auto Receivables Trust, Class D, Series 2016-1A, 7.34%, 11/15/21⁽²⁾		430,000		431,978
CONSUMER INSTALLMENT LOAN TRUST, Class A, Series 2016-LD1, 3.96%, 07/15/22⁽²⁾		9,353		9,351
CPS Auto Trust, Class D, Series 2018-C, 4.40%, 06/17/24⁽²⁾		290,000		291,320
Drug Royalty III LP 1, Class A, Series 2016-1A, 3.98%, 04/15/27⁽²⁾		285,405		285,333
DT Auto Owner Trust, Class C, Series 2018-1A, 3.47%, 12/15/23⁽²⁾		375,000		374,442
Flagship Credit Auto Trust, Class D, Series 2015-1, 5.26%, 07/15/21⁽²⁾		435,000		440,998
Flagship Credit Auto Trust, Class D, Series 2016-3, 3.89%, 11/15/22⁽²⁾		525,000		524,935

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

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

October 31, 2018

Security Description	Principal		Value
ASSET BACKED SECURITIES (continued)
Foursight Capital Automobile Receivables Trust, Class B, Series 2017-1, 3.05%, 12/15/22⁽²⁾	$	440,000	$	433,547
GLS Auto Receivables Trust, Class B, Series 2018-1A, 3.52%, 08/15/23⁽²⁾		470,000		466,382
GLS Auto Receivables Trust, Class C, Series 2018-3A, 4.18%, 07/15/24⁽²⁾		335,000		334,742
Mariner Finance Issuance Trust, Class A, Series 2017-AA, 3.62%, 02/20/29⁽²⁾		500,000		500,014
OnDeck Asset Securitization Trust LLC, Class A, Series 2018-1A, 3.50%, 04/18/22⁽²⁾		370,000		368,590
Skopos Auto Receivables Trust, Class B, Series 2018-1A, 3.93%, 05/16/22⁽²⁾		565,000		562,441
TCF Auto Receivables Owner Trust, Class C, Series 2016-PT1A, 3.21%, 01/17/23⁽²⁾		430,000		425,955
TGIF Funding LLC, Class A2, Series 2017-1A, 6.20%, 04/30/47⁽²⁾		388,000		385,876
Upstart Securitization Trust, Class B, Series 2018-1, 3.89%, 08/20/25⁽²⁾		295,000		293,876
Total Asset Backed Securities
(Cost $6,857,270)				6,830,353
U.S. TREASURY NOTES — 3.0%
U.S. Treasury Note 2.00%, 02/15/25		565,000		531,100
U.S. Treasury Note 2.38%, 01/31/23		2,500,000		2,440,967
Total U.S. Treasury Notes
(Cost $2,998,723)				2,972,067
Security Description	Principal		Value
TOTAL INVESTMENTS — 96.7%
(Cost $98,752,060)			$	95,740,230
Other Assets in Excess of Liabilities — 3.3%				3,219,030
Net Assets — 100.0%			$	98,959,260

(1)

Variable rate instrument. The interest rate shown reflects the rate in effect at October 31, 2018.

(2)

(3)

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

(4)

Perpetual security with no stated maturity date.

(5)

Payment in-kind security. 100% of the income was received in cash.

(6)

The loan will settle after October 31, 2018 at which the interest will be determined.

(7)

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.

(8)

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 at the end of the Schedule of Investments.

(9)

Represents step coupon bond. Rate shown reflects the rate in effect as of October 31, 2018.

Abbreviations:

CMT — 1 Year Constant Maturity Treasury Index

LIBOR — London InterBank Offered Rate

LP — Limited Partnership

NTNF — National Treasury Note Fixed

PLC — Public Limited Company

Currency Abbreviations

BRL — Brazilian Real

COP — Colombian Peso

IDR — Indonesian Rupiah

KZT — Kazakhstani Tenge

MXN — Mexican Peso

RUB — Russian Ruble

ZAR — South African Rand

The following table summarizes valuation of the Fund’s investments under the fair value hierarchy levels as of October 31, 2018:

	Level 1		Level 2		Level 3		Total
Asset Valuation Inputs
Corporate Bonds	$	—	$	35,545,917	$	—	$	35,545,917
Foreign Bonds		—		21,536,906		—		21,536,906
Term Loans		—		17,851,930		—		17,851,930
Mortgage Backed Securities		—		10,730,952		272,105		11,003,057
Asset Backed Securities		—		6,830,353		—		6,830,353
U.S. Treasury Notes		—		2,972,067		—		2,972,067
Total	$	—	$	95,468,125	$	272,105	$	95,740,230

Some of the Fund’s investments that were categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of Level 3 investments.

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

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

October 31, 2018

A reconciliation of assets in which Level 3 inputs are used in determining fair value is presented when there are significant Level 3 investments at the end of the reporting year. The following summarizes inputs (level 3) used as of October 31, 2018:

	Mortgage Backed Securities
Balance as of October 31, 2017	$	—
Realized gain (loss)		—
Change in unrealized appreciation (depreciation)		158
Purchases		165,000
Sales		(238	)
Amortization (accretion)		—
Transfers into Level 3		107,185
Transfers out of Level 3		—
Balance as of October 31, 2018		272,105
Net change in unrealized appreciation (depreciation) from investments still held as of October 31, 2018	$	158

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

Schedule of Investments — Virtus WMC Global Factor Opportunities ETF

October 31, 2018

Security Description	Shares		Value
Common Stocks — 97.6%
Communication Services — 4.8%
China Mobile Ltd. (China)		2,456	$	22,957
DISH Network Corp. Class A*		378		11,620
Facebook, Inc. Class A*		307		46,599
Liberty Global PLC Class A (United Kingdom)*		798		20,453
Modern Times Group MTG AB Class B (Sweden)		142		5,248
Nintendo Co. Ltd. (Japan)		56		17,450
Omnicom Group, Inc.		218		16,202
SK Telecom Co. Ltd. (South Korea)		51		11,994
SoftBank Group Corp. (Japan)		159		12,750
Take-Two Interactive Software, Inc.*		114		14,691
Vodafone Group PLC (United Kingdom)		11,346		21,437
Walt Disney Co. (The)		321		36,860
Total Communication Services				238,261
Consumer Discretionary — 9.6%
Best Buy Co., Inc.		400		28,064
Carnival Corp.		273		15,299
Compass Group PLC (United Kingdom)		988		19,448
Daimler AG (Germany)		380		22,536
Darden Restaurants, Inc.		125		13,319
Dollar General Corp.		220		24,504
Fiat Chrysler Automobiles NV (United Kingdom)*		1,121		17,077
Home Depot, Inc. (The)		232		40,804
Kering (France)		52		23,182
Kohl’s Corp.		354		26,808
Lear Corp.		181		24,055
Lululemon Athletica, Inc.*		110		15,480
Macy’s, Inc.		452		15,499
Michael Kors Holdings Ltd.*		272		15,072
Mohawk Industries, Inc.*		77		9,604
O’Reilly Automotive, Inc.*		56		17,962
Panasonic Corp. (Japan)		1,830		20,265
Peugeot SA (France)		643		15,316
Renault SA (France)		156		11,674
Ross Stores, Inc.		210		20,790
Sony Corp. (Japan)		355		19,318
Subaru Corp. (Japan)		471		12,744
Takashimaya Co. Ltd. (Japan)		943		14,876
TJX Cos., Inc. (The)		210		23,075
Tractor Supply Co.		153		14,059
Total Consumer Discretionary				480,830
Consumer Staples — 5.5%
Aeon Co. Ltd. (Japan)		1,044		23,964
Archer-Daniels – Midland Co.		306		14,458
Chocoladefabriken Lindt & Spruengli AG (Switzerland)		4		27,603
Costco Wholesale Corp.		114		26,064
Danone SA (France)		225		15,948
L’Oreal SA (France)		61		13,742
Nestle SA (Switzerland)		350		29,581
NH Foods Ltd. (Japan)		466		16,107
Pernod Ricard SA (France)		160		24,429
Pick n Pay Stores Ltd. (South Africa)		3,864		17,845
SPAR Group Ltd. (The) (South Africa)		1,336		15,923
Tesco PLC (United Kingdom)		5,178		14,117
Security Description	Principal		Value
Common Stocks (continued)
Consumer Staples (continued)
Unilever NV (United Kingdom)		342	$	18,409
Unilever PLC (United Kingdom)		273		14,469
Total Consumer Staples				272,659
Energy — 7.1%
Anadarko Petroleum Corp.		229		12,183
BP PLC (United Kingdom)		4,504		32,660
China Petroleum & Chemical Corp. Class H (China)		23,868		19,357
CNOOC Ltd. (China)		10,662		18,300
Eni SpA (Italy)		859		15,281
EOG Resources, Inc.		151		15,906
Equinor ASA (Norway)		695		18,080
LUKOIL PJSC (Russia)⁽¹⁾		379		28,289
Marathon Petroleum Corp.		251		17,683
OMV AG (Austria)		255		14,190
PetroChina Co. Ltd. Class H (China)		20,000		14,639
Petronas Dagangan Bhd (Malaysia)		2,285		14,198
Reliance Industries Ltd. (India)⁽²⁾⁽³⁾		522		14,903
Royal Dutch Shell PLC Class A (Netherlands)		806		25,761
Royal Dutch Shell PLC Class B (Netherlands)		1,093		35,835
Suncor Energy, Inc. (Canada)		443		14,860
TOTAL SA (France)		374		22,011
TransCanada Corp. (Canada)		530		19,985
Total Energy				354,121
Financials — 22.0%
3i Group PLC (United Kingdom)		1,852		20,789
Affiliated Managers Group, Inc.		115		13,071
Aflac, Inc.		484		20,846
AIA Group Ltd. (Hong Kong)		2,644		20,011
Allstate Corp. (The)		204		19,527
American Express Co.		243		24,963
Athene Holding Ltd. Class A*		324		14,813
Australia & New Zealand Banking Group Ltd. (Australia)		744		13,662
Aviva PLC (United Kingdom)		4,290		23,497
AXA SA (France)		712		17,855
Banco Bilbao Vizcaya Argentaria SA (Spain)		2,380		13,168
Banco Santander SA (Spain)		3,442		16,354
Bank Central Asia Tbk PT (Indonesia)		9,795		15,238
Bank of America Corp.		1,612		44,330
Bank of New York Mellon Corp. (The)		394		18,648
Barclays PLC (United Kingdom)		7,132		15,725
BlackRock, Inc.		40		16,457
BNP Paribas SA (France)		308		16,093
Capital One Financial Corp.		304		27,147
Chailease Holding Co. Ltd. (Taiwan)		4,662		13,289
Charles Schwab Corp. (The)		484		22,380
China Life Insurance Co. Ltd. Class H (China)		8,280		16,493
Cincinnati Financial Corp.		280		22,019
CME Group, Inc.		127		23,272
Commonwealth Bank of Australia (Australia)		372		18,237
Dai-ichi Life Holdings, Inc. (Japan)		901		17,056
Discover Financial Services		344		23,966
E*TRADE Financial Corp.		430		21,251
East West Bancorp, Inc.		339		17,777
Everest Re Group Ltd.		72		15,686

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

Schedule of Investments — Virtus WMC Global Factor Opportunities ETF (continued)

October 31, 2018

Security Description	Shares		Value
Common Stocks (continued)
Financials (continued)
Franklin Resources, Inc.		468	$	14,274
Hanwha Life Insurance Co. Ltd. (South Korea)		4,133		16,267
Hartford Financial Services Group, Inc. (The)		460		20,893
Hong Kong Exchanges & Clearing Ltd. (Hong Kong)		640		16,975
Intercontinental Exchange, Inc.		205		15,793
Kinnevik AB Class B (Sweden)		513		14,233
Lloyds Banking Group PLC (United Kingdom)		28,800		21,064
MetLife, Inc.		520		21,419
National Australia Bank Ltd. (Australia)		776		13,854
NN Group NV (Netherlands)		432		18,593
Ping An Insurance Group Co. of China Ltd. Class H (China)		1,866		17,573
Principal Financial Group, Inc.		348		16,380
Progressive Corp. (The)		553		38,544
Prudential Financial, Inc.		256		24,008
Reinsurance Group of America, Inc.		111		15,803
Royal Bank of Canada (Canada)		260		18,944
Samsung Fire & Marine Insurance Co. Ltd. (South Korea)		61		14,908
Societe Generale SA (France)		316		11,625
Sumitomo Mitsui Financial Group, Inc. (Japan)		318		12,440
SVB Financial Group*		52		12,336
Synchrony Financial		644		18,599
T Rowe Price Group, Inc.		185		17,943
TD Ameritrade Holding Corp.		404		20,895
Torchmark Corp.		293		24,805
Toronto-Dominion Bank (The) (Canada)		468		25,962
Travelers Cos., Inc. (The)		166		20,772
Voya Financial, Inc.		348		15,228
Westpac Banking Corp. (Australia)		764		14,527
Total Financials				1,098,277
Health Care — 8.8%
Abbott Laboratories		228		15,718
Agilent Technologies, Inc.		231		14,967
Anthem, Inc.		86		23,699
Cardinal Health, Inc.		243		12,296
Centene Corp.*		331		43,136
Cerner Corp.*		260		14,893
Cigna Corp.		103		22,022
CSL Ltd. (Australia)		98		13,047
Express Scripts Holding Co.*		318		30,837
Gilead Sciences, Inc.		483		32,931
HCA Healthcare, Inc.		148		19,762
Henry Schein, Inc.*		153		12,699
Humana, Inc.		84		26,914
IDEXX Laboratories, Inc.*		69		14,636
Illumina, Inc.*		76		23,647
Lonza Group AG (Switzerland)*		76		23,898
Mettler-Toledo International, Inc.*		27		14,764
Nektar Therapeutics*		200		7,736
Straumann Holding AG (Switzerland)		25		17,066
UnitedHealth Group, Inc.		167		43,646
Veeva Systems, Inc. Class A*		134		12,241
Total Health Care				440,555
Security Description	Principal		Value
Common Stocks (continued)
Industrials — 12.6%
Canadian National Railway Co. (Canada)		296	$	25,304
Caterpillar, Inc.		217		26,327
CH Robinson Worldwide, Inc.		148		13,177
CNH Industrial NV (United Kingdom)		1,132		11,778
Copart, Inc.*		254		12,423
CoStar Group, Inc.*		68		24,577
CSX Corp.		343		23,619
Cummins, Inc.		102		13,942
Daelim Industrial Co. Ltd. (South Korea)		241		16,073
Dai Nippon Printing Co. Ltd. (Japan)		800		17,973
Daikin Industries Ltd. (Japan)		140		16,285
Deutsche Lufthansa AG (Germany)		621		12,492
General Dynamics Corp.		104		17,948
Hanwha Corp. (South Korea)		524		12,921
IDEX Corp.		165		20,925
IHS Markit Ltd.*		263		13,815
Ingersoll-Rand PLC		168		16,118
JB Hunt Transport Services, Inc.		109		12,057
Legrand SA (France)		195		12,753
Lockheed Martin Corp.		87		25,565
Marubeni Corp. (Japan)		1,900		15,429
Mitsubishi Electric Corp. (Japan)		1,150		14,610
Old Dominion Freight Line, Inc.		150		19,563
PACCAR, Inc.		283		16,190
RELX PLC (United Kingdom)*		1,188		23,507
Robert Half International, Inc.		195		11,803
Roper Technologies, Inc.		116		32,816
Schindler Holding AG (Switzerland)		87		18,071
Stanley Black & Decker, Inc.		116		13,516
Sumitomo Corp. (Japan)		961		14,594
Taisei Corp. (Japan)		289		12,384
Toppan Printing Co. Ltd. (Japan)		1,100		15,588
Toshiba Corp. (Japan)*		549		16,446
Transurban Group (Australia)		1,944		15,611
Volvo AB Class B (Sweden)		1,048		15,667
Wabtec Corp.		122		10,007
Waste Management, Inc.		181		16,194
Total Industrials				628,068
Information Technology — 18.8%
Adobe, Inc.*		273		67,093
Amphenol Corp. Class A		164		14,678
ASML Holding NV (Netherlands)		96		16,410
Automatic Data Processing, Inc.		152		21,900
CA, Inc.		532		23,600
Canon, Inc. (Japan)		710		20,274
CDW Corp.		169		15,212
Citrix Systems, Inc.*		125		12,809
Cognizant Technology Solutions Corp. Class A		227		15,670
Compal Electronics, Inc. (Taiwan)		21,524		11,860
Corning, Inc.		528		16,870
F5 Networks, Inc.*		148		25,941
Fortinet, Inc.*		196		16,107
Fujitsu Ltd. (Japan)		200		12,163
Hewlett Packard Enterprise Co.		1,101		16,790
Hon Hai Precision Industry Co. Ltd. (Taiwan)		4,006		10,202
HP, Inc.		1,601		38,648

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

Schedule of Investments — Virtus WMC Global Factor Opportunities ETF (continued)

October 31, 2018

Security Description	Shares		Value
Common Stocks (continued)
Information Technology (continued)
Infosys Ltd. (India)⁽¹⁾		1,558	$	14,754
Keysight Technologies, Inc.*		215		12,272
Lam Research Corp.		108		15,307
Mastercard, Inc. Class A		172		33,999
Micron Technology, Inc.*		653		24,631
Microsoft Corp.		783		83,632
NEC Corp. (Japan)		587		16,855
NetApp, Inc.		326		25,588
Paychex, Inc.		177		11,592
PayPal Holdings, Inc.*		335		28,204
salesforce.com, Inc.*		277		38,016
SAP SE (Germany)		195		20,907
Seagate Technology PLC		296		11,908
ServiceNow, Inc.*		89		16,113
Skyworks Solutions, Inc.		140		12,146
Synopsys, Inc.*		263		23,546
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)		3,164		23,927
TE Connectivity Ltd.		151		11,388
Telefonaktiebolaget LM Ericsson Class B (Sweden)		1,712		14,925
Texas Instruments, Inc.		217		20,144
Visa, Inc. Class A		428		59,000
Western Digital Corp.		273		11,758
Wirecard AG (Germany)		117		21,919
Worldpay, Inc. Class A*		191		17,541
WPG Holdings Ltd. (Taiwan)		12,541		14,895
Total Information Technology				941,194
Materials — 4.0%
Air Liquide SA (France)		104		12,604
Air Products & Chemicals, Inc.		124		19,139
Albemarle Corp.		134		13,296
ArcelorMittal (Luxembourg)		794		19,821
BHP Billiton Ltd. (Australia)		927		21,144
Covestro AG (Germany)⁽²⁾		204		13,198
Empresas CMPC SA (Chile)		4,318		14,782
Glencore PLC (Switzerland)*		6,269		25,550
Jiangxi Copper Co. Ltd. Class H (China)		11,921		13,134
LyondellBasell Industries NV Class A		202		18,033
Mosaic Co. (The)		418		12,933
Vale SA (Brazil)		951		14,492
Total Materials				198,126
Real Estate — 2.6%
Ascendas Real Estate Investment Trust (Singapore)		14,000		25,470
Link REIT (Hong Kong)		2,688		23,823
Public Storage		102		20,958
Redefine Properties Ltd. (South Africa)		23,507		15,281
Swiss Prime Site AG (Switzerland)*		272		22,091
Vonovia SE (Germany)		513		23,486
Total Real Estate				131,109
Security Description	Principal		Value
Common Stocks (continued)
Utilities — 1.8%
Chubu Electric Power Co., Inc. (Japan)		1,314	$	18,964
Fortis, Inc./Canada (Canada)		944		31,193
NextEra Energy, Inc.		141		24,322
Xcel Energy, Inc.		359		17,595
Total Utilities				92,074
Total Common Stocks
(Cost $5,068,777)				4,875,274
PREFERRED STOCKS — 1.9%
Consumer Discretionary — 0.5%
Volkswagen AG, 2.57% (Germany)		135		22,747
Consumer Staples — 0.3%
Henkel AG & Co. KGaA, 1.84% (Germany)		138		15,096
Energy — 0.3%
Petroleo Brasileiro SA, 0.37% (Brazil)		2,388		17,723
Financials — 0.8%
Banco Bradesco SA, 3.21% (Brazil)		2,300		21,198
Itau Unibanco Holding SA, 6.61% (Brazil)		1,372		18,157
Total Financials				39,355
Total Preferred Stocks
(Cost $95,847)				94,921
Right — 0.0%⁽⁴⁾
Financials — 0.0%⁽⁴⁾
Banco Santander SA (Spain), expiring 11/6/2018* (Cost $138)		3,442		134
TOTAL INVESTMENTS — 99.5%
(Cost $5,164,762)				4,970,329
Other Assets in Excess of Liabilities — 0.5%				24,466
Net Assets — 100.0%			$	4,994,795

Non-income producing security.

(1)

American Depositary Receipts.

(2)

(3)

Global Depositary Receipts.

(4)

Amount rounds to less than 0.05%.

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

Schedule of Investments — Virtus WMC Global Factor Opportunities ETF (continued)

October 31, 2018

The following table summarizes valuation of the Fund’s investments under the fair value hierarchy levels as of October 31, 2018:

	Level 1		Level 2		Level 3		Total
Asset Valuation Inputs
Common Stocks	$	4,875,274	$	—	$	—	$	4,875,274
Preferred Stocks		94,921		—		—		94,921
Right		134		—		—		134
Total	$	4,970,329	$	—	$	—	$	4,970,329

There were no Level 3 securities as of October 31, 2018.

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

Statements of Assets and Liabilities

October 31, 2018

	InfraCap REIT Preferred ETF			Virtus Cumberland Municipal Bond ETF			Virtus Glovista Emerging Markets ETF			Virtus InfraCap U.S. Preferred Stock ETF			Virtus LifeSci Biotech Clinical Trials ETF
Assets:
Investments, at cost	$	23,212,307		$	10,945,168		$	13,708,423		$	7,872,019		$	52,006,064
Investments, at value (including securities on loan)^(a)		22,086,321			10,781,285			12,454,859			7,654,984			38,980,906
Cash		390,030			114,950			381,101			273,649			1,056,897
Due from brokers		—			—			—			150,219			—
Foreign currency^(b)		—			—			7,625			—			—
Receivables:
Dividends and interest		328			152,783			9,035			10,583			631
Due from Adviser		—			9,641			—			—			—
Securities lending		—			—			—			—			7,684
Tax reclaim		—			—			5,096			—			—
Investment securities sold		—			—			1,816,224			—			—
Prepaid expenses		—			—			85			—			56
Total Assets		22,476,679			11,058,659			14,674,025			8,089,435			40,046,174
Liabilities:
Borrowings		—			—			—			1,878,897			—
Payables:
Investment securities purchased		—			—			1,769,299			—			—
Collateral for securities on loan		—			—			—			—			3,750,281
Deferred foreign tax payable		—			—			4,301			—			—
Advisory fees		8,208			—			8,088			4,550			26,749
Professional fees		—			35,987			—			—			—
Trustee fees		—			37			—			—			—
Written options, at value^(c)		—			—			—			10,365			—
Securities sold short, at value^(d)		—			—			—			78,110			—
Other accrued expenses		—			12,858			79			—			—
Total Liabilities		8,208			48,882			1,781,767			1,971,922			3,777,030
Net Assets	$	22,468,471		$	11,009,777		$	12,892,258		$	6,117,513		$	36,269,144
Net Assets Consist of:
Paid-in capital	$	24,141,980		$	11,071,947		$	16,757,833		$	6,309,977		$	68,361,792
Total distributable earnings (accumulated deficit)		(1,673,509	)		(62,170	)		(3,865,575	)^(e)		(192,464	)		(32,092,648	)
Net Assets	$	22,468,471		$	11,009,777		$	12,892,258		$	6,117,513		$	36,269,144
Shares outstanding (unlimited number of shares of beneficial interest authorized, no par value)		950,004			450,004			600,004			250,004			1,350,004
Net asset value per share	$	23.65		$	24.47		$	21.49		$	24.47		$	26.87
(a) Market value of securities on loan	$	—		$	—		$	—		$	—		$	10,360,445
(b) Foreign currency, at cost	$	—		$	—		$	7,626		$	—		$	—
(c) Premiums received from written options	$	—		$	—		$	—		$	10,223		$	—
(d) Proceeds received from securities sold short	$	—		$	—		$	—		$	76,100		$	—
(e) Net of foreign taxes of $(4,301)

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

Statements of Assets and Liabilities (continued)

October 31, 2018

	Virtus LifeSci Biotech Products ETF			Virtus Newfleet Multi-Sector Bond ETF			Virtus WMC Global Factor Opportunities ETF
Assets:
Investments, at cost	$	35,057,789		$	98,752,060		$	5,164,762
Investments, at value (including securities on loan)^(a)		29,866,842			95,740,230			4,970,329
Cash		436,874			—			19,725
Foreign currency^(b)		—			1			1,515
Receivables:
Securities lending		1,858			—			—
Dividends and interest		267			928,204			5,575
Tax reclaim		—			2,318			1,224
Investment securities sold		—			3,996,744			443
Prepaid expenses		56			3,063			—
Total Assets		30,305,897			100,670,560			4,998,811
Liabilities:
Due to custodian		—			259,624			—
Payables:
Investment securities purchased		—			1,359,341			442
Collateral for securities on loan		3,038,226			—			—
Advisory fees		20,126			11,240			3,574
Professional fees		—			35,547			—
Trustee fees		—			934			—
Other accrued expenses		—			44,614			—
Total Liabilities		3,058,352			1,711,300			4,016
Net Assets	$	27,247,545		$	98,959,260		$	4,994,795
Net Assets Consist of:
Paid-in capital	$	37,911,273		$	103,909,776		$	5,000,100
Total distributable earnings (accumulated deficit)		(10,663,728	)		(4,950,516	)		(5,305	)
Net Assets	$	27,247,545		$	98,959,260		$	4,994,795
Shares outstanding (unlimited number of shares of beneficial interest authorized, no par value)		750,004			4,150,004			200,004
Net asset value per share	$	36.33		$	23.85		$	24.97
(a) Market value of securities on loan	$	7,867,787		$	—		$	—
(b) Foreign currency, at cost	$	—		$	1		$	1,521

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

Statements of Operations

For the Year Ended October 31, 2018

	InfraCap REIT Preferred ETF			Virtus Cumberland Municipal Bond ETF			Virtus Glovista Emerging Markets ETF¹			Virtus InfraCap U.S. Preferred Stock ETF²			Virtus LifeSci Biotech Clinical Trials ETF
Investment Income:
Dividend income (net of foreign withholding taxes)	$	1,208,319		$	2,209		$	566,484		$	143,047		$	2,707
Interest income		—			390,249			972			285			—
Securities lending, net of fees		—			—			—			—			183,849
Total Investment Income		1,208,319			392,458			567,456			143,332			186,556
Expenses:
Dividend and interest expenses		—			—			—			22,876			—
Advisory fees		101,108			35,037			135,609			13,720			433,027
Tax expense		43			—			—			—			57
Custody fees		—			533			—			—			—
Sub-Advisory fees		—			35,037			—			—			—
Exchange listing fees		—			11,129			—			—			—
Professional fees		—			43,835			—			—			—
Insurance fees		—			4,978			—			—			—
Accounting and administration fees		—			4,496			—			—			—
Transfer agent fees		—			4,882			—			—			—
Trustee fees		—			9,413			—			—			—
Report to shareholders fees		—			6,745			—			—			—
Offering costs		—			1,674			—			—			—
Pricing fees		—			21,988			—			—			—
Other expenses		—			2,221			—			—			—
Total Expenses		101,151			181,968			135,609			36,596			433,084
Less expense waivers/reimbursements		—			(97,593	)		(5,983	)		—			—
Net Expenses		101,151			84,375			129,626			36,596			433,084
Net Investment Income (Loss)		1,107,168			308,083			437,830			106,736			(246,528	)
Net Realized Gain (Loss) on:
Investments		(489,779	)		72,226			(3,265,433	)³		21,819			(5,791,722	)
Written options		—			—			—			31,996			—
In-kind transactions		—			—			(33,532	)		—			20,605,093
Securities sold short		—			—			—			(825	)		—
Foreign currency transactions		—			—			12,999			—			—
Total Net Realized Gain (Loss)		(489,779	)		72,226			(3,285,966	)		52,990			14,813,371
Change in Net Unrealized Appreciation (Depreciation) on:
Investments		(1,208,236	)		(494,957	)		(1,257,865	)⁴		(217,035	)		(17,174,895	)
Written options		—			—			—			(142	)		—
Securities sold short		—			—			—			(2,010	)		—
Foreign currency translations		—			—			(910	)		—			—
Total Change in Net Unrealized Depreciation		(1,208,236	)		(494,957	)		(1,258,775	)		(219,187	)		(17,174,895	)
Net Realized and Change in Unrealized Gain (Loss)		(1,698,015	)		(422,731	)		(4,544,741	)		(166,197	)		(2,361,524	)
Net Decrease in Net Assets Resulting from Operations	$	(590,847	)	$	(114,648	)	$	(4,106,911	)	$	(59,461	)	$	(2,608,052	)
Foreign withholding taxes	$	—		$	—		$	83,243		$	—		$	—

From November 7, 2017 (commencement of operations) through October 31, 2018.

From May 15, 2018 (commencement of operations) through October 31, 2018.

Net of foreign taxes of $(10,951).

Net of change in deferred taxes of $(4,301).

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

Statements of Operations (continued)

For the Year Ended October 31, 2018

	Virtus LifeSci Biotech Products ETF			Virtus Newfleet Multi-Sector Bond ETF			Virtus WMC Global Factor Opportunities ETF
Investment Income:
Dividend income (net of foreign withholding taxes)	$	54,614		$	62,754		$	125,174
Interest income		—			7,214,159			202
Securities lending, net of fees		50,167			—			—
Total Investment Income		104,781			7,276,913			125,376
Expenses:
Advisory fees		275,349			959,722			25,909
Tax expense		57			—			30
Custody fees		—			8,352			—
Exchange listing fees		—			10,000			—
Professional fees		—			44,428			—
Insurance fees		—			12,222			—
Accounting and administration fees		—			39,731			—
Transfer agent fees		—			25,725			—
Trustee fees		—			10,310			—
Report to shareholders fees		—			9,500			—
Pricing fees		—			56,620			—
Other expenses		—			1,555			—
Total Expenses		275,406			1,178,165			25,939
Less expense waivers/reimbursements		—			(81,340	)		—
Net Expenses		275,406			1,096,825			25,939
Net Investment Income (Loss)		(170,625	)		6,180,088			99,437
Net Realized Gain (Loss) on:
Investments		(1,344,866	)		(2,006,670	)		109,092
In-kind transactions		9,247,570			—			—
Foreign currency transactions		—			(9,499	)		(53	)
Total Net Realized Gain (Loss)		7,902,704			(2,016,169	)		109,039
Change in Net Unrealized Appreciation (Depreciation) on:
Investments		(9,085,959	)		(6,416,850	)		(213,334	)
Foreign currency translations		—			55			(73	)
Total Change in Net Unrealized Depreciation		(9,085,959	)		(6,416,795	)		(213,407	)
Net Realized and Change in Unrealized Gain (Loss)		(1,183,255	)		(8,432,964	)		(104,368	)
Net Decrease in Net Assets Resulting from Operations	$	(1,353,880	)	$	(2,252,876	)	$	(4,931	)
Foreign withholding taxes	$	—		$	5,254		$	9,692

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

Statements of Changes in Net Assets

	InfraCap REIT Preferred ETF						Virtus Cumberland Municipal Bond ETF
	For the Year Ended October 31, 2018			For the Period February 7, 2017¹ Through October 31, 2017			For the Year Ended October 31, 2018			For the Period January 17, 2017¹ Through October 31, 2017
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income	$	1,107,168		$	506,827		$	308,083		$	378,358
Net realized gain (loss) on investments, written options and securities sold short		(489,779	)		10,405			72,226			223,262
Net change in unrealized appreciation (depreciation) on investments, written options and securities sold short		(1,208,236	)		82,250			(494,957	)		331,074
Net increase (decrease) in net assets resulting from operations		(590,847	)		599,482			(114,648	)		932,694
Distributions to Shareholders²		(1,137,316	)		(554,337	)		(561,410	)		(318,806	)
Distributions to Shareholders from return of capital		(218,190	)		—			—			—
Total distributions		(1,355,506	)		(554,337	)		(561,410	)		(318,806	)
Shareholder Transactions:
Proceeds from shares sold		3,805,481			20,564,198			1,299,481			24,998,500
Cost of shares redeemed		—			—			(6,275,291	)		(8,950,743	)
Net increase (decrease) in net assets resulting from shareholder transactions		3,805,481			20,564,198			(4,975,810	)		16,047,757
Increase (decrease) in net assets		1,859,128			20,609,343			(5,651,868	)		16,661,645
Net Assets:
Beginning of period/year		20,609,343			—			16,661,645			—
End of period/year²	$	22,468,471		$	20,609,343		$	11,009,777		$	16,661,645
Changes in Shares Outstanding:
Shares outstanding, beginning of period/year		800,004			—			650,004			—
Shares sold		150,000			800,004			50,000			1,000,004
Shares redeemed		—			—			(250,000	)		(350,000	)
Shares outstanding, end of period/year		950,004			800,004			450,004			650,004

Commencement of operations.

See Note 2(j).

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

Statements of Changes in Net Assets (continued)

	Virtus Glovista Emerging Markets ETF			Virtus InfraCap U.S. Preferred Stock ETF
	For the Period November 7, 2017¹ Through October 31, 2018			For the Period May 15, 2018¹ Through October 31, 2018
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income	$	437,830		$	106,736
Net realized gain (loss) on investments, written options and securities sold short		(3,285,966	)		52,990
Net change in unrealized depreciation on investments, written options and securities sold short		(1,258,775	)		(219,187	)
Net decrease in net assets resulting from operations		(4,106,911	)		(59,461	)
Distributions to Shareholders²		(51,696	)		(133,003	)
Shareholder Transactions:
Proceeds from shares sold		28,302,634			6,309,977
Cost of shares redeemed		(11,251,769	)		—
Net increase in net assets resulting from shareholder transactions		17,050,865			6,309,977
Increase in net assets		12,892,258			6,117,513
Net Assets:
Beginning of period/year		—			—
End of period/year²	$	12,892,258		$	6,117,513
Changes in Shares Outstanding:
Shares outstanding, beginning of period/year		—			—
Shares sold		1,100,004			250,004
Shares redeemed		(500,000	)		—
Shares outstanding, end of period/year		600,004			250,004

Commencement of operations.

See Note 2(j).

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

Statements of Changes in Net Assets (continued)

	Virtus LifeSci Biotech Clinical Trials ETF						Virtus LifeSci Biotech Products ETF
	For the Year Ended October 31, 2018			For the Year Ended October 31, 2017			For the Year Ended October 31, 2018			For the Year Ended October 31, 2017
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income (loss)	$	(246,528	)	$	(125,271	)	$	(170,625	)	$	68,690
Net realized gain (loss) on investments, written options and securities sold short		14,813,371			(3,329,315	)		7,902,704			1,814,779
Net change in unrealized appreciation (depreciation) on investments, written options and securities sold short		(17,174,895	)		12,951,955			(9,085,959	)		7,433,275
Net increase (decrease) in net assets resulting from operations		(2,608,052	)		9,497,369			(1,353,880	)		9,316,744
Distributions to Shareholders¹		(326,965	)		—			(68,685	)		—
Shareholder Transactions:
Proceeds from shares sold		72,952,271			14,913,738			14,861,049			15,741,453
Cost of shares redeemed		(64,249,191	)		(11,955,467	)		(23,567,951	)		(10,811,233	)
Net increase (decrease) in net assets resulting from shareholder transactions		8,703,080			2,958,271			(8,706,902	)		4,930,220
Increase (decrease) in net assets		5,768,063			12,455,640			(10,129,467	)		14,246,964
Net Assets:
Beginning of period/year		30,501,081			18,045,441			37,377,012			23,130,048
End of period/year¹	$	36,269,144		$	30,501,081		$	27,247,545		$	37,377,012
Changes in Shares Outstanding:
Shares outstanding, beginning of period/year		1,100,004			1,000,004			950,004			800,004
Shares sold		2,200,000			650,000			350,000			450,000
Shares redeemed		(1,950,000	)		(550,000	)		(550,000	)		(300,000	)
Shares outstanding, end of period/year		1,350,004			1,100,004			750,004			950,004

See Note 2(j).

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

Statements of Changes in Net Assets (continued)

	Virtus Newfleet Multi-Sector Bond ETF						Virtus WMC Global Factor Opportunities ETF
	For the Year Ended October 31, 2018			For the Year Ended October 31, 2017			For the Year Ended October 31, 2018			For the Period October 10, 2017¹ Through October 31, 2017
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income	$	6,180,088		$	7,948,778		$	99,437		$	2,084
Net realized gain (loss) on investments, written options and securities sold short		(2,016,169	)		2,853,526			109,039			(1,957	)
Net change in unrealized appreciation (depreciation) on investments, written options and securities sold short		(6,416,795	)		(734,753	)		(213,407	)		18,907
Net increase (decrease) in net assets resulting from operations		(2,252,876	)		10,067,551			(4,931	)		19,034
Distributions to Shareholders²		(9,169,422	)		(10,570,087	)		(19,408	)		—
Shareholder Transactions:
Proceeds from shares sold		10,021,681			48,492,343			—			5,000,100
Cost of shares redeemed		(68,923,686	)		(46,179,993	)		—			—
Net increase (decrease) in net assets resulting from shareholder transactions		(58,902,005	)		2,312,350			—			5,000,100
Increase (decrease) in net assets		(70,324,303	)		1,809,814			(24,339	)		5,019,134
Net Assets:
Beginning of period/year		169,283,563			167,473,749			5,019,134			—
End of period/year²	$	98,959,260		$	169,283,563		$	4,994,795		$	5,019,134
Changes in Shares Outstanding:
Shares outstanding, beginning of period/year		6,550,004			6,450,004			200,004			—
Shares sold		400,000			1,900,000			—			200,004
Shares redeemed		(2,800,000	)		(1,800,000	)		—			—
Shares outstanding, end of period/year		4,150,004			6,550,004			200,004			200,004

Commencement of operations.

See Note 2(j).

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

Statement of Cash Flows

For the period ended October 31, 2018

	Virtus InfraCap U.S. Preferred Stock ETF
Cash Flows From Operating Activities:
Net decrease in net assets from operations	$	(59,461	)
Adjustments to reconcile net decrease in net assets from operations to net cash used in operating activities:
Purchases of investment securities		(2,107,052	)
Proceeds from sales of investment securities		1,556,418
Net proceeds from purchased and written options		45,726
Net proceeds from securities sold short		1,086,954
Payments made to cover securities sold short		(1,014,958	)
Net realized gain on investments		(21,819	)
Net realized loss on securities sold shorts		825
Net realized gain on written options		(31,996	)
Net change in unrealized depreciation on investments		217,035
Net change in unrealized depreciation on securities sold short		2,010
Net change in unrealized depreciation on written options		142
Increase in dividends and interest receivable		(10,583	)
Increase in due from brokers		(150,219	)
Increase in advisory fees payable		4,550
Net cash used in operating activities		(482,428	)
Cash Flows from Financing Activities:
Proceeds from borrowings		1,878,897
Payments for fund shares sold in excess of in-kind creations		(989,817	)
Distributions paid		(133,003	)
Net cash provided by financing activities		756,077
Net increase in cash		273,649
Cash, beginning of period		—
Cash, end of period	$	273,649
Supplementary information:
Interest paid on borrowings	$	14,289
Non-cash financing activities:
In-kind creations — Issued		7,299,794
In-kind creations — Redeemed		—

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

Financial Highlights

	InfraCap REIT Preferred ETF
	For the Year Ended October 31, 2018			For the Period February 7, 2017¹ Through October 31, 2017
Per Share Data for a Share Outstanding throughout each period presented:
Net asset value, beginning of period	$	25.76		$	25.06
Investment operations:
Net investment income²		1.21			1.03
Net realized and unrealized gain (loss)		(1.85	)		0.60
Total from investment operations		(0.64	)		1.63
Less Distributions from:
Net investment income		(1.23	)		(0.93	)
Return of capital		(0.24	)		—
Total distributions		(1.47	)		(0.93	)
Net Asset Value, End of period	$	23.65		$	25.76
Net Asset Value Total Return³		(2.60	)%		6.54	%
Net assets, end of period (000’s omitted)	$	22,468		$	20,609
RATIOS/SUPPLEMENTAL DATA:
Ratios to Average Net Assets:
Expenses		0.45	%⁴		0.45	%⁵
Net investment income		4.93	%		5.48	%⁵
Portfolio turnover rate⁶		70	%		91	%⁷

Commencement of operations.

Based on average shares outstanding.

Net 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 redemption 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.

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

Annualized.

Portfolio 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.

Not annualized.

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

Financial Highlights (continued)

	Virtus Cumberland Municipal Bond ETF
	For the Year Ended October 31, 2018			For the Period January 17, 2017¹ Through October 31, 2017
Per Share Data for a Share Outstanding throughout each period presented:
Net asset value, beginning of period	$	25.63		$	25.00
Investment operations:
Net investment income²		0.54			0.41
Net realized and unrealized gain (loss)		(0.78	)		0.56
Total from investment operations		(0.24	)		0.97
Less Distributions from:
Net investment income		(0.60	)		(0.34	)
Net realized gains		(0.32	)		—
Total distributions		(0.92	)		(0.34	)
Net Asset Value, End of period	$	24.47		$	25.63
Net Asset Value Total Return³		(1.00	)%		3.92	%
Net assets, end of period (000’s omitted)	$	11,010		$	16,662
RATIOS/SUPPLEMENTAL DATA:
Ratios to Average Net Assets:
Expenses, net of expense waivers		0.59	%		0.59	%⁴
Expenses, prior to expense waivers		1.27	%		1.07	%⁴
Net investment income		2.15	%		2.05	%⁴
Portfolio turnover rate⁵		15	%		60	%⁶

Commencement of operations.

Based on average shares outstanding.

Annualized.

Portfolio 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.

Not annualized.

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

Financial Highlights (continued)

	Virtus Glovista Emerging Markets ETF
	For the Period November 7, 2017¹ Through October 31, 2018
Per Share Data for a Share Outstanding throughout the period presented:
Net asset value, beginning of period	$	24.95
Investment operations:
Net investment income²		0.53
Net realized and unrealized loss		(3.90	)
Total from investment operations		(3.37	)
Less Distributions from:
Net investment income		(0.09	)
Total distributions		(0.09	)
Net Asset Value, End of period	$	21.49
Net Asset Value Total Return³		(13.58	)%
Net assets, end of period (000’s omitted)	$	12,892
RATIOS/SUPPLEMENTAL DATA:
Ratios to Average Net Assets:
Expenses, net of expense waivers		0.65	%⁴
Expenses, prior to expense waivers		0.68	%⁴
Net investment income		2.20	%⁴
Portfolio turnover rate⁵		162	%⁶

Commencement of operations.

Based on average shares outstanding.

Annualized.

Portfolio 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.

Not annualized.

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

Financial Highlights (continued)

	Virtus InfraCap U.S. Preferred Stock ETF
	For the Period May 15, 2018¹ Through October 31, 2018
Per Share Data for a Share Outstanding throughout the period presented:
Net asset value, beginning of period	$	24.96
Investment operations:
Net investment income²		0.72
Net realized and unrealized loss		(0.45	)
Total from investment operations		0.27
Less Distributions from:
Net investment income		(0.76	)
Total distributions		(0.76	)
Net Asset Value, End of period	$	24.47
Net Asset Value Total Return³		1.02	%
Net assets, end of period (000’s omitted)	$	6,118
RATIOS/SUPPLEMENTAL DATA:
Ratios to Average Net Assets:
Expenses		2.13	%^4,5
Net investment income		6.22	%⁴
Portfolio turnover rate⁶		55	%⁷

Commencement of operations.

Based on average shares outstanding.

Annualized.

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

Portfolio 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.

Not annualized.

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

Financial Highlights (continued)

	Virtus LifeSci Biotech Clinical Trials ETF
	For the Year Ended October 31, 2018			For the Year Ended October 31, 2017			For the Year Ended October 31, 2016			For the Period December 16, 2014¹ Through October 31, 2015
Per Share Data for a Share Outstanding throughout each period presented:
Net asset value, beginning of period	$	27.73		$	18.05		$	27.37		$	25.00
Investment operations:
Net investment loss²		(0.15	)		(0.12	)		(0.14	)		(0.24	)
Net realized and unrealized gain (loss)		(0.41	)		9.80			(9.03	)		2.61	³
Total from investment operations		(0.56	)		9.68			(9.17	)		2.37
Less Distributions from:
Net investment income		(0.30	)		—			—			—
Net realized gains		—			—			(0.15	)		—
Total distributions		(0.30	)		—			(0.15	)		—
Net Asset Value, End of period	$	26.87		$	27.73		$	18.05		$	27.37
Net Asset Value Total Return⁴		(2.05	)%		53.66	%		(33.73	)%		9.46	%
Net assets, end of period (000’s omitted)	$	36,269		$	30,501		$	18,045		$	23,261
RATIOS/SUPPLEMENTAL DATA:
Ratios to Average Net Assets:
Expenses		0.79	%⁵		0.83	%		0.85	%⁵		0.85	%^6,7
Net investment loss		(0.45	)%		(0.53	)%		(0.67	)%		(0.85	)%⁶
Portfolio turnover rate⁸		65	%		45	%		54	%		76	%⁹

Commencement of operations.

Based on average shares outstanding.

The per share amount of realized and unrealized gain (loss) on investments does not accord with the amounts reported in the Statements of Changes in Net Assets due to the timing of creation of Fund shares in relation to fluctuating market values.

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

Annualized.

The ratio of expenses to average net assets includes interest expense fees of less than 0.01%.

Portfolio 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.

Not annualized.

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

Financial Highlights (continued)

	Virtus LifeSci Biotech Products ETF
	For the Year Ended October 31, 2018			For the Year Ended October 31, 2017			For the Year Ended October 31, 2016			For the Period December 16, 2014¹ Through October 31, 2015
Per Share Data for a Share Outstanding throughout each period presented:
Net asset value, beginning of period	$	39.34		$	28.91		$	30.50		$	25.00
Investment operations:
Net investment income (loss)²		(0.21	)		0.07			(0.12	)		(0.17	)
Net realized and unrealized gain (loss)		(2.73	)		10.36			(1.07	)		5.67	³
Total from investment operations		(2.94	)		10.43			(1.19	)		5.50
Less Distributions from:
Net investment income		(0.07	)		—			—			—
Net realized gains		—			—			(0.40	)		—
Total distributions		(0.07	)		—			(0.40	)		—
Net Asset Value, End of period	$	36.33		$	39.34		$	28.91		$	30.50
Net Asset Value Total Return⁴		(7.49	)%		36.08	%		(3.97	)%		21.99	%
Net assets, end of period (000’s omitted)	$	27,248		$	37,377		$	23,130		$	22,874
RATIOS/SUPPLEMENTAL DATA:
Ratios to Average Net Assets:
Expenses		0.79	%⁵		0.84	%		0.85	%⁵		0.86	%^6,7
Net investment income (loss)		(0.49	)%		0.19	%		(0.43	)%		(0.58	)%⁶
Portfolio turnover rate⁸		32	%		34	%		35	%		45	%⁹

Commencement of operations.

Based on average shares outstanding.

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

Annualized.

The ratio of expenses to average net assets includes interest expense fees of less than 0.01%.

Portfolio 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.

Not annualized.

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

Financial Highlights (continued)

	Virtus Newfleet Multi-Sector Bond ETF
	For the Year Ended October 31, 2018			For the Year Ended October 31, 2017			For the Year Ended October 31, 2016			For the Period August 10, 2015¹ Through October 31, 2015
Per Share Data for a Share Outstanding throughout each period presented:
Net asset value, beginning of period	$	25.84		$	25.96		$	25.09		$	25.00
Investment operations:
Net investment income²		1.12			1.09			0.95			0.05
Net realized and unrealized gain (loss)		(1.51	)		0.22			0.85			0.07
Total from investment operations		(0.39	)		1.31			1.80			0.12
Less Distributions from:
Net investment income		(1.15	)		(1.10	)		(0.93	)		(0.03	)
Net realized gains		(0.45	)		(0.33	)		—			—
Total distributions		(1.60	)		(1.43	)		(0.93	)		(0.03	)
Net Asset Value, End of period	$	23.85		$	25.84		$	25.96		$	25.09
Net Asset Value Total Return³		(1.62	)%		5.26	%		7.37	%		0.47	%
Net assets, end of period (000’s omitted)	$	98,959		$	169,284		$	167,474		$	153,035
RATIOS/SUPPLEMENTAL DATA:
Ratios to Average Net Assets:
Expenses, net of expense waivers		0.80	%		0.80	%		0.80	%⁴		0.80	%⁵
Expenses, prior to expense waivers		0.86	%		0.84	%		0.91	%⁴		0.99	%⁵
Net investment income		4.51	%		4.26	%		3.75	%		0.88	%⁵
Portfolio turnover rate⁶		82	%		113	%		100	%		20	%⁷

Commencement of operations.

Based on average shares outstanding.

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

Annualized.

Portfolio 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.

Not annualized.

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

Financial Highlights (continued)

	Virtus WMC Global Factor Opportunities ETF
	For the Year Ended October 31, 2018			For the Period October 10, 2017¹ Through October 31, 2017
Per Share Data for a Share Outstanding throughout each period presented:
Net asset value, beginning of period	$	25.10		$	25.00
Investment operations:
Net investment income²		0.50			0.01
Net realized and unrealized gain (loss)		(0.53	)		0.09
Total from investment operations		(0.03	)		0.10
Less Distributions from:
Net investment income		(0.10	)		—
Total distributions		(0.10	)		—
Net Asset Value, End of period	$	24.97		$	25.10
Net Asset Value Total Return³		(0.11	)%		0.38	%
Net assets, end of period (000’s omitted)	$	4,995		$	5,019
RATIOS/SUPPLEMENTAL DATA:
Ratios to Average Net Assets:
Expenses		0.49	%⁴		0.49	%⁵
Net investment income		1.88	%		0.76	%⁵
Portfolio turnover rate⁶		80	%		23	%⁷

Commencement of operations.

Based on average shares outstanding.

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

Annualized.

Portfolio 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.

Not annualized.

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

Notes to Financial Statements

October 31, 2018

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”). InfraCap REIT Preferred ETF, Virtus Cumberland Municipal Bond ETF, Virtus Glovista Emerging Markets 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, and Virtus WMC Global Factor Opportunities ETF (each, a “Fund”, and collectively, the “Funds”), each a separate investment portfolio of the Trust, are presented herein. The offering of shares of each Fund is registered under the Securities Act of 1933 (the “Securities Act”).

Funds				Commencement of Operations
InfraCap REIT Preferred ETF				February 7, 2017
Virtus Cumberland Municipal Bond ETF				January 17, 2017
Virtus Glovista Emerging Markets ETF				November 7, 2017
Virtus InfraCap U.S. Preferred Stock ETF				May 15, 2018
Virtus LifeSci Biotech Clinical Trials ETF				December 16, 2014
Virtus LifeSci Biotech Products ETF				December 16, 2014
Virtus Newfleet Multi-Sector Bond ETF				August 10, 2015
Virtus WMC Global Factor Opportunities ETF				October 10, 2017

InfraCap REIT Preferred ETF and Virtus Cumberland Municipal Bond ETF, Virtus Glovista Emerging Markets ETF and Virtus InfraCap U.S. Preferred Stock ETF are “non-diversified” Funds, as defined under the 1940 Act, as of the fiscal year ended October 31, 2018.

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.

The Virtus Cumberland Municipal Bond ETF seeks to provide a competitive level of current income exempt from federal income tax, while preserving capital.

The Virtus Glovista Emerging Markets ETF seeks investment results that correspond, before fees and expenses, to the price and yield performance of the Solactive Most Favored Nations Emerging Market Index.

Virtus InfraCap U.S. Preferred Stock ETF seeks current income and, secondarily, capital appreciation.

The Virtus LifeSci Biotech Clinical Trials ETF and Virtus LifeSci Biotech Products ETF seek investment results that correspond, before fees and expenses, to the price and yield performance of the LifeSci Biotechnology Clinical Trials Index and LifeSci Biotechnology Products Index, respectively.

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

The Virtus WMC Global Factor Opportunities ETF seeks capital appreciation.

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.

Notes to Financial Statements (continued)

October 31, 2018

(c) Organization and Offering Costs

During the period, Virtus ETF Advisers LLC, the Funds’ investment adviser (the “Adviser”), has assumed organization costs for the Trust relating to the organization of the Virtus Cumberland Municipal Bond ETF. Offering costs, consisting primarily of legal fees related to preparing the initial registration statement, were deferred and amortized over a 12 month period beginning with the commencement of operations of the Fund.

(d) Security Valuation

Equity securities and Exchange-Traded Funds are valued based on their last sale price. Price information on listed securities is taken from the exchange where the security is 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”) or NASDAQ, at the NYSE or NASDAQ Official Closing Price. Such valuations are typically categorized as Level 1 in the fair value hierarchy described below.

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 described below.

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. Such valuations are typically categorized as Level 2 in the fair value hierarchy described below. 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.

Investments in other open-end investment companies are valued based on their net asset value each business day and are typically categorized as Level 1 in the fair value hierarchy described below.

(e) 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. 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, 2018, is disclosed at the end of each Fund’s Schedule of Investments.

(f) Security Transactions

Security transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using specific identification.

(g) 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, 2018

(h) Investment Income and Expenses

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.

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.

(i) Short Sales

The Virtus InfraCap U.S. Preferred Stock ETF 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.

(j) 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.

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.

Effective with the current reporting period, it is no longer required to present certain line items on the Statements of Changes in Net Assets. Such disclosure changes were not permitted retrospectively, therefore prior period amounts are presented below. For the year ended October 31, 2017, distributions to shareholders were as follows:

Distributions from net investment income:

InfraCap REIT Preferred ETF	(554,337	)
Virtus Cumberland Municipal Bond ETF	(318,806	)
Virtus Newfleet Multi-Sector Bond ETF	(7,931,960	)

Distributions from net realized gains:

Virtus Newfleet Multi-Sector Bond ETF

(2,638,127

)

For the year ended October 31, 2017, undistributed net investment income/(distributions in excess of net investment income) included in net assets were as follows:

InfraCap REIT Preferred ETF	(3,540	)
Virtus Cumberland Municipal Bond ETF	59,552
Virtus LifeSci Biotech Clinical Trials ETF	(220,290	)
Virtus Newfleet Multi-Sector Bond ETF	274,666
Virtus WMC Global Factor Opportunities ETF	1,869

Notes to Financial Statements (continued)

October 31, 2018

(k) 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.

(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.

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, 2018, the following Funds had securities on loan:

Funds	Market Value		Cash Collateral		Non Cash Collateral^(a)
Virtus LifeSci Biotech Clinical Trials ETF	$	10,360,445	$	3,750,281	$	6,691,803
Virtus LifeSci Biotech Products ETF		7,867,787		3,038,226		5,094,840

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.

Funds not listed in table above did not have any securities on loan at October 31, 2018.

Notes to Financial Statements (continued)

October 31, 2018

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, 2018

	Overnight and		Between
	Continuous		<30 Days		30 & 90 Days		>90 Days		Total
Virtus LifeSci Biotech Clinical Trials ETF
Securities Lending Transactions
Common Stocks	$	10,442,084	$	—	$	—	$	—	$10,442,084
Gross amount of recognized liabilities for securities lending transactions:		$10,442,084
Virtus LifeSci Biotech Products ETF
Securities Lending Transactions
Common Stocks	$	8,133,066	$	—	$	—	$	—	$8,133,066
Gross amount of recognized liabilities for securities lending transactions:		$8,133,066

3. INVESTMENT MANAGEMENT RELATED PARTIES AND OTHER AGREEMENTS

Investment Advisory Agreements

The Trust has entered into Investment Advisory Agreements (collectively, “Advisory Agreement”) with the Adviser, a wholly owned subsidiary of ETFis Holdings LLC, on behalf of each Fund. ETFis Holdings LLC is majority-owned by 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 pays all of the ordinary operating expenses of the Virtus Glovista Emerging Markets ETF, Virtus LifeSci Biotech Clinical Trials ETF, Virtus LifeSci Biotech Products ETF and Virtus WMC Global Factor Opportunities 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:

Funds		Rate
InfraCap REIT Preferred ETF		0.45%, subject to a minimum annual fee of $25,000 per year
Virtus Cumberland Municipal Bond ETF		0.245%
Virtus Glovista Emerging Markets ETF		0.68%
Virtus InfraCap U.S. Preferred Stock ETF		0.80%
Virtus LifeSci Biotech Products ETF		0.79%
Virtus LifeSci Biotech Clinical Trials ETF		0.79%
Virtus Newfleet Multi-Sector Bond ETF		0.70%
Virtus WMC Global Factor Opportunities 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.

Fee Waiver Agreement

The Adviser has contractually agreed to waive a portion of the Virtus Glovista Emerging Markets ETF’s management fee equal to 0.03% of the Fund’s average daily net assets, which will have the effect of reducing acquired fund fees and expenses (the “Fee Waiver Agreement”). Unless the Adviser continues the Fee Waiver Agreement, it will terminate on February 28, 2019.

Expense Limitation Agreement

The Adviser has contractually agreed to reduce its fees and reimburse expenses in order to keep net 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,

Notes to Financial Statements (continued)

October 31, 2018

if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act) from exceeding a specified amount. The expense cap in effect for the Funds during the year ended October 31, 2018 are as follows:

Funds	Expense Limit			Expense Limit Effective Through
Virtus Cumberland Municipal Bond ETF		0.59	%	February 28, 2019
Virtus Newfleet Multi-Sector Bond ETF		0.80	%	February 28, 2019

Funds not listed in the table above do not have an expense limitation agreement.

The expense limitation agreement with respect to a Fund will be terminated upon termination of the Advisory Agreement between the Adviser and the Fund. In addition, while the Adviser or the Fund may discontinue the expense limitation agreement after the contractual period, it may only be terminated during its term with the approval of the Fund’s Board of Trustees.

Under certain conditions, the Adviser may recapture operating expenses reimbursed within three years after the date on which such waiver or reimbursement occurred. The Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with any applicable expense limitation, or if none, the expense limitation in effect at the time of the waiver or reimbursement. All or a portion of the following Adviser reimbursed expenses may be recaptured during the fiscal years indicated:

Funds	2019		2020		2021
Virtus Cumberland Municipal Bond ETF	$	—	$	88,591	$	97,593
Virtus Glovista Emerging Markets ETF		—		—		5,983
Virtus Newfleet Multi-Sector Bond ETF		183,990		83,625		81,340

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 Sub-Adviser and the Adviser, the sub-advisory fee is based on a Fund’s average daily net assets as specified below. The Adviser has delegated to the InfraCap U.S. Preferred Stock ETF and InfraCap REIT Preferred 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.

Funds	Sub-Advisers	Sub-Advisory Fees
InfraCap REIT Preferred ETF.	Infrastructure Capital Advisors, LLC	0.375%*
Virtus Cumberland Municipal Bond ETF	Cumberland Advisors Inc.	0.245%
Virtus Glovista Emerging Markets ETF	Glovista Investments LLC	60% of the Net Advisory Fee*+
Virtus InfraCap U.S. Preferred Stock ETF	Infrastructure Capital Advisors, LLC	0.66%*
Virtus Newfleet Multi-Sector Bond ETF	Newfleet Asset Management, LLC¹	50% of the Net Advisory Fee*++
Virtus WMC Global Factor Opportunities ETF	Wellington Management Company LLP	0.21%*

An indirect wholly owned subsidiary of Virtus.

InfraCap REIT Preferred ETF, Virtus Glovista Emerging Markets ETF, Virtus InfraCap U.S. Preferred Stock ETF, Virtus Newfleet Multi-Sector Bond ETF, and Virtus WMC Global Factor Opportunities ETF’s sub-advisory fees are paid for by the Adviser, not the Funds.

Net advisory fee: The advisory fee paid by the Fund to the Adviser for investment advisory services under the Adviser’s investment advisory agreement with the Fund, after deducting the payment of all of the ordinary operating expenses of the Fund under the Adviser’s unified fee arrangement. In the event that the Adviser waives all or a portion of its fee pursuant to an applicable waiver agreement, then the Sub-Adviser will waive its fee in the same proportion as the Adviser.

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, ETF 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 a wholly owned subsidiary of Virtus.

Notes to Financial Statements (continued)

October 31, 2018

Distribution and Service (12b-1 Plan)

The Board of Trustees has adopted a distribution and service plan, under which InfraCap REIT Preferred ETF, Virtus Glovista Emerging Markets ETF, Virtus InfraCap U.S. Preferred Stock ETF, Virtus LifeSci Biotech Clinical Trials ETF, Virtus LifeSci Biotech Products ETF and Virtus WMC Global Factor Opportunities 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 a 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, 2018, the Sub-Adviser held shares of certain Funds which may be redeemed at any time that aggregated to the following:

	Shares		% of shares outstanding
InfraCap REIT Preferred ETF		160,939		16.9	%
Virtus InfraCap U.S. Preferred Stock ETF		112,784		45.1	%

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 (2015, 2016 and 2017), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of October 31, 2018, the Funds did not have a liability for any unrecognized tax benefits. 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.

Notes to Financial Statements (continued)

October 31, 2018

The Funds recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. For the year ended October 31, 2018, the Funds had no accrued penalties or interest.

The adjusted cost basis of investments and gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:

Funds	Federal Tax Cost Of Investments		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
InfraCap REIT Preferred ETF	$	23,251,928	$	60,259	$	(1,225,866	)	$(1,165,607)
Virtus Cumberland Municipal Bond ETF		10,945,168		8,974		(172,857	)	(163,883)
Virtus Glovista Emerging Markets ETF		14,450,215		367,524		(2,362,880	)	(1,995,356)
Virtus InfraCap U.S. Preferred Stock ETF		7,872,539		27,009		(244,564	)	(217,555)
Virtus LifeSci Biotech Clinical Trials ETF		54,055,249		1,979,488		(17,053,831	)	(15,074,343)
Virtus LifeSci Biotech Products ETF		36,404,662		2,616,305		(9,154,125	)	(6,537,820)
Virtus Newfleet Multi-Sector Bond ETF		98,798,857		601,337		(3,659,964	)	(3,058,627)
Virtus WMC Global Factor Opportunities ETF		5,164,844		231,235		(425,750	)	(194,515)

The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales and undistributed short-term capital gains treated as ordinary income for tax purposes. At October 31, 2018, the components of accumulated earnings/loss on a tax-basis were as follows:

Funds	Undistributed Ordinary Income		Accumulated Capital and Other Gain (Loss)			Net Unrealized Appreciation (Depreciation)			Total Accumulated Earnings (Loss)
InfraCap REIT Preferred ETF	$	—	$	(507,902	)	$	(1,165,607	)	$(1,673,509)
Virtus Cumberland Municipal Bond ETF		76,312		25,401			(163,883	)	(62,170)
Virtus Glovista Emerging Markets ETF		400,837		(2,265,845	)		(2,000,567	)	(3,865,575)
Virtus InfraCap U.S. Preferred Stock ETF		27,243		—			(219,707	)	(192,464)
Virtus LifeSci Biotech Clinical Trials ETF		—		(17,018,305	)		(15,074,343	)	(32,092,648)
Virtus LifeSci Biotech Products ETF		—		(4,125,908	)		(6,537,820	)	(10,663,728)
Virtus Newfleet Multi-Sector Bond ETF		94,880		(1,984,867	)		(3,060,529	)	(4,950,516)
Virtus WMC Global Factor Opportunities ETF		141,261		48,016			(194,582	)	(5,305)

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 Fund’s next taxable year. During the fiscal year ended October 31, 2018, the following Funds incurred and elected to defer Late Year Ordinary Losses as follows:

Virtus LifeSci Biotech Clinical Trials ETF					213,799
Virtus LifeSci Biotech Products ETF					146,172

The tax character of distributions paid by the following Funds during the periods ended October 31, 2018 and October 31, 2017 were as follows:

	2018								2017
	Distributions Paid From Ordinary Income		Return of Capital		Tax Exempt Income		Distributions Paid From Long-Term Capital Gains		Distributions Paid From Ordinary Income		Tax Exempt Income		Distributions Paid From Long-Term Capital Gains
InfraCap REIT Preferred ETF	$	1,137,316	$	218,190	$	—	$	—	$	518,041	$	—	$	36,296
Virtus Cumberland Municipal Bond ETF		224,207		—		337,203		—		—		318,806		—
Virtus Glovista Emerging Markets ETF		51,696		—		—		—		—		—		—
Virtus InfraCap U.S. Preferred Stock ETF		125,816		—		—		7,187		—		—		—
Virtus LifeSci Biotech Clinical Trials ETF		326,965		—		—		—		—		—		—
Virtus LifeSci Biotech Products ETF		68,685		—		—		—		—		—		—
Virtus Newfleet Multi-Sector Bond ETF		7,305,641		—		—		1,863,781		10,383,963		—		186,124
Virtus WMC Global Factor Opportunities ETF		19,408		—		—		—		—		—		—

Notes to Financial Statements (continued)

October 31, 2018

At October 31, 2018, 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 No Expiration		Long-Term No Expiration		Total
InfraCap REIT Preferred ETF	$	507,902	$	—	$	507,902
Virtus Glovista Emerging Markets ETF		2,256,112		9,733		2,265,845
Virtus LifeSci Biotech Clinical Trials ETF		9,151,704		7,652,802		16,804,506
Virtus LifeSci Biotech Products ETF		2,964,974		1,014,762		3,979,736
Virtus Newfleet Multi-Sector Bond ETF		1,170,437		814,430		1,984,867

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, 2018, the effect of permanent book/tax reclassifications resulted in increases (decreases) to the components of net assets of the following Funds as follows:

Funds	Distributable Earnings (Accumulated Deficit)			Paid-In-Capital
InfraCap REIT Preferred ETF	$	3,044		$	(3,044	)
Virtus Glovista Emerging Markets ETF		293,032			(293,032	)
Virtus LifeSci Biotech Clinical Trials ETF		(17,588,345	)		17,588,345
Virtus LifeSci Biotech Products ETF		(8,298,200	)		8,298,200
Virtus Newfleet Multi-Sector Bond ETF		(740	)		740

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, 2018 were as follows:

Funds	Purchases		Sales		Subscriptions In-Kind		Redemptions In-Kind
InfraCap REIT Preferred ETF	$	15,486,566	$	15,714,161	$	3,805,589	$ —
Virtus Cumberland Municipal Bond ETF		2,089,451		6,709,008		—	—
Virtus Glovista Emerging Markets ETF		38,678,412		31,613,293		17,577,541	7,646,308
Virtus InfraCap U.S. Preferred Stock ETF		3,122,011		2,633,710		7,299,794	—
Virtus LifeSci Biotech Clinical Trials ETF		33,416,824		33,796,750		72,955,325	65,320,409
Virtus LifeSci Biotech Products ETF		10,863,166		10,998,005		14,861,234	23,891,248
Virtus Newfleet Multi-Sector Bond ETF		109,424,940		170,909,197		—	—
Virtus WMC Global Factor Opportunities ETF		4,267,642		4,178,495		—	—

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.

Notes to Financial Statements (continued)

October 31, 2018

The Virtus InfraCap U.S. Preferred Stock 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, 2018, are:

Assets				Equity Risk
Investments*				$640

Liabilities				Equity Risk
Written options, at value				$10,365

Purchased option contracts are included in Investments on the Statement of Assets and Liabilities.

Transactions in derivative instruments reflected on the Statement of Operations during the period were as follows:

Net Realized Gain (Loss) on:				Equity Risk
Investments*				$ (1,865)
Written options				31,996

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

Change in Net Unrealized Appreciation (Depreciation) on:				Equity Risk
Investments**				$(989)
Written options				(142)

Purchased option contracts are included in Change in Net Unrealized Appreciation (Depreciation) on Investments in the Statement of Operations.

For the period ended October 31, 2018, the monthly average market value of the purchased options and written options contracts held by the Fund were $210 and $(8,617), respectively.

8. BORROWINGS

The Virtus InfraCap U.S. Preferred Stock ETF entered into a Lending Agreement (the “Agreement”) with a commercial bank (the “Bank”) that allows the Fund to borrow cash from the Bank. Borrowings under the Agreement are collateralized by investments of the Fund. If the Fund defaults with respect to any of its obligations under the Agreement, the Bank 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 3 Month LIBOR (London Interbank Offered Rate) plus an additional percentage rate on the amount borrowed. The Agreement has an on-demand commitment term. For the period ended October 31, 2018, the average daily borrowings under the Agreement and the daily average interest rate were $971,723 and 3.56%, respectively.

At October 31, 2018, the amount of such outstanding borrowings was as follows:

Outstanding Borrowings				Interest Rate
$1,878,897				3.76%

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.

Notes to Financial Statements (continued)

October 31, 2018

10. 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.

11. CASH CONCENTRATION RISK

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

12. 10% SHAREHOLDERS

As of October 31, 2018, 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 each such Fund as detailed below:

Funds	% of Shares Outstanding			Number of Accounts
InfraCap REIT Preferred ETF		57	%		3
Virtus Cumberland Municipal Bond ETF		75	%		1
Virtus Glovista Emerging Markets ETF		87	%		5
Virtus InfraCap U.S. Preferred Stock ETF		89	%		5
Virtus LifeSci Biotech Clinical Trials ETF		45	%		2
Virtus LifeSci Biotech Products ETF		59	%		4
Virtus Newfleet Multi-Sector Bond ETF		81	%		1
Virtus WMC Global Factor Opportunities ETF		96	%		2

13. NEW ACCOUNTING PRONOUNCEMENT

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”), ASU No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for the timing of transfers between levels and the valuation process for Level 3 fair value measurements. For public companies, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Management has evaluated the implications of certain provisions of ASU No. 2018-13 and has determined to early adopt all aspects related to the removal and modification of certain fair value measurement disclosures under the ASU effective immediately.

In August 2018, the SEC adopted amendments to Regulation S-X which are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the information provided to investors. The amendments include eliminating the requirement to: separately state book basis components of net assets on the Statement of Assets & Liabilities; separately state the sources of distributions paid (except tax return of capital distributions must still be separately disclosed) on the Statement of Changes in Net Assets; and state the book basis amount of undistributed net investment income on the Statement of Changes in Net Assets. The compliance date for the amendments to Regulation S-X is for filings made with the SEC after November 5, 2018. The adoption has not had an effect on the Funds’ net assets or results of operations.

On November 17, 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This update intends to reduce diversity in the presentation of restricted cash and restricted cash equivalents in the statement. Any restricted cash and restricted cash equivalents will be included as components of cash and cash equivalents as presented on the statement of cash flows. For the Trust, the effective date of this update is for periods beginning after December 15, 2017. At this time, management is evaluating the implications of this ASU and believes it will not have a material impact on the financial statements.

14. SUBSEQUENT EVENTS

The Funds are required to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed as of the date of the Statements of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Funds are required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. 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, 2018

Security Description	Shares		Value
Common Stocks—143.8%⁽¹⁾

Energy—143.8%
Andeavor Logistics LP		698,409	$	27,978,265
Antero Midstream Partners LP⁽²⁾		203,334		6,130,520
BP Midstream Partners LP		1,494,643		27,277,235
BP PLC (United Kingdom)⁽²⁾⁽³⁾		120,964		5,246,209
Buckeye Partners LP⁽²⁾		80,293		2,634,413
Crestwood Equity Partners LP		154,344		5,202,936
DCP Midstream LP		33,495		1,205,485
Dominion Energy Midstream Partners LP		69,766		1,264,160
Enable Midstream Partners LP		100,430		1,483,351
Enbridge Energy Partners LP		2,142,827		22,628,253
Enbridge, Inc. (Canada)		608		18,915
Energy Transfer LP⁽²⁾		4,893,987		76,052,558
EnLink Midstream LLC⁽²⁾		42,210		548,730
EnLink Midstream Partners LP⁽²⁾		2,315,336		35,100,494
Enterprise Products Partners LP		2,156,859		57,846,958
EQGP Holdings LP		191,114		3,000,490
EQM Midstream Partners LP		1,631,083		74,883,020
Genesis Energy LP⁽²⁾		696,869		15,407,774
Holly Energy Partners LP		12,693		369,620
HollyFrontier Corp.⁽²⁾		57,028		3,845,968
Kinder Morgan, Inc.⁽²⁾		266,691		4,539,081
Magellan Midstream Partners LP		642,656		39,639,022
Marathon Petroleum Corp.⁽²⁾		813,896		57,338,955
MPLX LP		2,094,262		70,388,146
NGL Energy Partners LP		965,007		9,128,966
Noble Midstream Partners LP		639,877		21,845,401
NuStar Energy LP		328,341		7,778,398
ONEOK, Inc.⁽²⁾		255,193		16,740,661
Phillips 66⁽²⁾		409,541		42,109,006
Phillips 66 Partners LP		475,016		23,233,033
Plains All American Pipeline LP⁽²⁾		1,399,360		30,464,067
Royal Dutch Shell PLC Class A (Netherlands)⁽²⁾⁽³⁾		95,713		6,048,104
Shell Midstream Partners LP		136,318		2,786,340
Spectra Energy Partners LP		115,811		3,995,479
Tallgrass Energy LP		235,978		5,134,881
Targa Resources Corp.		1,154		59,627
Valero Energy Partners LP		86,070		3,613,219
Western Gas Equity Partners LP		218,817		6,293,177
Western Gas Partners LP		514,775		20,364,499
Williams Cos., Inc. (The)⁽²⁾		1,393,669		33,907,967

Total Common Stocks
(Cost $872,840,454)				773,533,383

Exchange Traded Funds — 3.1%⁽¹⁾

Debt Fund — 3.1%
iShares 20+ Year Treasury Bond ETF⁽²⁾		147,957		16,804,956

Commodity Fund — 0.0%⁽⁴⁾
United States Oil Fund LP*		9,166		126,399

Total Exchange Traded Funds
(Cost $17,629,726)				16,931,355

Exchange Traded Note — 0.9%⁽¹⁾

Equity Fund — 0.9%
JPMorgan Alerian MLP Index ETN⁽²⁾		184,207		4,603,333
Total Exchange Traded Note
(Cost $5,098,333)				4,603,333

Security Description	Notional Amount		Number of contracts		Value
Purchased Options — 0.8%

Purchased Put Options
SPDR S&P 500 ETF Trust,
Expires 11/16/18,
Strike Price $262.50		500,000		5,000	$	1,095,000
SPDR S&P 500 ETF Trust,
Expires 12/21/18,
Strike Price $260.00		500,000		5,000		2,125,000

Purchased Call Options
Enterprise Products Partners LP,
Expires 11/16/18,
Strike Price $29.00		110,000		1,100		1,100
iShares 20+ Year Treasury Bond ETF,
Expires 11/16/18,
Strike Price $127.00		30,000		300		300
iShares 20+ Year Treasury Bond ETF,
Expires 11/16/18,
Strike Price $130.00		217,600		2,176		0
iShares 20+ Year Treasury Bond ETF,
Expires 12/21/18,
Strike Price $130.00		241,700		2,417		9,668
SPDR S&P 500 ETF Trust,
Expires 12/21/18,
Strike Price $309.00		50,000		500		2,250
SPDR S&P 500 ETF Trust,
Expires 12/21/18,
Strike Price $310.00		50,000		500		3,000
United States Natural Gas Fund LP,
Expires 01/18/19,
Strike Price $28.00		458,600		4,586		825,480
United States Natural Gas Fund LP,
Expires 01/18/19,
Strike Price $29.00		210,000		2,100		311,850

TOTAL PURCHASED OPTIONS
(Cost $7,407,930)						4,373,648

TOTAL INVESTMENTS — 148.6%
(Cost $902,976,443)						799,441,719

	Shares
Securities Sold Short — (6.6)%

Exchange Traded Funds — (6.6)%

Commodity Fund — (6.6)%
United States Natural Gas Fund LP*		(1,339,297	)		(35,759,230	)

Total Exchange Traded Funds
(Proceeds $(31,597,328))					(35,759,230	)

Total Securities Sold Short — (6.6)%
(Proceeds $(31,597,328))					(35,759,230	)
Liabilities in Excess of Other Assets — (42.0)%					(225,861,037	)

Net Assets — 100.0%				$	537,821,452

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

Schedule of Investments — InfraCap MLP ETF (continued)

October 31, 2018

Security Description	Notional Amount			Number of contracts			Value
Written Options — (1.1)%

Written Calls Option
Antero Midstream Partners LP,
Expires 12/21/18,
Strike Price $35.00		(272,600	)		(2,726	)	$	(81,780	)
BP PLC,
Expires 11/16/18,
Strike Price $46.00		(40,000	)		(400	)		(4,000	)
Buckeye Partners LP,
Expires 11/16/18,
Strike Price $40.00		(20,000	)		(200	)		(1,000	)
Energy Transfer LP,
Expires 11/02/18,
Strike Price $18.00		(1,000	)		(10	)		0
Energy Transfer LP,
Expires 11/09/18,
Strike Price $18.00		(11,000	)		(110	)		(110	)
Energy Transfer LP,
Expires 11/16/18,
Strike Price $18.00		(90,000	)		(900	)		(1,800	)
Energy Transfer LP,
Expires 11/23/18,
Strike Price $18.00		(210,000	)		(2,100	)		(8,400	)
Energy Transfer LP,
Expires 11/30/18,
Strike Price $18.00		(80,000	)		(800	)		(3,600	)
Energy Transfer LP,
Expires 12/21/18,
Strike Price $18.00		(350,000	)		(3,500	)		(42,000	)
Energy Transfer LP,
Expires 01/18/19,
Strike Price $18.00		(101,000	)		(1,010	)		(21,210	)
EnLink Midstream LLC,
Expires 12/21/18,
Strike Price $17.50		(2,000	)		(20	)		(160	)
EnLink Midstream LLC,
Expires 03/15/19,
Strike Price $17.50		(1,000	)		(10	)		(200	)
EnLink Midstream Partners LP,
Expires 11/16/18,
Strike Price $16.00		(20,000	)		(200	)		(5,500	)
EnLink Midstream Partners LP,
Expires 11/16/18,
Strike Price $17.00		(200,000	)		(2,000	)		(20,000	)
EnLink Midstream Partners LP,
Expires 11/16/18,
Strike Price $19.00		(101,000	)		(1,010	)		(2,020	)
EnLink Midstream Partners LP,
Expires 12/21/18,
Strike Price $19.00		(30,000	)		(300	)		(2,700	)
Genesis Energy LP,
Expires 12/21/18,
Strike Price $25.00		(220,000	)		(2,200	)		(44,000	)
Genesis Energy LP,
Expires 12/21/18,
Strike Price $27.50		(10,000	)		(100	)		(500	)
HollyFrontier Corp,
Expires 11/16/18,
Strike Price $73.00		(60,000	)		(600	)		(60,000	)

Security Description	Notional Amount			Number of contracts			Value
Written Options (continued)

Written Calls Option (continued)
iShares 20+ Year Treasury Bond ETF,
Expires 11/02/18,
Strike Price $120.00		(10,000	)		(100	)	$	0
iShares 20+ Year Treasury Bond ETF,
Expires 11/09/18,
Strike Price $119.00		(100,000	)		(1,000	)		(2,000	)
iShares 20+ Year Treasury Bond ETF,
Expires 11/16/18,
Strike Price $117.00		(110,000	)		(1,100	)		(15,400	)
iShares 20+ Year Treasury Bond ETF,
Expires 11/16/18,
Strike Price $118.00		(30,000	)		(300	)		(2,400	)
iShares 20+ Year Treasury Bond ETF,
Expires 11/16/18,
Strike Price $119.00		(10,000	)		(100	)		(500	)
iShares 20+ Year Treasury Bond ETF,
Expires 11/23/18,
Strike Price $119.00		(120,000	)		(1,200	)		(8,400	)
iShares 20+ Year Treasury Bond ETF,
Expires 11/30/18,
Strike Price $119.00		(110,000	)		(1,100	)		(11,000	)
iShares 20+ Year Treasury Bond ETF,
Expires 12/07/18,
Strike Price $119.00		(121,000	)		(1,210	)		(22,990	)
iShares 20+ Year Treasury Bond ETF,
Expires 12/21/18,
Strike Price $119.00		(110,000	)		(1,100	)		(24,200	)
iShares 20+ Year Treasury Bond ETF,
Expires 12/21/18,
Strike Price $120.00		(120,000	)		(1,200	)		(20,400	)
JPMorgan Alerian MLP Index ETN,
Expires 11/02/18,
Strike Price $28.00		(220,000	)		(2,200	)		(1	)
JPMorgan Alerian MLP Index ETN,
Expires 11/02/18,
Strike Price $28.50		(100,000	)		(1,000	)		0
Kinder Morgan Inc,
Expires 11/09/18,
Strike Price $18.50		(201,000	)		(2,010	)		(6,030	)
Kinder Morgan Inc,
Expires 11/23/18,
Strike Price $18.50		(60,000	)		(600	)		(3,000	)
Marathon Petroleum Corp,
Expires 11/02/18,
Strike Price $89.50		(80,000	)		(800	)		0
Marathon Petroleum Corp,
Expires 11/09/18,
Strike Price $88.00		(141,000	)		(1,410	)		0
Marathon Petroleum Corp,
Expires 11/16/18,
Strike Price $80.00		(111,000	)		(1,110	)		(33,300	)
ONEOK Inc,
Expires 11/30/18,
Strike Price $67.00		(150,000	)		(1,500	)		(142,500	)
Phillips 66,
Expires 11/02/18,
Strike Price $125.00		(20,000	)		(200	)		0

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

Schedule of Investments — InfraCap MLP ETF (continued)

October 31, 2018

Security Description	Notional Amount			Number of contracts			Value
Written Options (continued)

Written Calls Option (continued)
Phillips 66,
Expires 11/16/18,
Strike Price $109.00		(120,000	)		(1,200	)	$	(78,000	)
Phillips 66,
Expires 11/16/18,
Strike Price $110.00		(20,000	)		(200	)		(10,000	)
Plains All American Pipeline LP,
Expires 11/16/18,
Strike Price $25.00		(20,000	)		(200	)		(1,600	)
Royal Dutch Shell PLC,
Expires 11/23/18,
Strike Price $70.00		(20,000	)		(200	)		(3,000	)
Royal Dutch Shell PLC,
Expires 12/21/18,
Strike Price $70.00		(20,000	)		(200	)		(6,000	)
SPDR S&P 500 ETF Trust,
Expires 11/02/18,
Strike Price $275.00		(50,000	)		(500	)		(17,500	)
SPDR S&P 500 ETF Trust,
Expires 12/21/18,
Strike Price $283.00		(50,000	)		(500	)		(105,000	)
SPDR S&P 500 ETF Trust,
Expires 12/21/18,
Strike Price $284.00		(50,000	)		(500	)		(92,500	)
Williams Cos., Inc. (The),
Expires 11/02/18,
Strike Price $29.00		(90,400	)		(904	)		0

Written Put Option
Cheniere Energy Partners LP,
Expires 12/21/18,
Strike Price $35.00		(17,400	)		(174	)		(43,500	)
SPDR S&P 500 ETF Trust,
Expires 11/16/18,
Strike Price $267.00		(500,000	)		(5,000	)		(1,730,000	)
SPDR S&P 500 ETF Trust,
Expires 12/21/18,
Strike Price $264.00		(500,000	)		(5,000	)		(2,620,000	)
United States Natural Gas Fund LP,
Expires 11/02/18,
Strike Price $23.00		(60,000	)		(600	)		0

Security Description	Notional Amount			Number of contracts			Value
Written Options (continued)

Written Put Option (continued)
United States Natural Gas Fund LP,
Expires 11/09/18,
Strike Price $24.00		(140,000	)		(1,400	)	$	(5,600	)
United States Natural Gas Fund LP,
Expires 11/16/18,
Strike Price $24.00		(100,000	)		(1,000	)		(6,000	)
United States Natural Gas Fund LP,
Expires 11/23/18,
Strike Price $23.50		(120,000	)		(1,200	)		(12,000	)
United States Natural Gas Fund LP,
Expires 11/23/18,
Strike Price $24.00		(200,000	)		(2,000	)		(38,000	)
United States Natural Gas Fund LP,
Expires 11/30/18,
Strike Price $23.50		(300,000	)		(3,000	)		(93,000	)
United States Natural Gas Fund LP,
Expires 12/07/18,
Strike Price $23.50		(141,000	)		(1,410	)		(46,530	)
United States Natural Gas Fund LP,
Expires 12/21/18,
Strike Price $23.00		(140,000	)		(1,400	)		(50,400	)
United States Natural Gas Fund LP,
Expires 01/18/19,
Strike Price $23.00		(210,000	)		(2,100	)		(163,800	)

TOTAL WRITTEN OPTIONS — (1.1)%
(Premiums Received $7,503,009)								(5,713,531	)

Abbreviations:

ADR — American Depositary Receipt

ETF — Exchange Traded Fund

ETN — Exchange Traded Note

LP — Limited Partnership

PLC — Public Limited Company

Non-income producing security.

(1)

(2)

Subject to written call options.

(3)

American Depositary Receipts.

(4)

Amount rounds to less than 0.05%.

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

Schedule of Investments — InfraCap MLP ETF (continued)

October 31, 2018

The following table summarizes valuation of the Fund’s investments under the fair value hierarchy levels as of October 31, 2018:

	Level 1		Level 2		Level 3		Total
Asset Valuation Inputs
Common Stocks	$	773,533,383	$	—	$	—	$	773,533,383
Exchange Traded Funds		16,931,355		—		—		16,931,355
Exchange Traded Note		4,603,333		—		—		4,603,333
Purchased Options		4,373,648		—		—		4,373,648
Total	$	799,441,719	$	—	$	—	$	799,441,719
Liability Valuation Inputs
Exchange Traded Fund	$	35,759,230	$	—	$	—	$	35,759,230
Written Options		5,617,230		96,301		—		5,713,531
Total	$	41,376,460	$	96,301	$	—	$	41,472,761

There were no Level 3 securities as of October 31, 2018.

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

Statement of Assets and Liabilities

October 31, 2018

	InfraCap MLP ETF
Assets:
Investments, at cost	$	902,976,443
Investments, at value		799,441,719
Cash		12,724,023
Due from brokers		10,810,823
Receivables:
Investment securities sold		12,441,748
Dividends and interest receivable		139,770
Tax reclaim		9,516
Prepaid taxes		5,567,257
Deferred Tax Asset, Net of Valuation Allowance		2,256,621
Total Assets		843,391,477
Liabilities:
Borrowings		232,511,574
Payables:
Investment securities purchased		29,524,605
Capital shares payable		1,575,091
Sub-Advisory fees		485,994
Written options, at value (a)		5,713,531
Security sold short, at value (b)		35,759,230
Total Liabilities		305,570,025
Net Assets	$	537,821,452
Net Assets Consist of:
Paid-in capital	$	636,945,964
Total distributable earnings (accumulated deficit), net of income taxes		(99,124,512	)
Net Assets	$	537,821,452
Shares outstanding (unlimited number of shares of beneficial interest authorized, no par value)		84,200,004
Net asset value per share	$	6.39
(a) Premiums received	$	7,503,009
(b) Proceeds received from securities sold short	$	31,597,328

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

Statement of Operations

For the Year Ended October 31, 2018

	InfraCap MLP ETF
Investment Income:
Distributions from master limited partnerships	$	53,597,522
Dividend income (net of foreign withholding taxes)		2,774,933
Interest income		7,960
Less: Return of capital distributions		(53,722,441	)
Total Investment Income		2,657,974
Expenses:
Dividend and interest expenses		8,734,418
Sub-Advisory fees		5,771,439
Franchise tax expense		12,675
Total Expenses		14,518,532
Net Investment Loss Before Income Taxes		(11,860,558	)
Income tax benefit (expense)		(77,192	)
Net Investment Loss, net of taxes		(11,937,750	)
Net Realized Gain (Loss) on:
Investments		(9,800,918	)
In-kind redemptions		1,206,233
Written Options		45,171,637
Securities sold short		(20,359,154	)
Total Net Realized Gain		16,217,798
Change in Net Unrealized Appreciation (Depreciation) on:
Investments		(40,657,119	)
Written Options		(275,983	)
Securities sold short		(1,374,950	)
Total Change in Net Unrealized Appreciation (Depreciation)		(42,308,052	)
Net Realized and Change in Unrealized Loss		(26,090,254	)
Net Decrease in Net Assets Resulting from Operations	$	(38,028,004	)
Foreign withholding taxes	$	6,701

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

Statement of Changes in Net Assets

	InfraCap MLP ETF
	For the Year Ended October 31, 2018			For the Year Ended October 31, 2017
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment loss, net of income taxes	$	(11,937,750	)	$	(5,888,340	)
Net realized gain on investments, written options and securities sold short, net of income taxes		16,217,798			31,422,159
Net change in unrealized depreciation on investments, written options and securities sold short, net of income taxes		(42,308,052	)		(64,713,427	)
Net decrease in net assets resulting from operations		(38,028,004	)		(39,179,608	)
Distributions to Shareholders¹		—			(22,241,012	)
Distributions to Shareholders from return of capital		(119,404,506	)		(56,174,997	)
Total distributions		(119,404,506	)		(78,416,009	)
Shareholder Transactions:
Proceeds from shares sold		250,592,039			507,687,243
Cost of shares redeemed		(60,217,441	)		(4,818,432	)
Net increase in net assets resulting from shareholder transactions		190,374,598			502,868,811
Increase in net assets		32,942,088			385,273,194
Net Assets:
Beginning of year		504,879,364			119,606,170
End of year¹	$	537,821,452		$	504,879,364
Changes in Shares Outstanding:
Shares outstanding, beginning of year		60,300,004			11,250,004
Shares sold		31,550,000			49,500,000
Shares redeemed		(7,650,000	)		(450,000	)
Shares outstanding, end of year		84,200,004			60,300,004

See Note 2(j).

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

Statement of Cash Flows

For the year ended October 31, 2018

	InfraCap MLP ETF
Cash Flows From Operating Activities:
Net decrease in net assets from operations	$	(38,028,004	)
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
Purchases of investment securities		(1,244,806,333	)
Proceeds from sales of investment securities		1,344,970,987
Net proceeds from purchased and written options		52,834,959
Proceeds from securities sold short		713,088,083
Payments made to cover securities sold short		(757,997,416	)
Net realized loss on investments		9,800,918
Net realized loss on securities sold short		20,359,154
Net realized gain on written options		(45,171,637	)
Net realized gain on in-kind redemptions		(1,206,233	)
Net change in unrealized depreciation on investments		40,657,119
Net change in unrealized depreciation on securities sold short		1,374,950
Net change in unrealized depreciation on written options		275,983
Decrease in deferred tax asset, net of valuation allowance		5,077,723
Increase in dividends and interest receivable		48,073
Decrease in income tax receivable		62,493
Increase in current tax payable		(7,334,344	)
Decrease in prepaid expenses		2,173
Increase in prepaid taxes		(5,567,257	)
Increase in tax reclaim receivable		(6,928	)
Decrease in due from brokers		39,782,990
Increase in sub-advisory fees payable		(310,553	)
Decrease in capital shares payable		1,575,091
Net cash provided by operating activities		129,481,991

Cash Flows from Financing Activities:
Proceeds from borrowings		89,828,561
Payments for fund shares sold in excess of in-kind creations		(116,454,426	)
Distributions paid		(119,404,506	)
Net cash used in financing activities		(146,030,371	)
Net decrease in cash		(16,548,380	)
Cash, beginning of year		29,272,403
Cash, end of year	$	12,724,023
Supplementary information:
Interest paid on borrowings	$	4,756,554
Taxes paid		7,850,030
Non-cash financing activities:
In-kind creations — Issued		310,385,825
In-kind creations — Redeemed		3,556,801

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

Financial Highlights

	InfraCap MLP ETF
	For the Year Ended October 31, 2018			For the Year Ended October 31, 2017			For the Year Ended October 31, 2016			For the Year Ended October 31, 2015			For the Period October 1, 2014¹ Through October 31, 2014
Per Share Data for a Share Outstanding throughout each period presented:
Net asset value, beginning of period	$	8.37		$	10.63		$	14.28		$	24.21		$25.00
Investment operations:
Net investment loss²		(0.15	)		(0.17	)		(0.08	)		(0.06	)	(0.01	)
Net realized and unrealized loss		(0.32	)		(0.01	)		(1.49	)³		(7.84	)	(0.78	)³
Total from investment operations		(0.47	)		(0.18	)		(1.57	)		(7.90	)	(0.79	)
Less Distributions from:
Net Investment income		—			(0.59	)		—			(0.30	)	—
Return of capital		(1.51	)		(1.49	)		(2.08	)		(1.73	)	—
Total distributions		(1.51	)		(2.08	)		(2.08	)		(2.03	)	—
Net Asset Value, End of period	$	6.39		$	8.37		$	10.63		$	14.28		$24.21
Net Asset Value Total Return⁴		(7.65	)%		(3.44	)%		(8.60	)%		(34.34	)%	(3.17	)%
Net assets, end of period (000’s omitted)	$	537,821		$	504,879		$	119,606		$	19,989		$6,052
RATIOS/SUPPLEMENTAL DATA:
Ratios to Average Net Assets:
Expenses, including deferred income tax expense/benefit		2.40	%⁵		1.93	%⁶		1.36	%⁷		1.11	%⁸	2.70	%⁹
Expenses, excluding deferred income tax expense/benefit		2.39	%⁵		1.89	%⁶		1.58	%⁷		1.16	%⁸	0.95	%⁹
Net investment loss		(1.96	)%		(1.73	)%		(0.70	)%		(0.36	)%	(0.35	)%⁹
Portfolio turnover rate¹⁰		255	%		104	%		90	%		60	%	0	%^11,12

Commencement of operations.

Based on average shares outstanding.

The per share amount of realized and unrealized loss on investments does not accord with the amounts reported in the Statements of Operations due to the timing of creation of fund shares in relation to fluctuating market values.

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

The ratios of expenses to average net assets include interest expense fees of 0.94%.

The ratios of expenses to average net assets include interest expense fees of 0.63%.

The ratios of expenses to average net assets include interest expense fees of 0.21%.

Annualized.

Portfolio 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.

Not annualized.

Amount rounds to less than 1%.

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

Notes to Financial Statements

October 31, 2018

1. ORGANIZATION

Fund				Commencement of Operations
InfraCap MLP ETF				October 1, 2014

The Fund’s investment objective is to seek total return primarily through investments in equity securities of publicly traded master limited partnerships and limited liability companies taxed as partnerships (“MLPs”).

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

(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

Equity securities and Exchange-Traded Funds are valued based on their last sale price. Price information on listed securities is taken from the exchange where the security is 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”) or NASDAQ, at the NYSE or NASDAQ Official Closing Price. 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”).

Purchased and written options contracts listed on exchanges are valued at their reported mean of bid and ask quotations; over-the-counter derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Board.

(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. 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 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.

Notes to Financial Statements (continued)

October 31, 2018

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, 2018, is disclosed at the end of the Fund’s Schedule of Investments.

(e) Security Transactions

Security transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using specific identification.

(f) Investment Income and Return of Capital Estimates

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.

(g) Investment Income and Expenses

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 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.

(h) 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.

(i) 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.

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.

Notes to Financial Statements (continued)

October 31, 2018

Effective with the current reporting period, it is no longer required to present certain line items on the Statement of Changes in Net Assets. Such disclosure changes were not permitted retrospectively, therefore prior period amounts are presented below. For the year ended October 31, 2017, distributions to shareholders were as follows:

Distributions from net investment income:

InfraCap MLP ETF

(22,241,012

)

For the year ended October 31, 2017, undistributed net investment income/(distributions in excess of net investment income) included in net assets were as follows:

InfraCap MLP ETF

(28,780,267

)

3. INVESTMENT MANAGEMENT RELATED PARTIES AND OTHER AGREEMENTS

Investment Advisory Agreement

The Trust has entered into an Investment Advisory Agreement (the “Advisory Agreement”) with the Adviser, a wholly owned subsidiary of ETFis Holdings LLC, on behalf of the Fund. ETFis Holdings LLC is majority-owned by 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, paid by the Sub-Adviser as described below.

Sub-Advisory Agreement

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 Sub-Adviser is entitled to receive 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, ETF 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 a 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 a 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.

Affiliated Shareholders

At October 31, 2018, the Sub-Adviser held shares of the Fund which may be redeemed at any time that aggregated to the following:

				Shares			% of shares outstanding
InfraCap MLP ETF				511,996			0.6%

100

Notes to Financial Statements (continued)

October 31, 2018

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.” Creation Units of the Fund are issued and redeemed generally in exchange for specified securities held by the Fund and a specified cash payment. Redemptions of Creation Units are effected principally for cash. In each instance of such 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 31, 2018	Current			Deferred			Total
Federal	$	(4,720,654	)	$	2,856,457		$	(1,864,197	)
State		(279,877	)		(828,559	)		(1,108,436	)
Valuation Allowance		—			3,049,825			3,049,825
Total Tax Expense/(Benefit)	$	(5,000,531	)	$	5,077,723		$	77,192

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

	As of October 31, 2018
Deferred Tax Assets:
Net Operating Loss Carryforward	$	2,463,007
Capital Loss Carryforward		271,714
Net Unrealized Loss on Investments		17,184,887
Other		9,901
Valuation Allowance		(17,672,888	)
Net Deferred Tax Assets	$	2,256,621

101

Notes to Financial Statements (continued)

October 31, 2018

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. The Fund has a current capital loss carryforward of $1,161,934 of which $855,715 expires in 2021 and $276,219 of which expires in 2023. The Tax Cuts and Jobs Act (TCJA) eliminated the net operating loss carryback ability and replaced the 20 year carryforward period with an indefinite carryforward period for any net operating losses arising in tax years ending after December 31, 2017. Therefore, net operating losses that may be generated by the Fund this year and in the future are eligible to be carried forward indefinitely to offset income generated by the Fund in those years but are no longer eligible to be carried back. The TCJA also established a limitation for any net operating losses generated in tax years beginning after December 31, 2017 to the lesser of the aggregate of available net operating losses or 80% of taxable income before any net operating loss utilization. The Fund has a current net operating loss carryforward of $10,532,604 of which $246,998 can be carried back 2 years and carried forward until expiration in 2036. The remaining $10,285,606 cannot be carried back and will be carried forward indefinitely until it is utilized. None of the $10,532,604 of net operating loss carryforward is subject to the aforementioned 80% limitation.

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 partial 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	$	(7,969,671	)	21.00	%
State Income Taxes (Net of Federal Benefit)		⟨904,975	)	2.38
Permanent Differences, Net		(353,069	)	0.93
Effect of Tax Rate Change*		8,225,896		(21.68	)
Provision to Return Adjustment		(70,646	⟩	0.19
Impact of Capital Loss Carryback		(1,977,361	)	5.21
Other		77,192		(0.20	)
Valuation Allowance		3,049,826		(8.04	)
Net Income Tax Expense/(Benefit)	$	77,192		(0.21	)%

The tax rate change listed in the table above is reflective of the change in deferred tax assets and liabilities due to the federal corporate tax rate change enacted by the TCJA as of December 22, 2017 (date of enactment). For tax years beginning after December 31, 2017, corporations will be taxed at a flat rate of 21% and no longer subject to the alternative minimum tax.

The Fund recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. For the period from inception to October 31, 2018, the Fund accrued penalties and interest of $77,192.

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. No U.S. federal or state income tax returns are currently under examination. The Fund’s tax years, October 31, 2015, October 31, 2016 and October 31, 2017, 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. 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 in the next 12 months.

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 Cost Of Investments		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
InfraCap MLP ETF		$864,381,253		$18,552,006		$(87,865,188)		$(69,313,182)

102

Notes to Financial Statements (continued)

October 31, 2018

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short-term investments), subscriptions in-kind and redemptions in-kind for the period ended October 31, 2018 were as follows:

		Purchases		Sales		Subscriptions In-Kind		Redemptions In-Kind
InfraCap MLP ETF		$2,024,926,682		$2,013,403,131		$310,385,825		$3,556,801

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, 2018, are:

Assets		Equity Risk
Investments*		$	4,373,648

Liabilities		Equity Risk
Written options, at value		$	5,713,531

Purchased option contracts are included in Investments on the Statement of Assets and Liabilities.

Transactions in derivative instruments reflected on the Statement of Operations during the year were as follows:

Net Realized Gain (Loss) on:	Equity Risk
Investments**	$	(4,221,838	)
Written options		45,171,637

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

Change in Net Unrealized Appreciation (Depreciation) on:	Equity Risk
Investments***	$	(2,694,140	)
Written options		(275,983	)

***

Purchased option contracts are included in Change in Net Unrealized Appreciation (Depreciation) on Investments in the Statement of Operations.

For the year ended October 31, 2018, the monthly average market value of the purchased options and written options contracts held by the Fund were $733,618 and $(10,332,981), respectively.

103

Notes to Financial Statements (continued)

October 31, 2018

8. BORROWINGS

The Fund entered into a Lending Agreement (the “Agreement”) with a commercial bank (the “Bank”) that allows the Fund to borrow cash from the Bank. Borrowings under the Agreement are collateralized by investments of the Fund. If the Fund defaults with respect to any of its obligations under the Agreement, the Bank 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 3 Month LIBOR (London Interbank Offered Rate) plus an additional percentage rate on the amount borrowed. The Agreement has an on-demand commitment term. For the year ended October 31, 2018, the average daily borrowings under the Agreement and the daily average interest rate were $140,621,436 and 3.31%, respectively.

At October 31, 2018, the amount of such outstanding borrowings was as follows:

Outstanding Borrowings		Interest Rate
$232,511,574		3.76%

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.

10. 10% SHAREHOLDERS

As of October 31, 2018, 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 Outstanding		Number of Accounts
InfraCap MLP ETF		51%		3

11. NEW ACCOUNTING PRONOUNCEMENT

104

Notes to Financial Statements (continued)

October 31, 2018

12. SUBSEQUENT EVENTS

The Fund is required to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed as of the date of the Statement of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Fund is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. 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.

105

Report of Independent Registered Public Accounting Firm

October 31, 2018

To the Board of Trustees of ETFis Series Trust I and Shareholders of InfraCap REIT Preferred ETF, Virtus Cumberland Municipal Bond ETF, Virtus Glovista Emerging Markets 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 and Virtus WMC Global Factor Opportunities ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds indicated in the table below (eight of the funds constituting ETFis Series Trust I, hereafter collectively referred to as the “Funds”) as of October 31, 2018, the related statements of operations, the statement of cash flows for Virtus InfraCap U.S. Preferred Stock ETF, statements of changes in net assets, including the related notes, and the financial highlights for each of the periods indicated in the table below (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, 2018, the results of each of their operations, the cash flows for Virtus InfraCap U.S. Preferred Stock ETF, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.

InfraCap REIT Preferred ETF		Statement of operations for the year ended October 31, 2018, statements of changes in net assets and the financial highlights for the year ended October 31, 2018, and the period February 7, 2017 (inception) through October 31, 2017

Virtus Cumberland Municipal Bond ETF		Statement of operations for the year ended October 31, 2018, statements of changes in net assets and the financial highlights for the year ended October 31, 2018, and the period January 17, 2017 (inception) through October 31, 2017

Virtus Glovista Emerging Markets ETF		Statements of operations and of changes in net assets and the financial highlights for the period November 7, 2017 (inception) through October 31, 2018

Virtus InfraCap U.S. Preferred Stock ETF		Statements of operations, cash flows and of changes in net assets and the financial highlights for the period May 15, 2018 (inception) through October 31, 2018

Virtus LifeSci Biotech Clinical Trials ETF Virtus LifeSci Biotech Products ETF Virtus Newfleet Multi-Sector Bond ETF		Statements of operations for the year ended October 31, 2018, statements of changes in net assets and the financial highlights for each of the two years in the period ended October 31, 2018

Virtus WMC Global Factor Opportunities ETF		Statement of operations for the year ended October 31, 2018, statements of changes in net assets and the financial highlights for the year ended October 31, 2018, and the period October 10, 2017 (inception) through October 31, 2017

The financial statements of Virtus LifeSci Biotech Clinical Trials ETF, Virtus LifeSci Biotech Products ETF and Virtus Newfleet Multi-Sector Bond ETF as of and for the year ended October 31, 2016 and the financial highlights for each of the periods ended on or prior to October 31, 2016 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated December 29, 2016 expressed unqualified opinions on those financial statements and financial highlights.

106

Report of Independent Registered Public Accounting Firm (continued)

October 31, 2018

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, 2018 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
Philadelphia, Pennsylvania
December 20, 2018

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

107

Report of Independent Registered Public Accounting Firm

October 31, 2018

To the Board of Trustees of ETFis Series Trust I and Shareholders of the 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, 2018, the related statements of operations and cash flows for the year ended October 31, 2018, the statements of changes in net assets, including the related notes, and the financial highlights for each of the two years in the period ended October 31, 2018 (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, 2018, the results of its operations and its cash flows for the year then ended, the changes in its net assets and the financial highlights for each of the two years in the period ended October 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

The financial statements of the Fund as of and for the year ended October 31, 2016 and the financial highlights for each of the periods ended on or prior to October 31, 2016 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated December 29, 2016 expressed an unqualified opinion on those financial statements and financial highlights.

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.

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, 2018 by correspondence with the custodian 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 opinion.

/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 20, 2018

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

108

Approval of Advisory Agreements & Board Considerations (unaudited)

October 31, 2018

Approvals with Respect to Virtus Glovista Emerging Markets ETF

The Board noted that, on May 17, 2017, at an in-person meeting (the “Meeting”) at which all of the Trustees who were not “interested persons” (as that term is defined in the Investment Company Act of 1940) of the Trust (the “Independent Trustees”) were present, the Board of Trustees (the “Board”) of ETFis Series Trust I (the “Trust”), including the Independent Trustees voting separately, reviewed and unanimously approved an investment advisory agreement between Virtus ETF Advisers LLC (the “Adviser”) and the Trust (the “Advisory Agreement”), and an investment sub-advisory agreement among Glovista Investments LLC (“Glovista”), the Adviser and the Trust (the “Glovista Sub-Advisory Agreement”), each with respect to the Virtus Glovista Emerging Markets ETF (the “Glovista Fund”).

At the Meeting, the Board received and reviewed a substantial amount of information provided by the Adviser and Glovista in response to requests of the Board and counsel, including, without limitation, a memorandum from the Adviser that included a description of the Adviser’s business, a copy of the Adviser’s Form ADV and certain other information about the Adviser to be considered in connection with the Trustees’ review process (the “Adviser Memorandum”), and a memorandum from Glovista that included a description of Glovista’s business, a copy of Glovista’s Form ADV and certain other information about Glovista to be considered in connection with the Trustees’ review process (the “Glovista Memorandum”). The Board also met in person with representatives of the Adviser and Glovista to discuss the proposed Glovista Fund.

Advisory Agreement

In deciding on whether to approve the Advisory Agreement on behalf of the Glovista Fund, the Board considered numerous factors, including:

The nature, extent, and quality of the services to be provided by the Adviser. The Board considered the responsibilities the Adviser would have under the Advisory Agreement and the services that would be provided by the Adviser to the Glovista Fund including, without limitation, the management, oversight and administrative services that the Adviser and its employees would provide to the Glovista Fund, the services already provided by the Adviser related to organizing the Glovista Fund, the Adviser’s coordination of services for the Glovista Fund by the Trust’s service providers, its compliance procedures and practices, and its efforts to promote the Glovista Fund. The Board also considered the quality of the services that the Adviser provides to other series in the Virtus fund complex, including other series of the Trust. The Board noted that many of the Trust’s executive officers are employees of the Adviser and serve the Trust without additional compensation from the Glovista Fund. After reviewing the foregoing information and further information in the Adviser Memorandum (including descriptions of the Adviser’s investment advisory services and its related non-advisory business), and discussing the Adviser’s proposed services to the Glovista Fund with the Adviser, the Board concluded that the quality, extent, and nature of the services proposed to be provided by the Adviser would be satisfactory and adequate for the Glovista Fund.

The investment management capabilities and experience of the Adviser. The Board evaluated the management experience of the Adviser in light of the services it will be providing. In particular, the Board received information from the Adviser regarding, among other things, the Adviser’s experience in organizing, managing and overseeing exchange-traded funds and coordinating their operation and administration. After consideration of these factors, the Board determined that the Adviser would be an appropriate manager for the Glovista Fund.

The costs of the services to be provided and profits to be realized by the Adviser from its relationship with the Glovista Fund. The Board examined and evaluated the arrangement between the Adviser and the Glovista Fund under the proposed Advisory Agreement, including the fact that the Adviser will utilize a “unified fee” structure to cap the Glovista Fund’s total expenses. The Board also considered potential benefits for the Adviser in managing the Glovista Fund, including promotion of the Adviser’s name and the interests of the Adviser in providing management and oversight services to the Glovista Fund. In addition, at the Meeting, the Board compared the management fee of the Glovista Fund (which also represents the anticipated total expense ratio for the Glovista Fund as a result of the unified fee structure) to the expense ratios of other funds considered by the Adviser to have similar investment objectives and strategies to the Glovista Fund. Following these comparisons and upon further consideration and discussion of the foregoing, the Board concluded that the fee to be paid to the Adviser by the Glovista Fund would be appropriate and within the range of what would have been negotiated at arm’s length.

109

Approval of Advisory Agreements & Board Considerations (unaudited) (continued)

October 31, 2018

under the unified fee. Accordingly, the Board concluded that the Glovista Fund’s fee arrangement with the Adviser would provide benefits through the proposed unified fee structure, and that, at the Glovista Fund’s projected asset levels, the Glovista Fund’s proposed arrangement with the Adviser would be appropriate.

Other benefits derived by the Adviser from its relationship with the Glovista Fund. The Board considered material “fall-out” or ancillary benefits that would accrue to the Adviser as a result of its relationship with the Glovista Fund (other than the advisory fee). The Board noted that ETF Distributors LLC (the “Distributor”), an affiliate of the Adviser, will serve as principal underwriter for the Glovista Fund, and that Virtus ETF Solutions LLC (the “Administrator”), also an affiliate of the Adviser, will serve as the operational administrator for the Glovista Fund. The Board noted that the Adviser will be responsible for the payment of any fees to the Distributor and the Administrator. The Board considered that the association of the Distributor and the Administrator with the Glovista Fund could result in non-quantifiable reputational benefits for those entities. Based on the foregoing information, the Board concluded that such potential benefits are immaterial to its consideration and approval of the Advisory Agreement.

Conclusion. The Board did not identify any single factor as being of paramount importance, and different Trustees may have given different weight to different factors. The Board reviewed with counsel to the Independent Trustees the legal standards applicable to its consideration of the Advisory Agreement. Based on its review, including consideration of each of the factors referenced above, the Board determined, in the exercise of its reasonable business judgment, that the advisory arrangement, as outlined in the Advisory Agreement, was fair and reasonable in light of the services to be performed, expenses to be incurred and such other matters as the Board considered relevant. After full consideration of the above factors as well as other factors, the Board, including the Independent Trustees, unanimously approved the Advisory Agreement on behalf of the Glovista Fund.

Sub-Advisory Agreement

In deciding on whether to approve the Glovista Sub-Advisory Agreement on behalf of the Glovista Fund, the Board considered numerous factors, including:

The nature, extent, and quality of the services to be provided by Glovista. The Board considered the responsibilities Glovista would have under the Glovista Sub-Advisory Agreement and the services that would be provided by Glovista including, without limitation, its investment advisory services, its compliance procedures and practices, and its efforts to promote the Glovista Fund. After reviewing the foregoing information and further information in the materials, including the Glovista Memorandum (which included descriptions of Glovista business and Glovista’s Form ADV), the Board concluded that the quality, extent, and nature of the services to be provided by Glovista would be satisfactory and adequate for the Glovista Fund.

The investment management capabilities and experience of Glovista. The Board evaluated the investment management experience of Glovista. In particular, the Board considered Glovista’s experience, including the experience of its portfolio managers, in implementing strategies similar to the one proposed for the Glovista Fund, and Glovista’s work on the underlying index that the Glovista Fund would seek to track. The Board discussed with Glovista the investment objective and strategies for the Glovista Fund and Glovista’s plans for implementing the strategies. The Board also considered the ability of Glovista to manage the Glovista Fund. After consideration of these factors, the Board determined that Glovista would be an appropriate manager for the Glovista Fund.

The costs of the services to be provided and profits to be realized by Glovista from its relationship with the Glovista Fund. The Board examined and evaluated the proposed arrangements between Glovista and the Adviser under the proposed Glovista Sub-Advisory Agreement. The Board noted that, under such arrangement, Glovista would contribute a portion of the costs of operating the Fund, insofar as Glovista would not begin to receive its sub-advisory fee under the Glovista Sub-Advisory Agreement until the Adviser is no longer required to reimburse the Glovista Fund’s ordinary operating expenses in excess of the amount received by the Adviser under the unified fee. The Board considered Glovista’s staffing, personnel, and methods of operating; Glovista’s compliance policies and procedures; the financial condition of Glovista and the level of commitment to the Glovista Fund by Glovista; the projected asset levels of the Glovista Fund; Glovista’s payment of a portion of the startup costs for the Glovista Fund; and the overall projected expenses of the Glovista Fund.

The Board also considered potential benefits to Glovista in managing the Glovista Fund, including promotion of Glovista’s name. The Board compared the sub-advisory fee of the Glovista Fund (which will be paid to Glovista by the Adviser from the unified fee) to the expense ratios of other funds considered by the Adviser to have similar investment objectives and strategies to the Glovista Fund. Following these comparisons and upon further consideration and discussion of the foregoing, the Board concluded that the fee to be paid to Glovista would be appropriate and representative of an arm’s length negotiation.

110

Approval of Advisory Agreements & Board Considerations (unaudited) (continued)

October 31, 2018

The extent to which economies of scale would be realized as the Glovista Fund grows and whether management fee levels reflect these economies of scale for the benefit of the Glovista Fund’s investors. The Board considered that the Glovista Fund’s proposed fee arrangement with the Adviser involves a unified fee, and that the Adviser is responsible for the payment of sub-advisory fees to Glovista. The Board considered that the Glovista Fund would likely experience benefits from the proposed unified fee arrangement, and would continue to do so even after the Glovista Fund’s assets grow to a level where the Adviser is no longer required to reimburse the Glovista Fund’s ordinary operating expenses in excess of the amount received by the Adviser under the unified fee. Accordingly, the Board concluded that the Glovista Fund’s fee arrangements with the Adviser and Glovista would provide benefits through the proposed unified fee structure, and that, at the Glovista Fund’s projected asset levels, the Glovista Fund’s proposed arrangement with Glovista would be appropriate.

Conclusion. The Board did not identify any single factor as being of paramount importance, and different Trustees may have given different weight to different factors. The Board reviewed with counsel to the Independent Trustees the legal standards applicable to its consideration of the Glovista Sub-Advisory Agreement. Based on its review, including consideration of each of the factors referenced above, the Board determined, in the exercise of its reasonable business judgment, that the sub-advisory arrangement, as outlined in the Glovista Sub-Advisory Agreement, was fair and reasonable in light of the services to be performed, expenses to be incurred and such other matters as the Board considered relevant.

After full consideration of the above factors as well as other factors, the Board, including the Independent Trustees, unanimously approved the Glovista Sub-Advisory Agreement on behalf of the Glovista Fund.

Approvals with Respect to Virtus InfraCap U.S. Preferred Stock ETF

On November 9, 2017, at an in-person meeting (the “Meeting”) at which all of the Trustees who were not “interested persons” (as that term is defined in the Investment Company Act of 1940) of the Trust (the “Independent Trustees”) were present, the Board of Trustees (the “Board”) of ETFis Series Trust I (the “Trust”), including the Independent Trustees voting separately, reviewed and unanimously approved an investment advisory agreement between Virtus ETF Advisers LLC (the “Adviser”) and the Trust (the “Advisory Agreement”), and an investment sub-advisory agreement among Infrastructure Capital Advisors, LLC (the “Sub-Adviser”), the Adviser and the Trust (the “Sub-Advisory Agreement”), each with respect to the Virtus InfraCap U.S. Preferred Stock ETF (the “Fund”).

At the Meeting, the Board received and reviewed a substantial amount of information provided by the Adviser and the Sub-Adviser in response to requests of the Board and counsel, including, without limitation, a memorandum from the Adviser that included a description of the Adviser’s business, a copy of the Adviser’s Form ADV and certain other information about the Adviser to be considered in connection with the Trustees’ review process (the “Adviser Memorandum”), and a memorandum from the Sub-Adviser that included a description of the Sub-Adviser’s business, a copy of the Sub-Adviser’s Form ADV and certain other information about the Sub-Adviser to be considered in connection with the Trustees’ review process (the “Sub-Adviser Memorandum”). The Board also met in person with representatives of the Adviser and the Sub-Adviser to discuss the proposed Fund.

Advisory Agreement

In deciding on whether to approve the Advisory Agreement on behalf of the Fund, the Board considered numerous factors, including:

The nature, extent, and quality of the services to be provided by the Adviser. The Board considered the responsibilities the Adviser would have under the Advisory Agreement and the services that would be provided by the Adviser to the Fund including, without limitation, the management, oversight and administrative services that the Adviser and its employees would provide to the Fund, the services already provided by the Adviser related to organizing the Fund, the Adviser’s coordination of services for the Fund by the Trust’s service providers, its compliance procedures and practices, and its efforts to promote the Fund. The Board also considered the quality of the services that the Adviser provides to other series in the Virtus fund complex, including other series of the Trust. The Board noted that many of the Trust’s executive officers are employees of the Adviser and serve the Trust without additional compensation from the Fund. After reviewing the foregoing information and further information in the Adviser Memorandum (including descriptions of the Adviser’s investment advisory services and its related non-advisory business), and discussing the Adviser’s proposed services to the Fund, the Board concluded that the quality, extent, and nature of the services proposed to be provided by the Adviser would be satisfactory and adequate for the Fund.

111

Approval of Advisory Agreements & Board Considerations (unaudited) (continued)

October 31, 2018

The costs of the services to be provided and profits to be realized by the Adviser from its relationship with the Fund. The Board examined and evaluated the arrangement between the Adviser and the Fund under the proposed Advisory Agreement, including the fact that the Adviser will utilize a “unified fee” structure to cap the Fund’s total expenses. The Board also considered potential benefits for the Adviser in managing the Fund, including promotion of the Adviser’s name and the interests of the Adviser in providing management and oversight services to the Fund. In addition, at the Meeting, the Board compared the management fee of the Fund to the expense ratios of other funds with a unified fee considered by the Adviser to have similar investment objectives and strategies to the Fund. Following these comparisons and upon further consideration and discussion of the foregoing, the Board concluded that the fee to be paid to the Adviser by the Fund would be appropriate and within the range of what would have been negotiated at arm’s length.

The extent to which economies of scale would be realized as the Fund grows and whether management fee levels reflect these economies of scale for the benefit of the Fund’s investors. The Board considered that the Fund’s proposed fee arrangement with the Adviser involves a unified fee. The Board considered that the Fund would likely experience benefits from the proposed unified fee arrangement, and would continue to do so even after the Fund’s assets grow to a level where the Adviser is no longer required to reimburse the Fund’s ordinary operating expenses in excess of the amount received by the Adviser under the unified fee. Accordingly, the Board concluded that the Fund’s fee arrangement with the Adviser would provide benefits through the proposed unified fee structure, and that, at the Fund’s projected asset levels, the Fund’s proposed arrangement with the Adviser would be appropriate.

Other benefits derived by the Adviser from its relationship with the Fund. The Board considered material “fall-out” or ancillary benefits that would accrue to the Adviser as a result of its relationship with the Fund (other than the advisory fee). The Board noted that ETF Distributors LLC (the “Distributor”), an affiliate of the Adviser, will serve as principal underwriter for the Fund, and that Virtus ETF Solutions LLC (the “Administrator”), also an affiliate of the Adviser, will serve as the operational administrator for the Fund. The Board noted that the Adviser will be responsible for the payment of any fees to the Distributor and the Administrator. The Board considered that the association of the Distributor and the Administrator with the Fund could result in non-quantifiable reputational benefits for those entities. Based on the foregoing information, the Board concluded that such potential benefits are immaterial to its consideration and approval of the Advisory Agreement.

After full consideration of the above factors as well as other factors, the Board, including the Independent Trustees, unanimously approved the Advisory Agreement on behalf of the Fund.

Sub-Advisory Agreement

In deciding on whether to approve the Sub-Advisory Agreement on behalf of the Fund, the Board considered numerous factors, including:

The nature, extent, and quality of the services to be provided by the Sub-Adviser. The Board considered the responsibilities the Sub-Adviser would have under the Sub-Advisory Agreement and the services that would be provided by the Sub-Adviser including, without limitation, its investment advisory services, its compliance procedures and practices, and its efforts to promote the Fund. After reviewing the foregoing information and further information in the materials, including the Sub-Adviser Memorandum (which included descriptions of the Sub-Adviser’s business and Form ADV), the Board concluded that the quality, extent, and nature of the services to be provided by the Sub-Adviser would be satisfactory and adequate for the Fund.

The investment management capabilities and experience of the Sub-Adviser. The Board evaluated the investment management experience of the Sub-Adviser. In particular, the Board considered the Sub-Adviser’s experience, including the experience of its portfolio managers, in implementing strategies similar to the one proposed for the Fund. The Board discussed with the Sub-Adviser the investment objective and strategies for the Fund and the Sub-Adviser’s plans for implementing the strategies. The Board also considered the ability of the Sub-Adviser to manage the Fund’s portfolio. After consideration of these factors, the Board determined that the Sub-Adviser would be an appropriate sub-adviser to the Fund.

The costs of the services to be provided and profits to be realized by the Sub-Adviser from its relationship with the Fund. The Board examined and evaluated the proposed arrangement between the Sub-Adviser and the Adviser under the proposed Sub-Advisory Agreement. The Board noted that, under such arrangement, the Sub-Adviser would contribute a portion of the costs of operating the Fund, insofar as the Sub-Adviser would not begin to receive its sub-advisory fee under the Sub-Advisory Agreement until the Adviser

112

Approval of Advisory Agreements & Board Considerations (unaudited) (continued)

October 31, 2018

is no longer required to reimburse the Fund’s ordinary operating expenses in excess of the amount received by the Adviser under the unified fee. The Board considered the Sub-Adviser’s staffing, personnel, and methods of operating; the Sub-Adviser’s compliance policies and procedures; the financial condition of the Sub-Adviser and the level of commitment to the Fund by the Sub-Adviser; and the projected asset levels of the Fund.

The Board also considered potential benefits to the Sub-Adviser in sub-advising the Fund, including promotion of the Sub-Adviser’s name. The Board compared the sub-advisory fee of the Fund (which will be paid to the Sub-Adviser by the Adviser from the unified fee) to the expense ratios of other funds considered by the Sub-Adviser to have similar investment objectives and strategies to the Fund. Following these comparisons and upon further consideration and discussion of the foregoing, the Board concluded that the fee to be paid to the Sub-Adviser would be appropriate and representative of an arm’s length negotiation.

The extent to which economies of scale would be realized as the Fund grows and whether management fee levels reflect these economies of scale for the benefit of the Fund’s investors. The Board considered that the Fund’s proposed fee arrangement with the Adviser involves a unified fee, and that the Adviser is responsible for the payment of sub-advisory fees to the Sub-Adviser. The Board considered that the Fund would likely experience benefits from the proposed unified fee arrangement, and would continue to do so even after the Fund’s assets grow to a level where the Adviser is no longer required to reimburse the Fund’s ordinary operating expenses in excess of the amount received by the Adviser under the unified fee. Accordingly, the Board concluded that the Fund’s fee arrangements with the Adviser and the Sub-Adviser would provide benefits through the proposed unified fee structure, and that, at the Fund’s projected asset levels, the Fund’s proposed arrangement with the Sub-Adviser would be appropriate.

Conclusion. The Board did not identify any single factor as being of paramount importance, and different Trustees may have given different weight to different factors. The Board reviewed with counsel to the Independent Trustees the legal standards applicable to its consideration of the Sub-Advisory Agreement. Based on its review, including consideration of each of the factors referenced above, the Board determined, in the exercise of its reasonable business judgment, that the sub-advisory arrangement, as outlined in the Sub-Advisory Agreement, was fair and reasonable in light of the services to be performed, expenses to be incurred and such other matters as the Board considered relevant.

After full consideration of the above factors as well as other factors, the Board, including the Independent Trustees, unanimously approved the Sub-Advisory Agreement on behalf of the Fund.

113

Trustees and Officers of the Trust (unaudited)

TRUSTEES AND OFFICERS OF THE TRUST

The Trustees of the Trust, their addresses, positions with the Trust, years of birth, length of time served, principal occupations during the past five years, the number of portfolios in the Fund Complex overseen by each Trustee and other directorships, if any, held by the Trustees are set forth below. The 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.

Name and Year of Birth	Position(s) Held with Trust	Length of Time Served	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex* Overseen by Trustee	Other Directorships Held by Trustee During Past Five Years
INDEPENDENT TRUSTEES
James Simpson Year of Birth: 1970	Trustee	Since Inception	President, ETP Resources, LLC (since 2009) (a financial services consulting company).	13	Trustee (since 2018), Asset Management Fund (5 portfolios); Trustee (since 2015), Virtus ETF Trust II (3 portfolios)
Robert S. Tull Year of Birth: 1952	Trustee	Since Inception	Independent Consultant (since 2013); Chief Operating Officer, Factor Advisors, LLC (2010-2013).	13	Trustee (since 2015), Virtus ETF Trust II (3 portfolios)
Stephen O’Grady Year of Birth: 1946	Trustee	Since 2014	Lead Market Maker, GFI Group (2011-2012); Partner, Kellogg Capital Markets (2004-2011).	13	Trustee (since 2015), Virtus ETF Trust II (3 portfolios); Trustee (2013-2015), Greenhaven LLC; Trustee (since 2014), Acacia Group LLC; Trustee (since 2014), ETFS Trust (5 portfolios)
Myles J. Edwards Year of Birth: 1961	Trustee	Since 2016	Chief Executive Officer (since 2018), Final Compliance; Chief Compliance Officer (since 2018), Knight Vinke; General Counsel, CCO and COO, Shufro, Rose & Co., LLC (2014-2018); General Counsel and CCO, Constellation Wealth Advisers, LLC (2011-2014).	13	Trustee (since 2015), Virtus ETF Trust II (3 portfolios)
INTERESTED TRUSTEE**
William J. Smalley Year of Birth: 1983	Trustee, President and Chief Executive Officer	Since Inception	President, Virtus ETF Solutions LLC (since 2012); Managing Principal, ETF Distributors LLC (since 2012); Managing Director, Virtus ETF Advisers LLC (since 2012); President and Chief Executive Officer, Virtus ETF Trust II (since 2015); Vice President, Factor Advisors, LLC (2010-2012).	10	None

114

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

Name and Year of Birth	Position(s) Held with Trust	Length of Time Served	Principal Occupation(s) During Past Five Years	Number of Portfolios in Fund Complex* Overseen by Trustee	Other Directorships Held by Trustee During Past Five Years
OTHER EXECUTIVE OFFICERS
Kevin J. Carr Year of Birth: 1954	Secretary	Since 2015	Vice President and Senior Counsel (2017 to present); Senior Vice President (2009 to 2017), Vice President, Counsel and Secretary (2008 to 2009), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various senior officer positions (since 2005) with Virtus affiliates; Senior Vice President (since 2013), Vice President (2005 to 2013), Chief Legal Officer, Counsel and Secretary (since 2005), Virtus Mutual Fund Family; Senior Vice President (2013 to 2014), Vice President (2012 to 2013), Secretary and Chief Legal Officer (2005 to 2013), and Assistant Secretary (2013 to 2014 and since 2017), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Senior Vice President (since 2017), Assistant Secretary (since 2013), Vice President, Chief Legal Officer, Counsel and Secretary (2010 to 2013), Virtus Variable Insurance Trust; Senior Vice President (2013 to 2014), Vice President (2011 to 2013), and Assistant Secretary (since 2011), Virtus Global Multi-Sector Income Fund; Assistant Secretary (since 2015), Duff & Phelps Select Energy MLP Fund Inc.; Senior Vice President (since 2017), Assistant Secretary (since 2013), Virtus Alternative Solutions Trust; and Secretary (since 2015), Virtus ETF Trust II.	N/A	N/A
Brinton W. Frith Year of Birth: 1969	Treasurer and Chief Financial Officer	Since Inception	President, Virtus ETF Advisers LLC (since 2013); Managing Director, Virtus ETF Solutions LLC (since 2013); Treasurer and Chief Financial Officer (since 2015), Virtus ETF Trust II; President, Javelin Investment Management, LLC (2008-2013).	N/A	N/A
Nancy J. Engberg Year of Birth: 1956	Chief Compliance Officer	Since 2015	Senior Vice President (since 2017); Vice President (2008 to 2017) and Chief Compliance Officer (2008 to 2011 and since 2016), Virtus Investment Partners, Inc. and/or certain of its subsidiaries; various officer positions (since 2003) with Virtus affiliates; Senior Vice President (since 2017), Vice President (2011 to 2017) and Chief Compliance Officer (since 2011), Virtus Mutual Fund Family; Senior Vice President (since 2017), Vice President (2010 to 2017) and Chief Compliance Officer (since 2011), Virtus Variable Insurance Trust; Senior Vice President (since 2017), Vice President (2011 to 2017) and Chief Compliance Officer (since 2011), Virtus Global Multi-Sector Income Fund; Senior Vice President (since 2017), Vice President (2012 to 2017) and Chief Compliance Officer (since 2012), Virtus Total Return Fund Inc. and Virtus Global Dividend & Income Fund Inc.; Senior Vice President (since 2017), Vice President (2013 to 2017) and Chief Compliance Officer (since 2013), Virtus Alternative Solutions Trust; Senior Vice President (since 2017), Vice President (2014 to 2017) and Chief Compliance Officer (since 2014), Duff & Phelps Select Energy MLP Fund Inc.; Chief Compliance Officer (since 2015), Virtus ETF Trust II.	N/A	N/A

The address for each Trustee and officer is 1540 Broadway, 16th Floor, New York, NY 10036. Each Trustee serves until resignation, death, retirement or removal. Officers are elected yearly by the Trustees.

As of October 31, 2018, the Fund Complex consisted of the Trust, which consisted of ten portfolios — InfraCap REIT Preferred ETF, ETF, Reaves Utilities ETF, Virtus Cumberland Municipal Bond ETF, Virtus Glovista Emerging Markets 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 WMC Global Factor Opportunities ETF and InfraCap MLP ETF, and Virtus ETF Trust II, which consisted of three portfolios — Virtus Newfleet Dynamic Credit ETF, Virtus Enhanced U.S. Equity ETF and Virtus Enhanced Short U.S. Equity 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.

115

Supplemental Information (unaudited)

INFORMATION ABOUT PORTFOLIO HOLDINGS

The Funds file their complete schedule of portfolio holdings for their first and third fiscal quarters with the Securities and Exchange Commission (“SEC”) on Form N-Q (or any successor Form). The Funds Form N-Q (or any successor Form) are available without charge, upon request, by calling toll-free at (888) 383-4184. Furthermore, you may obtain the Form N-Q (or any successor Form) on the SEC’s website at www.sec.gov. The Funds’ portfolio holdings are posted daily on the Funds’ website at www.virtusetfs.com.

The Funds’ premium/discount information that is current as of the most recent month-end is available by visiting www.virtusetfs.com 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) 383-4184, by accessing the SEC’s website at www.sec.gov, or by accessing the Funds’ website at www.virtusetfs.com.

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)³83-4184 or by accessing the SEC’s website at www.sec.gov.

TAX INFORMATION

For the fiscal year ended October 31, 2018, 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	—		—
Virtus Cumberland Municipal Bond ETF	—		—
Virtus Glovista Emerging Markets ETF	74.41	%	3.70	%
Virtus InfraCap U.S. Preferred Stock ETF	48.39	%	43.51	%
Virtus LifeSci Biotech Clinical Trials ETF	—		—
Virtus LifeSci Biotech Products ETF	—		—
Virtus Newfleet Multi-Sector Bond ETF	—		—
Virtus WMC Global Factor Opportunities ETF	58.43	%	23.32	%

For federal income tax purposes, 60.06% of the income dividends paid by the Virtus Cumberland Municipal Bond ETF qualify as exempt-interest dividends.

For the fiscal year ended October 31, 2018, certain Funds are disclosing the following information pursuant to notice requirements of Section 853(a) and 855(d) of the Internal Revenue Code, as amended, and the Treasury Regulations thereunder.

Funds	Foreign Source Income Recognized	Foreign Tax Credit Pass-Through
InfraCap REIT Preferred ETF	—	—
Virtus Cumberland Municipal Bond ETF	—	—
Virtus Glovista Emerging Markets ETF	$639,830	$93,847
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 WMC Global Factor Opportunities ETF	—	—

116

c/o ETF Distributors LLC
1540 Broadway, Suite 1610
New York, NY 10036

8572(12/18)

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.

(a)

Audit Fees

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $183,800 for 2018 and $228,100 for 2017.

(b)

Audit-Related Fees

The aggregate fees billed in each of the last two fiscal years for assurance and related services 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 $0.00 for 2018 and $9,000 for 2017.

The aggregate fees billed in each of the last two fiscal years for assurance and related services that are reasonably related to the performance of the audit of the registrant’s financial statements

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 were $250,413 for 2018 and $188,500 for 2017

(c)

Tax Fees

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 $131,150 for 2018 and $148,550 for 2017.

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 $545,065 for 2018 and $528,565 for 2017.

(d)

All Other Fees.

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 $13,897 for 2018 and $9,000 2017.

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 $413,519 for 2018 and $617,992 for 2017.

(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.

(f)

The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent.

(g)

The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to 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 for each of the last two fiscal years of the registrant were $145,397 for 2018 and $157,550 for 2017.

(h)

Not applicable.

Item 5. Audit Committee of Listed registrants.

The registrant has established a separately-designated standing audit committee comprised of all the independent directors of the registrant. The members of the audit committee are Stephen G. O’Grady, James Simpson, Myles Edwards and Robert S. Tull.

Item 6. Investments.

(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.

(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.

None.

Item 11. Controls and Procedures.

(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)).

(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 registrant’s last fiscal quarter 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)

Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is incorporated by reference to registrant’s Form N-CSR, filed January 8, 2018.

(a)(2)

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)

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

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)*	/s/ William J. Smalley
	William J. Smalley, President and Principal Executive Officer
	(principal executive officer)

Date

1/7/2019

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)*	/s/ William J. Smalley
	William J. Smalley, President and Principal Executive Officer
	(principal executive officer)

Date

1/7/2019

By (Signature and Title)*	/s/ Brinton W. Frith
	Brinton W. Frith, Treasurer and Principal Financial Officer
	(principal financial officer)

Date

1/7/2019

^* Print the name and title of each signing officer under his or her signature.