ETF Research Center

The Fund seeks investment results that correspond, before fees and expenses, to the price and yield performance of the LifeSci Biotechnology Clinical Trials Index, which tracks the performance of select clinical trials stage biotechnology companies.

FUND BASICS
Category	US Equities
Fund Sponsor	ETFis Capital LLC
Website	www.bioshares.com
Inception date	Dec 17, 2014
Assets (mns)	$25
Currency	USD
Expense ratio	79 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Bank of New York Mellon
Weighting	Equal
Index replication	Full
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	94
Wgt avg mkt cap (mns)	$1,028
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	12.5%
Small cap (<$2bn)	86.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	20.6 %
REATA PHARMACEUTICALS, INC. CLASS	2.6 %
KARYOPHARM THERAPEUTICS INC	2.6 %
ACHILLION PHARMACEUTICALS	2.3 %
DECIPHERA PHARMACEUTICALS, INC.	2.3 %
RA PHARMACEUTICALS, INC.	2.2 %
ALLAKOS, INC.	1.8 %
BEIGENE LTD. SPONSORED ADR	1.7 %
IMMUNOGEN INC	1.7 %
ARROWHEAD PHARMACEUTICALS, INC.	1.7 %
KRYSTAL BIOTECH, INC.	1.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	91.4 %
	CHINA	1.7 %
	BRITAIN	1.5 %
	NETHERLANDS	1.4 %
	SINGAPORE	1.1 %
	IRELAND	1.0 %
	DENMARK	1.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
13.6%	-1.7%	--	--	-0.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.49	37%
MSCI EAFE	1.05	16%
MSCI Emg. Mkts.	0.93	20%

Technical Indicators
Recent close	$27.63
30d moving avg.	$25.40
Annualized volatility	29.6%
Short interest (ETF)	11.4%
Short interest (Underlying)	12.2%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	4
Turnover	0.4%
Bid/Ask (% of price)	0.22%
ADV underlying (mns)	$1,488

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Virtus LifeSci Biotech Clinical Trials ETF based on the alternatives' overlap in portfolio holdings with BBC. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

BBC

Expense:

79 bp

ALTAR Score™:

-13.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH BBC
Ticker	Fund Name	Overlap¹ vs BBC (%)	Expense ratio (bp)	Savings vs BBC (bp)	ALTAR Score™ (%)	ALTAR vs BBC (%)
SBIO	ALPS Medical Breakthroughs	37.8	50	29	-6.1	+7.8
XBI	SPDR S&P Biotech ETF	30.2	35	44	-5.0	+8.9
BTEC	Principal Healthcare Innovators Index	30.0	42	37	-4.5	+9.3
IDNA	iShares Genomics Immunology and Healthcare	15.7	47	32	-4.8	+9.1
IBB	iShares NASDAQ Biotechnology	14.7	47	32	1.3	+15.1
GDNA	Goldman Sachs Motif Human Evolution	14.7	50	29	1.0	+14.8
GNOM	Global X Genomics & Biotechnology	14.3	68	11	-6.4	+7.4
CNCR	Loncar Cancer Immunotherapy	10.7	79	0	-3.8	+10.0
XPH	SPDR S&P Pharmaceuticals ETF	9.7	35	44	4.6	+18.5
PTH	Invesco DWA Healthcare Momentum	9.2	60	19	-1.4	+12.5
IWO	iShares Russell 2000 Growth	7.1	24	55	0.9	+14.7
IEIH	iShares Evolved U.S. Innovative Healthcare	6.9	18	61	4.8	+18.7
VTWG	Vanguard Russell 2000 Growth	6.9	20	59	0.9	+14.7
IWC	iShares Russell Microcap	6.4	60	19	-8.4	+5.5
PQSG	PGIM QMA Strategic Alpha Small-Cap Growth	6.2	29	50	1.3	+15.1
DWAQ	Invesco DWA NASDAQ Momentum Portfolio	5.7	60	19	0.6	+14.4
PBE	Invesco Dynamic Biotechnology & Genome	5.3	57	22	0.0	+13.9
IHE	iShares DJ US Pharmaceuticals	5.2	42	37	5.5	+19.4
PSCH	Invesco S&P Small Cap Health Care	4.7	29	50	2.9	+16.7
RYJ	Invesco Raymond James SB-1	4.6	82	-3	3.0	+16.8

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Virtus LifeSci Biotech Clinical Trials
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	-87.8	%
Divided by: Fwd. P/BV	6.7	x
Less: Expense ratio	79	bp
Equals: ALTAR Score	-13.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.18	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.