Virtus Zevenbergen Technology Fund Delivers Stellar Q2 2025 Performance, Outpacing Key Benchmark

Investors seeking exposure to the dynamic technology sector received a significant boost in Q2 2025, as the Virtus Zevenbergen Technology Fund posted an impressive 28.51% return (for the Class INST share class). This robust performance significantly outperformed the S&P North American Technology Index, which registered a return of 23.38% over the same period.

What Drove the Exceptional Gains?

The Fund's success can be attributed to a combination of strategic investment decisions and favorable market conditions. While the broader technology landscape experienced volatility, the Fund's portfolio managers adeptly navigated the challenges, focusing on companies exhibiting strong fundamentals, innovative technologies, and compelling growth prospects. A key element was the Fund’s active management approach, allowing for quick adjustments to capitalize on emerging trends and mitigate potential risks.

Specific sectors contributing to the Fund's outperformance included:

• Artificial Intelligence (AI): Investments in leading AI developers and infrastructure providers yielded substantial returns, reflecting the continued adoption of AI across various industries.
• Cloud Computing: The ongoing shift towards cloud-based solutions propelled gains in companies offering cloud services and related technologies.
• Cybersecurity: Heightened concerns about data security and cyber threats fueled demand for cybersecurity solutions, benefiting companies in this space.
• Semiconductors: Despite supply chain challenges, the demand for semiconductors remained robust, supporting the performance of key semiconductor manufacturers.

A Closer Look at the Portfolio

The Virtus Zevenbergen Technology Fund maintains a diversified portfolio, balancing exposure to established technology giants with investments in high-growth, disruptive companies. This strategy aims to capture both the stability of leading players and the potential for rapid growth offered by emerging innovators. The fund’s managers employ a rigorous research process, focusing on identifying companies with sustainable competitive advantages and strong management teams.

Looking Ahead: Opportunities and Challenges

While the Q2 2025 results were impressive, the technology sector faces ongoing challenges. Inflationary pressures, rising interest rates, and geopolitical uncertainties could impact market sentiment and corporate earnings. However, the long-term growth potential of technology remains undeniable, driven by factors such as digital transformation, automation, and the expanding universe of connected devices.

The Virtus Zevenbergen Technology Fund is well-positioned to navigate these challenges and capitalize on future opportunities. The Fund’s experienced management team, disciplined investment process, and diversified portfolio provide a solid foundation for continued success. Investors looking to participate in the growth of the technology sector should consider the Virtus Zevenbergen Technology Fund as a compelling option.

Disclaimer: Past performance is not indicative of future results. Investment involves risk, including the possible loss of principal. Please consult with a financial advisor before making any investment decisions.