The Virtus Equity & Convertible Income Fund (NIE) is experiencing downward pressure due to a confluence of factors affecting its underlying assets. The broader economic landscape is currently marked by persistent inflation concerns, prompting central banks, particularly the Federal Reserve, to signal potential interest rate hikes. This has led to increased volatility in equity markets as investors reassess their risk appetites. Additionally, the fixed income market is facing headwinds from the anticipated rise in interest rates, which could impact the convertible securities that the fund holds. These macroeconomic conditions are contributing to the current market sentiment and influencing the performance of the assets tracked by the NIE ETF.
The NIE ETF is down 3.48% in pre-market hours on Monday, December 23, falling to $23.01.