Virtus Equity Trust N-CSRS Certified semi-annual shareholder report (management investment company)

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            811-00945                         

                                            Virtus Equity Trust                                        

(Exact name of registrant as specified in charter)

101 Munson Street

                             Greenfield, MA 01301-9668                            

(Address of principal executive offices) (Zip code)

Kevin J. Carr, Esq.

Senior Vice President, Chief Legal Officer, Counsel and Secretary for Registrant

100 Pearl Street

                               Hartford, CT 06103-4506                               

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 243-1574

Date of fiscal year end:  September 30

Date of reporting period:  March 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, 450 Fifth Street, NW, Washington, DC 20549-0609. 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.

SEMIANNUAL REPORT VIRTUS EQUITY TRUST

March 31, 2018

Virtus KAR Capital Growth Fund*

Virtus KAR Global Quality Dividend Fund

Virtus KAR Mid-Cap Core Fund

Virtus KAR Mid-Cap Growth Fund*

Virtus KAR Small-Cap Core Fund

Virtus KAR Small-Cap Growth Fund

Virtus KAR Small-Cap Value Fund

Virtus KAR Small-Mid Cap Core Fund

Virtus Rampart Enhanced Core Equity Fund

Virtus Tactical Allocation Fund

Not FDIC Insured

No Bank Guarantee

May Lose Value

*Prospectus supplements applicable to these Funds appear at the back of this semiannual report.

Table of Contents

Message to Shareholders		1
Disclosure of Fund Expenses		2
Key Investment Terms		5
Portfolio Holdings Summary Weightings		7
Funds	Schedule of Investments
Virtus KAR Capital Growth Fund (“KAR Capital Growth Fund”)		8
Virtus KAR Global Quality Dividend Fund (“KAR Global Quality Dividend Fund”)		9
Virtus KAR Mid-Cap Core Fund (“KAR Mid-Cap Core Fund”)		10
Virtus KAR Mid-Cap Growth Fund (“KAR Mid-Cap Growth Fund”)		11
Virtus KAR Small-Cap Core Fund (“KAR Small-Cap Core Fund”)		12
Virtus KAR Small-Cap Growth Fund (“KAR Small-Cap Growth Fund”)		13
Virtus KAR Small-Cap Value Fund (“KAR Small-Cap Value Fund”)		14
Virtus KAR Small-Mid Cap Core Fund (“KAR Small-Mid Cap Core Fund”)		15
Virtus Rampart Enhanced Core Equity Fund (“Rampart Enhanced Core Equity Fund”)		16
Virtus Tactical Allocation Fund (“Tactical Allocation Fund”)		21
Statements of Assets and Liabilities		33
Statements of Operations		35
Statements of Changes in Net Assets		37
Financial Highlights		42
Notes to Financial Statements		50
Consideration of Advisory and Subadvisory Agreements by The Board of Trustees		64

Proxy Voting Procedures and Voting Record (Form N-PX)

The subadvisers vote proxies relating to portfolio securities in accordance with procedures that have been approved by the Board of Trustees of the Trust (“Trustees,” or the “Board”). You may obtain a description of these procedures, along with information regarding how the Funds voted proxies during the most recent 12-month period ended June 30, free of charge, by calling toll-free 1-800-243-1574. This information is also available through the Securities and Exchange Commission’s (the “SEC”) website at http://www.sec.gov.

Form N-Q Information

The Trust files a complete schedule of portfolio holdings for each Fund with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC’s Public Reference Room. Information on the operation of the SEC’s Public Reference Room can be obtained by calling toll-free 1-800-SEC-0330.

This report is not authorized for distribution to prospective investors in the Funds of Virtus Equity Trust unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, each Fund’s record and other pertinent information.

MESSAGE TO SHAREHOLDERS

To My Fellow Shareholders of Virtus Mutual Funds:

I am pleased to present this semiannual report that reviews the performance of your fund for the six months ended March 31, 2018.

Economic growth and strong corporate earnings were driving forces in the U.S. during the period, capped off by the sweeping tax overhaul that was signed into law at year-end. The optimism carried over into the start of 2018. However, with growth heating up, inflation fears caused stock markets to plunge in early February, ushering in the return of volatility after being conspicuously absent throughout 2017. Concerns over a potential global trade war, sparked by tariff talk by the Trump administration, caused markets to remain unsettled. Meanwhile, persistent economic strength moved the Federal Reserve to hike its key interest rate in March from 1.50% to 1.75%, its highest level in nearly a decade.

For the six months ended March 31, 2018, U.S. large-cap stocks, as measured by the S&P 500^® Index, returned 5.84%, outpacing small-cap stocks, which returned 3.25%, as measured by the Russell 2000^® Index. Within international equities, emerging markets led their developed peers, with the MSCI Emerging Markets Index (net) up 8.96%, compared with the MSCI EAFE^® Index (net), which returned 2.63%.

Demand for U.S. Treasuries remained strong, as foreign investors continued to favor their yield advantage and credit quality over many foreign government bonds. The yield on the 10-year Treasury was 2.74% at March 31, 2018, up from 2.33% at September 30, 2017. The broader U.S. fixed income market, as represented by the Bloomberg Barclays U.S. Aggregate Bond Index, which tracks Treasuries and other investment-grade debt securities, declined 1.08% for the six months. Non-investment grade bonds also lost ground but to a lesser extent, down 0.39%, as measured by the Bloomberg Barclays U.S. Corporate High Yield Bond Index.

Market uncertainty is an ever-present reminder of the importance of portfolio diversification, including exposure to traditional and alternative asset classes. While diversification cannot guarantee a profit or prevent a loss, owning a variety of asset classes may cushion your portfolio against inevitable market fluctuations. Your financial advisor can help you ensure that your portfolio is adequately diversified across asset classes and investment strategies, with a broad array of Virtus Funds available through your fund exchange privileges. These include distinctive equity, fixed income, international, and asset allocation funds managed by Virtus affiliates and select subadvisers. We invite you to learn more about the Virtus family of funds at Virtus.com.

On behalf of our investment affiliates, thank you for entrusting the Virtus Funds with your assets. Should you have questions about your account or require assistance, please visit Virtus.com, or call our customer service team at 1-800-243-1574. We appreciate your business and remain committed to your long-term financial success.

Sincerely,

George R. Aylward

President, Virtus Mutual Funds

May 2018

Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above.

1

VIRTUS EQUITY TRUST

DISCLOSURE OF FUND EXPENSES (Unaudited)

FOR THE SIX-MONTH PERIOD OF OCTOBER 1, 2017 TO MARCH 31, 2018

We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of a Virtus Equity Trust Fund (each, a “Fund”) you may incur two types of costs; (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class C shares; and (2) ongoing costs, including investment advisory fees, distribution, and other expenses. Class I shares and Class R6 shares are sold without a sales charge and do not incur distribution and service fees. Class R6 shares also do not incur shareholder servicing fees. For further information regarding applicable sales charges, see Note 1 in the Notes to Financial Statements. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period.

Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the accompanying tables are useful in comparing ongoing 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. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information below, 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 table under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

		Beginning Account Value October 1, 2017		Ending Account Value March 31, 2018		Annualized Expense Ratio			Expenses Paid During Period*
KAR Capital Growth Fund	Class A	$	1,000.00	$	1,105.10		1.24	%	$	6.51
	Class C		1,000.00		1,100.60		2.01			10.53
	Class I		1,000.00		1,106.70		0.99			5.20
	Class R6†		1,000.00		951.80		0.90			1.44
KAR Global Quality Dividend Fund	Class A		1,000.00		997.10		1.35			6.72
	Class C		1,000.00		994.20		2.09			10.39
	Class I		1,000.00		998.90		1.10			5.48
KAR Mid-Cap Core Fund	Class A		1,000.00		1,107.70		1.20			6.31
	Class C		1,000.00		1,103.90		1.95			10.23
	Class I		1,000.00		1,109.40		0.95			5.00
	Class R6†		1,000.00		958.80		0.87			1.40
KAR Mid-Cap Growth Fund	Class A		1,000.00		1,181.30		1.39			7.56
	Class C		1,000.00		1,177.30		2.14			11.62
	Class I		1,000.00		1,183.20		1.14			6.21
	Class R6†		1,000.00		1,006.90		1.06			1.75
KAR Small-Cap Core Fund	Class A		1,000.00		1,164.90		1.27			6.85
	Class C		1,000.00		1,160.50		2.01			10.83
	Class I		1,000.00		1,166.30		1.00			5.40
	Class R6		1,000.00		1,166.90		0.93			5.02
KAR Small-Cap Growth Fund	Class A		1,000.00		1,160.80		1.37			7.38
	Class C		1,000.00		1,156.60		2.11			11.34
	Class I		1,000.00		1,162.50		1.11			5.98
	Class R6†		1,000.00		1,008.10		1.03			1.70
KAR Small-Cap Value Fund	Class A		1,000.00		1,016.40		1.28			6.43
	Class C		1,000.00		1,013.10		1.99			9.99
	Class I		1,000.00		1,018.20		0.99			4.98
	Class R6		1,000.00		1,018.40		0.91			4.58
KAR Small-Mid Cap Core Fund**	Class A		1,000.00		980.00		1.30			0.81
	Class C		1,000.00		979.00		2.05			1.28
	Class I		1,000.00		980.00		1.05			0.66
	Class R6		1,000.00		980.00		0.97			0.61

2

VIRTUS EQUITY TRUST

DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)

FOR THE SIX-MONTH PERIOD OF OCTOBER 1, 2017 TO MARCH 31, 2018

		Beginning Account Value October 1, 2017		Ending Account Value March 31, 2018		Annualized Expense Ratio			Expenses Paid During Period*
Rampart Enhanced Core Equity Fund	Class A	$	1,000.00	$	983.10		1.20	%	$	5.93
	Class C		1,000.00		979.40		1.95			9.62
	Class I		1,000.00		984.20		0.95			4.70
	Class R6†		1,000.00		900.00		0.90			1.41
Tactical Allocation Fund	Class A		1,000.00		1,057.80		1.27			6.52
	Class C		1,000.00		1,054.30		2.04			10.45

* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (182) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.

^†  January 31, 2018 is the date the class started accruing expenses. Expenses are equal to the Class’ annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (60) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.

** March 9, 2018, is the date the Fund started accruing expenses. Expenses are equal to the Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (23) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.

Each Fund may invest in other funds and the annualized expense ratios noted above do not reflect fees and expenses associated with the underlying funds. If such fees and expenses had been included, the expense ratios would have been higher.

You can find more information about a Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to that Fund’s prospectus.

3

VIRTUS EQUITY TRUST

DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)

FOR THE SIX-MONTH PERIOD OF OCTOBER 1, 2017 TO MARCH 31, 2018

Hypothetical Example for Comparison Purposes

The table below 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 your 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 this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.

		Beginning Account Value October 1, 2017		Ending Account Value March 31, 2018		Annualized Expense Ratio			Expenses Paid During Period*
KAR Capital Growth Fund	Class A	$	1,000.00	$	1,018.55		1.24	%	$	6.24
	Class C		1,000.00		1,014.91		2.01			10.10
	Class I		1,000.00		1,020.00		0.99			4.99
	Class R6		1,000.00		1,020.44		0.90			4.53
KAR Global Quality Dividend Fund	Class A		1,000.00		1,018.20		1.35			6.79
	Class C		1,000.00		1,014.51		2.09			10.50
	Class I		1,000.00		1,019.45		1.10			5.54
KAR Mid-Cap Core Fund	Class A		1,000.00		1,018.95		1.20			6.04
	Class C		1,000.00		1,015.21		1.95			9.80
	Class I		1,000.00		1,020.19		0.95			4.78
	Class R6		1,000.00		1,020.59		0.87			4.38
KAR Mid-Cap Growth Fund	Class A		1,000.00		1,018.00		1.39			6.99
	Class C		1,000.00		1,014.26		2.14			10.75
	Class I		1,000.00		1,019.25		1.14			5.74
	Class R6		1,000.00		1,019.65		1.06			5.34
KAR Small-Cap Core Fund	Class A		1,000.00		1,018.60		1.27			6.39
	Class C		1,000.00		1,014.91		2.01			10.10
	Class I		1,000.00		1,019.95		1.00			5.04
	Class R6		1,000.00		1,020.29		0.93			4.68
KAR Small-Cap Growth Fund	Class A		1,000.00		1,018.10		1.37			6.89
	Class C		1,000.00		1,014.41		2.11			10.60
	Class I		1,000.00		1,019.40		1.11			5.59
	Class R6		1,000.00		1,019.80		1.03			5.19
KAR Small-Cap Value Fund	Class A		1,000.00		1,018.55		1.28			6.44
	Class C		1,000.00		1,015.01		1.99			10.00
	Class I		1,000.00		1,020.00		0.99			4.99
	Class R6		1,000.00		1,020.39		0.91			4.58
KAR Small-Mid Cap Core Fund	Class A		1,000.00		1,018.45		1.30			6.54
	Class C		1,000.00		1,014.71		2.05			10.30
	Class I		1,000.00		1,019.70		1.05			5.29
	Class R6		1,000.00		1,020.09		0.97			4.89
Rampart Enhanced Core Equity Fund	Class A		1,000.00		1,018.95		1.20			6.04
	Class C		1,000.00		1,015.21		1.95			9.80
	Class I		1,000.00		1,020.19		0.95			4.78
	Class R6		1,000.00		1,020.44		0.90			4.53
Tactical Allocation Fund	Class A		1,000.00		1,018.60		1.27			6.39
	Class C		1,000.00		1,014.76		2.04			10.25

* Expenses are equal to the relevant Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (182) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.

Each Fund may invest in other funds, and the annualized expense ratios noted above do not reflect fees and expenses associated with the underlying funds. If such fees and expenses had been included, the expense ratios would have been higher.

You can find more information about a Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to that Fund’s prospectus.

4

VIRTUS EQUITY TRUST

KEY INVESTMENT TERMS (Unaudited)

MARCH 31, 2018

American Depositary Receipt (“ADR”)

Represents shares of foreign companies traded in U.S. dollars on U.S. exchanges that are held by a U.S. bank or a trust. Foreign companies use ADRs in order to make it easier for Americans to buy their shares.

Bloomberg Barclays U.S. Aggregate Bond Index

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 it is not available for direct investment.

Bloomberg Barclays U.S. Corporate High Yield Bond Index

The Bloomberg Barclays U.S. Corporate High Yield Bond Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate 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 it is not available for direct investment.

Exchange-Traded Funds (“ETF”)

An open-end fund that is traded on a stock exchange. Most ETFs have a portfolio of stocks or bonds that track a specific market index.

Federal Reserve (the “Fed”)

The Central Bank of the U.S., the Fed is responsible for controlling money supply, interest rates and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Reserve Banks, 25 Branches and all national and state banks that are part of the system.

London Interbank Offered Rate (“LIBOR”)

A benchmark rate that some of the world’s leading banks charge each other for short-term loans and that serves as the first step to calculating interest rates on various loans throughout the world.

MSCI EAFE^® Index (net)

The MSCI EAFE^® (“Europe, Australasia, Far East”) Index (net) is a free float-adjusted market capitalization-weighted index that measures developed foreign market equity performance, excluding the U.S. and Canada. 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 it is not available for direct investment.

MSCI Emerging Markets Index (net)

The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization-weighted index designed to measure equity market performance in the global 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 it is not available for direct investment.

Payment-in-Kind Security (“PIK”)

A bond which pays interest in the form of additional bonds, or preferred stock which pays dividends in the form of additional preferred stock.

Real Estate Investment Trust (“REIT”)

A publicly traded company that owns, develops and operates income-producing real estate such as apartments, office buildings, hotels, shopping centers and other commercial properties.

Russell 2000^® Index

The Russell 2000^® Index is a market capitalization-weighted index of the 2,000 smallest companies in the Russell Universe, which comprises the 3,000 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 it is not available for direct investment.

5

VIRTUS EQUITY TRUST

KEY INVESTMENT TERMS (Unaudited) (Continued)

MARCH 31, 2018

S&P 500^® Index

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 it is not available for direct investment.

Sponsored ADR

An ADR which is issued with the cooperation of the company whose stock will underlie the ADR. Sponsored ADRs generally carry the same rights normally given to stockholders, such as voting rights. ADRs must be sponsored to be able to trade on a major U.S. exchange such as the New York Stock Exchange (“NYSE”).

6

VIRTUS EQUITY TRUST

PORTFOLIO HOLDINGS SUMMARY WEIGHTINGS (Unaudited)

MARCH 31, 2018

For each Fund, the following tables present asset allocations within certain sectors as a percentage of total investments as of March 31, 2018.

KAR Capital Growth Fund
Information Technology	39	%
Consumer Discretionary	25
Health Care	9
Industrials	8
Financials	7
Consumer Staples	5
Energy	4
Other (includes short-term investment)	3
Total	100	%

KAR Global Quality Dividend Fund
Financials	20	%
Telecommunication Services	12
Energy	11
Industrials	10
Consumer Staples	9
Health Care	9
Utilities	9
Other (includes short-term investment)	20
Total	100	%

KAR Mid-Cap Core Fund
Industrials	24	%
Healthcare	20
Information Technology	18
Financials	15
Consumer Discretionary	8
Consumer Staples	8
Energy	3
Other (includes short-term investment)	4
Total	100	%

KAR Mid-Cap Growth Fund
Information Technology	37	%
Consumer Discretionary	21
Health Care	13
Financials	8
Consumer Staples	8
Industrials	7
Energy	3
Other (includes short-term investment)	3
Total	100	%

KAR Small-Cap Core Fund
Industrials	30	%
Information Technology	26
Financials	17
Consumer Discretionary	5
Energy	4
Real Estate	4
Health Care	4
Other (includes short-term investment)	10
Total	100	%

KAR Small-Cap Growth Fund
Information Technology	31	%
Industrials	18
Financials	16
Consumer Discretionary	11
Health Care	6
Consumer Staples	4
Short-term investment	14
Total	100	%

KAR Small-Cap Value Fund
Industrials	21	%
Financials	17
Consumer Discretionary	14
Information Technology	13
Real Estate	13
Consumer Staples	6
Materials	4
Other (includes short-term investment)	12
Total	100	%

KAR Small-Mid Cap Core Fund
Industrials	33	%
Information Technology	20
Financials	19
Health Care	11
Consumer Discretionary	9
Energy	6
Materials	2
Total	100	%

Rampart Enhanced Core Equity Fund
Information Technology	25	%
Financials	15
Consumer Discretionary	13
Health Care	12
Industrials	10
Consumer Staples	7
Energy	5
Other (includes short-term investments, and written options)	13
Total	100	%

Tactical Allocation Fund
Common Stocks			61	%
Information Technology	19	%
Consumer Discretionary	13
Financials	8
All Other Sectors in Common Stocks	21
Corporate Bonds and Notes			20
Energy	5
Financials	4
Consumer Discretionary	3
All Other Sectors in Corporate Bonds and Notes	8
Mortgage-Backed Securities			5
Foreign Government Securities			4
Leveraged Loans			3
Asset-Backed Securities			2
Other (includes short-term investment)			5
Total			100	%

7

VIRTUS KAR CAPITAL GROWTH FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—98.4%
Consumer Discretionary—24.6%
Amazon.com, Inc.(1)		21,602	$	31,266
Booking Holdings, Inc.(1)		3,796		7,897
Ctrip.com International Ltd. ADR(1)		173,800		8,103
Home Depot, Inc. (The)		57,755		10,294
Las Vegas Sands Corp.		214,043		15,390
McDonald’s Corp.		43,300		6,771
Netflix, Inc.(1)		68,410		20,205
NIKE, Inc. Class B		148,090		9,839
Ross Stores, Inc.		117,866		9,191
Starbucks Corp.		164,421		9,518
				128,474
Consumer Staples—5.3%
Monster Beverage Corp.(1)		295,723		16,918
Philip Morris International, Inc.		107,587		10,694
				27,612
Energy—3.9%
Cabot Oil & Gas Corp.		315,771		7,572
Core Laboratories N.V.		48,749		5,276
Pioneer Natural Resources Co.		43,940		7,548
				20,396
Financials—7.2%
Bank of America Corp.		576,780		17,298
Charles Schwab Corp. (The)		145,678		7,607
MarketAxess Holdings, Inc.		32,880		7,150
SEI Investments Co.		70,930		5,313
				37,368
Health Care—9.0%
BioMarin Pharmaceutical, Inc.(1)		45,206		3,665
Bluebird Bio, Inc.(1)		39,000		6,659

	SHARES		VALUE
Health Care—continued
Danaher Corp.		79,102	$	7,745
HealthEquity, Inc.(1)		142,130		8,605
Illumina, Inc.(1)		36,500		8,629
Zoetis, Inc.		141,517		11,818
				47,121
Industrials—7.7%
Caterpillar, Inc.		64,790		9,549
CoStar Group, Inc.(1)		23,051		8,360
Kansas City Southern		67,520		7,417
Rockwell Automation, Inc.		25,240		4,397
Roper Technologies, Inc.		36,939		10,368
				40,091
Information Technology—38.7%
Accenture plc Class A		53,458		8,206
Activision Blizzard, Inc.		131,480		8,870
Alibaba Group Holding Ltd. Sponsored ADR(1)		171,560		31,488
Alphabet, Inc. Class A(1)		5,427		5,629
Amphenol Corp. Class A		166,048		14,302
Arista Networks, Inc.(1)		18,810		4,802
Facebook, Inc. Class A(1)		168,110		26,862
Gartner, Inc.(1)		42,840		5,039
MercadoLibre, Inc.		15,970		5,691
NVIDIA Corp.		85,350		19,766
Paycom Software, Inc.(1)		105,062		11,283
Tencent Holdings Ltd. ADR		256,950		13,693
Visa, Inc. Class A		166,654		19,935
Workday, Inc. Class A(1)		96,091		12,214
Yandex N.V. Class A(1)		354,114		13,970
				201,750
Materials—2.0%
Ecolab, Inc.		75,006		10,281
TOTAL COMMON STOCKS (Identified Cost $275,463)				513,093
TOTAL LONG-TERM INVESTMENTS—98.4%
(Identified Cost $275,463)				513,093

	SHARES		VALUE
SHORT-TERM INVESTMENT—1.6%
Money Market Mutual Fund—1.6%
Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.540%)(2)		8,213,001	$	8,213
TOTAL SHORT-TERM INVESTMENT (Identified Cost $8,213)				8,213
TOTAL INVESTMENTS—100.0% (Identified Cost $283,676)				521,306
Other assets and liabilities, net—0.0%				(83	)
NET ASSETS—100.0%			$	521,223

Abbreviation:

ADR American Depositary Receipt

Footnote Legend:

⁽¹⁾ Non-income producing.

⁽²⁾ Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

Country Weightings†
United States	87	%
China	10
Russia	3
Total	100	%
† % of total investments as of March 31, 2018.

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018		Level 1 Quoted Prices
Equity Securities:
Common Stocks	$	513,093	$	513,093
Short-Term Investment		8,213		8,213
Total Investment	$	521,306	$	521,306

There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at March 31, 2018.

For information regarding the abbreviation, see the Key Investment Terms starting on page 5.

See Notes to Financial Statements

8

VIRTUS KAR GLOBAL QUALITY DIVIDEND FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—98.9%
Consumer Discretionary—4.6%
Compass Group plc Sponsored ADR		18,598	$	388
Las Vegas Sands Corp.		18,540		1,333
				1,721
Consumer Staples—9.0%
Altria Group, Inc.		11,626		725
British American Tobacco plc Sponsored ADR		7,820		451
Clorox Co. (The)		3,000		399
Coca-Cola Co. (The)		17,280		750
Imperial Brands plc		12,400		422
Imperial Brands plc Sponsored ADR		16,990		589
				3,336
Energy—10.6%
Royal Dutch Shell plc Class B Sponsored ADR		26,020		1,705
TOTAL S.A. Sponsored ADR		18,570		1,071
Vermilion Energy, Inc.		35,640		1,151
				3,927
Financials—20.2%
Bank of Hawaii Corp.		6,179		513
CI Financial Corp.		26,957		576
HSBC Holdings plc Sponsored ADR		33,540		1,599
Royal Bank of Canada		16,370		1,265
SCOR SE Sponsored ADR		313,110		1,281
Tokio Marine Holdings, Inc.		14,230		633
Zurich Insurance Group AG ADR		50,657		1,661
				7,528
Health Care—8.6%
AstraZeneca plc Sponsored ADR		34,210		1,196
GlaxoSmithKline plc		20,100		393
GlaxoSmithKline plc Sponsored ADR		27,096		1,059
Sonic Healthcare Ltd. Sponsored ADR		32,270		566
				3,214

	SHARES		VALUE
Industrials—10.1%
ABB Ltd. Registered Shares		24,020	$	571
Air New Zealand Ltd.		318,970		747
BAE Systems plc Sponsored ADR		30,100		1,001
Deutsche Post AG Registered Shares		8,535		373
Port of Tauranga Ltd.		88,200		306
Waste Management, Inc.		4,428		373
Watsco, Inc.		2,240		405
				3,776
Information Technology—5.5%
Analog Devices, Inc.		5,620		512
Cisco Systems, Inc.		8,520		365
Paychex, Inc.		7,040		434
Tieto OYJ		21,600		720
				2,031
Materials—1.8%
BASF SE Sponsored ADR		26,080		662
Real Estate—8.1%
Crown Castle International Corp.		8,800		965
Lamar Advertising Co. Class A		17,070		1,087
Realty Income Corp.		18,530		958
				3,010
Telecommunication Services—11.8%
AT&T, Inc.		33,089		1,179
BCE, Inc.		39,170		1,686
Spark New Zealand Ltd.		629,220		1,527
				4,392
Utilities—8.6%
Duke Energy Corp.		15,470		1,199
Fortis, Inc.		31,370		1,059
WEC Energy Group, Inc.		14,950		937
				3,195
TOTAL COMMON STOCKS (Identified Cost $35,858)				36,792
TOTAL LONG-TERM INVESTMENTS—98.9%
(Identified Cost $35,858)				36,792

	SHARES		VALUE
SHORT-TERM INVESTMENT—0.6%
Money Market Mutual Fund—0.6%
Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.540%)(1)		214,690	$	215
TOTAL SHORT-TERM INVESTMENT (Identified Cost $215)				215
TOTAL INVESTMENTS—99.5% (Identified Cost $36,073)				37,007
Other assets and liabilities, net—0.5%				182
NET ASSETS—100.0%			$	37,189

Abbreviation:

ADR American Depositary Receipt

Footnote Legend:

⁽¹⁾ Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

Country Weightings†
United States	33	%
United Kingdom	24
Canada	16
New Zealand	7
France	6
Switzerland	6
Germany	3
Other	5
Total	100	%
† % of total investments as of March 31, 2018.

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018		Level 1 Quoted Prices		Level 2 Significant Observable Inputs
Equity Securities:
Common Stocks	$	36,792	$	34,212	$	2,580
Short-Term Investment		215		215		—
Total Investments	$	37,007	$	34,427	$	2,580

There were no securities valued using significant unobservable inputs (Level 3) at March 31, 2018.

Securities held by the Fund with an end of period value of $1,859, from Level 1 to Level 2 based on our valuation procedures for non-U.S. securities and there were no transfers into or out of Level 3 related to securities held at March 31, 2018 .

For information regarding the abbreviation, see the Key Investment Terms starting on page 5.

See Notes to Financial Statements

9

VIRTUS KAR MID-CAP CORE FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—97.4%
Consumer Discretionary—8.2%
Ross Stores, Inc.		47,954	$	3,740
Tractor Supply Co.		95,800		6,037
Wynn Resorts Ltd.		12,982		2,367
				12,144
Consumer Staples—8.1%
Lamb Weston Holdings, Inc.		77,700		4,524
Monster Beverage Corp.(1)		129,349		7,400
				11,924
Energy—3.1%
Core Laboratories N.V.		42,985		4,652
Financials—14.5%
Bank of The Ozarks, Inc.		121,650		5,872
First Financial Bankshares, Inc.		62,265		2,883
Houlihan Lokey, Inc.		78,600		3,505
Moody’s Corp.		21,785		3,514
Signature Bank(1)		40,554		5,757
				21,531
Health Care—19.9%
AMN Healthcare Services, Inc.(1)		90,100		5,113
Cooper Cos., Inc. (The)		25,858		5,916
Globus Medical, Inc. Class A(1)		162,900		8,116
West Pharmaceutical Services, Inc.		30,950		2,733

	SHARES		VALUE
Health Care—continued
Zoetis, Inc.		90,324	$	7,543
				29,421
Industrials—23.7%
AMETEK, Inc.		100,700		7,650
Exponent, Inc.		39,740		3,126
Graco, Inc.		125,665		5,745
Lennox International, Inc.		21,400		4,374
Nordson Corp.		38,517		5,251
Verisk Analytics, Inc.(1)		29,000		3,016
WABCO Holdings, Inc.(1)		44,105		5,904
				35,066
Information Technology—17.9%
Amphenol Corp. Class A		70,583		6,079
Aspen Technology, Inc.(1)		88,192		6,958
Broadridge Financial Solutions, Inc.		57,160		6,270
Manhattan Associates, Inc.(1)		95,900		4,016
Skyworks Solutions, Inc.		31,810		3,189
				26,512
Materials—2.0%
International Flavors & Fragrances, Inc.		22,139		3,031
TOTAL COMMON STOCKS (Identified Cost $113,857)				144,281
TOTAL LONG-TERM INVESTMENTS—97.4%
(Identified Cost $113,857)				144,281

	SHARES		VALUE
SHORT-TERM INVESTMENT—2.5%
Money Market Mutual Fund—2.5%
Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.540%)(2)		3,738,851	$	3,739
TOTAL SHORT-TERM INVESTMENT (Identified Cost $3,739)				3,739
TOTAL INVESTMENTS—99.9% (Identified Cost $117,596)				148,020
Other assets and liabilities, net—0.1%				160
NET ASSETS—100.0%			$	148,180

Footnote Legend:

⁽¹⁾ Non-income producing.

⁽²⁾ Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018		Level 1 Quoted Prices
Equity Securities:
Common Stocks	$	144,281	$	144,281
Short-Term Investment		3,739		3,739
Total Investments	$	148,020	$	148,020

There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at March 31, 2018.

See Notes to Financial Statements

10

VIRTUS KAR MID-CAP GROWTH FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—98.4%
Consumer Discretionary—20.9%
Ctrip.com International Ltd. ADR(1)		47,965	$	2,236
Domino’s Pizza, Inc.		14,065		3,285
Expedia Group, Inc.		11,421		1,261
Netflix, Inc.(1)		23,390		6,908
Pool Corp.		24,725		3,615
Ross Stores, Inc.		28,885		2,253
Under Armour, Inc. Class A(1)		68,000		1,112
Wynn Resorts Ltd.		16,530		3,014
				23,684
Consumer Staples—7.5%
Brown-Forman Corp. Class B		50,425		2,743
McCormick & Co., Inc.		14,440		1,536
Monster Beverage Corp.(1)		73,970		4,232
				8,511
Energy—2.6%
Cabot Oil & Gas Corp.		56,345		1,351
Core Laboratories N.V.		14,070		1,523
				2,874
Financials—8.5%
MarketAxess Holdings, Inc.		18,010		3,916
Northern Trust Corp.		17,410		1,796
SEI Investments Co.		15,200		1,139
Victory Capital Holdings, Inc. Class A(1)		80,266		987
Worldpay, Inc. Class A(1)		21,500		1,768
				9,606
Health Care—13.0%
BioMarin Pharmaceutical, Inc.(1)		16,910		1,371
Bluebird Bio, Inc.(1)		5,900		1,007
Diplomat Pharmacy, Inc.(1)		78,860		1,589

	SHARES		VALUE
Health Care—continued
HealthEquity, Inc.(1)		57,800	$	3,499
Illumina, Inc.(1)		10,385		2,455
Mettler-Toledo International, Inc.(1)		1,530		880
Teladoc, Inc.(1)		33,550		1,352
Zoetis, Inc.		31,140		2,601
				14,754
Industrials—7.2%
CoStar Group, Inc.(1)		5,480		1,987
Kansas City Southern		13,090		1,438
Rockwell Automation, Inc.		8,030		1,399
Roper Technologies, Inc.		7,550		2,119
SiteOne Landscape Supply, Inc.(1)		15,600		1,202
				8,145
Information Technology—37.2%
Amphenol Corp. Class A		38,925		3,353
Appian Corp.(1)		58,670		1,477
Arista Networks, Inc.(1)		4,100		1,047
Autohome, Inc. ADR		47,300		4,065
Cargurus, Inc.(1)		35,484		1,365
Ellie Mae, Inc.(1)		35,190		3,235
Fair Isaac Corp.(1)		10,180		1,724
FleetCor Technologies, Inc.(1)		11,000		2,227
Gartner, Inc.(1)		23,245		2,734
MercadoLibre, Inc.		7,755		2,764
MuleSoft, Inc. Class A(1)		39,308		1,729
Okta, Inc.(1)		43,565		1,736
Paycom Software, Inc.(1)		30,820		3,310
Teradyne, Inc.		38,560		1,762
Workday, Inc. Class A(1)		23,760		3,020
Yandex N.V. Class A(1)		83,845		3,308
Yelp, Inc.(1)		50,570		2,111
Zscaler, Inc.(1)		39,000		1,095
				42,062

	SHARES		VALUE
Materials—1.5%
Ball Corp.		43,280	$	1,719
TOTAL COMMON STOCKS (Identified Cost $60,739)				111,355
TOTAL LONG-TERM INVESTMENTS—98.4%
(Identified Cost $60,739)				111,355
SHORT-TERM INVESTMENT—1.6%
Money Market Mutual Fund—1.6%
Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.540%)(2)		1,766,666		1,767
TOTAL SHORT-TERM INVESTMENT (Identified Cost $1,767)				1,767
TOTAL INVESTMENTS—100.0% (Identified Cost $62,506)				113,122
Other assets and liabilities, net—0.0%				50
NET ASSETS—100.0%			$	113,172

Abbreviation:

ADR American Depositary Receipt

Footnote Legend:

⁽¹⁾ Non-income producing.

⁽²⁾ Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

Country Weightings†
United States	91	%
China	6
Russia	3
Total	100	%
† % of total investments as of March 31, 2018.

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018		Level 1 Quoted Prices
Equity Securities:
Common Stocks	$	111,355	$	111,355
Short-Term Investment		1,767		1,767
Total Investments	$	113,122	$	113,122

There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at March 31, 2018.

For information regarding the abbreviation, see the Key Investment Terms starting on page 5.

See Notes to Financial Statements

11

VIRTUS KAR SMALL-CAP CORE FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—93.8%
Consumer Discretionary—4.6%
Fox Factory Holding Corp.(1)		330,157	$	11,522
Pool Corp.		280,390		40,999
				52,521
Consumer Staples—1.9%
PriceSmart, Inc.		254,200		21,238
Energy—4.3%
Core Laboratories N.V.		133,100		14,404
Dril-Quip, Inc.(1)		785,040		35,170
				49,574
Financials—17.4%
Artisan Partners Asset Management, Inc. Class A		783,000		26,074
FactSet Research Systems, Inc.		171,940		34,288
MarketAxess Holdings, Inc.		161,932		35,211
Moelis & Co. Class A		718,560		36,539
Primerica, Inc.		557,712		53,875
RLI Corp.		214,708		13,610
				199,597
Health Care—4.0%
Abaxis, Inc.		652,100		46,051
Industrials—29.9%
Copart, Inc.(1)		1,325,500		67,508
Donaldson Co., Inc.		480,200		21,633
Graco, Inc.		885,600		40,490

	SHARES		VALUE
Industrials—continued
Old Dominion Freight Line, Inc.		375,530	$	55,192
RBC Bearings, Inc.(1)		251,259		31,206
Teledyne Technologies, Inc.(1)		280,800		52,557
Toro Co. (The)		461,280		28,807
WABCO Holdings, Inc.(1)		340,650		45,603
				342,996
Information Technology—25.9%
Aspen Technology, Inc.(1)		597,200		47,113
Autohome, Inc. ADR		1,200,600		103,180
CDW Corp.		734,900		51,671
Jack Henry & Associates, Inc.		217,800		26,343
Manhattan Associates, Inc.(1)		279,320		11,698
Rightmove plc		940,200		57,341
				297,346
Materials—1.5%
AptarGroup, Inc.		190,400		17,104
Real Estate—4.3%
HFF, Inc. Class A		985,300		48,969
TOTAL COMMON STOCKS (Identified Cost $784,349)				1,075,396
TOTAL LONG-TERM INVESTMENTS—93.8%
(Identified Cost $784,349)				1,075,396

	SHARES		VALUE
SHORT-TERM INVESTMENT—6.8%
Money Market Mutual Fund—6.8%
Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.540%)(2)		77,493,081	$	77,493
TOTAL SHORT-TERM INVESTMENT (Identified Cost $77,493)				77,493
TOTAL INVESTMENTS—100.6% (Identified Cost $861,842)				1,152,889
Other assets and liabilities, net—(0.6)%				(6,309	)
NET ASSETS—100.0%			$	1,146,580

Abbreviation:

ADR American Depositary Receipt

Footnote Legend:

⁽¹⁾ Non-income producing.

⁽²⁾ Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

Country Weightings†
United States	86	%
China	9
United Kingdom	5
Total	100	%
† % of total investments as of March 31, 2018.

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018		Level 1 Quoted Prices
Equity Securities:
Common Stocks	$	1,075,396	$	1,075,396
Short-Term Investment		77,493		77,493
Total Investments	$	1,152,889	$	1,152,889

There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at March 31, 2018.

For information regarding the abbreviation, see the Key Investment Terms starting on page 5.

See Notes to Financial Statements

12

VIRTUS KAR SMALL-CAP GROWTH FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—85.8%
Consumer Discretionary—10.9%
Emerald Expositions Events, Inc.		1,920,700	$	37,415
Fox Factory Holding Corp.(1)		3,522,978		122,952
Ollie’s Bargain Outlet Holdings, Inc.(1)		1,896,957		114,387
				274,754
Consumer Staples—4.3%
Chefs’ Warehouse, Inc. (The)(1)		2,615,700		60,161
PriceSmart, Inc.		595,200		49,729
				109,890
Financials—16.2%
FactSet Research Systems, Inc.		329,350		65,679
Financial Engines, Inc.		350,651		12,273
Interactive Brokers Group, Inc. Class A		1,593,916		107,175
MarketAxess Holdings, Inc.		282,500		61,427
Moelis & Co. Class A		1,746,900		88,830
Morningstar, Inc.		773,612		73,895
				409,279
Health Care—6.4%
Abaxis, Inc.		1,035,800		73,148
National Research Corp. Class A		1,771,305		51,811

	SHARES		VALUE
Health Care—continued
U.S. Physical Therapy, Inc.		460,000	$	37,398
				162,357
Industrials—17.4%
AAON, Inc.		1,259,400		49,116
Copart, Inc.(1)		2,191,200		111,598
HEICO Corp. Class A		1,622,530		115,118
Old Dominion Freight Line, Inc.		816,600		120,016
Omega Flex, Inc.		688,526		44,823
				440,671
Information Technology—30.6%
ANSYS, Inc.(1)		445,100		69,743
Aspen Technology, Inc.(1)		1,253,000		98,849
Auto Trader Group plc		24,917,000		122,564
Autohome, Inc. ADR		2,696,400		231,729
Ellie Mae, Inc.(1)		532,250		48,935
Mesa Laboratories, Inc.		84,608		12,559
NVE Corp.		483,690		40,199
Paycom Software, Inc.(1)		418,500		44,943
Rightmove plc		1,705,000		103,985
				773,506
TOTAL COMMON STOCKS (Identified Cost $1,618,821)				2,170,457
TOTAL LONG-TERM INVESTMENTS—85.8%
(Identified Cost $1,618,821)				2,170,457

	SHARES		VALUE
SHORT-TERM INVESTMENT—13.9%
Money Market Mutual Fund—13.9%
Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.540%)(2)		351,269,530	$	351,270
TOTAL SHORT-TERM INVESTMENT (Identified Cost $351,270)				351,270
TOTAL INVESTMENTS—99.7% (Identified Cost $1,970,091)				2,521,727
Other assets and liabilities, net—0.3%				8,833
NET ASSETS—100.0%			$	2,530,560

Abbreviation:

ADR American Depositary Receipt

Footnote Legend:

⁽¹⁾ Non-income producing.

⁽²⁾ Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

Country Weightings†
United States	82	%
China	9
United Kingdom	9
Total	100	%
† % of total investments as of March 31, 2018.

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018		Level 1 Quoted Prices
Equity Securities:
Common Stocks	$	2,170,457	$	2,170,457
Short-Term Investment		351,270		351,270
Total Investments	$	2,521,727	$	2,521,727

There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at March 31, 2018.

For information regarding the abbreviation, see the Key Investment Terms starting on page 5.

See Notes to Financial Statements

13

VIRTUS KAR SMALL-CAP VALUE FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—93.6%
Consumer Discretionary—13.8%
Cheesecake Factory, Inc. (The)		454,000	$	21,892
Cinemark Holdings, Inc.		442,800		16,680
Sally Beauty Holdings, Inc.(1)		535,000		8,801
Thor Industries, Inc.		166,700		19,199
				66,572
Consumer Staples—5.6%
National Beverage Corp.		190,004		16,914
WD-40 Co.		76,954		10,135
				27,049
Energy—3.7%
Core Laboratories N.V.		163,700		17,716
Financials—16.6%
Artisan Partners Asset Management, Inc. Class A		349,900		11,652
Bank of Hawaii Corp.		217,960		18,112
First Financial Bankshares, Inc.		257,060		11,902
Houlihan Lokey, Inc.		254,807		11,364
Primerica, Inc.		157,563		15,221
RLI Corp.		189,312		12,001
				80,252
Health Care—3.2%
Anika Therapeutics, Inc.(1)		309,790		15,403
Industrials—20.7%
Graco, Inc.		318,981		14,584
Landstar System, Inc.		138,428		15,179

	SHARES		VALUE
Industrials—continued
Lincoln Electric Holdings, Inc.		114,610	$	10,309
RBC Bearings, Inc.(1)		146,600		18,208
SiteOne Landscape Supply, Inc.(1)		321,460		24,765
Watsco, Inc.		91,433		16,546
				99,591
Information Technology—13.1%
American Software, Inc. Class A		459,391		5,972
Badger Meter, Inc.		356,834		16,824
Brooks Automation, Inc.		464,540		12,580
Cass Information Systems, Inc.		236,080		14,049
Jack Henry & Associates, Inc.		111,350		13,468
				62,893
Materials—4.4%
Scotts Miracle-Gro Co. (The)		249,301		21,378
Real Estate—12.5%
HFF, Inc. Class A		373,000		18,538
MGM Growth Properties LLC Class A		818,610		21,726
RE/MAX Holdings, Inc. Class A		333,920		20,185
				60,449
TOTAL COMMON STOCKS (Identified Cost $330,992)				451,303
TOTAL LONG-TERM INVESTMENTS—93.6%
(Identified Cost $330,992)				451,303

	SHARES		VALUE
SHORT-TERM INVESTMENT—5.8%
Money Market Mutual Fund—5.8%
Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.540%)(2)		28,153,295	$	28,153
TOTAL SHORT-TERM INVESTMENT (Identified Cost $28,153)				28,153
TOTAL INVESTMENTS—99.4% (Identified Cost $359,145)				479,456
Other assets and liabilities, net—0.6%				2,636
NET ASSETS—100.0%			$	482,092

Footnote Legend:

⁽¹⁾  Non-income producing.

⁽²⁾  Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018		Level 1 Quoted Prices
Equity Securities:
Common Stocks	$	451,303	$	451,303
Short-Term Investment		28,153		28,153
Total Investments	$	479,456	$	479,456

There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at March 31, 2018.

See Notes to Financial Statements

14

VIRTUS KAR SMALL-MID CAP CORE FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—97.3%
Consumer Discretionary—8.7%
Pool Corp.		640	$	94
Winmark Corp.		460		60
Wynn Resorts Ltd.		560		102
				256
Energy—5.4%
Core Laboratories N.V.		1,000		108
Dril-Quip, Inc.(1)		1,150		52
				160
Financials—18.7%
Bank of The Ozarks, Inc.		2,140		103
Berkley (W.R.) Corp.		1,270		92
MSCI, Inc.		810		121
Primerica, Inc.		1,140		110
Signature Bank(1)		870		124
				550
Health Care—11.1%
AMN Healthcare Services, Inc.(1)		1,820		103

	SHARES		VALUE
Health Care—continued
Cooper Cos., Inc. (The)		510	$	117
Cotiviti Holdings, Inc.(1)		3,110		107
				327
Industrials—32.0%
Carlisle Cos., Inc.		730		76
Copart, Inc.(1)		1,660		84
Expeditors International of Washington, Inc.		1,690		107
Landstar System, Inc.		720		79
Lennox International, Inc.		560		114
Nordson Corp.		910		124
RBC Bearings, Inc.(1)		1,060		132
Snap-on, Inc.		710		105
WABCO Holdings, Inc.(1)		910		122
				943
Information Technology—19.4%
ANSYS, Inc.(1)		380		60
Aspen Technology, Inc.(1)		1,740		137
CDW Corp.		1,760		124
FLIR Systems, Inc.		1,525		76

	SHARES		VALUE
Information Technology—continued
Jack Henry & Associates, Inc.		740	$	89
Teradyne, Inc.		1,850		85
				571
Materials—2.0%
Scotts Miracle-Gro Co. (The)		670		58
TOTAL COMMON STOCKS (Identified Cost $2,917)				2,865
TOTAL LONG-TERM INVESTMENTS—97.3%
(Identified Cost $2,917)				2,865
TOTAL INVESTMENTS—97.3% (Identified Cost $2,917)				2,865
Other assets and liabilities, net—2.7%				80
NET ASSETS—100.0%			$	2,945

Footnote Legend:

⁽¹⁾ Non-income producing.

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018		Level 1 Quoted Prices
Equity Securities:
Common Stocks	$	2,865	$	2,865
Total Investments	$	2,865	$	2,865

There were no securities valued using significant observable inputs (Level 2) or significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at March 31, 2018.

See Notes to Financial Statements

15

VIRTUS RAMPART ENHANCED CORE EQUITY FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
COMMON STOCKS—97.1%
Consumer Discretionary—12.8%
Advance Auto Parts, Inc.		553	$	66
Amazon.com, Inc.(1)(2)		3,029		4,384
Aptiv plc		2,141		182
AutoZone, Inc.(1)		208		135
Best Buy Co., Inc.		1,909		134
Booking Holdings, Inc.(1)(2)		369		768
BorgWarner, Inc.		1,478		74
CarMax, Inc.(1)		1,378		85
Carnival Corp.		3,064		201
CBS Corp. Class B		2,716		140
Charter Communications, Inc. Class A(1)		1,459		454
Chipotle Mexican Grill, Inc.(1)		185		60
Comcast Corp. Class A(2)		35,132		1,200
Darden Restaurants, Inc.		926		79
Discovery Communications, Inc. Class A(1)		1,169		25
Discovery Communications, Inc. Class C(1)		1,617		32
DISH Network Corp. Class A(1)		1,711		65
Dollar General Corp.		1,861		174
Dollar Tree, Inc.(1)		1,759		167
Expedia Group, Inc.		936		103
Foot Locker, Inc.		926		42
Ford Motor Co.(2)		29,170		323
Gap, Inc. (The)		1,645		51
Garmin Ltd.		834		49
General Motors Co.(2)		9,610		349
Genuine Parts Co.		1,102		99
Goodyear Tire & Rubber Co. (The)		1,853		49
H&R Block, Inc.		1,578		40
Hanesbrands, Inc.		2,720		50
Harley-Davidson, Inc.		1,264		54
Hasbro, Inc.		857		72
Hilton Worldwide Holdings, Inc.		1,524		120
Home Depot, Inc. (The)(2)		8,803		1,569
Horton (D.R.), Inc.		2,575		113
Interpublic Group of Cos., Inc. (The)		2,920		67
Kohl’s Corp.		1,282		84
L Brands, Inc.		1,865		71
Leggett & Platt, Inc.		995		44
Lennar Corp. Class A		2,044		121
LKQ Corp.(1)		2,320		88
Lowe’s Cos., Inc.(2)		6,290		552
Macy’s, Inc.		2,310		69
Marriott International, Inc. Class A		2,311		314
Mattel, Inc.		2,616		34
McDonald’s Corp.(2)		5,959		932
MGM Resorts International		3,832		134
Michael Kors Holdings Ltd.(1)		1,143		71
Mohawk Industries, Inc.(1)		474		110
Netflix, Inc.(1)		3,273		967
Newell Brands, Inc.		3,653		93
News Corp. Class A		2,878		45
News Corp. Class B		913		15
NIKE, Inc. Class B(2)		9,879		656
Nordstrom, Inc.		885		43
Norwegian Cruise Line Holdings Ltd.(1)		1,365		72

	SHARES		VALUE
Consumer Discretionary—continued
O’Reilly Automotive, Inc.(1)		637	$	158
Omnicom Group, Inc.		1,748		127
PulteGroup, Inc.		2,034		60
PVH Corp.		585		89
Ralph Lauren Corp.		419		47
Ross Stores, Inc.		2,914		227
Royal Caribbean Cruises Ltd.		1,289		152
Signet Jewelers Ltd.		452		17
Starbucks Corp.(2)		10,583		613
Tapestry, Inc.		2,138		113
Target Corp.(2)		4,062		282
Tiffany & Co.		762		74
Time Warner, Inc.(2)		5,863		555
TJX Cos., Inc. (The)		4,804		392
Tractor Supply Co.		941		59
TripAdvisor, Inc.(1)		811		33
Twenty-First Century Fox, Inc. Class A(2)		7,955		292
Twenty-First Century Fox, Inc. Class B(2)		3,318		121
Ulta Beauty, Inc.(1)		433		88
Under Armour, Inc. Class A(1)		1,387		23
Under Armour, Inc. Class C(1)		1,379		20
VF Corp.		2,468		183
Viacom, Inc. Class B		2,624		82
Walt Disney Co. (The)(2)		11,382		1,143
Whirlpool Corp.		540		83
Wyndham Worldwide Corp.		764		87
Wynn Resorts Ltd.		601		110
Yum! Brands, Inc.		2,531		215
				21,535
Consumer Staples—7.0%
Altria Group, Inc.(2)		12,925		805
Archer-Daniels-Midland Co.		3,797		165
Brown-Forman Corp. Class B		1,652		90
Campbell Soup Co.		1,301		56
Church & Dwight Co., Inc.		1,684		85
Clorox Co. (The)		869		116
Coca-Cola Co. (The)(2)		25,981		1,128
Colgate-Palmolive Co.(2)		5,945		426
Conagra Brands, Inc.		2,776		102
Constellation Brands, Inc. Class A		1,169		266
Costco Wholesale Corp.(2)		2,961		558
Coty, Inc. Class A		3,226		59
CVS Health Corp.(2)		6,843		426
Dr. Pepper Snapple Group, Inc.		1,226		145
Estee Lauder Cos., Inc. (The) Class A		1,523		228
General Mills, Inc.		3,838		173
Hershey Co. (The)		949		94
Hormel Foods Corp.		1,814		62
J.M. Smucker Co. (The)		772		96
Kellogg Co.		1,687		110
Kimberly-Clark Corp.		2,374		261
Kraft Heinz Co. (The)(2)		4,064		253
Kroger Co. (The)		5,961		143
McCormick & Co., Inc.		812		86
Molson Coors Brewing Co. Class B		1,256		95
Mondelez International, Inc. Class A(2)		10,173		425

	SHARES		VALUE
Consumer Staples—continued
Monster Beverage Corp.(1)		2,780	$	159
PepsiCo, Inc.(2)		9,634		1,052
Philip Morris International, Inc.(2)		10,545		1,048
Procter & Gamble Co. (The)(2)		17,319		1,373
Sysco Corp.		3,267		196
Tyson Foods, Inc. Class A		2,014		147
Walgreens Boots Alliance, Inc.(2)		5,860		384
Walmart, Inc.(2)		9,902		881
				11,693
Energy—5.2%
Anadarko Petroleum Corp.		3,677		222
Andeavor		970		98
Apache Corp.		2,538		98
Baker Hughes a GE Co.		2,909		81
Cabot Oil & Gas Corp.		3,116		75
Chesapeake Energy Corp.(1)		6,108		18
Chevron Corp.(2)		12,837		1,464
Cimarex Energy Co.		639		60
Concho Resources, Inc.(1)		1,005		151
ConocoPhillips(2)		8,051		477
Devon Energy Corp.		3,547		113
EOG Resources, Inc.		3,917		412
EQT Corp.		1,663		79
Exxon Mobil Corp.(2)		28,416		2,120
Halliburton Co.(2)		5,932		279
Helmerich & Payne, Inc.		736		49
Hess Corp.		1,806		91
Kinder Morgan, Inc.(2)		12,986		196
Marathon Oil Corp.		5,731		92
Marathon Petroleum Corp.		3,313		242
National Oilwell Varco, Inc.		2,587		95
Newfield Exploration Co.(1)		1,333		33
Noble Energy, Inc.		3,279		99
Occidental Petroleum Corp.(2)		5,153		335
ONEOK, Inc.		2,760		157
Phillips 66		2,836		272
Pioneer Natural Resources Co.		1,143		196
Range Resources Corp.		1,515		22
Schlumberger Ltd.(2)		9,383		608
TechnipFMC plc		2,995		88
Valero Energy Corp.		2,966		275
Williams Cos., Inc. (The)		5,599		139
				8,736
Financials—14.9%
Affiliated Managers Group, Inc.		419		79
Aflac, Inc.		5,922		259
Allstate Corp. (The)(2)		2,703		256
American Express Co.(2)		5,425		506
American International Group, Inc.(2)		6,781		369
Ameriprise Financial, Inc.		1,113		165
AON plc		1,869		262
Assurant, Inc.		404		37
Bank of America Corp.(2)		73,362		2,200
Bank of New York Mellon Corp. (The)(2)		7,714		398
BB&T Corp.		5,964		310
Berkshire Hathaway, Inc. Class B(1)(2)		14,420		2,877

See Notes to Financial Statements

16

VIRTUS RAMPART ENHANCED CORE EQUITY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
Financials—continued
BlackRock, Inc.(2)		928	$	503
Brighthouse Financial, Inc.(1)(2)		722		37
Capital One Financial Corp.(2)		3,594		344
CBOE Global Markets, Inc.		860		98
Charles Schwab Corp. (The)		9,017		471
Chubb Ltd.		3,482		476
Cincinnati Financial Corp.		1,119		83
Citigroup, Inc.(2)		19,973		1,348
Citizens Financial Group, Inc.		3,722		156
CME Group, Inc.		2,582		418
Comerica, Inc.		1,311		126
Discover Financial Services		2,748		198
E*TRADE Financial Corp.(1)		2,046		113
Everest Re Group Ltd.		308		79
Fifth Third Bancorp		5,324		169
Franklin Resources, Inc.		2,464		85
Gallagher (Arthur J.) & Co.		1,358		93
Goldman Sachs Group, Inc. (The)(2)		2,612		658
Hartford Financial Services Group, Inc. (The)		2,679		138
Huntington Bancshares, Inc.		8,169		123
Intercontinental Exchange, Inc.		4,413		320
Invesco Ltd.		3,068		98
JPMorgan Chase & Co.(2)		26,042		2,864
KeyCorp		8,106		159
Leucadia National Corp.		2,357		54
Lincoln National Corp.		1,646		120
Loews Corp.		2,066		103
M&T Bank Corp.		1,131		209
Marsh & McLennan Cos., Inc.		3,832		317
MetLife, Inc.(2)		7,938		364
Moody’s Corp.		1,254		202
Morgan Stanley(2)		10,437		563
Nasdaq, Inc.		880		76
Navient Corp.		1,986		26
Northern Trust Corp.		1,624		168
People’s United Financial, Inc.		2,607		49
PNC Financial Services Group, Inc. (The)		3,594		544
Principal Financial Group, Inc.		2,015		123
Progressive Corp. (The)		4,388		267
Prudential Financial, Inc.		3,182		330
Raymond James Financial, Inc.		967		86
Regions Financial Corp.		8,762		163
S&P Global, Inc.		1,916		366
State Street Corp.		2,792		278
SunTrust Banks, Inc.		3,604		245
Synchrony Financial		5,699		191
T. Rowe Price Group, Inc.		1,826		197
Torchmark Corp.		807		68
Travelers Cos., Inc. (The)		2,052		285
U.S. Bancorp(2)		11,861		599
Unum Group		1,686		80
Wells Fargo & Co.(2)		33,473		1,754
Willis Towers Watson plc		989		151
XL Group Ltd.		1,927		107
Zions Bancorporation		1,506		79
				25,039
Health Care—12.4%
Abbott Laboratories(2)		11,826		709
AbbVie, Inc.(2)		10,850		1,027

	SHARES		VALUE
Health Care—continued
Aetna, Inc.		2,214	$	374
Agilent Technologies, Inc.		2,179		146
Alexion Pharmaceuticals, Inc.(1)		1,393		155
Align Technology, Inc.(1)		490		123
Allergan plc(2)		2,249		379
AmerisourceBergen Corp.		1,094		94
Amgen, Inc.(2)		4,975		848
Anthem, Inc.		1,740		382
Baxter International, Inc.		3,386		220
Becton, Dickinson & Co.		1,794		389
Biogen, Inc.(1)(2)		1,428		391
Boston Scientific Corp.(1)		9,265		253
Bristol-Myers Squibb Co.(2)		11,088		701
Cardinal Health, Inc.		2,121		133
Celgene Corp.(1)(2)		5,345		477
Centene Corp.(1)		1,157		124
Cerner Corp.(1)		2,145		124
Cigna Corp.		1,666		279
Cooper Cos., Inc. (The)		332		76
Danaher Corp.(2)		4,150		406
DaVita, Inc.(1)		1,031		68
DENTSPLY SIRONA, Inc.		1,556		78
Edwards Lifesciences Corp.(1)		1,437		201
Eli Lilly & Co.(2)		6,521		505
Envision Healthcare Corp.(1)		811		31
Express Scripts Holding Co.(1)		3,833		265
Gilead Sciences, Inc.(2)		8,959		675
HCA Healthcare, Inc.		1,905		185
Henry Schein, Inc.(1)		1,070		72
Hologic, Inc.(1)		1,854		69
Humana, Inc.		968		260
IDEXX Laboratories, Inc.(1)		594		114
Illumina, Inc.(1)		990		234
Incyte Corp.(1)		1,193		99
Intuitive Surgical, Inc.(1)		757		313
IQVIA Holdings, Inc.(1)		985		97
Johnson & Johnson(2)		18,170		2,329
Laboratory Corp. of America Holdings(1)		689		111
McKesson Corp.		1,407		198
Medtronic plc(2)		9,175		736
Merck & Co., Inc.(2)		18,503		1,008
Mettler-Toledo International, Inc.(1)		174		100
Mylan NV(1)		3,620		149
Patterson Cos., Inc.		558		12
PerkinElmer, Inc.		750		57
Perrigo Co., plc		887		74
Pfizer, Inc.(2)		40,345		1,432
Quest Diagnostics, Inc.		925		93
Regeneron Pharmaceuticals, Inc.(1)		526		181
ResMed, Inc.		963		95
Stryker Corp.		2,181		351
Thermo Fisher Scientific, Inc.		2,736		565
UnitedHealth Group, Inc.(2)		6,530		1,397
Universal Health Services, Inc. Class B		587		70
Varian Medical Systems, Inc.(1)		624		77
Vertex Pharmaceuticals, Inc.(1)		1,712		279
Waters Corp.(1)		540		107
Zimmer Biomet Holdings, Inc.		1,358		148
Zoetis, Inc.		3,306		276
				20,921

	SHARES		VALUE
Industrials—10.3%
3M Co.(2)		4,460	$	979
A.O. Smith Corp.		1,090		69
Acuity Brands, Inc.		316		44
Alaska Air Group, Inc.		917		57
Allegion plc		707		60
American Airlines Group, Inc.		3,181		165
AMETEK, Inc.		1,731		132
Arconic, Inc.		3,171		73
Boeing Co. (The)(2)		4,274		1,401
Caterpillar, Inc.(2)		4,492		662
Cintas Corp.		655		112
CSX Corp.		6,825		380
Cummins, Inc.		1,256		204
Deere & Co.		2,421		376
Delta Air Lines, Inc.		4,909		269
Dover Corp.		1,188		117
Eaton Corp. plc		3,362		269
Emerson Electric Co.(2)		4,844		331
Equifax, Inc.		929		109
Expeditors International of Washington, Inc.		1,328		84
Fastenal Co.		2,138		117
FedEx Corp.(2)		1,849		444
Flowserve Corp.		974		42
Fluor Corp.		1,088		62
Fortive Corp.		2,314		179
Fortune Brands Home & Security, Inc.		1,148		68
General Dynamics Corp.(2)		2,091		462
General Electric Co.(2)		62,917		848
Harris Corp.		895		144
Honeywell International, Inc.(2)		5,729		828
Hunt (JB) Transport Services, Inc.		642		75
Huntington Ingalls Industries, Inc.		342		88
IHS Markit Ltd.(1)		2,716		131
Illinois Tool Works, Inc.		2,323		364
Ingersoll-Rand plc		1,866		160
Jacobs Engineering Group, Inc.		889		53
Johnson Controls International plc		6,940		245
Kansas City Southern		777		85
L3 Technologies, Inc.		585		122
Lockheed Martin Corp.(2)		1,888		638
Masco Corp.		2,369		96
Nielsen Holdings plc		2,497		79
Norfolk Southern Corp.		2,171		295
Northrop Grumman Corp.		1,311		458
PACCAR, Inc.		2,669		177
Parker-Hannifin Corp.		1,021		175
Pentair plc		1,230		84
Quanta Services, Inc.(1)		1,144		39
Raytheon Co.(2)		2,189		472
Republic Services, Inc.		1,698		112
Robert Half International, Inc.		971		56
Robinson (C.H.) Worldwide, Inc.		1,037		97
Rockwell Automation, Inc.		992		173
Rockwell Collins, Inc.		1,252		169
Roper Technologies, Inc.		764		214
Snap-on, Inc.		426		63
Southwest Airlines Co.		4,124		236

See Notes to Financial Statements

17

VIRTUS RAMPART ENHANCED CORE EQUITY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
Industrials—continued
Stanley Black & Decker, Inc.		1,147	$	176
Stericycle, Inc.(1)		640		37
Textron, Inc.		2,030		120
TransDigm Group, Inc.		364		112
Union Pacific Corp.(2)		5,946		799
United Continental Holdings, Inc.(1)		1,882		131
United Parcel Service, Inc. Class B(2)		5,132		537
United Rentals, Inc.(1)		629		109
United Technologies Corp.(2)		5,598		704
Verisk Analytics, Inc.(1)		1,162		121
W.W. Grainger, Inc.		398		112
Waste Management, Inc.		3,027		255
Xylem, Inc.		1,341		103
				17,359
Information Technology—24.9%
Accenture plc Class A(2)		4,608		707
Activision Blizzard, Inc.		5,761		389
Adobe Systems, Inc.(1)		3,684		796
Advanced Micro Devices, Inc.(1)		6,191		62
Akamai Technologies, Inc.(1)		1,255		89
Alliance Data Systems Corp.		365		78
Alphabet, Inc. Class A(1)(2)		2,237		2,320
Alphabet, Inc. Class C(1)(2)		2,265		2,337
Amphenol Corp. Class A		2,290		197
Analog Devices, Inc.		2,778		253
ANSYS, Inc.(1)		636		100
Apple, Inc.(2)		38,333		6,432
Applied Materials, Inc.		8,035		447
Autodesk, Inc.(1)		1,645		207
Automatic Data Processing, Inc.		3,310		376
Broadcom Ltd.		2,991		705
CA, Inc.		2,362		80
Cadence Design Systems, Inc.(1)		2,107		77
Cisco Systems, Inc.(2)		37,013		1,587
Citrix Systems, Inc.(1)		1,067		99
Cognizant Technology Solutions Corp. Class A		4,389		353
Corning, Inc.		6,508		181
CSRA, Inc.		1,246		51
DXC Technology Co.		2,123		213
eBay, Inc.(1)		7,341		295
Electronic Arts, Inc.(1)		2,326		282
F5 Networks, Inc.(1)		472		68
Facebook, Inc. Class A(1)(2)		17,921		2,864
Fidelity National Information Services, Inc.		2,509		242
Fiserv, Inc.(1)		3,121		223
FLIR Systems, Inc.		1,051		53
Gartner, Inc.(1)		676		80
Global Payments, Inc.		1,195		133
Hewlett Packard Enterprise Co.		11,926		209
HP, Inc.		12,476		273
Intel Corp.(2)		34,926		1,819
International Business Machines Corp.(2)		6,393		981
Intuit, Inc.		1,819		315
IPG Photonics Corp.(1)		25		6
Juniper Networks, Inc.		2,822		69

	SHARES		VALUE
Information Technology—continued
KLA-Tencor Corp.		1,180	$	129
Lam Research Corp.		1,208		245
Mastercard, Inc. Class A(2)		6,938		1,215
Microchip Technology, Inc.		1,758		161
Micron Technology, Inc.(1)		8,769		457
Microsoft Corp.(2)		58,290		5,320
Motorola Solutions, Inc.		1,218		128
NetApp, Inc.		2,044		126
NVIDIA Corp.		4,537		1,051
Oracle Corp.(2)		22,808		1,043
Paychex, Inc.		2,391		147
PayPal Holdings, Inc.(1)(2)		8,499		645
Qorvo, Inc.(1)		1,028		72
QUALCOMM, Inc.(2)		11,056		613
Red Hat, Inc.(1)		1,330		199
salesforce.com, Inc.(1)		5,165		601
Seagate Technology plc		2,203		129
Skyworks Solutions, Inc.		1,391		139
Symantec Corp.		4,670		121
Synopsys, Inc.(1)		1,123		93
TE Connectivity Ltd.		2,650		265
Texas Instruments, Inc.(2)		7,371		766
Total System Services, Inc.		1,260		109
VeriSign, Inc.(1)		626		74
Visa, Inc. Class A(2)		13,523		1,618
Western Digital Corp.		2,236		206
Western Union Co. (The)		3,464		67
Xerox Corp.		1,597		46
Xilinx, Inc.		1,881		136
				41,969
Materials—2.6%
Air Products & Chemicals, Inc.		1,478		235
Albemarle Corp.		760		70
Avery Dennison Corp.		601		64
Ball Corp.		2,368		94
CF Industries Holdings, Inc.		1,578		60
DowDuPont, Inc.(2)		15,911		1,014
Eastman Chemical Co.		972		103
Ecolab, Inc.		1,763		242
FMC Corp.		911		70
Freeport-McMoRan, Inc.(1)		9,176		161
International Flavors & Fragrances, Inc.		534		73
International Paper Co.		2,806		150
LyondellBasell Industries N.V. Class A		2,198		232
Martin Marietta Materials, Inc.		426		88
Monsanto Co.(2)		2,984		348
Mosaic Co. (The)		2,364		57
Newmont Mining Corp.		3,642		142
Nucor Corp.		2,136		130
Packaging Corp. of America		641		72
PPG Industries, Inc.		1,725		193
Praxair, Inc.		1,946		281
Sealed Air Corp.		1,225		52
Sherwin-Williams Co. (The)		557		218
Vulcan Materials Co.		900		103
WestRock Co.		1,722		111
				4,363

	SHARES		VALUE
Real Estate—2.5%
Alexandria Real Estate Equities, Inc.		684	$	85
American Tower Corp.		2,896		421
Apartment Investment & Management Co. Class A		1,062		43
AvalonBay Communities, Inc.		936		154
Boston Properties, Inc.		1,045		129
CBRE Group, Inc. Class A(1)		2,042		96
Crown Castle International Corp.		2,773		304
Digital Realty Trust, Inc.		1,392		147
Duke Realty Corp.		2,407		64
Equinix, Inc.		532		223
Equity Residential		2,485		153
Essex Property Trust, Inc.		446		107
Extra Space Storage, Inc.		852		75
Federal Realty Investment Trust		494		57
GGP, Inc.		4,233		87
HCP, Inc.		3,170		74
Host Hotels & Resorts, Inc.		5,027		94
Iron Mountain, Inc.		1,913		63
Kimco Realty Corp.		2,891		42
Macerich Co. (The)		732		41
Mid-America Apartment Communities, Inc.		766		70
Prologis, Inc.		3,604		227
Public Storage		1,014		203
Realty Income Corp.		1,906		99
Regency Centers Corp.		1,004		59
SBA Communications, Corp.(1)		795		136
Simon Property Group, Inc.(2)		2,108		325
SL Green Realty Corp.		630		61
UDR, Inc.		1,805		64
Ventas, Inc.		2,406		119
Vornado Realty Trust		1,164		78
Welltower, Inc.		2,506		136
Weyerhaeuser Co.		5,116		179
				4,215
Telecommunication Services—1.9%
AT&T, Inc.(2)		45,812		1,633
CenturyLink, Inc.		7,331		120
Verizon Communications, Inc.(2)		30,018		1,436
				3,189
Utilities—2.6%
AES Corp.		4,463		51
Alliant Energy Corp.		1,557		64
Ameren Corp.		1,632		92
American Electric Power Co., Inc.		3,301		226
American Water Works Co., Inc.		1,201		99
CenterPoint Energy, Inc.		2,905		80
CMS Energy Corp.		1,900		86
Consolidated Edison, Inc.		2,088		163
Dominion Energy, Inc.		4,341		293
DTE Energy Co.		1,211		126
Duke Energy Corp.(2)		4,722		366
Edison International		2,193		140
Entergy Corp.		1,211		95

See Notes to Financial Statements

18

VIRTUS RAMPART ENHANCED CORE EQUITY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
Utilities—continued
Eversource Energy		2,133	$	126
Exelon Corp.(2)		6,472		252
FirstEnergy Corp.		3,003		102
NextEra Energy, Inc.(2)		3,195		522
NiSource, Inc.		2,268		54
NRG Energy, Inc.		2,014		62
PG&E Corp.		3,461		152
Pinnacle West Capital Corp.		751		60
PPL Corp.		4,607		130
Public Service Enterprise Group, Inc.		3,413		171
SCANA Corp.		961		36
Sempra Energy		1,699		189
Southern Co. (The)(2)		6,773		303
WEC Energy Group, Inc.		2,124		133
Xcel Energy, Inc.		3,418		155
				4,328
TOTAL COMMON STOCKS (Identified Cost $145,229)				163,347
EXCHANGE-TRADED FUND(3)—1.7%
PowerShares S&P 500® High Beta Portfolio ETF		69,232		2,942
TOTAL EXCHANGE-TRADED FUND (Identified Cost $2,812)				2,942
TOTAL LONG-TERM INVESTMENTS—98.8%
(Identified Cost $148,041)				166,289

	SHARES		VALUE
SHORT-TERM INVESTMENTS—0.8%
Purchased Options—0.0%
(see open purchased options contracts table below)
TOTAL PURCHASED OPTIONS—0.0% (Premiums Paid $193)			$	29
Money Market Mutual Fund(3)—0.8%
Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.540%)		1,236,257		1,236
TOTAL SHORT-TERM INVESTMENTS (Identified Cost $1,429)				1,265
TOTAL INVESTMENTS, BEFORE WRITTEN OPTIONS—99.6%
(Identified Cost $149,470)				167,554
WRITTEN OPTIONS—(0.1)%
(see open written options contracts table below)
TOTAL WRITTEN OPTIONS—(0.1)% (Premiums Received $314)				(137	)
TOTAL INVESTMENTS, NET OF WRITTEN OPTIONS—99.5% (Identified Cost $149,156)				167,417
Other assets and liabilities, net—0.5%				898
NET ASSETS—100.0%			$	168,315

Abbreviation:

ETF Exchange-Traded Fund.

Footnote Legend:

⁽¹⁾  Non-income producing.

⁽²⁾  All or a portion of the security is segregated as collateral for written options.

⁽³⁾  Shares of these funds are publicly offered, and the prospectus and annual report of each are publicly available.

Open Purchased Options contracts as of March 31, 2018, were as follows:
Description of Options	Number of Contracts		Contract Notional Amount		Strike Price(1)		Expiration Date		Value
Call Option
S&P 500® Index		236	$	68,676	$	2,910		4/2/18	$	0
Put Options
S&P 500® Index		236		58,528		2,480		4/2/18		6
S&P 500® Index		233		58,250		2,500		4/4/18		23
Total Purchased Options									$	29

Open Written Options contracts as of March 31, 2018, were as follows:
Description of Options	Number of Contracts		Contract Notional Amount		Strike Price(1)		Expiration Date		Value
Call Option
S&P 500® Index		236	$	66,906	$	2,835		4/2/18	$	0
Put Options
S&P 500® Index		236		60,298		2,555		4/2/18		(9	)
S&P 500® Index		233		59,998		2,575		4/4/18		(128	)
Total Written Options									$	(137	)

Footnote Legend:

⁽¹⁾  Strike price not reported in thousands.

See Notes to Financial Statements

19

VIRTUS RAMPART ENHANCED CORE EQUITY FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018			Level 1 Quoted Prices			Level 2 Quoted Prices
Equity Securities:
Common Stocks	$	163,347		$	—		$	—
Exchange-Traded Funds		2,942			2,942			—
Purchased Options		29			29			0
Short-Term Investments		1,236			1,236			—
Total Investments before Written Options	$	167,554		$	167,554		$	0
Liabilities:
Equity Securities:
Written Options	$	(137	)	$	(137	)	$	0
Total Investments net of Written Options	$	167,417		$	167,417		$	0

The purchased options and written options contracts that have been valued at zero on the open purchased options contracts and the open written options contracts tables are considered to be Level 2 investments in this table.

There were no securities valued using significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at March 31, 2018.

For information regarding the abbreviation, see the Key Investment Terms starting on page 5.

See Notes to Financial Statements

20

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE			VALUE
U.S. GOVERNMENT SECURITIES—0.8%
U.S. Treasury Note
1.875%, 2/28/22	$	615		$	600
2.375%, 1/31/23		290			288
1.625%, 2/15/26		285			263
2.250%, 8/15/27		75			72
TOTAL U.S. GOVERNMENT SECURITIES (Identified Cost $1,240)					1,223
FOREIGN GOVERNMENT SECURITIES—4.1%
Argentine Republic
7.500%, 4/22/26		305			326
6.875%, 1/26/27		150			153
5.875%, 1/11/28		80			75
Series NY, 8.280%, 12/31/33		294			322
6.875%, 1/11/48		50			46
Bolivarian Republic of Venezuela
RegS, 8.250%, 10/13/24(4)(10)		40			12
RegS, 7.650%, 4/21/25(4)(10)		320			97
9.375%, 1/13/34(10)		130			45
Dominican Republic
144A, 6.875%, 1/29/26(3)		100			111
144A, 5.950%, 1/25/27(3)		140			146
Federative Republic of Brazil
12.500%, 1/5/22		475	BRL		168
Treasury Note Series F, 10.000%, 1/1/23		570	BRL		185
Treasury Note Series F, 10.000%, 1/1/25		175	BRL		56
Treasury Note Series F, 10.000%, 1/1/25		230	BRL		74
5.625%, 1/7/41		140			137
Kingdom of Bahrain 144A, 7.000%, 10/12/28(3)		200			193
Kingdom of Morocco 144A, 5.500%, 12/11/42(3)		200			213
Provincia de Buenos Aires
144A, 9.125%, 3/16/24(3)		150			167
144A, 7.875%, 6/15/27(3)		235			244
Republic of Chile 5.500%, 8/5/20		95,000	CLP		164
Republic of Colombia
4.375%, 3/21/23		527,000	COP		177
9.850%, 6/28/27		377,000	COP		170
Republic of Costa Rica 144A, 7.000%, 4/4/44(3)		200			206
Republic of Ecuador 144A, 8.875%, 10/23/27(3)		200			204
Republic of Indonesia FR70 8.375%, 3/15/24		2,177,000	IDR		173
Republic of South Africa
Series 2023, 7.750%, 2/28/23		1,400	ZAR		120
4.875%, 4/14/26		200			199
4.300%, 10/12/28		200			187
Republic of Turkey
4.875%, 10/9/26		270			254
4.875%, 4/16/43		200			162
Russian Federation
Series 6216, 6.700%, 5/15/19		11,210	RUB		197
Series 6215, 7.000%, 8/16/23		11,700	RUB		209
Sultanate of Oman
144A, 5.375%, 3/8/27(3)		230			224
144A, 5.625%, 1/17/28(3)		200			195

	PAR VALUE			VALUE
FOREIGN GOVERNMENT SECURITIES—continued
Ukraine
144A, 7.750%, 9/1/23(3)	$	120		$	124
144A, 7.750%, 9/1/26(3)		260			266
United Mexican States
Series M, 6.500%, 6/9/22		1,091	MXN		58
4.750%, 3/8/44		70			68
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified Cost $6,273)					6,127
MORTGAGE-BACKED SECURITIES—4.7%
Agency—0.7%
Federal Home Loan Mortgage Corp. Pool #G08702 3.500%, 4/1/46		201			201
Federal National Mortgage Association
Pool #AX2491, 4.000%, 10/1/44		180			185
Pool #MA2471, 3.500%, 12/1/45		132			133
Pool #MA2542, 3.000%, 2/1/46		60			59
Pool #MA3058, 4.000%, 7/1/47		238			245
Pool #MA3088, 4.000%, 8/1/47		183			188
					1,011
Non-Agency—4.0%
American Homes 4 Rent Trust
2014-SFR2, C 144A, 4.705%, 10/17/36(3)		180			189
2015-SFR2, C 144A, 4.691%, 10/17/45(3)		205			217
2015-SFR1, A 144A, 3.467%, 4/17/52(3)		137			139
Ameriquest Mortgage Securities, Inc. Pass-Through Certificates, 2003-AR3, M4, (5.850% minus 1 month LIBOR) 4.748%, 6/25/33(2)		107			106
AMSR Trust 2016-SFR1, D 144A, (1 month LIBOR + 2.400%) 4.208%, 11/17/33(2)(3)		145			146
Banc of America Funding Trust 2005-1, 1A1 5.500%, 2/25/35		23			23
Bank of America (Countrywide) Asset-Backed Certificates 2005-1, AF5A 4.984%, 7/25/35(2)		128			132
Bank of America (Merrill Lynch - Countrywide) Alternative Loan Trust 2004-22CB, 1A1 6.000%, 10/25/34		115			118
Bayview Opportunity Master Fund IIIb Trust 2017-RN2, A1 144A, 3.475%, 4/28/32(2)(3)		23			23
Bayview Opportunity Master Fund IVa Trust
2016-SPL1, B1 144A, 4.250%, 4/28/55(3)		120			124
2017-SPL1, B1 144A, 4.250%, 10/28/64(2)(3)		100			102
Bayview Opportunity Master Fund IVb Trust
2016-SPL2, B1 144A, 4.250%, 6/28/53(2)(3)		100			103
2017-SPL3, B1 144A, 4.250%, 11/28/53(2)(3)		110			115

See Notes to Financial Statements

21

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Non-Agency—continued
Citigroup Mortgage Loan Trust, Inc.
2015-A, A1 144A, 3.500%, 6/25/58(2)(3)	$	87	$	87
2018-RP1, A1 144A, 2.996%, 9/25/64(2)(3)		249		247
Colony American Finance Ltd. 2015-1, A 144A, 2.896%, 10/15/47(3)		92		92
Colony Starwood Homes Trust 2016-2A, C 144A, (1 month LIBOR + 2.150%) 3.927%, 12/17/33(2)(3)		145		145
COLT Mortgage Loan Trust Funding LLC 2018-1, A1 144A, 2.930%, 2/25/48(2)(3)		101		101
Credit Suisse Commercial Mortgage-Backed Trust 2006-8, 3A1 6.000%, 10/25/21		37		35
Credit Suisse Mortgage Capital Trust 2014-IVR2, A2 144A, 3.798%, 4/25/44(2)(3)		48		48
Deephaven Residential Mortgage Trust
2017-1A, A2 144A, 2.928%, 12/26/46(2)(3)		55		54
2018-1A, A1 144A, 2.976%, 12/25/57(2)(3)		125		125
GAHR Commercial Mortgage Trust 2015-NRF, CFX 144A, 3.382%, 12/15/34(2)(3)		130		130
Galton Funding Mortgage Trust 2018-1, A23 144A, 3.500%, 11/25/57(2)(3)		145		145
GSAA Home Equity Trust 2005-12, AF3W 4.999%, 9/25/35(2)		43		43
Home Equity Loan Trust 2003-HS3, AI4 5.550%, 9/25/33(2)		9		9
JPMorgan Chase Mortgage Trust 2014-1, 2A12 144A, 3.500%, 1/25/44(2)(3)		104		103
2016-1, M2 144A, 3.750%, 4/25/45(2)(3)		96		96
2016-2, M2 144A, 3.750%, 12/25/45(2)(3)		187		187
2011-C4, A4 144A, 4.388%, 7/15/46(3)		120		124
2017-5, A1 144A, 3.184%, 10/26/48(2)(3)		210		209
2017-4, A3 144A, 3.500%, 11/25/48(2)(3)		92		91
MASTR Alternative Loan Trust
2005-5, 2A3, 5.500%, 7/25/25		82		78
2005-2, 2A1, 6.000%, 1/25/35		81		83
MASTR Specialized Loan Trust 2005-3, A2 144A, 5.704%, 11/25/35(2)(3)		38		38
New Residential Mortgage Loan Trust
2014-1A, A 144A, 3.750%, 1/25/54(2)(3)		45		45
2017-2A, A3 144A, 4.000%, 3/25/57(2)(3)		77		78
Oak Hill Advisors Residential Loan Trust 2017-NPL2, A1 144A, 3.000%, 7/25/57(2)(3)		143		142
One Market Plaza Trust 2017-1MKT, A 144A, 3.614%, 2/10/32(3)		110		111
Progress Residential Trust 2018-SFR1, B 144A, 3.484%, 3/17/35(3)		220		220

	PAR VALUE		VALUE
Non-Agency—continued
Resecuritization Pass-Through Trust 2005-8R, A5 6.000%, 10/25/34	$	47	$	48
Residential Asset Mortgage Products Trust 2005-SL2, A4 7.500%, 2/25/32		60		56
Residential Asset Securitization Trust 2005-A1, A3 5.500%, 4/25/35		103		106
RETL 2018-RVP, C144A, (1 month LIBOR + 2.050%) 3.827%, 3/15/33(2)(3)		55		55
Sequoia Mortgage Trust 2013-8, B1 3.533%, 6/25/43(2)		97		95
Towd Point Mortgage Trust
2015-1, A2 144A, 3.250%, 10/25/53(2)(3)		115		115
2015-3, A1B 144A, 3.000%, 3/25/54(2)(3)		99		98
2015-6, M1 144A, 3.750%, 4/25/55(2)(3)		100		102
2015-5, A2 144A, 3.500%, 5/25/55(2)(3)		100		101
2015-2, 1M1 144A, 3.250%, 11/25/60(2)(3)		345		340
Vericrest Opportunity Loan Trust LVI LLC 2017-NPL3, A1 144A, 3.500%, 3/25/47(2)(3)		85		85
Vericrest Opportunity Loan Trust LXIV LLC 2017-NP11, A1 144A, 3.375%, 10/25/47(2)(3)		223		222
Verus Securitization Trust 2018-1, A1 144A, 2.929%, 2/25/48(2)(3)		97		97
Wells Fargo Commercial Mortgage Trust 2015-LC20, B 3.719%, 4/15/50		165		163
				6,086
TOTAL MORTGAGE-BACKED SECURITIES (Identified Cost $7,113)				7,097
ASSET-BACKED SECURITIES—2.2%
Automobiles—1.4%
American Credit Acceptance Receivables Trust 2018-1, C 144A, 3.550%, 4/10/24(3)		160		160
Capital Auto Receivables Asset Trust 2017-1, D 144A, 3.150%, 2/20/25(3)		135		134
Carnow Auto Receivables Trust 2016-1A, D 144A, 7.340%, 11/15/21(3)		140		142
Chrysler Capital Auto Receivables Trust 2016-BA, D 144A, 3.510%, 9/15/23(3)		135		134
Drive Auto Receivables Trust 2017-2, C 2.750%, 9/15/23		165		164
DT Auto Owner Trust 2018-1A, C144A, 3.470%, 12/15/23(3)		145		145
Exeter Automobile Receivables Trust
2015-2A, C 144A, 3.900%, 3/15/21(3)		175		176
2014-3A, D 144A, 5.690%, 4/15/21(3)		165		169
Flagship Credit Auto Trust
2015-1, D 144A, 5.260%, 7/15/21(3)		200		205
2014-1, E 144A, 5.710%, 8/16/21(3)		130		132

See Notes to Financial Statements

22

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Automobiles—continued
GLS Auto Receivables Trust
2017-1A, B 144A, 2.980%, 12/15/21(3)	$	105	$	104
2017-1A, C 144A, 3.500%, 7/15/22(3)		155		154
2018-1A, B 144A, 3.520%, 8/15/23(3)		155		154
Skopos Auto Receivables Trust 2018-1A, B 144A, 3.930%, 5/16/22(3)		165		165
				2,138
Other—0.8%
Aqua Finance Trust 2017-A, A 144A, 3.720%, 11/15/35(3)		143		141
CLUB Credit Trust 2017-P1, B 144A, 3.560%, 9/15/23(3)		110		109
DB Master Finance LLC 2017-1A, A2I 144A, 3.629%, 11/20/47(3)		135		134
Drug Royalty III LP 1 2016-1A, A 144A, 3.979%, 4/15/27(3)		149		148
HOA Funding LLC 2014-1A, A2 144A, 4.846%, 8/20/44(3)		153		150
NextGear Floorplan Master Owner Trust 2018-1A, A2144A, 3.220%, 2/15/23(3)		145		145
Prosper Marketplace Issuance Trust
2017-1A, B 144A, 3.650%, 6/15/23(3)		137		137
2017-2A, B 144A, 3.480%, 9/15/23(3)		110		110
TGIF Funding LLC 2017-1A, A2 144A, 6.202%, 4/30/47(3)		138		139
				1,213
TOTAL ASSET-BACKED SECURITIES (Identified Cost $3,349)				3,351
CORPORATE BONDS AND NOTES—20.0%
Consumer Discretionary—2.5%
American Axle & Manufacturing, Inc. 6.250%, 3/15/26		10		10
Beazer Homes USA, Inc. 5.875%, 10/15/27		135		125
Caesars Resort Collection LLC 144A, 5.250%, 10/15/25(3)		135		129
Cequel Communications Holdings I LLC 144A, 7.500%, 4/1/28(3)		200		204
Charter Communications Operating LLC 4.908%, 7/23/25		135		138
Clear Channel Worldwide Holdings, Inc. Series B 7.625%, 3/15/20		90		90
CSC Holdings LLC 5.250%, 6/1/24		175		166
Discovery Communications LLC 3.950%, 3/20/28		130		125
DISH DBS Corp. 7.750%, 7/1/26		75		71
Downstream Development Authority of The Quapaw Tribe of Oklahoma 144A, 10.500%, 2/15/23(3)		55		56
Ford Motor Credit Co., LLC 4.389%, 1/8/26		200		199
Gateway Casinos & Entertainment Ltd. 144A, 8.250%, 3/1/24(3)		115		122

	PAR VALUE		VALUE
Consumer Discretionary—continued
Goodyear Tire & Rubber Co. (The) 4.875%, 3/15/27	$	80	$	77
Horton (D.R.), Inc. 4.750%, 2/15/23		85		89
iHeartCommunications, Inc. 9.000%, 12/15/19(10)		70		55
L Brands, Inc. 6.875%, 11/1/35		116		113
Lear Corp. 3.800%, 9/15/27		160		154
Lennar Corp.
144A, 5.250%, 6/1/26(3)		80		79
144A, 5.000%, 6/15/27(3)		85		83
144A, 4.750%, 11/29/27(3)		130		124
Live Nation Entertainment, Inc. 144A, 5.625%, 3/15/26(3)		105		106
M/I Homes, Inc. 5.625%, 8/1/25		110		107
McGraw-Hill Global Education Holdings LLC 144A, 7.875%, 5/15/24(3)		115		110
MDC Holdings, Inc. 5.500%, 1/15/24		100		102
Meredith Corp. 144A, 6.875%, 2/1/26(3)		80		82
Neiman Marcus Group Ltd. 144A, 8.000%, 10/15/21(3)		95		60
PetSmart, Inc. 144A, 8.875%, 6/1/25(3)		75		43
QVC, Inc. 5.125%, 7/2/22		135		139
Scientific Games International, Inc. 6.625%, 5/15/21		110		113
TRI Pointe Group, Inc. 5.875%, 6/15/24		85		86
Viking Cruises Ltd. 144A, 5.875%, 9/15/27(3)		135		128
Vista Outdoor, Inc. 5.875%, 10/1/23		140		131
Weekley Homes LLC 144A, 6.625%, 8/15/25(3)		135		133
William Lyon Homes, Inc. 144A, 6.000%, 9/1/23(3)		170		170
Wyndham Worldwide Corp. 4.500%, 4/1/27		135		134
				3,853
Consumer Staples—0.8%
BAT Capital Corp. 144A, 3.557%, 8/15/27(3)		110		105
Cumberland Farms, Inc. 144A, 6.750%, 5/1/25(3)		70		73
CVS Health Corp. 4.300%, 3/25/28		165		166
ESAL GmbH 144A, 6.250%, 2/5/23(3)		200		191
Kronos Acquisition Holdings, Inc. 144A, 9.000%, 8/15/23(3)		85		81
MARB BondCo plc 144A, 7.000%, 3/15/24(3)		200		188
Rite Aid Corp. 144A, 6.125%, 4/1/23(3)		55		55
Safeway, Inc. 7.250%, 2/1/31		95		77

See Notes to Financial Statements

23

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Consumer Staples—continued
Sigma Finance Netherlands BV 144A, 4.875%, 3/27/28(3)	$	200	$	200
Tops Holding LLC 144A, 8.000%, 6/15/22(10)		120		55
				1,191
Energy—4.6%
Alliance Resource Operating Partners LP 144A, 7.500%, 5/1/25(3)		110		115
Alta Mesa Holdings LP 7.875%, 12/15/24		85		88
American Midstream Partners LP 144A, 8.500%, 12/15/21(3)		70		71
Anadarko Finance Co. Series B 7.500%, 5/1/31		45		57
Anadarko Petroleum Corp. 6.600%, 3/15/46		85		107
Berry Petroleum Co., LLC 144A, 7.000%, 2/15/26(3)		30		30
Blue Racer Midstream LLC 144A, 6.125%, 11/15/22(3)		70		71
Bristow Group, Inc. 144A, 8.750%, 3/1/23(3)		35		35
Callon Petroleum Co. 6.125%, 10/1/24		133		136
Carrizo Oil & Gas, Inc. 6.250%, 4/15/23		120		120
Cheniere Corpus Christi Holdings LLC 7.000%, 6/30/24		145		160
Chesapeake Energy Corp. 144A, 8.000%, 6/15/27(3)		135		129
Continental Resources, Inc. 4.500%, 4/15/23		60		61
Crestwood Midstream Partners LP 5.750%, 4/1/25		70		69
Denbury Resources, Inc. 144A, 9.250%, 3/31/22(3)		28		29
Ecopetrol S.A. 5.375%, 6/26/26		190		198
Encana Corp. 8.125%, 9/15/30		65		85
Energy Transfer Equity LP
4.250%, 3/15/23		35		34
5.875%, 1/15/24		75		77
Energy Transfer Partners LP
5.875%, 3/1/22		75		80
5.000%, 10/1/22		45		47
EP Energy LLC
6.375%, 6/15/23		90		46
144A, 8.000%, 11/29/24(3)		95		95
FTS International, Inc. 6.250%, 5/1/22		90		90
Gazprom OAO 144A, 4.950%, 2/6/28(3)(5)		200		198
Geopark Ltd. 144A, 6.500%, 9/21/24(3)		200		201
Helmerich & Payne International Drilling Co. 4.650%, 3/15/25		95		99
HollyFrontier Corp. 5.875%, 4/1/26		155		167
KazMunayGas National Co. JSC 144A, 4.750%, 4/19/27(3)		200		200

	PAR VALUE		VALUE
Energy—continued
Kinder Morgan, Inc. 7.750%, 1/15/32	$	205	$	262
MPLX LP 4.000%, 3/15/28		86		85
Nabors Industries, Inc. 5.500%, 1/15/23		110		108
NuStar Logistics LP 5.625%, 4/28/27		85		82
Odebrecht Offshore Drilling Finance Ltd.
144A, 6.720%, 12/1/22(3)		53		51
PIK Interest Capitalization, 144A, 7.720%, 12/1/26(3)(8)		160		46
Odebrecht Oil & Gas Finance Ltd. 144A, 0.000%, 12/31/49(3)		25		1
Parker Drilling Co. 7.500%, 8/1/20		190		173
Petrobras Global Finance BV
144A, 5.299%, 1/27/25(3)		242		239
7.375%, 1/17/27		325		352
144A, 5.999%, 1/27/28(3)		70		69
Petroleos de Venezuela S.A. 144A, 6.000%, 5/16/24(3)(10)		255		69
Petroleos Mexicanos
6.500%, 3/13/27		470		502
6.500%, 6/2/41		195		194
Range Resources Corp. 4.875%, 5/15/25		165		153
RSP Permian, Inc. 5.250%, 1/15/25		130		134
Sanchez Energy Corp. 144A, 7.250%, 2/15/23(3)		75		75
SESI LLC 144A, 7.750%, 9/15/24(3)		100		103
Seven Generations Energy Ltd. 144A, 5.375%, 9/30/25(3)		135		129
SM Energy Co. 5.625%, 6/1/25		50		47
State Oil Co. of the Azerbaijan Republic RegS 6.950%, 3/18/30(4)		200		217
Sunoco LP
144A, 5.500%, 2/15/26(3)		40		39
144A, 5.875%, 3/15/28(3)		25		24
TransMontaigne Partners LP 6.125%, 2/15/26		75		75
Transocean, Inc.
144A, 9.000%, 7/15/23(3)		75		80
6.800%, 3/15/38		45		35
Ultra Resources, Inc.
144A, 6.875%, 4/15/22(3)		6		5
144A, 7.125%, 4/15/25(3)		30		25
USA Compression Partners LP 144A, 6.875%, 4/1/26(3)		145		147
Valero Energy Partners LP 4.500%, 3/15/28		140		141
Vine Oil & Gas LP 144A, 8.750%, 4/15/23(3)		105		98
Weatherford International Ltd. 9.875%, 2/15/24		45		41
YPF S.A.
144A, 8.500%, 3/23/21(3)		73		80
144A, 8.750%, 4/4/24(3)		10		11
144A, 6.950%, 7/21/27(3)		145		146
				6,933

See Notes to Financial Statements

24

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE			VALUE
Financials—4.2%
Acrisure LLC 144A, 7.000%, 11/15/25(3)	$	135		$	130
AerCap Ireland Capital DAC 3.650%, 7/21/27		150			140
Allstate Corp. (The) Series B 5.750%(7)		125			131
Ares Capital Corp.
3.625%, 1/19/22		90			89
3.500%, 2/10/23		55			53
Athene Holding Ltd. 4.125%, 1/12/28		130			125
Australia & New Zealand Banking Group Ltd. 144A, 4.400%, 5/19/26(3)		200			201
Aviation Capital Group LLC 144A, 3.500%, 11/1/27(3)		145			136
Banco Bilbao Vizcaya Argentaria Bancomer S.A. 144A, 5.125%, 1/18/33(3)		200			192
Banco de Bogota S.A. 144A, 6.250%, 5/12/26(3)		200			210
Banco Internacional del Peru SAA Interbank 144A, 6.625%, 3/19/29(3)		65			71
Bank of America Corp. 4.200%, 8/26/24		167			169
Bank of Montreal 3.803%, 12/15/32		28			27
Bonos del Banco Central de Chile 4.500%, 6/1/20		40,000	CLP		69
Brighthouse Financial, Inc. 144A, 3.700%, 6/22/27(3)		170			158
BrightSphere Investment Group plc 4.800%, 7/27/26		150			151
Capital One Financial Corp. 3.750%, 7/28/26		135			128
Compass Bank 3.875%, 4/10/25		250			245
Drawbridge Special Opportunities Fund LP 144A, 5.000%, 8/1/21(3)		250			253
FS Investment Corp. 4.750%, 5/15/22		130			131
GrupoSura Finance S.A. 144A, 5.500%, 4/29/26(3)		200			212
ICAHN Enterprises LP 6.375%, 12/15/25		160			161
ING Groep N.V. 6.000%(6)(7)		200			205
Jefferies Group LLC 4.850%, 1/15/27		40			41
JPMorgan Chase & Co.
3.300%, 4/1/26		135			130
2.950%, 10/1/26		80			75
Kazakhstan Temir Zholy Finance BV 144A, 6.950%, 7/10/42(3)		200			224
Kazakhstan Temir Zholy National Co. JSC 144A, 4.850%, 11/17/27(3)		205			204
Leucadia National Corp. 5.500%, 10/18/23		70			72
Navient Corp.
7.250%, 9/25/23		35			37
6.750%, 6/25/25		90			91
PNC Financial Services Group, Inc. (The) Series O 6.750%, 12/31/49		85			92
Powszechna Kasa Oszczednosci Bank Polski S.A. 144A, 4.630%, 9/26/22(3)(5)		240			250

	PAR VALUE		VALUE
Financials—continued
Prudential Financial, Inc.
5.875%, 9/15/42	$	100	$	105
5.625%, 6/15/43(7)		75		79
Santander Holdings USA, Inc. 4.400%, 7/13/27		135		134
Sberbank of Russia 144A, 5.500%, 2/26/24(3)(5)		200		202
Springleaf Finance Corp. 6.875%, 3/15/25		80		80
Synchrony Financial 3.950%, 12/1/27		115		109
Teachers Insurance & Annuity Association of America 144A, 4.375%, 9/15/54(3)		150		146
Toronto-Dominion Bank (The) 3.625%, 9/15/31		60		57
Turkiye Vakiflar Bankasi TAO 144A, 5.625%, 5/30/22(3)		200		196
Voya Financial, Inc. 5.650%, 5/15/53		155		158
Wells Fargo & Co. 3.550%, 9/29/25		135		132
Series S, 5.900%, 8/15/27		310		319
				6,320
Health Care—1.1%
Anthem, Inc. 3.650%, 12/1/27		35		34
Avantor, Inc. 144A, 6.000%, 10/1/24(3)		60		60
Becton Dickinson & Co. 3.700%, 6/6/27		170		164
Charles River Laboratories International, Inc. 144A, 5.500%, 4/1/26(3)		105		107
Community Health Systems, Inc. 6.250%, 3/31/23		20		18
Concordia International Corp. 144A, 9.000%, 4/1/22(3)		35		32
DJO Finco, Inc. 144A, 8.125%, 6/15/21(3)		55		55
Eagle Holding Co. II, LLC PIK Interest Capitalization, 144A, 7.625%, 5/15/22(3)(8)		80		80
Endo Dac 144A, 6.000%, 7/15/23(3)		140		106
Envision Healthcare Corp. 144A, 6.250%, 12/1/24(3)		30		31
HCA, Inc. 5.250%, 6/15/26		55		56
MPH Acquisition Holdings LLC 144A, 7.125%, 6/1/24(3)		120		124
Polaris Intermediate Corp. PIK Interest Capitalization, 144A, 8.500%, 12/1/22(3)(8)		10		10
Surgery Center Holdings, Inc. 144A, 8.875%, 4/15/21(3)		115		120
144A, 6.750%, 7/1/25(3)		20		19
Tenet Healthcare Corp. 144A, 5.125%, 5/1/25(3)		35		34
144A, 7.000%, 8/1/25(3)		115		113
Teva Pharmaceutical Finance Netherlands III BV 3.150%, 10/1/26		85		68

See Notes to Financial Statements

25

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Health Care—continued
Valeant Pharmaceuticals International, Inc. 144A, 7.500%, 7/15/21(3)	$	5	$	5
144A, 5.625%, 12/1/21(3)		5		5
144A, 6.500%, 3/15/22(3)		10		10
144A, 7.250%, 7/15/22(3)		105		105
144A, 5.875%, 5/15/23(3)		30		26
144A, 7.000%, 3/15/24(3)		15		16
144A, 5.500%, 11/1/25(3)		80		78
144A, 9.000%, 12/15/25(3)		20		20
144A, 9.250%, 4/1/26(3)		75		75
West Street Merger Sub, Inc. 144A, 6.375%, 9/1/25(3)		80		76
				1,647
Industrials—1.5%
Alfa SAB de CV 144A, 5.250%, 3/25/24(3)		200		208
Ashtead Capital, Inc. 144A, 4.375%, 8/15/27(3)		200		190
Bombardier, Inc. 144A, 6.125%, 1/15/23(3)		135		135
CNH Industrial N.V. 4.500%, 8/15/23		112		114
3.850%, 11/15/27		58		56
Continental Airlines Pass-Through-Trust 1999-2, C2 6.236%, 3/15/20		48		49
DP World Ltd. 144A, 6.850%, 7/2/37(3)		100		121
Embraer Netherlands Finance BV 5.400%, 2/1/27		65		69
Latam Finance Ltd. 144A, 6.875%, 4/11/24(3)		200		209
Masco Corp. 5.950%, 3/15/22		99		107
Navistar International Corp. 144A, 6.625%, 11/1/25(3)		135		135
New Enterprise Stone & Lime Co., Inc. 144A, 10.125%, 4/1/22(3)		10		11
6.250%, 3/15/26(3)		70		70
Owens Corning 3.400%, 8/15/26		150		144
Pitney Bowes, Inc. 4.125%, 5/15/22		157		148
Standard Industries, Inc. 144A, 6.000%, 10/15/25(3)		95		97
Titan Acquisition Ltd. 144A, 7.750%, 4/15/26(3)		85		85
TransDigm, Inc.
6.500%, 7/15/24		70		72
6.500%, 5/15/25		50		51
US Airways 2012-1 Class B Pass Through Trust 8.000%, 10/1/19		136		144
Wrangler Buyer Corp. 144A, 6.000%, 10/1/25(3)		89		87
				2,302
Information Technology—1.1%
Arrow Electronics, Inc. 3.875%, 1/12/28		135		131
Blackboard, Inc. 144A, 9.750%, 10/15/21(3)		53		45
Broadcom Corp.
3.000%, 1/15/22		45		44
3.625%, 1/15/24		165		162
3.125%, 1/15/25		90		85

	PAR VALUE		VALUE
Information Technology—continued
Citrix Systems, Inc. 4.500%, 12/1/27	$	125	$	124
Dell International LLC
144A, 5.450%, 6/15/23(3)		30		32
144A, 8.100%, 7/15/36(3)		60		73
Everi Payments, Inc. 144A, 7.500%, 12/15/25(3)		35		35
Hewlett Packard Enterprise Co. 4.900%, 10/15/25		80		83
Jabil, Inc. 3.950%, 1/12/28		130		126
Rackspace Hosting, Inc. 144A, 8.625%, 11/15/24(3)		65		64
Radiate Holdco LLC
144A, 6.875%, 2/15/23(3)		20		19
144A, 6.625%, 2/15/25(3)		165		153
VeriSign, Inc. 4.750%, 7/15/27		145		139
ViaSat, Inc. 144A, 5.625%, 9/15/25(3)		140		135
VMware, Inc. 3.900%, 8/21/27		93		88
Western Digital Corp. 4.750%, 2/15/26		155		155
				1,693
Materials—1.9%
AK Steel Corp. 7.500%, 7/15/23		80		84
Alpek SAB de C.V. 144A, 5.375%, 8/8/23(3)		260		268
Anglo American Capital plc 144A, 4.000%, 9/11/27(3)		200		192
BHP Billiton Finance USA Ltd. 144A, 6.750%(3)(6)(7)		205		230
BlueScope Steel Finance Ltd. 144A, 6.500%, 5/15/21(3)		85		88
CPG Merger Sub LLC 144A, 8.000%, 10/1/21(3)		90		91
Fibria Overseas Finance Ltd. 4.000%, 1/14/25		124		120
FMG Resources August 2006 Pty Ltd. 144A, 5.125%, 3/15/23(3)		105		104
Glencore Funding LLC 144A, 4.000%, 3/27/27(3)		165		159
GTL Trade Finance, Inc. 144A, 5.893%, 4/29/24(3)		150		160
Hexion Inc. 6.625%, 4/15/20		90		84
James Hardie International Finance DAC 144A, 5.000%, 1/15/28(3)		200		194
Kraton Polymers LLC 144A, 7.000%, 4/15/25(3)		125		129
NOVA Chemicals Corp.
144A, 4.875%, 6/1/24(3)		60		57
144A, 5.000%, 5/1/25(3)		130		125
Platform Specialty Products Corp. 144A, 5.875%, 12/1/25(3)		105		103
PQ Corp. 144A, 5.750%, 12/15/25(3)		45		45
Rusal Capital DAC 144A, 5.125%, 2/2/22(3)		200		197

See Notes to Financial Statements

26

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE			VALUE
Materials—continued
Teck Resources Ltd. 144A, 8.500%, 6/1/24(3)	$	40		$	44
United States Steel Corp. 6.250%, 3/15/26		145			145
Vale Overseas Ltd. 6.250%, 8/10/26		85			95
Yamana Gold, Inc. 144A, 4.625%, 12/15/27(3)		135			133
					2,847
Real Estate—0.6%
EPR Properties
4.750%, 12/15/26		145			145
4.500%, 6/1/27		75			73
Healthcare Trust of America Holdings LP 3.750%, 7/1/27		70			68
Hospitality Properties Trust
4.950%, 2/15/27		140			142
4.375%, 2/15/30		40			38
LifeStorage LP 3.875%, 12/15/27		50			48
MPT Operating Partnership LP
5.500%, 5/1/24		90			92
5.000%, 10/15/27		65			64
Physicians Realty LP 4.300%, 3/15/27		140			139
Select Income REIT 4.500%, 2/1/25		165			163
					972
Telecommunication Services—1.3%
America Movil SAB de C.V. 6.450%, 12/5/22		2,000	MXN		102
AT&T, Inc.
3.400%, 8/14/24		109			109
4.250%, 3/1/27		85			86
3.900%, 8/14/27		120			121
5.250%, 3/1/37		30			32
4.800%, 6/15/44		110			107
5.650%, 2/15/47		55			59
Consolidated Communications, Inc. 6.500%, 10/1/22		134			120
Digicel Group Ltd. 144A, 8.250%, 9/30/20(3)		200			172
Frontier Communications Corp.
8.500%, 4/15/20		55			55
7.125%, 1/15/23		130			88
144A, 8.500%, 4/1/26(3)		55			53
GTH Finance BV 144A, 7.250%, 4/26/23(3)		200			217
Level 3 Financing, Inc. 5.375%, 1/15/24		130			127
Qwest Corp. 7.250%, 9/15/25		80			86
Sprint Corp. 7.625%, 3/1/26		55			54
Telenet Finance Luxembourg Notes S.a.r.l. 144A, 5.500%, 3/1/28(3)		200			191
West Corp. 144A, 8.500%, 10/15/25(3)		45			44
Windstream Services LLC
144A, 6.375%, 8/1/23(3)		100			57
144A, 8.625%, 10/31/25(3)		70			65
					1,945

	PAR VALUE		VALUE
Utilites—0.4%
Dynegy, Inc. 7.375%, 11/1/22	$	130	$	137
Eskom Holdings SOC Ltd. 144A, 7.125%, 2/11/25(3)		200		204
Ferrellgas Partners LP
8.625%, 6/15/20		25		23
6.750%, 6/15/23		135		123
TerraForm Power Operating LLC 144A, 5.000%, 1/31/28(3)		110		104
				591
TOTAL CORPORATE BONDS AND NOTES (Identified Cost $30,799)				30,294
LEVERAGED LOANS(2)—3.3%
Aerospace—0.1%
TransDigm, Inc. Tranche F, (3 month LIBOR + 2.750%) 4.839%, 6/9/23		109		109
Chemicals—0.1%
IPS Acquisition LLC First Lien, (1 month LIBOR + 3.250%) 5.127%, 11/7/24		15		15
KMG Chemicals, Inc., (1 month LIBOR + 2.750%) 4.627%, 6/15/24		15		16
New Arclin U.S. Holding Corp. First Lien, (3 month LIBOR + 3.500%) 5.802%, 2/14/24		65		65
Omnova Solutions, Inc. Tranche B-2, (1 month LIBOR + 3.250%) 5.127%, 8/25/23		104		105
PQ Corp. Tranche B-1, (3 month LIBOR + 2.500%) 4.291%, 2/8/25		5		5
				206
Consumer Durables—0.1%
Global Appliance, Inc. Tranche B, (1 month LIBOR + 4.000%) 5.880%, 9/29/24		90		91
Consumer Non-Durables—0.1%
Coty, Inc. Tranche B, (3 month LIBOR + 2.250%) 0.000%, 3/28/25(9)		45		45
Galleria Co. Tranche B, (1 month LIBOR + 3.000%) 4.688%, 9/29/23		44		44
HLF Financing S.a r.l. Senior Lien, (1 month LIBOR + 5.500%) 7.377%, 2/15/23		37		37
Parfums Holdings Co., Inc. First Lien, (3 month LIBOR + 4.750%) 7.052%, 6/30/24		60		60
				186
Energy—0.3%
California Resources Corp., (1 month LIBOR + 10.375%) 12.229%, 12/31/21		80		90
Chesapeake Energy Corp. Tranche A, (3 month LIBOR + 7.500%) 9.444%, 8/23/21		24		26
Medallion Midland Acquisition LLC, (1 month LIBOR + 3.250%) 5.127%, 10/30/24		80		80

See Notes to Financial Statements

27

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Energy—continued
Seadrill Operating LP, (3 month LIBOR + 6.000%) 8.302%, 2/21/21	$	65	$	54
Traverse Midstream Partners LLC, (3 month LIBOR + 4.000%) 5.850%, 9/27/24		80		80
Ultra Resources, Inc., (1 month LIBOR + 3.000%) 4.765%, 4/12/24		75		74
				404
Financial—0.2%
Asurion LLC Tranche B-2, Second Lien, (1 month LIBOR + 6.000%) 7.877%, 8/4/25		127		131
Ditech Holding Corp. Tranche B, (1 month LIBOR + 6.000%) 7.877%, 6/30/22		102		99
Genworth Holdings, Inc., (1 month LIBOR + 4.500%) 6.202%, 3/7/23		10		10
				240
Food / Tobacco—0.1%
CFSP Acquisition Corp.
(3 month LIBOR + 0.5000%) 0.5000% 3/1/25(14)		3		3
(3 month LIBOR + 3.000%) 4.822%, 3/14/25		12		12
CHG PPC Parent LLC First Lien,
(3 month LIBOR + 2.750%) 0.000%, 3/21/25(9)		10		10
Chobani LLC First Lien, (1 month LIBOR + 3.500%) 5.377%, 10/10/23		52		52
JBS USA Lux S.A., (3 month LIBOR + 2.500%) 4.678%, 10/30/22		39		39
				116
Food and Drug—0.1%
Albertson’s LLC 2017-1, Tranche B-4, (1 month LIBOR + 2.750%) 4.627%, 8/25/21		117		116
Forest Prod / Containers—0.0%
Anchor Glass Container Corp. Second Lien, (1 month LIBOR + 7.750%) 9.490%, 12/7/24		38		36
Spectrum Holdings III Corp.
(3 month LIBOR + 1.000%) 1.000% 3/1/25(14)		4		4
(1 month LIBOR + 3.250%) 5.127%, 1/31/25		41		41
				81
Gaming / Leisure—0.2%
Everi Payments, Inc. Tranche B, (2 month LIBOR + 3.500%) 5.494%, 5/9/24		35		35
Gateway Casinos & Entertainment Ltd., (1 month LIBOR + 3.000%) 4.750%, 3/13/25		35		35
Playa Resorts Holding B.V., (3 month LIBOR + 3.250%) 5.000%, 4/29/24		89		90
Scientific Games International, Inc. Tranche B-5, (2 month LIBOR + 2.750%) 4.686%, 8/14/24		5		5

	PAR VALUE		VALUE
Gaming / Leisure—continued
Seminole Tribe of Florida Tranche B, (1 month LIBOR + 2.000%) 3.877%, 7/8/24	$	85	$	85
UFC Holdings, LLC First Lien, (1 month LIBOR + 3.250%) 5.130%, 8/18/23		77		77
Wyndham Hotels & Resorts, Inc. Tranche B, (3 month LIBOR + 1.750%) 0.000%, 3/28/25(9)		25		25
				352
Healthcare—0.1%
21st Century Oncology, Inc. Tranche B, (3 month LIBOR + 6.125%) 7.855%, 1/16/23		31		29
Envision Healthcare Corp., (1 month LIBOR + 3.000%) 4.880%, 12/1/23		8		9
PharMerica Corp. Second Lien, (1 month LIBOR + 7.750%) 9.461%, 12/5/25		10		10
Prospect Medical Holdings, Inc. Tranche B-1, (1 month LIBOR + 5.500%) 7.188%, 2/22/24		55		55
U.S. Renal Care, Inc. First Lien, (3 month LIBOR + 4.250%) 6.552%, 12/30/22		54		54
				157
Housing—0.1%
84 Lumber Co. Tranche B-1, (1 month LIBOR + 5.250%) 7.122%, 10/25/23		77		77
Capital Automotive LP Tranche B, Second Lien, (1 month LIBOR + 6.000%) 7.880%, 3/24/25		39		40
CPG International LLC, (3 month LIBOR + 3.750%) 5.593%, 5/5/24		89		90
				207
Information Technology—0.3%
Applied Systems, Inc. Second Lien, (3 month LIBOR + 7.000%) 9.302%, 9/19/25		15		16
Blackboard, Inc. Tranche B-4, First Lien, (3 month LIBOR + 5.000%) 6.734%, 6/30/21		30		28
Intralinks, Inc. First Lien, (1 month LIBOR + 4.000%) 5.880%, 11/14/24		40		40
Kronos, Inc. Second Lien, (3 month LIBOR + 8.250%) 10.023%, 11/1/24		38		39
Presidio Holdings, Inc. Tranche B, (3 month LIBOR + 2.750%) 4.536%, 2/2/24		84		84
SS&C Technologies Holdings, Inc.
Tranche B-3, (3 month LIBOR + 2.500%) 0.000%, 2/28/25(9)		162		163
Tranche B-4, (3 month LIBOR + 2.500%) 0.000%, 2/28/25(9)		58		58
Veritas US, Inc. Tranche B, (3 month LIBOR + 4.500%) 6.802%, 1/27/23		52		52
				480

See Notes to Financial Statements

28

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Manufacturing—0.2%
Accudyne Industries Borrower S.C.A., (1 month LIBOR + 3.250%) 5.127%, 8/18/24	$	15	$	15
CPI Acquisition, Inc. First Lien, (3 month LIBOR + 4.500%) 6.358%, 8/17/22		152		104
Filtration Group Corp., (3 month LIBOR + 3.000%) 0.000%, 3/29/25(9)		40		40
Pro Mach Group, Inc. First Lien, (3 month LIBOR + 3.000%) 5.035%, 3/7/25		10		10
U.S. Farathane LLC Tranche B-4, (3 month LIBOR + 3.500%) 5.802%, 12/23/21		88		88
				257
Media / Telecom - Diversified Media—0.1%
Crown Finance US, Inc., (1 month LIBOR + 2.500%) 4.377%, 2/28/25		95		95
Meredith Corp., (1 month LIBOR + 3.000%) 4.877%, 1/31/25		80		80
				175
Media / Telecom - Telecommunications—0.2%
CenturyLink, Inc. Tranche B, (1 month LIBOR + 2.750%) 4.627%, 1/31/25		55		54
Securus Technologies Holdings, Inc.
First Lien, (1 month LIBOR + 4.500%) 6.377%, 11/1/24		110		111
Second Lien, (1 month LIBOR + 8.250%) 10.127%, 11/1/25		60		61
West Corp.
Tranche B-1, (3 month LIBOR + 3.500%) 0.000%, 10/10/24(9)		50		50
Tranche B, (1 month LIBOR + 4.000%) 5.877%, 10/10/24		34		34
				310
Metals / Minerals—0.1%
Contura Energy, Inc., (1 month LIBOR + 5.000%) 6.880%, 3/18/24		82		82
Graftech International Ltd., (1 month LIBOR + 3.500%) 5.240%, 2/12/25		85		85
				167
Retail—0.1%
BJ’s Wholesale Club, Inc. Second Lien, (1 month LIBOR + 7.500%) 9.191%, 2/3/25		75		75
Neiman Marcus Group Ltd. LLC, (1 month LIBOR + 3.250%) 4.941%, 10/25/20		95		82
				157
Service—0.5%
Advantage Sales & Marketing, Inc.
Tranche B-2, First Lien, (3 month LIBOR + 3.250%) 5.022%, 7/23/21		75		73
Second Lien, (3 month LIBOR + 6.500%) 8.267%, 7/25/22		93		89

	PAR VALUE			VALUE
Service—continued
Delek US Holdings, Inc., (3 month LIBOR + 2.500%) 0.000%, 3/14/25(9)	$	20		$	20
Hoya Midco LLC First Lien, (1 month LIBOR + 3.500%) 5.377%, 6/30/24		40			40
Laureate Education, Inc. 2024, (1 month LIBOR + 3.500%) 5.377%, 4/26/24		75			75
NAB Holdings, LLC 2018 Refinancing, (3 month LIBOR + 3.000%) 5.302%, 7/1/24		50			50
PAE Holding Corp. First Lien, (2 month LIBOR + 5.500%) 7.494%, 10/20/22		48			48
Pearl Intermediate Parent LLC
(3 month LIBOR + 1.000%) 1.000% 3/125(14)		19			19
First Lien, (1 month LIBOR + 2.750%) 4.527%, 2/14/25		66			65
Red Ventures, LLC First Lien, (1 month LIBOR + 4.000%) 5.877%, 11/8/24		80			80
Sedgwick Claims Management Services, Inc. Second Lien, (3 month LIBOR + 5.750%) 7.734%, 2/28/22		210			211
TKC Holdings, Inc. First Lien, (3 month LIBOR + 4.250%) 6.030%, 2/1/23		89			90
					860
Transportation - Automotive—0.1%
Navistar, Inc. Tranche B, (1 month LIBOR + 3.500%) 5.210%, 11/6/24		110			110
Utility—0.2%
APLP Holdings LP, (1 month LIBOR + 3.500%) 5.377%, 4/13/23		109			110
Talen Energy Supply LLC, (1 month LIBOR + 4.000%) 5.877%, 4/15/24		69			68
Vistra Operations Co. LLC (1 month LIBOR + 2.500%) 4.377%, 8/4/23		63			64
Tranche C, (1 month LIBOR + 2.500%) 4.377%, 8/4/23		12			12
					254
TOTAL LEVERAGED LOANS (Identified Cost $5,046)					5,035
	SHARES
PREFERRED STOCKS—1.0%
Financials—0.9%
JPMorgan Chase & Co. Series V, 5.000%		80	(11)		81
JPMorgan Chase & Co. Series Z, 5.300%		160	(11)		164
Huntington Bancshares, Inc. Series E 5.700%		175	(11)		176
KeyCorp Series D, 5.000%		145	(11)		143
MetLife, Inc. Series D 5.875%		75	(11)		76
M&T Bank Corp. Series F, 5.125%		170	(11)		170
PNC Financial Services Group, Inc. (The) Series R, 4.850%		155	(11)		155
Series S, 5.000%		145	(11)		144

See Notes to Financial Statements

29

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	SHARES			VALUE
Financials—continued
Zions Bancorp 6.950%		6,400		$	180
					1,289
Industrials—0.1%
General Electric Co. Series D, 5.000%		227	(11)		225
TOTAL PREFERRED STOCKS (Identified Cost $1,488)					1,514
COMMON STOCKS—61.4%
Consumer Discretionary—12.9%
Amazon.com, Inc.(1)		2,920			4,226
Booking Holdings, Inc.(1)		510			1,061
Ctrip.com International Ltd. ADR(1)		36,602			1,706
Home Depot, Inc. (The)		7,840			1,397
Las Vegas Sands Corp.		29,080			2,091
McDonald’s Corp.		5,870			918
MercadoLibre, Inc.		2,140			763
Netflix, Inc.(1)		9,290			2,744
NIKE, Inc. Class B		20,090			1,335
Ross Stores, Inc.		15,990			1,247
Sony Corp. Sponsored ADR		16,053			776
Starbucks Corp.		22,450			1,300
					19,564
Consumer Staples—3.3%
Fomento Economico Mexicano SAB de C.V. Sponsored ADR		6,863			628
Marine Harvest ASA Sponsored ADR		31,000			623
Monster Beverage Corp.(1)		40,170			2,298
Philip Morris International, Inc.		14,620			1,453
					5,002
Energy—3.0%
Cabot Oil & Gas Corp.		42,790			1,026
CGG SA(1)		59,190			117
Core Laboratories N.V.		6,620			716
Frontera Energy Corp.(1)		920			26
Pioneer Natural Resources Co.		5,960			1,024
Statoil ASA Sponsored ADR		36,603			866
TechnipFMC plc		24,016	��		707
					4,482
Financials—7.8%
Bank of America Corp.		78,320			2,349
BOC Hong Kong Holdings Ltd. Sponsored ADR		6,641			641
CaixaBank S.A. ADR		433,313			689
Charles Schwab Corp. (The)		19,830			1,036
China Construction Bank Corp. ADR		38,355			801
Credit Agricole S.A. ADR		82,845			674
DBS Group Holdings Ltd. Sponsored ADR		11,858			1,008
ING Groep N.V. Sponsored ADR		41,219			698
MarketAxess Holdings, Inc.		4,440			965
Nomura Holdings, Inc. Sponsored ADR		121,412			710
ORIX Corp. Sponsored ADR		8,955			805
SEI Investments Co.		9,520			713
UBS Group AG Registered Shares(1)		41,083			726
					11,815

	SHARES		VALUE
Health Care—5.1%
Allergan plc		4,716	$	794
BioMarin Pharmaceutical, Inc.(1)		10,480		850
Bluebird Bio, Inc.(1)		3,500		598
Danaher Corp.		10,740		1,051
HealthEquity, Inc.(1)		19,070		1,154
ICON plc(1)		4,040		477
Illumina, Inc.(1)		4,950		1,170
Zoetis, Inc.		19,220		1,605
				7,699
Industrials—6.1%
Airbus SE ADR		27,595		796
Ashtead Group plc ADR		7,566		836
Caterpillar, Inc.		8,800		1,297
CoStar Group, Inc.(1)		3,130		1,135
easyJet plc Sponsored ADR		35,220		791
Golden Ocean Group Ltd.		66,764		531
Kansas City Southern		9,220		1,013
Nidec Corp. Sponsored ADR		21,812		841
Rockwell Automation, Inc.		3,430		597
Roper Technologies, Inc.		5,020		1,409
				9,246
Information Technology—19.2%
Accenture plc Class A		7,260		1,114
Activision Blizzard, Inc.		17,850		1,204
Alibaba Group Holding Ltd. Sponsored ADR(1)		23,300		4,277
Alphabet, Inc. Class A(1)		730		757
Amphenol Corp. Class A		22,550		1,942
Arista Networks, Inc.(1)		2,520		643
Broadcom Ltd.		2,697		636
Check Point Software Technologies Ltd.(1)		5,850		581
Facebook, Inc. Class A(1)		22,550		3,603
Gartner, Inc.(1)		5,750		676
Hitachi Ltd. ADR		11,120		813
NVIDIA Corp.		11,600		2,686
Paycom Software, Inc.(1)		14,270		1,532
SAP SE Sponsored ADR		5,172		544
Tencent Holdings Ltd. ADR		34,900		1,860
Visa, Inc. Class A		22,630		2,707
Workday, Inc. Class A(1)		13,050		1,659
Yandex N.V. Class A(1)		48,100		1,898
				29,132
Materials—2.9%
Anhui Conch Cement Co., Ltd. ADR		35,067		964
Ecolab, Inc.		10,190		1,397
Glencore plc ADR(1)		75,340		751
HeidelbergCement AG ADR		32,490		638
Toray Industries, Inc. ADR		34,973		665
				4,415
Real Estate—0.4%
LendLease Group Sponsored ADR		44,764		603
Telecommunication Services—0.3%
BT Group plc Sponsored ADR		31,866		515

See Notes to Financial Statements

30

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
Utilities—0.4%
Veolia Environnement S.A. ADR		23,003	$	547
TOTAL COMMON STOCKS (Identified Cost $69,904)				93,020
EXCHANGE-TRADED FUND(12)—0.4%
PowerShares Senior Loan Portfolio ETF		25,000		578
TOTAL EXCHANGE-TRADED FUND (Identified Cost $577)				578
AFFILIATED MUTUAL FUND(12)—0.8%
Virtus Newfleet Credit Opportunities Fund Class R6		132,261		1,276
TOTAL AFFILIATED MUTUAL FUND (Identified Cost $1,322)				1,276
TOTAL LONG-TERM INVESTMENTS—98.7%
(Identified Cost $127,111)				149,515	(15)
SHORT-TERM INVESTMENT—1.9%
Money Market Mutual Fund(12)—1.9%
Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.540%)		2,894,402		2,894
TOTAL SHORT-TERM INVESTMENT (Identified Cost $2,894)				2,894
TOTAL INVESTMENTS—100.6% (Identified Cost $130,005)				152,409
Other assets and liabilities, net—(0.6)%				(944	)
NET ASSETS—100.0%			$	151,465

Abbreviations:

ADR American Depositary Receipt

ETF Exchange-Traded Fund

LIBOR London Interbank Offered Rate

PIK Payment-in-Kind Security

REIT Real Estate Investment Trust

Foreign Currencies

BRL Brazilian Real

CLP Chilean Peso

COP Colombian Peso

IDR Indonesian Rupiah

MXN Mexican Peso

RUB Russian Ruble

ZAR South African Rand

Footnote Legend:

⁽¹⁾  Non-income producing.

⁽²⁾  Variable rate security. Rate disclosed is as of March 31, 2018. For leveraged loans, the rate shown may represent a weighted average interest rate. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.

⁽³⁾  Security exempt from registration under Rule 144A, of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2018, these securities amounted to a value of $25,026 or 16.5% of net assets.

⁽⁴⁾  Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933.

⁽⁵⁾  This Note was issued for the sole purpose of funding a loan agreement between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of the borrower.

⁽⁶⁾  No contractual maturity date.

⁽⁷⁾  Interest payments may be deferred.

⁽⁸⁾  100% of the income received was in cash.

⁽⁹⁾  This loan will settle after March 31, 2018, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected.

⁽¹⁰⁾  Security in default, no interest payments are being received during the bankruptcy proceedings.

⁽¹¹⁾  Value shown as par value.

⁽¹²⁾  Shares of these funds are publicly offered, and the prospectus and annual report of each are publicly available.

⁽¹³⁾  Interest may be forfeited.

⁽¹⁴⁾  Represents unfunded portion of security and commitment fee earned on this portion.

⁽¹⁵⁾  All or a portion of the Fund’s assets have been segregated for delayed delivery security.

Country Weightings†
United States	67	%
China	6
Japan	3
France	2
Russia	2
Netherlands	2
United Kingdom	2
Other	16
Total	100	%
† % of total investments as of March 31, 2018.

For information regarding the abbreviations, see the Key Investment Terms starting on page 5.

See Notes to Financial Statements

31

VIRTUS TACTICAL ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018		Level 1 Quoted Prices		Level 2 Significant Observable Inputs
Debt Securities:
Asset-Backed Securities	$	3,351	$	—	$	3,351
Corporate Bonds and Notes		30,294		—		30,294
Foreign Government Securities		6,127		—		6,127
Leveraged Loans		5,035		—		5,035
Mortgage-Backed Securities		7,097		—		7,097
U.S. Government Securities		1,223		—		1,223
Equity Securities:
Affiliated Mutual Fund		1,276		1,276		—
Common Stocks		93,020		93,020		—
Exchange-Traded Fund		578		578		—
Preferred Stocks		1,514		180		1,334
Short-Term Investment		2,894		2,894		—
Total Investments	$	152,409	$	97,948	$	54,461

There were no securities valued using significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at March 31, 2018.

See Notes to Financial Statements

32

VIRTUS EQUITY TRUST

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)

MARCH 31, 2018

(Reported in thousands except shares and per share amounts)

	KAR Capital Growth Fund			KAR Global Quality Dividend Fund			KAR Mid-Cap Core Fund			KAR Mid-Cap Growth Fund			KAR Small-Cap Core Fund
Assets
Investment in unaffiliated securities at value(1)	$	521,306		$	37,007		$	148,020		$	113,122		$	1,152,889
Foreign currency at value(2)		—			92			—			—			—
Cash		256			23			11			14			—
Receivables
Investment securities sold		2,819			—			—			617			2,796
Fund shares sold		118			1			397			152			6,438
Dividends and interest		305			244			74			80			46
Tax reclaims		—			8			—			—			—
Prepaid expenses		52			27			63			46			115
Prepaid trustee retainer		7			—	(3)		2			1			18
Other assets		27			2			7			6			54
Total assets		524,890			37,404			148,574			114,038			1,162,356
Liabilities
Cash overdraft		—			—			—			—			—	(3)
Payables
Fund shares repurchased		106			146			228			74			555
Investment securities purchased		2,791			—			—			611			14,094
Investment advisory fees		320			18			77			78			697
Distribution and service fees		119			10			25			26			95
Administration fees		53			3			15			11			113
Transfer agent and sub-transfer agent fees and expenses		210			24			27			42			130
Trustees’ fees and expenses		—	(3)		—	(3)		—	(3)		—	(3)		—	(3)
Professional fees		7			8			10			10			3
Trustee deferred compensation plan		27			2			7			6			54
Other accrued expenses		34			4			5			8			35
Total liabilities		3,667			215			394			866			15,776
Net Assets	$	521,223		$	37,189		$	148,180		$	113,172		$	1,146,580
Net Assets Consist of:
Capital paid in on shares of beneficial interest	$	259,286		$	38,573		$	117,128		$	59,023		$	832,654
Accumulated undistributed net investment income (loss)		(1,307	)		606			(175	)		(414	)		1,770
Accumulated undistributed net realized gain (loss)		25,614			(2,924	)		803			3,947			21,109
Net unrealized appreciation (depreciation) on investments		237,630			934			30,424			50,616			291,047
Net Assets	$	521,223		$	37,189		$	148,180		$	113,172		$	1,146,580
Net Assets:
Class A	$	486,704		$	26,755		$	26,831		$	96,396		$	119,107
Class C	$	14,016		$	5,509		$	23,136		$	5,846		$	84,809
Class I	$	15,146		$	4,925		$	98,117		$	10,829		$	871,688
Class R6	$	5,357		$	—		$	96		$	101		$	70,976
Shares Outstanding (unlimited number of shares authorized, no par value):
Class A		28,654,115			1,866,789			866,548			3,107,010			3,649,901
Class C		1,052,572			395,264			794,532			235,809			3,062,495
Class I		862,192			343,168			3,121,932			338,793			25,422,694
Class R6		304,814			—			3,051			3,151			2,063,019
Net Asset Value and Redemption Price Per Share:
Class A	$	16.99		$	14.33		$	30.96		$	31.03		$	32.63
Class C	$	13.32		$	13.94		$	29.12		$	24.79		$	27.69
Class I	$	17.57		$	14.35		$	31.43		$	31.96		$	34.29
Class R6	$	17.57		$	—		$	31.43		$	31.96		$	34.40
Offering Price Per Share NAV/(1–5.75%):
Class A	$	18.03		$	15.20		$	32.85		$	32.92		$	34.62
(1) Investments in unaffiliated securities at cost	$	283,676		$	36,073		$	117,596		$	62,506		$	861,842
(2) Foreign currency at cost	$	—		$	92		$	—		$	—		$	—
(3) Amount is less than $500.

See Notes to Financial Statements

33

VIRTUS EQUITY TRUST

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)

MARCH 31, 2018

(Reported in thousands except shares and per share amounts)

	KAR Small-Cap Growth Fund			KAR Small-Cap Value Fund			KAR Small-Mid Cap Core Fund			Rampart Enhanced Core Equity Fund			Tactical Allocation Fund
Assets
Investment in unaffiliated securities at value(1)	$	2,521,727		$	479,456		$	2,865		$	167,554		$	151,133
Investment in affiliated securities at value(2)		—			—			—			—			1,276
Cash		—	(4)		—			78			—			53
Foreign currency, at value(3)		—	(4)		—			—			—			—
Deposits with broker		—			—			—			—	(4)		—
Receivables
Investment securities sold		—			1,177			—			1,100			462
Fund shares sold		25,389			4,113			—			24			3
Receivable from adviser		—			—			5			—			—
Dividends and interest		572			489			—	(4)		158			643
Tax reclaims		—			—			—			—	(4)		4
Prepaid expenses		235			65			—	(4)		46			25
Prepaid trustee retainer		42			7			—	(4)		2			2
Other assets		119			24			—	(4)		9			8
Total assets		2,548,084			485,331			2,948			168,893			153,609
Liabilities
Cash overdraft		—			—			—			81			—
Foreign Currency overdraft		—			—	(4)		—			—			2
Written options at value(5)		—			—			—			137			—
Payables
Fund shares repurchased		1,713			441			—			50			58
Investment securities purchased		13,169			2,281			—			56			1,853
Investment advisory fees		1,697			285			—			99			90
Distribution and service fees		206			43			—	(4)		47			35
Administration fees		250			46			—	(4)		15			16
Transfer agent and sub-transfer agent fees and expenses		296			87			—	(4)		62			51
Trustees’ fees and expenses		—	(4)		—	(4)		—	(4)		—	(4)		—	(4)
Professional fees		—			6			—	(4)		7			15
Trustee deferred compensation plan		119			24			—	(4)		9			8
Other accrued expenses		74			26			3			15			16
Total liabilities		17,524			3,239			3			578			2,144
Net Assets	$	2,530,560		$	482,092		$	2,945		$	168,315		$	151,465
Net Assets Consist of:
Capital paid in on shares of beneficial interest	$	1,940,906		$	355,136		$	3,005		$	161,363		$	126,426
Accumulated undistributed net investment income (loss)		(2,969	)		2,622			(2	)		540			(166	)
Accumulated undistributed net realized gain (loss)		40,987			4,023			(6	)		(11,849	)		2,801
Net unrealized appreciation (depreciation) on investments		551,636			120,311			(52	)		18,084			22,404
Net unrealized appreciation (depreciation) on written options		—			—			—			177			—
Net Assets	$	2,530,560		$	482,092		$	2,945		$	168,315		$	151,465
Net Assets:
Class A	$	387,067		$	85,666		$	98		$	110,184		$	147,564
Class C	$	154,512		$	29,275		$	98		$	30,324		$	3,901
Class I	$	1,983,100		$	350,259		$	103		$	21,256		$	—
Class R6	$	5,881		$	16,892		$	2,646		$	6,551		$	—
Shares Outstanding (unlimited number of shares authorized, no par value):
Class A		13,112,696			4,652,827			10,000			5,900,293			15,721,112
Class C		5,778,120			1,624,775			10,000			1,820,170			404,363
Class I		65,998,095			18,999,071			10,517			1,140,891			—
Class R6		195,693			915,749			270,000			351,517			—
Net Asset Value and Redemption Price Per Share:
Class A	$	29.52		$	18.41		$	9.80		$	18.67		$	9.39
Class C	$	26.74		$	18.02		$	9.79		$	16.66		$	9.65
Class I	$	30.05		$	18.44		$	9.80		$	18.63		$	—
Class R6	$	30.05		$	18.45		$	9.80		$	18.63		$	—
Offering Price Per Share NAV/(1–5.75%):
Class A	$	31.32		$	19.53		$	10.40		$	19.81		$	9.96
(1) Investments in unaffiliated securities at cost	$	1,970,091		$	359,145		$	2,917		$	149,470		$	128,683
(2) Investments in affiliated securities at cost	$	—		$	—		$	—		$	—		$	1,322
(3) Foreign currency at cost	$	—	(4)	$	(—	)(4)	$	—		$	—		$	—
(4) Amount is less than $500.
(5) Written options premiums received	$	—		$	—		$	—		$	314		$	(2	)

See Notes to Financial Statements

34

VIRTUS EQUITY TRUST

STATEMENTS OF OPERATIONS (Unaudited)

SIX MONTHS ENDED MARCH 31, 2018

($ reported in thousands)

	KAR Capital Growth Fund			KAR Global Quality Dividend Fund			KAR Mid-Cap Core Fund			KAR Mid-Cap Growth Fund			KAR Small-Cap Core Fund
Investment Income
Dividends	$	1,888		$	1,024		$	594		$	313		$	6,657
Interest		—	(1)		—			—			—			—
Foreign taxes withheld		(8	)		(54	)		(7	)		(2	)		(19	)
Total investment income		1,880			970			587			311			6,638
Expenses
Investment advisory fees		1,772			193			524			407			3,266
Distribution and service fees Class A		594			50			34			113			135
Distribution and service fees, Class C		71			30			103			26			348
Administration fees		241			23			62			48			422
Sub-administration fees		33			3			9			7			57
Transfer agent fees and expenses		278			29			34			55			195
Sub-transfer agent fees and expenses, Class A		83			8			12			16			42
Sub-transfer agent fees and expenses, Class C		5			2			9			3			27
Sub-transfer agent fees and expenses, Class I		5			3			40			2			219
Interest expenses		—			1			—			—			—
Registration fees		30			26			32			27			46
Printing fees and expenses		26			4			8			6			35
Custodian fees		3			8			1			2			3
Professional fees		14			10			11			10			13
Trustees’ fees and expenses		19			2			4			4			24
Miscellaneous expenses		14			2			3			3			13
Total expenses		3,188			394			886			729			4,845
Less expenses reimbursed and/or waived by investment adviser		—	(1)		(33	)		(128	)		(5	)		—
Low balance account fees		(21	)		(1	)		—	(1)		(3	)		—	(1)
Net expenses		3,167			360			758			721			4,845
Net investment income (loss)		(1,287	)		610			(171	)		(410	)		1,793
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from:
Unaffiliated investments		26,461			1,598			2,373			4,127			21,719
Foreign currency transactions		—			(5	)		—			—			(46	)
Net change in unrealized appreciation (depreciation) from:
Unaffiliated investments		24,740			(2,308	)		10,421			13,173			96,774
Foreign currency transactions		—			—	(1)		—			—			—
Net realized and unrealized gain (loss) on investments		51,201			(715	)		12,794			17,300			118,447
Net increase (decrease) in net assets resulting from operations	$	49,914		$	(105	)	$	12,623		$	16,890		$	120,240

⁽¹⁾ Amount is less than $500.

See Notes to Financial Statements

35

VIRTUS EQUITY TRUST

STATEMENTS OF OPERATIONS (Unaudited) (Continued)

SIX MONTHS ENDED MARCH 31, 2018

($ reported in thousands)

	KAR Small-Cap Growth Fund			KAR Small-Cap Value Fund			KAR Small-Mid Cap Core Fund(1)			Rampart Enhanced Core Equity Fund			Tactical Allocation Fund
Investment Income
Dividends	$	8,535		$	5,241		$	1		$	1,752		$	439
Dividends from affiliated fund		—			—			—			—			38
Interest		—			—			—			—			1,365
Foreign taxes withheld		—			(27	)		—			—	(1)		(17	)
Total investment income		8,535			5,214			1			1,752			1,825
Expenses
Investment advisory fees		7,876			1,625			2			699			524
Distribution and service fees Class A		403			110			—	(2)		152			182
Distribution and service fees, Class C		597			149			—	(2)		162			20
Administration fees		913			220			—	(2)		87			71
Sub-administration fees		122			30			—	(2)		12			13
Transfer agent fees and expenses		443			124			—	(2)		77			70
Sub-transfer agent fees and expenses, Class A		147			46			—			32			27
Sub-transfer agent fees and expenses, Class C		54			10			—			10			2
Sub-transfer agent fees and expenses, Class I		646			133			—			10			—
Registration fees		89			52			5			28			19
Printing fees and expenses		81			25			—	(2)		10			8
Custodian fees		5			2			—	(2)		3			10
Professional fees		17			13			3			8			14
Trustees’ fees and expenses		51			16			—	(2)		8			6
Miscellaneous expenses		21			10			—	(2)		5			6
Total expenses		11,465			2,565			10			1,303			972
Less expenses reimbursed and/or waived by investment adviser		—			—			(7	)		(104	)		(5	)
Low balance account fees		(3	)		(1	)		—			(2	)		(4	)
Net expenses		11,462			2,564			3			1,197			963
Net investment income (loss)		(2,927	)		2,650			(2	)		555			862
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from:
Unaffiliated investments		44,012			4,049			(6	)		5,052			3,022
Written options		—			—			—			(16,439	)		—
Foreign currency transactions		(146	)		—			—			—			—	(2)
Net change in unrealized appreciation (depreciation) from:
Affiliated investments		—			—			—			—			(19	)
Unaffiliated investments		231,538			507			(52	)		8,255			4,412
Written options		—			—			—			(63	)		—
Foreign currency transactions		—			—			—			—			—	(2)
Net realized and unrealized gain (loss) on investments		275,404			4,556			(58	)		(3,195	)		7,415
Net increase (decrease) in net assets resulting from operations	$	272,477		$	7,206		$	(60	)		(2,640	)	$	8,277

⁽¹⁾ Inception date March 7, 2018.

⁽²⁾ Amount is less than $500.

See Notes to Financial Statements

36

VIRTUS EQUITY TRUST

STATEMENTS OF CHANGES IN NET ASSETS

($ reported in thousands)

	KAR Capital Growth Fund									KAR Global Quality Dividend Fund
	Six Months Ended March 31, 2018 (Unaudited)			Fiscal Period Ended September 30, 2017(1)			Year Ended March 31, 2017			Six Months Ended March 31, 2018 (Unaudited)			Fiscal Period Ended September 30, 2017(1)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets Resulting From Operations
Net investment income (loss)	$	(1,287	)	$	(961	)	$	(1,557	)	$	610		$	1,042		$	786
Net realized gain (loss)		26,461			26,076			37,319			1,593			966			18,741
Net change in unrealized appreciation (depreciation)		24,740			41,631			12,779			(2,308	)		479			(12,232	)
Increase (decrease) in net assets resulting from operations		49,914			66,746			48,541			(105	)		2,487			7,295
Dividends and Distributions to Shareholders:
Net Investment Income:
Class A		—			—			—			(698	)		(702	)		(462	)
Class C		—			—			—			(88	)		(52	)		—
Class I		—			—			—			(88	)		(126	)		(73	)
Net Realized Gains:
Class A		(23,456	)		(4,395	)		(31,380	)		(4,311	)		(2,728	)		—
Class B		—			—			(68	)		—			—			—
Class C		(887	)		(170	)		(1,402	)		(618	)		(413	)		—
Class I		(664	)		(114	)		(670	)		(528	)		(417	)		—
Dividends and distributions to shareholders		(25,007	)		(4,679	)		(33,520	)		(6,331	)		(4,438	)		(535	)
Change in Net Assets From Capital Transactions (See Note 6)
Class A		16,474			(14,052	)		(13,975	)		(12,345	)		(999	)		(8,659	)
Class B		—			—			(1,437	)		—			—			—
Class C		(526	)		(1,139	)		(6,689	)		135			(626	)		(2,075	)
Class I		1,471			719			1,623			(984	)		(321	)		(98	)
Class R6		5,659			—			—			—			—			—
Increase (decrease) in net assets from share transactions		23,078			(14,472	)		(20,478	)		(13,194	)		(1,946	)		(10,832	)
Net increase (decrease) in net assets		47,985			47,595			(5,457	)		(19,630	)		(3,897	)		(4,072	)
Net Assets
Beginning of period		473,238			425,643			431,100			56,819			60,716			64,788
End of period	$	521,223		$	473,238		$	425,643		$	37,189		$	56,819		$	60,716
Accumulated undistributed net investment income (loss) at end of period	$	(1,307	)	$	(20	)	$	(118	)	$	606		$	870		$	711

⁽¹⁾ The Fund changed its fiscal year end to September 30 during the period.

See Notes to Financial Statements

37

VIRTUS EQUITY TRUST

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

($ reported in thousands)

	KAR Mid-Cap Core Fund									KAR Mid-Cap Growth Fund
	Six Months Ended March 31, 2018 (Unaudited)			Fiscal Period Ended September 30, 2017(1)			Year Ended March 31, 2017			Six Months Ended March 31, 2018 (Unaudited)			Fiscal Period Ended September 30, 2017(1)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets Resulting From Operations
Net investment income (loss)	$	(171	)	$	(161	)	$	(181	)	$	(410	)	$	(421	)	$	(636	)
Net realized gain (loss)		2,373			(1,087	)		369			4,127			5,473			2,053
Net change in unrealized appreciation (depreciation)		10,421			9,658			7,696			13,173			6,593			9,805
Increase (decrease) in net assets resulting from operations		12,623			8,410			7,884			16,890			11,645			11,222
Dividends and Distributions to Shareholders:
Net Realized Gains:
Class A		—			(81	)		—			(4,734	)		(402	)		(1,177	)
Class B		—			—			—			—			—			(3	)
Class C		—			(56	)		—			(334	)		(29	)		(100	)
Class I		—			(196	)		—			(242	)		(20	)		(50	)
Dividends and distributions to shareholders		—			(333	)		—			(5,310	)		(451	)		(1,330	)
Change in Net Assets From Capital Transactions (See Note 6)
Class A		(2,204	)		3,725			(3,230	)		1,082			(5,804	)		(4,977	)
Class B		—			—			—			—			—			(349	)
Class C		3,396			2,347			6,343			357			(990	)		(466	)
Class I		20,202			14,098			39,940			5,751			32			501
Class R6		100			—			—			100			—			—
Increase (decrease) in net assets from share transactions		21,494			20,170			43,053			7,290			(6,762	)		(5,291	)
Net increase (decrease) in net assets		34,117			28,247			50,937			18,870			4,432			4,601
Net Assets
Beginning of period		114,063			85,816			34,879			94,302			89,870			85,269
End of period	$	148,180		$	114,063		$	85,816		$	113,172		$	94,302		$	89,870
Accumulated undistributed net investment income (loss) at end of period	$	(175	)	$	(4	)	$	(64	)	$	(414	)	$	(4	)	$	(128	)

⁽¹⁾ The Fund changed its fiscal year end to September 30 during the period.

See Notes to Financial Statements

38

VIRTUS EQUITY TRUST

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

($ reported in thousands)

	KAR Small-Cap Core Fund									KAR Small-Cap Growth Fund
	Six Months Ended March 31, 2018 (Unaudited)			Fiscal Period Ended September 30, 2017(1)			Year Ended March 31, 2017			Six Months Ended March 31, 2018 (Unaudited)			Fiscal Period Ended September 30, 2017(1)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets Resulting From Operations
Net investment income (loss)	$	1,793		$	(949	)	$	(882	)	$	(2,927	)	$	(3,445	)	$	(2,732	)
Net realized gain (loss)		21,673			977			13,272			43,866			(179	)		(530	)
Net change in unrealized appreciation (depreciation)		96,774			82,548			58,696			231,538			192,974			89,239
Increase (decrease) in net assets resulting from operations		120,240			82,576			71,086			272,477			189,350			85,977
Dividends and Distributions to Shareholders:
Net Realized Gains:
Class A		(148	)		(33	)		(3,619	)		—			(4	)		(3,423	)
Class C		(110	)		(29	)		(2,464	)		—			(1	)		(815	)
Class I		(781	)		(183	)		(14,391	)		—			(11	)		(3,649	)
Class R6		(71	)		(16	)		(1,436	)		—			—			—
Dividends and distributions to shareholders		(1,110	)		(261	)		(21,910	)		—			(16	)		(7,887	)
Change in Net Assets From Capital Transactions (See Note 6)
Class A		24,340			7,469			669			76,466			39,060			66,312
Class C		18,669			4,421			9,088			44,029			21,772			32,713
Class I		310,540			76,745			115,257			687,487			461,883			348,597
Class R6		18,506			7,704			7,139			5,830			—			—
Increase (decrease) in net assets from share transactions		372,055			96,339			132,153			813,812			522,715			447,622
Net increase (decrease) in net assets		491,185			178,655			181,329			1,086,289			712,049			525,712
Net Assets
Beginning of period		655,395			476,740			295,411			1,444,271			732,222			206,510
End of period	$	1,146,580		$	655,395		$	476,740		$	2,530,560		$	1,444,271		$	732,222
Accumulated undistributed net investment income (loss) at end of period	$	1,770		$	(23	)	$	(17	)	$	(2,969	)	$	(42	)	$	(1,112	)

⁽¹⁾ The Fund changed its fiscal year end to September 30 during the period.

See Notes to Financial Statements

39

VIRTUS EQUITY TRUST

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

($ reported in thousands)

	KAR Small-Cap Value Fund										KAR Small-Mid Cap Core Fund
	Six Months Ended March 31, 2018 (Unaudited)			Fiscal Period Ended September 30, 2017(1)			Year Ended March 31, 2017				From inception March 7, 2018 to March 31, 2018 (Unaudited)
Increase (Decrease) in Net Assets Resulting From Operations										��
Net investment income (loss)	$	2,650		$	776		$	4,329			$	(2	)
Net realized gain (loss)		4,049			7,206			22,843				(6	)
Net change in unrealized appreciation (depreciation)		507			25,088			35,164				(52	)
Increase (decrease) in net assets resulting from operations		7,206			33,070			62,336				(60	)
Dividends and Distributions to Shareholders:
Net Investment Income:
Class A		(23	)		(85	)		(1,269	)			—
Class C		—			—			(219	)			—
Class I		(314	)		(607	)		(3,715	)			—
Class R6		(16	)		(12	)		(1	)			—
Net Realized Gains:
Class A		(1,379	)		(3,083	)		(5,493	)			—
Class C		(474	)		(1,062	)		(1,848	)			—
Class I		(5,128	)		(9,201	)		(12,527	)			—
Class R6		(220	)		(143	)		(2	)			—
Dividends and distributions to shareholders		(7,554	)		(14,193	)		(25,074	)			—
Change in Net Assets From Capital Transactions (See Note 6)
Class A		(1,750	)		(5,537	)		8,100				100
Class C		(422	)		(823	)		2,713				100
Class I		50,302			44,299			73,702				105
Class R6		6,692			9,553			103				2,700
Increase (decrease) in net assets from share transactions		54,822			47,492			84,618				3,005
Net increase (decrease) in net assets		54,474			66,369			121,880				2,945
Net Assets
Beginning of period		427,618			361,249			239,369				—
End of period	$	482,092		$	427,618		$	361,249			$	2,945
Accumulated undistributed net investment income (loss) at end of period	$	2,622		$	325		$	253			$	(2	)

⁽¹⁾ The Fund changed its fiscal year end to September 30 during the period.

See Notes to Financial Statements

40

VIRTUS EQUITY TRUST

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

($ reported in thousands)

	Rampart Enhanced Core Equity Fund									Tactical Allocation Fund
	Six Months Ended March 31, 2018 (Unaudited)			Fiscal Period Ended September 30, 2017(1)			Year Ended March 31, 2017			Six Months Ended March 31, 2018 (Unaudited)			Fiscal Period Ended September 30, 2017(1)			Year Ended March 31, 2017
Increase (Decrease) in Net Assets Resulting From Operations
Net investment income (loss)	$	555		$	452		$	1,073		$	862		$	1,295		$	2,835
Net realized gain (loss)		(11,387	)		13,531			23,880			3,022			1,582			11,061
Net change in unrealized appreciation (depreciation)		8,192			1,571			(1,318	)		4,393			9,870			(1,016	)
Increase (decrease) in net assets resulting from operations		(2,640	)		15,554			23,635			8,277			12,747			12,880
Dividends and Distributions to Shareholders:
Net Investment Income:
Class A		(323	)		(334	)		(1,189	)		(871	)		(1,295	)		(2,473	)
Class B		—			—			—			—			—			(1	)
Class C		—			(33	)		(23	)		(7	)		(20	)		(43	)
Class I		(128	)		(75	)		(299	)		—			—			—
Net Realized Gains:
Class A		(7,666	)		(9,614	)		(2,709	)		(1,113	)		(274	)		(11,015	)
Class B		—			—			—			—			—			(10	)
Class C		(2,242	)		(3,015	)		(981	)		(30	)		(8	)		(349	)
Class I		(2,098	)		(1,784	)		(465	)		—			—			—
Dividends and distributions to shareholders		(12,457	)		(14,855	)		(5,666	)		(2,021	)		(1,597	)		(13,891	)
Change in Net Assets From Capital Transactions (See Note 6)
Class A		(525	)		6,623			524			(1,002	)		(5,732	)		(9,161	)
Class B		—			—			—			—			—			(208	)
Class C		429			(4,434	)		(3,110	)		(324	)		(649	)		(1,069	)
Class I		(9,457	)		11,030			6,999			—			—			—
Class R6		7,325			—			—			—			—			—
Increase (decrease) in net assets from share transactions		(2,228	)		13,219			4,413			(1,326	)		(6,381	)		(10,438	)
Net increase (decrease) in net assets		(17,325	)		13,918			22,382			4,930			4,769			(11,449	)
Net Assets
Beginning of period		185,640			171,722			149,340			146,535			141,766			153,215
End of period	$	168,315		$	185,640		$	171,722		$	151,465		$	146,535		$	141,766
Accumulated undistributed net investment income (loss) at end of period	$	540		$	436		$	426		$	(166	)	$	(150	)	$	(9	)

⁽¹⁾ The Fund changed its fiscal year end to September 30 during the period.

See Notes to Financial Statements

41

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(2)(4)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(3)(10)			Ratio of Gross Expenses to Average     Net Assets(3)(10)			Ratio of Net Investment Income (Loss) to Average Net Assets(3)			Portfolio Turnover Rate(4)
KAR Capital Growth Fund
Class A
10/1/17 to 3/31/18(17)		$	16.18		(0.04	)		1.71			1.67			—			(0.86	)		(0.86	)		0.81			$	16.99		10.51	%		$	486,704		1.24	%(12)		1.25	%		(0.50	)%		10	%
4/1/17 to 9/30/17(16)			14.10		(0.03	)		2.27			2.24			—			(0.16	)		(0.16	)		2.08				16.18		15.93				446,720		1.30	(12)		1.30			(0.40	)		13
4/1/16 to 3/31/17			13.66		(0.05	)		1.64			1.59			—			(1.15	)		(1.15	)		0.44				14.10		12.34	(14)			402,118		1.33	(9)(12)(14)		1.34			(0.40	)(14)		21
4/1/15 to 3/31/16			14.23		(0.05	)		0.13			0.08			—			(0.65	)		(0.65	)		(0.57	)			13.66		0.39				401,617		1.30	(12)		1.30			(0.32	)		20
4/1/14 to 3/31/15			12.41		(0.03	)		2.40			2.37			—			(0.55	)		(0.55	)		1.82				14.23		19.29				433,635		1.28	(12)		1.28			(0.22	)		28
4/1/13 to 3/31/14			10.45		(0.01	)		2.00			1.99			(0.03	)		—			(0.03	)		1.96				12.41		19.11				399,131		1.28	(12)		1.28			(0.11	)		26
4/1/12 to 3/31/13			10.05		0.03			0.37			0.40			—			—			—			0.40				10.45		3.98				373,069		1.34	(12)		1.34			0.31			20
Class C
10/1/17 to 3/31/18(17)		$	12.91		(0.09	)		1.36			1.27			—			(0.86	)		(0.86	)		0.41			$	13.32		10.06	%		$	14,016		2.01	%(12)		2.02	%		(1.28	)%		10	%
4/1/17 to 9/30/17(16)			11.32		(0.07	)		1.82			1.75			—			(0.16	)		(0.16	)		1.59				12.91		15.51				14,052		2.08	(12)		2.08			(1.18	)		13
4/1/16 to 3/31/17			11.27		(0.13	)		1.33			1.20			—			(1.15	)		(1.15	)		0.05				11.32		11.47	(14)			13,345		2.08	(9)(12)(14)		2.09			(1.16	)(14)		21
4/1/15 to 3/31/16			11.93		(0.12	)		0.11			(0.01	)		—			(0.65	)		(0.65	)		(0.66	)			11.27		(0.31	)			19,832		2.05	(12)		2.06			(1.07	)		20
4/1/14 to 3/31/15			10.57		(0.11	)		2.02			1.91			—			(0.55	)		(0.55	)		1.36				11.93		18.28				11,999		2.02	(12)		2.02			(0.97	)		28
4/1/13 to 3/31/14			8.94		(0.08	)		1.71			1.63			—			—			—			1.63				10.57		18.23				6,329		2.03	(12)		2.03			(0.86	)		26
4/1/12 to 3/31/13			8.66		(0.04	)		0.32			0.28			—			—			—			0.28				8.94		3.23				5,993		2.09	(12)		2.09			(0.44	)		20
Class I
10/1/17 to 3/31/18(17)		$	16.69		(0.02	)		1.76			1.74			—			(0.86	)		(0.86	)		0.88			$	17.57		10.67	%		$	15,146		0.99	%(12)		1.00	%		(0.28	)%		10	%
4/1/17 to 9/30/17(16)			14.52		(0.01	)		2.34			2.33			—			(0.16	)		(0.16	)		2.17				16.69		16.09				12,466		1.08	(12)		1.08			(0.18	)		13
4/1/16 to 3/31/17			14.00		(0.01	)		1.68			1.67			—			(1.15	)		(1.15	)		0.52				14.52		12.61	(14)			10,180		1.08	(9)(12)(14)		1.09			(0.15	)(14)		21
4/1/15 to 3/31/16			14.53		(0.01	)		0.13			0.12			—			(0.65	)		(0.65	)		(0.53	)			14.00		0.66				8,227		1.05	(12)		1.05			(0.07	)		20
4/1/14 to 3/31/15			12.64		—	(5)		2.44			2.44			—			(0.55	)		(0.55	)		1.89				14.53		19.50				8,595		1.02	(12)		1.02			0.03			28
4/1/13 to 3/31/14			10.64		0.02			2.04			2.06			(0.06	)		—			(0.06	)		2.00				12.64		19.45				5,532		1.03	(12)		1.03			0.14			26
4/1/12 to 3/31/13			10.21		0.06			0.37			0.43			—			—			—			0.43				10.64		4.21				5,650		1.09	(12)		1.09			0.57			20
Class R6
1/30/18(7) to 3/31/18(17)		$	18.46		—	(5)		(0.89	)		(0.89	)		—			—			—			(0.89	)		$	17.57		(4.82	)%		$	5,357		0.90	%(8)		0.93	%		0.07	%		10	%(18)
KAR Global Quality
Dividend Fund				��
Class A
10/1/17 to 3/31/18(17)		$	16.20		0.18			(0.18	)		0.00			(0.26	)		(1.61	)		(1.87	)		(1.87	)		$	14.33		(0.29	)%		$	26,755		1.35	%		1.48	%		2.34	%		21	%
4/1/17 to 9/30/17(16)			16.81		0.30			0.41			0.71			(0.27	)		(1.05	)		(1.32	)		(0.61	)			16.20		4.31	(4)			44,188		1.35			1.56			3.65			13
4/1/16 to 3/31/17			15.09		0.20			1.66			1.86			(0.14	)		—			(0.14	)		1.72				16.81		12.42				46,670		1.36	(9)		1.48			1.29			119
4/1/15 to 3/31/16			15.40		0.14			(0.37	)		(0.23	)		(0.08	)		—			(0.08	)		(0.31	)			15.09		(1.53	)			50,081		1.35			1.44			0.94			25
4/1/14 to 3/31/15			13.93		0.10			1.49			1.59			(0.12	)		—			(0.12	)		1.47				15.40		11.45				55,215		1.35			1.42			0.71			56
4/1/13 to 3/31/14			11.96		0.10			1.98			2.08			(0.11	)		—			(0.11	)		1.97				13.93		17.50				49,275		1.35			1.43			0.81			23
4/1/12 to 3/31/13			10.76		0.13			1.18			1.31			(0.11	)		—			(0.11	)		1.20				11.96		12.36				48,193		1.35			1.47			1.19			32

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

42

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS (Continued)

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(2)(4)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(3)(10)			Ratio of Gross Expenses to Average     Net Assets(3)(10)			Ratio of Net Investment Income (Loss) to Average Net Assets(3)			Portfolio Turnover Rate(4)
KAR Global Quality
Dividend Fund (Continued)
Class C
10/1/17 to 3/31/18(17)		$	15.82		0.15			(0.19	)		(0.04	)		(0.23	)		(1.61	)		(1.84	)		(1.88	)		$	13.94		(0.58	)%		$	5,509		2.09	%		2.23	%		2.02	%		21	%
4/1/17 to 9/30/17(16)			16.38		0.23			0.39			0.62			(0.13	)		(1.05	)		(1.18	)		(0.56	)			15.82		3.86				6,107		2.10			2.33			2.87			13
4/1/16 to 3/31/17			14.68		0.08			1.62			1.70			—			—			—			1.70				16.38		11.58				6,950		2.11	(9)		2.23			0.54			119
4/1/15 to 3/31/16			15.03		0.01			(0.35	)		(0.34	)		(0.01	)		—			(0.01	)		(0.35	)			14.68		(2.26	)			8,211		2.10			2.18			0.10			25
4/1/14 to 3/31/15			13.67		0.01			1.43			1.44			(0.08	)		—			(0.08	)		1.36				15.03		10.64				20,383		2.10			2.16			0.07			56
4/1/13 to 3/31/14			11.77		0.01			1.94			1.95			(0.05	)		—			(0.05	)		1.90				13.67		16.56				3,803		2.10			2.18			0.05			23
4/1/12 to 3/31/13			10.60		0.04			1.18			1.22			(0.05	)		—			(0.05	)		1.17				11.77		11.57				3,452		2.10			2.23			0.42			32
Class I
10/1/17 to 3/31/18(17)		$	16.20		0.23			(0.20	)		0.03			(0.27	)		(1.61	)		(1.88	)		(1.85	)		$	14.35		(0.11	)%		$	4,925		1.10	%		1.25	%		2.99	%		21	%
4/1/17 to 9/30/17(16)			16.84		0.29			0.44			0.73			(0.32	)		(1.05	)		(1.37	)		(0.64	)			16.20		4.41				6,524		1.10			1.33			3.53			13
4/1/16 to 3/31/17			15.12		0.25			1.65			1.90			(0.18	)		—			(0.18	)		1.72				16.84		12.66				7,096		1.11	(9)		1.23			1.59			119
4/1/15 to 3/31/16			15.40		0.17			(0.35	)		(0.18	)		(0.10	)		—			(0.10	)		(0.28	)			15.12		(1.21	)			6,496		1.10			1.18			1.15			25
4/1/14 to 3/31/15			13.93		0.14			1.49			1.63			(0.16	)		—			(0.16	)		1.47				15.40		11.72				9,776		1.10			1.17			0.96			56
4/1/13 to 3/31/14			11.97		0.13			1.97			2.10			(0.14	)		—			(0.14	)		1.96				13.93		17.70				9,546		1.10			1.18			0.99			23
4/1/12 to 3/31/13			10.76		0.20			1.15			1.35			(0.14	)		—			(0.14	)		1.21				11.97		12.73				30,360		1.10			1.12			1.73			32
KAR Mid-Cap Core Fund
Class A
10/1/17 to 3/31/18(17)		$	27.95		(0.05	)		3.06			3.01			—			—			—			3.01			$	30.96		10.77	%		$	26,831		1.20	%		1.40	%		(0.30	)%		12	%
4/1/17 to 9/30/17(16)			25.80		(0.05	)		2.29			2.24			—			(0.09	)		(0.09	)		2.15				27.95		8.70				26,238		1.20			1.49			(0.35	)		11
4/1/16 to 3/31/17			22.60		(0.08	)		3.28			3.20			—			—			—			3.20				25.80		14.16				20,615		1.26	(8)(9)		1.55			(0.32	)		28
4/1/15 to 3/31/16			23.00		(0.06	)		(0.20	)		(0.26	)		—			(0.14	)		(0.14	)		(0.40	)			22.60		(1.14	)			20,639		1.35			1.64			(0.27	)		21
4/1/14 to 3/31/15			19.80		(0.07	)		4.47			4.40			—			(1.20	)		(1.20	)		3.20				23.00		22.75				13,080		1.35			2.46			(0.34	)		26
4/1/13 to 3/31/14			17.49		(0.06	)		2.68			2.62			—			(0.31	)		(0.31	)		2.31				19.80		15.17				3,027		1.35			3.08			(0.31	)		30
4/1/12 to 3/31/13			15.80		0.19			1.86			2.05			(0.25	)		(0.11	)		(0.36	)		1.69				17.49		13.21				1,691		1.35			3.92			1.20			62
Class C
10/1/17 to 3/31/18(17)		$	26.38		(0.15	)		2.89			2.74			—			—			—			2.74			$	29.12		10.39	%		$	23,136		1.95	%		2.15	%		(1.06	)%		12	%
4/1/17 to 9/30/17(16)			24.45		(0.14	)		2.16			2.02			—			(0.09	)		(0.09	)		1.93				26.38		8.28				17,870		1.95			2.25			(1.10	)		11
4/1/16 to 3/31/17			21.57		(0.24	)		3.12			2.88			—			—			—			2.88				24.45		13.35				14,279		2.00	(8)(9)		2.28			(1.04	)		28
4/1/15 to 3/31/16			22.12		(0.22	)		(0.19	)		(0.41	)		—			(0.14	)		(0.14	)		(0.55	)			21.57		(1.91	)			6,670		2.10			2.38			(1.03	)		21
4/1/14 to 3/31/15			19.23		(0.23	)		4.32			4.09			—			(1.20	)		(1.20	)		2.89				22.12		21.84				4,363		2.10			2.83			(1.10	)		26
4/1/13 to 3/31/14			17.12		(0.18	)		2.60			2.42			—			(0.31	)		(0.31	)		2.11				19.23		14.32				209		2.10			3.84			(1.01	)		30
4/1/12 to 3/31/13			15.50		0.06			1.83			1.89			(0.16	)		(0.11	)		(0.27	)		1.62				17.12		12.42				226		2.10			4.70			0.36			62

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

43

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS (Continued)

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(2)(4)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(3)(10)			Ratio of Gross Expenses to Average     Net Assets(3)(10)			Ratio of Net Investment Income (Loss) to Average Net Assets(3)			Portfolio Turnover Rate(4)
KAR Mid-Cap Core
Fund (Continued)
Class I
10/1/17 to 3/31/18(17)		$	28.34		(0.01	)		3.10			3.09			—			—			—			3.09			$	31.43		10.94	%		$	98,117		0.95	%		1.14	%		(0.05	)%		12	%
4/1/17 to 9/30/17(16)			26.12		(0.01	)		2.32			2.31			—			(0.09	)		(0.09	)		2.22				28.34		8.82				69,955		0.95			1.25			(0.10	)		11
4/1/16 to 3/31/17			22.82		(0.01	)		3.31			3.30			—			—			—			3.30				26.12		14.46				50,922		0.99	(8)(9)		1.26			(0.02	)		28
4/1/15 to 3/31/16			23.17		(0.01	)		(0.20	)		(0.21	)		—			(0.14	)		(0.14	)		(0.35	)			22.82		(0.92	)			7,570		1.10			1.38			(0.03	)		21
4/1/14 to 3/31/15			19.89		(0.03	)		4.51			4.48			—			(1.20	)		(1.20	)		3.28				23.17		23.05				4,804		1.10			2.17			(0.16	)		26
4/1/13 to 3/31/14			17.52		(0.01	)		2.69			2.68			—			(0.31	)		(0.31	)		2.37				19.89		15.48				1,178		1.10			2.85			(0.08	)		30
4/1/12 to 3/31/13			15.84		0.25			1.84			2.09			(0.30	)		(0.11	)		(0.41	)		1.68				17.52		13.50				1,316		1.10			3.65			1.56			62
Class R6
1/30/18(7) to 3/31/18(17)		$	32.78		—	(5)		(1.35	)		(1.35	)		—			—			—			(1.35	)		$	31.43		(4.12	)%		$	96		0.87	%		1.05	%		(0.06	)%		12	%(18)
KAR Mid-Cap Growth Fund
Class A
10/1/17 to 3/31/18(17)		$	27.74		(0.12	)		4.97			4.85			—			(1.56	)		(1.56	)		3.29			$	31.03		18.13	%		$	96,396		1.39	%		1.41	%		(0.79	)%		12	%
4/1/17 to 9/30/17(16)			24.56		(0.12	)		3.43			3.31			—			(0.13	)		(0.13	)		3.18				27.74		13.48				84,912		1.40			1.49			(0.88	)		12
4/1/16 to 3/31/17			21.92		(0.16	)		3.15			2.99			—			(0.35	)		(0.35	)		2.64				24.56		13.81	(14)			80,648		1.41	(9)(14)		1.52			(0.75	)(14)		20
4/1/15 to 3/31/16			22.80		(0.18	)		(0.36	)		(0.54	)		—			(0.34	)		(0.34	)		(0.88	)			21.92		(2.51	)			76,660		1.39			1.49			(0.84	)		26
4/1/14 to 3/31/15			21.30		(0.15	)		2.34			2.19			—			(0.69	)		(0.69	)		1.50				22.80		10.50				83,158		1.43	(8)		1.46			(0.71	)		27
4/1/13 to 3/31/14			19.02		(0.15	)		2.43			2.28			—			—			—			2.28				21.30		11.99				81,016		1.45			1.44			(0.74	)		32
4/1/12 to 3/31/13			17.44		(0.08	)		1.66			1.58			—			—			—			1.58				19.02		9.06				79,561		1.45			1.51			(0.49	)		35
Class C
10/1/17 to 3/31/18(17)		$	22.54		(0.18	)		3.99			3.81			—			(1.56	)		(1.56	)		2.25			$	24.79		17.73	%		$	5,846		2.14	%		2.22	%		(1.53	)%		12	%
4/1/17 to 9/30/17(16)			20.06		(0.17	)		2.78			2.61			—			(0.13	)		(0.13	)		2.48				22.54		13.01				4,971		2.15			2.28			(1.63	)		12
4/1/16 to 3/31/17			18.09		(0.27	)		2.59			2.32			—			(0.35	)		(0.35	)		1.97				20.06		13.03	(14)			5,350		2.16	(9)(14)		2.27			(1.50	)(14)		20
4/1/15 to 3/31/16			19.02		(0.29	)		(0.30	)		(0.59	)		—			(0.34	)		(0.34	)		(0.93	)			18.09		(3.23	)			5,319		2.14			2.24			(1.60	)		26
4/1/14 to 3/31/15			18.01		(0.26	)		1.96			1.70			—			(0.69	)		(0.69	)		1.01				19.02		9.68				5,976		2.18	(8)		2.21			(1.46	)		27
4/1/13 to 3/31/14			16.21		(0.26	)		2.06			1.80			—			—			—			1.80				18.01		11.10				5,233		2.20			2.19			(1.49	)		32
4/1/12 to 3/31/13			14.97		(0.18	)		1.42			1.24			—			—			—			1.24				16.21		8.28				4,850		2.20			2.26			(1.24	)		35
Class I
10/1/17 to 3/31/18(17)		$	28.49		(0.07	)		5.10			5.03			—			(1.56	)		(1.56	)		3.47			$	31.96		18.32	%		$	10,829		1.14	%		1.17	%		(0.45	)%		12	%
4/1/17 to 9/30/17(16)			25.20		(0.09	)		3.51			3.42			—			(0.13	)		(0.13	)		3.29				28.49		13.58				4,419		1.15			1.27			(0.63	)		12
4/1/16 to 3/31/17			22.42		(0.11	)		3.24			3.13			—			(0.35	)		(0.35	)		2.78				25.20		14.13	(14)			3,872		1.16	(9)(14)		1.27			(0.50	)(14)		20
4/1/15 to 3/31/16			23.26		(0.13	)		(0.37	)		(0.50	)		—			(0.34	)		(0.34	)		(0.84	)			22.42		(2.24	)			2,961		1.14			1.24			(0.60	)		26
4/1/14 to 3/31/15			21.66		(0.10	)		2.39			2.29			—			(0.69	)		(0.69	)		1.60				23.26		10.79				3,288		1.18	(8)		1.21			(0.46	)		27
4/1/13 to 3/31/14			19.30		(0.10	)		2.46			2.36			—			—			—			2.36				21.66		12.23				2,324		1.20			1.19			(0.49	)		32
4/1/12 to 3/31/13			17.65		(0.04	)		1.69			1.65			—			—			—			1.65				19.30		9.35				1,932		1.20			1.26			(0.24	)		35
Class R6
1/30/18(7) to 3/31/18(17)		$	31.74		(0.01	)		0.23			0.22			—			—			—			0.22			$	31.96		0.69	%		$	101		1.06	%(8)		1.08	%		(0.28	)%		12	%(18)

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

44

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS (Continued)

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(2)(4)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(3)(10)			Ratio of Gross Expenses to Average     Net Assets(3)(10)			Ratio of Net Investment Income (Loss) to Average Net Assets(3)			Portfolio Turnover Rate(4)
KAR Small-Cap Core Fund
Class A
10/1/17 to 3/31/18(17)		$	28.05		0.04			4.58			4.62			—			(0.04	)		(0.04	)		4.58			$	32.63		16.49	%		$	119,107		1.27	%		1.27	%		0.26	%		8	%
4/1/17 to 9/30/17(16)			24.21		(0.06	)		3.91			3.85			—			(0.01	)		(0.01	)		3.84				28.05		15.92				79,752		1.33			1.33			(0.49	)		2
4/1/16 to 3/31/17			21.39		(0.07	)		4.26			4.19			—			(1.37	)		(1.37	)		2.82				24.21		20.26	(14)			62,122		1.37	(9)(14)		1.37			(0.31	)(14)		24
4/1/15 to 3/31/16			25.65		(0.05	)		0.01			(0.04	)		(0.05	)		(4.17	)		(4.22	)		(4.26	)			21.39		0.02				53,722		1.37			1.37			(0.21	)		33
4/1/14 to 3/31/15			24.19		0.03			3.07			3.10			—			(1.64	)		(1.64	)		1.46				25.65		13.28				67,696		1.34			1.34			0.12			28
4/1/13 to 3/31/14			21.41		(0.02	)		2.84			2.82			(0.03	)		(0.01	)		(0.04	)		2.78				24.19		13.17				162,302		1.39			1.39			(0.09	)		31
4/1/12 to 3/31/13			20.07		0.10			1.75			1.85			(0.18	)		(0.33	)		(0.51	)		1.34				21.41		9.64				143,293		1.37			1.37			0.52			15	(11)
Class C
10/1/17 to 3/31/18(17)		$	23.90		(0.07	)		3.90			3.83			—			(0.04	)		(0.04	)		3.79			$	27.69		16.05	%		$	84,809		2.01	%		2.01	%		(0.50	)%		8	%
4/1/17 to 9/30/17(16)			20.71		(0.14	)		3.34			3.20			—			(0.01	)		(0.01	)		3.19				23.90		15.47				56,526		2.08			2.08			(1.23	)		2
4/1/16 to 3/31/17			18.61		(0.21	)		3.68			3.47			—			(1.37	)		(1.37	)		2.10				20.71		19.39	(14)			44,789		2.12	(9)(14)		2.12			(1.10	)(14)		24
4/1/15 to 3/31/16			22.98		(0.19	)		(0.01	)		(0.20	)		—			(4.17	)		(4.17	)		(4.37	)			18.61		(0.73	)			31,711		2.12			2.12			(0.95	)		33
4/1/14 to 3/31/15			21.99		(0.11	)		2.74			2.63			—			(1.64	)		(1.64	)		0.99				22.98		12.44				33,735		2.09			2.09			(0.50	)		28
4/1/13 to 3/31/14			19.58		(0.18	)		2.60			2.42			—	(5)		(0.01	)		(0.01	)		2.41				21.99		12.35				33,437		2.14			2.14			(0.84	)		31
4/1/12 to 3/31/13			18.38		(0.04	)		1.61			1.57			(0.04	)		(0.33	)		(0.37	)		1.20				19.58		8.84				27,641		2.12			2.12			(0.23	)		15	(11)
Class I
10/1/17 to 3/31/18(17)		$	29.44		0.09			4.80			4.89			—			(0.04	)		(0.04	)		4.85			$	34.29		16.63	%		$	871,688		1.00	%		1.00	%		0.52	%		8	%
4/1/17 to 9/30/17(16)			25.37		(0.03	)		4.11			4.08			—			(0.01	)		(0.01	)		4.07				29.44		16.10				474,552		1.08			1.08			(0.23	)		2
4/1/16 to 3/31/17			22.30		(0.03	)		4.47			4.44			—			(1.37	)		(1.37	)		3.07				25.37		20.57	(14)			338,491		1.12	(9)(14)		1.12			(0.11	)(14)		24
4/1/15 to 3/31/16			26.58		0.01			0.01			0.02			(0.13	)		(4.17	)		(4.30	)		(4.28	)			22.30		0.28				189,167		1.12			1.12			0.04			33
4/1/14 to 3/31/15			24.95		0.13			3.14			3.27			—			(1.64	)		(1.64	)		1.63				26.58		13.57				248,933		1.08			1.08			0.53			28
4/1/13 to 3/31/14			22.04		0.04			2.92			2.96			(0.04	)		(0.01	)		(0.05	)		2.91				24.95		13.44				242,400		1.14			1.14			0.19			31
4/1/12 to 3/31/13			20.65		0.13			1.83			1.96			(0.24	)		(0.33	)		(0.57	)		1.39				22.04		9.92				164,483		1.12			1.12			0.63			15	(11)
Class R6
10/1/17 to 3/31/18(17)		$	29.52		0.09			4.83			4.92			—			(0.04	)		(0.04	)		4.88			$	34.40		16.69	%		$	70,976		0.93	%		0.93	%		0.57	%		8	%
4/1/17 to 9/30/17(16)			25.44		(0.02	)		4.11			4.09			—			(0.01	)		(0.01	)		4.08				29.52		16.14				44,565		0.99			0.99			(0.14	)		2
4/1/16 to 3/31/17			22.33		—	(5)		4.48			4.48			—			(1.37	)		(1.37	)		3.11				25.44		20.68	(14)			31,338		1.01	(9)(14)		1.01			0.01	(14)		24
4/1/15 to 3/31/16			26.59		0.07			(0.01	)		0.06			(0.15	)		(4.17	)		(4.32	)		(4.26	)			22.33		0.41				20,811		1.01			1.02			0.33			33
11/12/14(7) to 3/31/15			25.99		0.12			1.36			1.48			—			(0.88	)		(0.88	)		0.60				26.59		5.83	(4)			106		0.97	(3)		0.97	(3)		1.18	(3)		28	(13)
KAR Small-Cap Growth
Fund
Class A
10/1/17 to 3/31/18(17)		$	25.43		(0.06	)		4.15			4.09			—			—			—			4.09			$	29.52		16.08	%		$	387,067		1.37	%(12)		1.37	%		(0.46	)%		10	%
4/1/17 to 9/30/17(16)			21.12		(0.09	)		4.40			4.31			—	(5)		—			—	(5)		4.31				25.43		20.41				263,281		1.50	(6)		1.46			(0.81	)		1
4/1/16 to 3/31/17			17.67		(0.14	)		4.14			4.00			—			(0.55	)		(0.55	)		3.45				21.12		23.25	(14)			184,302		1.50	(9)(14)		1.51			(0.73	)(14)		21
4/1/15 to 3/31/16			17.54		(0.10	)		0.73			0.63			—			(0.50	)		(0.50	)		0.13				17.67		3.69				88,715		1.49			1.53			(0.59	)		27
4/1/14 to 3/31/15			16.97		(0.13	)		2.46			2.33			—			(1.76	)		(1.76	)		0.57				17.54		14.56				83,611		1.50			1.57			(0.76	)		27
4/1/13 to 3/31/14			14.92		(0.15	)		2.68			2.53			—			(0.48	)		(0.48	)		2.05				16.97		17.15				94,902		1.50			1.56			(0.93	)		23
4/1/12 to 3/31/13			12.95		(0.03	)		2.00			1.97			—			—			—			1.97				14.92		15.21				70,107		1.61	(8)		1.67			(0.24	)		24

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

45

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS (Continued)

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss)		Total from Investment Operations		Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(2)(4)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(3)(10)			Ratio of Gross Expenses to Average     Net Assets(3)(10)			Ratio of Net Investment Income (Loss) to Average Net Assets(3)			Portfolio Turnover Rate(4)
KAR Small-Cap Growth
Fund (Continued)
Class C
10/1/17 to 3/31/18(17)		$	23.13		(0.15	)		3.76		3.61		—			—			—			3.61			$	26.74		15.66	%		$	154,512		2.11	%(12)		2.11	%		(1.20	)%		10	%
4/1/17 to 9/30/17(16)			19.28		(0.17	)		4.02		3.85		—	(5)		—			—	(5)		3.85				23.13		19.97				93,560		2.25	(6)		2.21			(1.56	)		1
4/1/16 to 3/31/17			16.30		(0.26	)		3.79		3.53		—			(0.55	)		(0.55	)		2.98				19.28		22.30	(14)			58,327		2.26	(9)(14)		2.26			(1.49	)(14)		21
4/1/15 to 3/31/16			16.33		(0.21	)		0.68		0.47		—			(0.50	)		(0.50	)		(0.03	)			16.30		2.97				19,525		2.25			2.28			(1.34	)		27
4/1/14 to 3/31/15			16.03		(0.24	)		2.30		2.06		—			(1.76	)		(1.76	)		0.30				16.33		13.68				15,594		2.25			2.32			(1.51	)		27
4/1/13 to 3/31/14			14.22		(0.26	)		2.55		2.29		—			(0.48	)		(0.48	)		1.81				16.03		16.29				13,298		2.25			2.31			(1.68	)		23
4/1/12 to 3/31/13			12.44		(0.12	)		1.90		1.78		—			—			—			1.78				14.22		14.31				7,555		2.36	(8)		2.42			(0.96	)		24
Class I
10/1/17 to 3/31/18(17)		$	25.86		(0.03	)		4.22		4.19		—			—			—			4.19			$	30.05		16.25	%		$	1,983,100		1.11	%(12)		1.11	%		(0.20	)%		10	%
4/1/17 to 9/30/17(16)			21.45		(0.07	)		4.48		4.41		—	(5)		—			—	(5)		4.41				25.86		20.56				1,087,430		1.25	(6)		1.21			(0.55	)		1
4/1/16 to 3/31/17			17.89		(0.10	)		4.21		4.11		—			(0.55	)		(0.55	)		3.56				21.45		23.59	(14)			489,593		1.26	(9)(14)		1.26			(0.50	)(14)		21
4/1/15 to 3/31/16			17.70		(0.05	)		0.74		0.69		—			(0.50	)		(0.50	)		0.19				17.89		4.00				98,270		1.25			1.29			(0.31	)		27
4/1/14 to 3/31/15			17.08		(0.08	)		2.46		2.38		—			(1.76	)		(1.76	)		0.62				17.70		14.83				35,058		1.25			1.32			(0.47	)		27
4/1/13 to 3/31/14			14.98		(0.11	)		2.69		2.58		—			(0.48	)		(0.48	)		2.10				17.08		17.42				20,685		1.25			1.30			(0.68	)		23
4/1/12 to 3/31/13			12.96		(0.01	)		2.03		2.02		—			—			—			2.02				14.98		15.59				10,026		1.36	(8)		1.42			(0.04	)		24
Class R6
1/30/18(7) to 3/31/18(17)		$	29.81		—	(5)		0.24		0.24		—			—			—			0.24			$	30.05		0.81	%		$	5,881		1.03	%(12)		1.03	%		(0.05	)%		10	%(18)
KAR Small-Cap Value
Fund
Class A
10/1/17 to 3/31/18(17)		$	18.41		0.09			0.21		0.30		(0.01	)		(0.29	)		(0.30	)		0.00			$	18.41		1.64	%		$	85,666		1.28	%(12)		1.28	%		0.94	%		6	%
4/1/17 to 9/30/17(16)			17.61		0.03			1.44		1.47		(0.02	)		(0.65	)		(0.67	)		0.80				18.41		8.56				87,399		1.32	(12)		1.32			0.29			10
4/1/16 to 3/31/17			15.67		0.22			3.16		3.38		(0.26	)		(1.18	)		(1.44	)		1.94				17.61		22.86				89,050		1.32	(9)(12)		1.32			1.35			22
4/1/15 to 3/31/16			16.61		0.07			0.07		0.14		(0.10	)		(0.98	)		(1.08	)		(0.94	)			15.67		0.94				71,280		1.30	(12)		1.30			0.49			15
4/1/14 to 3/31/15			16.74		0.09			1.38		1.47		(0.03	)		(1.57	)		(1.60	)		(0.13	)			16.61		9.33				74,738		1.28	(6)		1.28			0.54			24
4/1/13 to 3/31/14			13.91		0.04			2.84		2.88		(0.05	)		—			(0.05	)		2.83				16.74		20.78				137,496		1.32	(6)		1.32			0.24			24
4/1/12 to 3/31/13			13.22		0.16			0.78		0.94		(0.25	)		—			(0.25	)		0.69				13.91		7.37				118,376		1.42	(6)		1.34			1.29			16	(11)
Class C
10/1/17 to 3/31/18(17)		$	18.08		0.02			0.21		0.23		—			(0.29	)		(0.29	)		(0.06	)		$	18.02		1.31	%		$	29,275		1.99	%(12)		1.99	%		0.24	%		6	%
4/1/17 to 9/30/17(16)			17.35		(0.04	)		1.42		1.38		—			(0.65	)		(0.65	)		0.73				18.08		8.17				29,795		2.06	(12)		2.06			(0.45	)		10
4/1/16 to 3/31/17			15.45		0.10			3.11		3.21		(0.13	)		(1.18	)		(1.31	)		1.90				17.35		21.95				29,416		2.07	(9)(12)		2.07			0.65			22
4/1/15 to 3/31/16			16.41		(0.04	)		0.06		0.02		—			(0.98	)		(0.98	)		(0.96	)			15.45		0.17				23,602		2.05	(12)		2.05			(0.26	)		15
4/1/14 to 3/31/15			16.65		(0.02	)		1.35		1.33		—			(1.57	)		(1.57	)		(0.24	)			16.41		8.49				25,634		2.03	(6)		2.03			(0.12	)		24
4/1/13 to 3/31/14			13.89		(0.08	)		2.84		2.76		—			—			—			2.76				16.65		19.87				27,132		2.07	(6)		2.07			(0.52	)		24
4/1/12 to 3/31/13			13.20		0.07			0.77		0.84		(0.15	)		—			(0.15	)		0.69				13.89		6.57				23,793		2.17	(6)		2.09			0.56			16	(11)

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

46

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS (Continued)

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(2)(4)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(3)(10)			Ratio of Gross Expenses to Average     Net Assets(3)(10)			Ratio of Net Investment Income (Loss) to Average Net Assets(3)			Portfolio Turnover Rate(4)
KAR Small-Cap Value
Fund (Continued)
Class I
10/1/17 to 3/31/18(17)		$	18.41		0.12			0.22			0.34			(0.02	)		(0.29	)		(0.31	)		0.03			$	18.44		1.82	%		$	350,259		0.99	%(12)		0.99	%		1.26	%		6	%
4/1/17 to 9/30/17(16)			17.62		0.05			1.43			1.48			(0.04	)		(0.65	)		(0.69	)		0.79				18.41		8.72				300,259		1.07	(12)		1.07			0.55			10
4/1/16 to 3/31/17			15.69		0.26			3.17			3.43			(0.32	)		(1.18	)		(1.50	)		1.93				17.62		23.20				242,661		1.07	(9)(12)		1.07			1.63			22
4/1/15 to 3/31/16			16.64		0.11			0.07			0.18			(0.15	)		(0.98	)		(1.13	)		(0.95	)			15.69		1.17				144,487		1.05	(12)		1.05			0.74			15
4/1/14 to 3/31/15			16.77		0.16			1.35			1.51			(0.07	)		(1.57	)		(1.64	)		(0.13	)			16.64		9.59				163,082		1.03	(6)		1.03			0.97			24
4/1/13 to 3/31/14			13.92		0.08			2.84			2.92			(0.07	)		—			(0.07	)		2.85				16.77		21.06				104,149		1.07	(6)		1.07			0.49			24
4/1/12 to 3/31/13			13.23		0.15			0.82			0.97			(0.28	)		—			(0.28	)		0.69				13.92		7.64				91,502		1.17	(6)		1.10			1.19			16	(11)
Class R6
10/1/17 to 3/31/18(17)		$	18.42		0.13			0.21			0.34			(0.02	)		(0.29	)		(0.31	)		0.03			$	18.45		1.84	%		$	16,892		0.91	%(12)		0.91	%		1.43	%		6	%
4/1/17 to 9/30/17(16)			17.63		0.05			1.44			1.49			(0.05	)		(0.65	)		(0.70	)		0.79				18.42		8.78				10,165		0.99	(12)		0.99			0.52			10
11/3/16(7) to 3/31/17			14.90		0.05			3.15			3.20			(0.22	)		(0.25	)		(0.47	)		2.73				17.63		21.58				122		0.98	(12)		0.98			0.68			22	(15)
KAR Small-Mid Cap
Core Fund
Class A
3/7/18(7) to 3/31/18(17)		$	10.00		(0.01	)		(0.19	)		(0.20	)		—			—			—			(0.20	)		$	9.80		(2.00	)%		$	98		1.30	%		4.82	%		(0.93	)%		3	%
Class C
3/7/18(7) to 3/31/18(17)		$	10.00		(0.03	)		(0.18	)		(0.21	)		—			—			—			(0.21	)		$	9.79		(2.10	)%		$	98		2.05	%		5.57	%		(1.67	)%		3	%
Class I
3/7/18(7) to 3/31/18(17)		$	10.00		(0.01	)		(0.19	)		(0.20	)		—			—			—			(0.20	)		$	9.80		(2.00	)%		$	103		1.05	%		4.60	%		(0.67	)%		3	%
Class R6
3/7/18(7) to 3/31/18(17)		$	10.00		(0.01	)		(0.19	)		(0.20	)		—			—			—			(0.20	)		$	9.80		(2.00	)%		$	2,646		0.97	%		4.57	%		(0.60	)%		3	%
Rampart Enhanced
Core Equity Fund
Class A
10/1/17 to 3/31/18(17)		$	20.26		0.07			(0.29	)		(0.22	)		(0.06	)		(1.31	)		(1.37	)		(1.59	)		$	18.67		(1.69	)%		$	110,184		1.20	%		1.31	%		0.68	%		10	%
4/1/17 to 9/30/17(16)			20.27		0.06			1.72			1.78			(0.06	)		(1.73	)		(1.79	)		(0.01	)			20.26		9.26				120,445		1.23	(8)		1.39			0.63			110
4/1/16 to 3/31/17			18.14		0.15			2.68			2.83			(0.22	)		(0.48	)		(0.70	)		2.13				20.27		15.85	(14)			113,442		1.26	(9)(14)		1.40			0.81	(14)		496
4/1/15 to 3/31/16			20.97		0.14			0.56			0.70			(0.15	)		(3.38	)		(3.53	)		(2.83	)			18.14		4.02				101,113		1.25			1.38			0.74			312
4/1/14 to 3/31/15			21.94		0.17			1.84			2.01			(0.08	)		(2.90	)		(2.98	)		(0.97	)			20.97		9.75				116,725		1.25			1.36			0.82			345
4/1/13 to 3/31/14			19.51		0.14			4.02			4.16			(0.10	)		(1.63	)		(1.73	)		2.43				21.94		21.84				111,074		1.25			1.39			0.66			283
4/1/12 to 3/31/13			17.93		0.09			1.53			1.62			(0.04	)		—			(0.04	)		1.58				19.51		9.12				100,976		1.25			1.44			0.52			65
Class C
10/1/17 to 3/31/18(17)		$	18.23		(0.01	)		(0.25	)		(0.26	)		—			(1.31	)		(1.31	)		(1.57	)		$	16.66		(2.06	)%		$	30,324		1.95	%		2.07	%		(0.06	)%		10	%
4/1/17 to 9/30/17(16)			18.44		(0.02	)		1.56			1.54			(0.02	)		(1.73	)		(1.75	)		(0.21	)			18.23		8.85				32,710		1.98	(8)		2.15			(0.17	)		110
4/1/16 to 3/31/17			16.48		0.01			2.44			2.45			(0.01	)		(0.48	)		(0.49	)		1.96				18.44		15.01	(14)			37,269		2.00	(9)(14)		2.15			0.04	(14)		496
4/1/15 to 3/31/16			19.42		—	(5)		0.51			0.51			(0.07	)		(3.38	)		(3.45	)		(2.94	)			16.48		3.27				36,236		2.00			2.13			0.01			312
4/1/14 to 3/31/15			20.60		0.01			1.72			1.73			(0.01	)		(2.90	)		(2.91	)		(1.18	)			19.42		8.91				37,312		2.00			2.12			0.06			345
4/1/13 to 3/31/14			18.46		(0.02	)		3.81			3.79			(0.02	)		(1.63	)		(1.65	)		2.14				20.60		20.93				27,930		2.00			2.14			(0.09	)		283
4/1/12 to 3/31/13			17.05		(0.04	)		1.45			1.41			—			—			—			1.41				18.46		8.27				24,782		2.00			2.19			(0.23	)		65

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

47

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS (Continued)

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(1)		Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(2)(4)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(3)(10)			Ratio of Gross Expenses to Average     Net Assets(3)(10)			Ratio of Net Investment Income (Loss) to Average Net Assets(3)			Portfolio Turnover Rate(4)
Rampart Enhanced
Core Equity Fund (Continued)
Class I
10/1/17 to 3/31/18(17)		$	20.22		0.09		(0.29	)		(0.20	)		(0.08	)		(1.31	)		(1.39	)		(1.59	)		$	18.63		(1.58	)%		$	21,256		0.95	%		1.05	%		0.89	%		10	%
4/1/17 to 9/30/17(16)			20.22		0.09		1.71			1.80			(0.07	)		(1.73	)		(1.80	)		—				20.22		9.41				32,485		0.98	(8)		1.15			0.91			110
4/1/16 to 3/31/17			18.13		0.21		2.66			2.87			(0.30	)		(0.48	)		(0.78	)		2.09				20.22		16.16	(14)			21,011		1.01	(9)(14)		1.15			1.13	(14)		496
4/1/15 to 3/31/16			20.96		0.21		0.53			0.74			(0.19	)		(3.38	)		(3.57	)		(2.83	)			18.13		4.25				11,991		1.00			1.13			1.13			312
4/1/14 to 3/31/15			21.90		0.22		1.85			2.07			(0.11	)		(2.90	)		(3.01	)		(0.94	)			20.96		10.06				8,969		1.00			1.11			1.05			345
4/1/13 to 3/31/14			19.48		0.19		4.01			4.20			(0.15	)		(1.63	)		(1.78	)		2.42				21.90		22.12				11,291		1.00			1.14			0.90			283
4/1/12 to 3/31/13			17.91		0.14		1.51			1.65			(0.08	)		—			(0.08	)		1.57				19.48		9.28				11,589		1.00			1.17			0.78			65
Class R6
1/30/18(7) to 3/31/18(17)		$	20.70		0.04		(2.11	)		(2.07	)		—			—			—			(2.07	)		$	18.63		(10.00	)%		$	6,551		0.90	%		0.99	%		1.40	%		10	%(18)
Tactical Allocation
Fund
Class A
10/1/17 to 3/31/18(17)		$	9.00		0.05		0.47			0.52			(0.06	)		(0.07	)		(0.13	)		0.39			$	9.39		5.78	%		$	147,564		1.27	%		1.28	%		1.17	%		23	%
4/1/17 to 9/30/17(16)			8.33		0.08		0.69			0.77			(0.08	)		(0.02	)		(0.10	)		0.67				9.00		9.25				142,481		1.38			1.38			1.81			26
4/1/16 to 3/31/17			8.44		0.17		0.56			0.73			(0.15	)		(0.69	)		(0.84	)		(0.11	)			8.33		9.20	(14)			137,388		1.37	(9)(14)		1.38			1.86	(14)		104
4/1/15 to 3/31/16			9.75		0.20		(0.88	)		(0.68	)		(0.17	)		(0.46	)		(0.63	)		(1.31	)			8.44		(7.36	)			147,546		1.32			1.33			2.25			81
4/1/14 to 3/31/15			10.06		0.21		0.15			0.36			(0.20	)		(0.47	)		(0.67	)		(0.31	)			9.75		3.60				180,435		1.30			1.30			2.09			69
4/1/13 to 3/31/14			9.88		0.22		1.13			1.35			(0.21	)		(0.96	)		(1.17	)		0.18				10.06		14.84				195,509		1.29			1.29			2.22			61
4/1/12 to 3/31/13			9.47		0.21		0.53			0.74			(0.22	)		(0.11	)		(0.33	)		0.41				9.88		8.00				186,662		1.30			1.30			2.26			94
Class C
10/1/17 to 3/31/18(17)		$	9.24		0.02		0.48			0.50			(0.02	)		(0.07	)		(0.09	)		0.41			$	9.65		5.43	%		$	3,901		2.04	%		2.05	%		0.39	%		23	%
4/1/17 to 9/30/17(16)			8.55		0.05		0.70			0.75			(0.04	)		(0.02	)		(0.06	)		0.69				9.24		8.80				4,054		2.14			2.15			1.05			26
4/1/16 to 3/31/17			8.64		0.11		0.57			0.68			(0.08	)		(0.69	)		(0.77	)		(0.09	)			8.55		8.37	(14)			4,378		2.11	(9)(14)		2.13			1.13	(14)		104
4/1/15 to 3/31/16			9.96		0.14		(0.90	)		(0.76	)		(0.10	)		(0.46	)		(0.56	)		(1.32	)			8.64		(8.02	)			5,460		2.07			2.08			1.51			81
4/1/14 to 3/31/15			10.27		0.13		0.16			0.29			(0.13	)		(0.47	)		(0.60	)		(0.31	)			9.96		2.81				6,328		2.04			2.04			1.29			69
4/1/13 to 3/31/14			10.07		0.15		1.15			1.30			(0.14	)		(0.96	)		(1.10	)		0.20				10.27		13.90				3,785		2.04			2.04			1.46			61
4/1/12 to 3/31/13			9.65		0.15		0.53			0.68			(0.15	)		(0.11	)		(0.26	)		0.42				10.07		7.17				3,021		2.05			2.05			1.51			94

The footnote legend is at the end of the Financial Highlights.

See Notes to Financial Statements

48

VIRTUS EQUITY TRUST

FINANCIAL HIGHLIGHTS (Continued)

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

Footnote Legend:

⁽¹⁾  Calculated using average shares outstanding.

⁽²⁾  Sales charges, where applicable, are not reflected in the total return calculation.

⁽³⁾  Annualized for periods less than one year.

⁽⁴⁾  Not annualized for periods less than one year.

⁽⁵⁾  Amount is less than $0.005 per share.

⁽⁶⁾  See Note 4D in the Notes to Financial Statements for information on recapture of expenses previously waived.

⁽⁷⁾  Inception date.

⁽⁸⁾  Represents a blended ratio.

⁽⁹⁾  Net expense ratio includes extraordinary proxy expenses.

⁽¹⁰⁾  Each Fund will also indirectly bear their prorated share of expenses of the underlying funds in which they invest. Such expenses are not included in the calculation of this ratio.

⁽¹¹⁾  Portfolio turnover calculation excludes security transactions distributed as a result of a redemption-in-kind.

⁽¹²⁾  The Fund is currently under its expense limitation.

⁽¹³⁾  Portfolio turnover is representative of the Fund for the entire year ended March 31, 2015.

⁽¹⁴⁾  State Street Bank & Trust, custodian for some of the Funds through January 29, 2010, reimbursed the Funds for out-of-pocket custody expenses overbilled for the period 1998 through January 29, 2010. Custody fees reimbursed were excluded from the Ratio of Net Expenses to Average Net Assets and the Ratio of Net Investment Income (Loss) to Average Net Assets. If it was included the impact would have been to lower the Ratio of Net Expenses and increase the Ratio of Net Investment Income (Loss) as follows:

	Class A			Class C			Class I			Class R6
KAR Capital Growth Fund		0.06	%		0.05	%		0.06	%		N/A
KAR Mid-Cap Growth Fund		0.05	%		0.05	%		0.05	%		N/A
KAR Small-Cap Core Fund*		—			—			—			—
KAR Small-Cap Growth Fund*		—			—			—			N/A
Rampart Enhanced Core Equity Fund*		—			—			—			N/A
Tactical Allocation Fund		0.08	%		0.08	%		N/A			N/A

* Amount is less than 0.005%

Custody fees reimbursed were included in Total Return. If excluded the impact would have been to lower the Total Return as follows:

	Class A			Class C			Class I			Class R6
KAR Capital Growth Fund		0.06	%		0.06	%		0.06	%		N/A
KAR Mid-Cap Growth Fund		0.05	%		0.05	%		0.05	%		N/A
KAR Small-Cap Core Fund*		—			—			—			—
KAR Small-Cap Growth Fund*		—			—			—			N/A
Rampart Enhanced Core Equity Fund*		—			—			—			N/A
Tactical Allocation Fund		0.08	%		0.08	%		N/A			N/A

* Amount is less than 0.005%.

⁽¹⁵⁾  Portfolio turnover is representative of the Fund for the entire year ended March 31, 2017.

⁽¹⁶⁾  The Fund changed its fiscal period end to September 30 during the period.

⁽¹⁷⁾  Unaudited.

⁽¹⁸⁾  Portfolio turnover is representative of the Fund for the six months ended March 31, 2018.

See Notes to Financial Statements

49

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Unaudited)

MARCH 31, 2018

Note 1. Organization

Virtus Equity Trust (the “Trust”) is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Effective September 21, 2017 the Funds changed their fiscal year end from March 31 to September 30.

As of the date of this report, 11 diversified funds of the Trust are offered for sale, of which 10 (the “Funds”) are reported in this semiannual report. Each Fund has a distinct investment objective outlined below.

Fund	Each Fund Seeks to Provide
KAR Capital Growth Fund	Long-term capital growth.
KAR Global Quality Dividend Fund	Long-term capital appreciation and current income.
KAR Mid-Cap Core Fund	Long-term capital appreciation.
KAR Mid-Cap Growth Fund	Capital appreciation.
KAR Small-Cap Core Fund	Long-term capital appreciation, with dividend income a secondary consideration.
KAR Small-Cap Growth Fund	Long-term capital appreciation.
KAR Small-Cap Value Fund	Long-term capital appreciation.
KAR Small-Mid Cap Core Fund	Long-term capital appreciation with dividend income a secondary consideration.
Rampart Enhanced Core Equity Fund	Capital appreciation and current income.
Tactical Allocation Fund	Capital appreciation and income.

There is no guarantee that the Funds will achieve their objectives.

All of the Funds offer Class A shares and Class C shares. All Funds with the exception of the Tactical Allocation Fund offer Class I shares. All Funds with the exception of KAR Global Quality Dividend Fund and Tactical Allocation Fund offer class R6 shares. Effective March 6, 2017, all Class B shares were converted to Class A shares. Prior to March 6, 2017, Class B shares could be purchased by existing shareholders through qualifying transactions.

Class A shares are sold with a front-end sales charge of up to 5.75% with some exceptions. Generally, Class A shares are not subject to any charges by the Funds when redeemed; however, a 1% contingent deferred sales charge (“CDSC”) may be imposed on certain redemptions made within a certain period following purchases on which a finder’s fee has been paid. The period for which the CDSC applies for the Funds is 18 months. The CDSC period begins on the last day of the month preceding the month in which the purchase was made.

Class C shares are generally sold with a 1% CDSC, applicable if redeemed within one year of purchase. Class I shares and Class R6 shares are sold without a front-end sales charge or CDSC.

Class R6 shares are available only to the following investors without a minimum initial investment or minimum additional purchases: certain employer-sponsored retirement plans, including Section 401(k), 403(b) and 457, profit-sharing, money purchase pension and defined benefit plans and nonqualified deferred compensation plans, in each case provided that plan level or omnibus accounts are held on the books of the fund. Other institutional investors may be permitted to purchase Class R6 shares subject to the applicable Fund’s determination of eligibility and may be subject to a minimum initial investment requirement. Class R6 shares do not carry sales commissions or pay Rule 12b-1 fees. No compensation, administrative payments, sub-transfer agency payments or service payments are paid to brokers or other entities from Fund assets or the Funds’ distributor’s or an affiliate’s resources on sales of or investments in Class R6 shares.

The Funds may impose an annual fee on accounts having balances of less than $2,500. The small account fee may be waived in certain circumstances, as disclosed in the prospectuses and/or statements of additional information. The fees collected will be used to offset certain expenses of the Funds. These fees are reflected as “Low balance account fees” in each Fund’s Statements of Operations for the period, as applicable.

Each class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears any expenses attributable specifically to that class (“class-specific expenses”) and has exclusive voting rights with respect to any Rule 12b-1 and/or shareholder service plan (“12b-1 Plan”) approved by the Board. Class I shares and Class R6 shares are not subject to a 12b-1 Plan. Class-specific expenses may include shareholder servicing fees, sub-transfer agency fees, and fees under a 12b-1 Plan, as well as certain other expenses as designated by the Funds’ Treasurer and approved by the Board. Investment income, common operating expenses and realized and unrealized gains and losses of each Fund are borne pro-rata by the holders of each class of shares.

Note 2. Significant Accounting Policies

The Trust is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to Investment Companies. The following is a summary of the significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make 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 the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and those differences could be significant.

A. Security Valuation

Security valuation procedures for each Fund, which include nightly price variance, as well as back-testing items such as bi-weekly unchanged price, monthly secondary source and transaction analysis, have been approved by the Board. All internally fair valued securities are approved by a valuation committee appointed by the Board (the “Valuation Committee”). The Valuation Committee is comprised of certain members of management as identified to the Board and convenes independently from portfolio management. All internally fair valued securities are updated daily and reviewed in detail by the Valuation Committee monthly unless changes occur within the period. The Valuation Committee reviews the validity of the model inputs and any changes to the model. Fair valuations are reviewed by the Board at least quarterly.

50

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

Each Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Funds’ policy is to recognize transfers between levels at the end of the reporting period.

•    Level 1 – quoted prices in active markets for identical securities (security types generally include listed equities).

•    Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

•    Level 3 – prices determined using significant unobservable inputs (including the Valuation Committee’s own assumptions in determining the fair value of investments).

A description of the valuation techniques applied to a Fund’s major categories of assets and liabilities measured at fair value on a recurring basis is as follows:

Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded or, if no closing price is available, at the last bid price and are categorized as Level 1 in the hierarchy. Restricted equity securities and private placements that are illiquid, or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

Certain non-U.S. securities may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that non-U.S. markets close (where the security is principally traded) and the time that a Fund calculates its net asset value (“NAV”) (at the close of regular trading on the NYSE, generally 4 p.m. Eastern time) that may impact the value of securities traded in these non-U.S. markets. In such cases the Funds fair value non-U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non-U.S. security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, ETFs, and certain indexes, as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Because the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.

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. These valuations are generally categorized as Level 2 in the hierarchy. Structured debt instruments, such as mortgage-backed and asset-backed securities, may also incorporate collateral analysis and utilize cash flow models for valuation and are generally categorized as Level 2 in the hierarchy. Pricing services do not provide pricing for all securities and therefore indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt securities that are internally fair valued by the Valuation Committee are generally categorized as Level 3 in the hierarchy.

Claims are valued by brokers based on pricing models that take into account, among other factors, both cash and non-cash assets. The valuation is derived from expected cash flow of the claims and the non-cash assets, which include all real estate, private equity or other securities within the estate. To the extent that these inputs are observable, the values of the claims are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

Listed derivatives, such as options, that are actively traded are valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include forward currency contracts and equity-linked instruments, do not require material subjectivity as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds are valued at NAV. Investments in closed-end funds are valued as of the close of regular trading on the NYSE each business day. Both are categorized as Level 1 in the hierarchy.

A summary of the inputs used to value a Fund’s net assets by each major security type is disclosed at the end of the Schedule of Investments for each Fund. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

B. Security Transactions and Investment Income

Security transactions are recorded on the trade date. Realized gains and losses from the sales of securities are determined on the identified cost basis. Dividend income is recognized on the ex-dividend date or, in the case of certain foreign securities, as soon as a Fund is notified. Interest income is recorded on the accrual basis. Each Fund amortizes premiums and accretes discounts using the effective interest method. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

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 period-end, and may differ from the estimated amounts.

C. Income Taxes

Each Fund is treated as a separate taxable entity. It is the intention of each Fund to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made.

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.

Management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. As of March 31, 2018, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations are from the year 2014 forward (with limited exceptions).

51

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

D. Distributions to Shareholders

Distributions are recorded by each Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations that may differ from U.S. GAAP.

E. Expenses

Expenses incurred together by a Fund and other affiliated mutual funds are allocated in proportion to the net assets of each such fund, except where allocation of direct expenses to each fund or an alternative allocation method can be more appropriately used.

In addition to the net annual operating expenses that a Fund bears directly, the shareholders of a Fund indirectly bear each Fund’s pro-rata expenses of any underlying mutual funds in which the Fund invests.

F. Foreign Currency Transactions

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 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.

G. When-Issued and Forward Commitments (Delayed Delivery)

Certain Funds may engage in when-issued or forward commitment transactions. Securities purchased on a when-issued or forward commitment basis are also known as delayed delivery transactions. Delayed delivery transactions involve a commitment by a Fund to purchase or sell a security at a future date (ordinarily up to 90 days later). Delayed delivery enables a Fund to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. Each Fund records delayed delivery securities on the trade date. Each Fund maintains collateral for the securities purchased. Securities purchased on a when-issued or forward commitment basis begin earning interest on the settlement date.

H. Leveraged Loans

Certain Funds may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Leveraged loans are generally non-investment grade and often involve borrowers that are highly leveraged. The Funds may invest in obligations of borrowers who are in bankruptcy proceedings. Leveraged loans 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 agent administers the terms of the loan, as specified in the loan agreement. A 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, a 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. A Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, a Fund may be subject to the credit risk of both the borrower and the lender that is selling the loan agreement. When a Fund purchases assignments from lenders it acquires direct rights against the borrower on the loan.

A Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. Leveraged loans 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 leveraged loans 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 the LIBOR, the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a leveraged loan is purchased a Fund may pay an assignment fee. On an ongoing basis, a Fund may receive a commitment fee based on the undrawn portion of the underlying line of credit portion of a leveraged loan. 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.

As of March 31, 2018, the Tactical Allocation Fund had the following unfunded loan commitments:

Borrower	Unfunded Loan Commitment
CFSP Acquisition Corp.	$	3
Pearl Intermediate Parent LLC		19
Spectrum Holdings III Corp.		4

I. Securities Lending

Each Fund is permitted to loan securities from its portfolio to qualifying brokers, dealers and other financial institutions deemed creditworthy and receive, as collateral, cash or United States government securities including agency securities which at all times while the loan is outstanding will be maintained in amounts equal to at least 100% of the current market value of the loaned securities. Any cash collateral will be invested in short-term securities expected to increase the current income of the Fund lending its securities. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the declining value of the collateral. During the period ended March 31, 2018, the Funds did not loan securities.

52

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

Note 3. Derivative Financial Instruments and Transactions

($ reported in thousands)

Disclosures about derivative instruments and hedging activities are intended to enable investors to understand how and why a Fund uses derivatives, how derivatives are accounted for, and how derivative instruments affect a Fund’s results of operations and financial position. Summarized below are such disclosures and accounting policies for each specific type of derivative instrument used by certain Funds.

Options Contracts: An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed-upon price. Certain Funds may purchase or write both put and call options on portfolio securities for hedging purposes or to facilitate the rapid implementation of investment strategies if the Fund anticipates a significant market or sector advance. The Funds are subject to equity price risk in the normal course of pursuing their investment objectives. The Funds may use options contracts to hedge against changes in the values of equities.

When a Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When a Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. Holdings of the Fund designated to cover outstanding written options are noted in the Schedules of Investments. Purchased options are reported as an asset within “Investment in unaffiliated securities at value” in the Statements of Assets and Liabilities. Options written are reported as a liability within “Written options at value.” Changes in value of the purchased option are included in “Net change in unrealized appreciation (depreciation) from unaffiliated investments” in the Statements of Operations. Changes in value of written options are included in “Net change in unrealized appreciation (depreciation) from written options” in the Statements of Operations.

If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost basis of the purchase. The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in “Net realized gain (loss) from unaffiliated investments” in the Statements of Operations. Gain or loss on written options is presented separately as “Net realized gain (loss) from written options” in the Statements of Operations.

The risk in writing call options is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing put options is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying options is that the Fund pays a premium whether or not the option is exercised. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. Writers (sellers) of options are subject to unlimited risk of loss, as the seller will be obligated to deliver or take delivery of the security at a predetermined price which may, upon exercise of the option, be significantly different from the then-market value.

The Rampart Enhanced Core Equity Fund invested in written covered call options contracts in an attempt to manage equity price risk and with the purpose of generating realized gains.

The following is a summary of the Rampart Enhanced Core Equity Fund’s options contracts as categorized equity risk, presented in the financial statements as of March 31, 2018:

Statements of Assets and Liabilities
	Rampart Enhanced Core Equity Fund
Assets: Purchased options at value	$	29	(1)
Liabilities: Written options at value		(137	)
Net asset (liability) balance	$	(108	)

Statements of Operations
	Rampart Enhanced Core Equity Fund
Net realized gain (loss) on purchased options	$	3,708	(2)
Net realized gain (loss) on written options		(16,439	)
Net change in unrealized appreciation (depreciation) from purchased options		12	(3)
Net change in unrealized appreciation (depreciation) from written options		(63	)
Total net realized and unrealized gain (loss) on purchased and written options	$	(12,782	)

⁽¹⁾  Amount included in Investment in unaffiliated securities at value.

⁽²⁾  Amount included in Net realized gain (loss) from unaffiliated investments.

⁽³⁾  Amount included in Net change in unrealized appreciation (depreciation) from unaffiliated investments.

For the period ended March 31, 2018, the average daily premiums paid by the Rampart Enhanced Core Equity Fund for purchased options were $311 and the average daily premiums received for written options by the Rampart Enhanced Core Equity Fund were $(599).

Note 4. Investment Advisory Fees and Related Party Transactions

($ reported in thousands except as noted)

A. Adviser

Virtus Investment Advisers, Inc. (the “Adviser”), an indirect, wholly-owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”), is the investment adviser to the Trust. The Adviser manages the Funds’ investment programs and general operations of the Funds, including oversight of the Funds’ subadvisers.

53

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

As compensation for its services to the Funds, the Adviser is entitled to a fee based upon the following annual rates as a percentage of the average daily net assets of each Fund:

KAR Small-Cap Core Fund	0.75	%
KAR Small-Cap Value Fund	0.70

	First $400 Million			$400+ Million through $1 Billion			$1+ Billion
KAR Small-Cap Growth Fund		0.90%			0.85%			0.80%
	First $500 Million			Over $500 Million
KAR Mid-Cap Growth Fund		0.80%			0.70%
	First $1 Billion			Over $1 Billion
KAR Small-Mid Cap Core Fund		0.75%			0.70%
	First $1 Billion			$1+ Billion through $2 Billion			$2+ Billion
KAR Capital Growth Fund		0.70	%		0.65	%		0.60	%
KAR Global Quality Dividend Fund		0.75			0.70			0.65
KAR Mid-Cap Core Fund		0.80			0.75			0.70
Rampart Enhanced Core Equity Fund		0.75			0.70			0.65
Tactical Allocation Fund		0.70			0.65			0.60

During the period covered by these financial statements, the Tactical Allocation Fund invested a portion of its assets in Virtus Newfleet Credit Opportunities Fund, an affiliated mutual fund. In order to avoid any duplication of advisory fees, the Adviser has voluntarily waived its advisory fees in an amount equal to that which would otherwise be paid by the Fund on the assets invested in the Virtus Credit Opportunities Fund. For the period covered by these financial statements, the waiver amounted to $5. This waiver is in addition to the expense limitation and/or fee waiver covered elsewhere in these financial statements and is included in “Less expenses reimbursed and/or waived by investment adviser” in the Statements of Operations.

B. Subadvisers

The subadvisers manage the investments of each Fund, for which they are paid a fee by the Adviser. A list of the subadvisers and the Funds they serve as of the end of the period is as follows:

Fund	Subadviser	Fund	Subadviser
KAR Capital Growth Fund	KAR(1)(3)	KAR Small-Cap Value Fund	KAR(1)(3)
KAR Global Quality Dividend Fund	KAR(1)(3)	KAR Small-Mid Cap Core Fund	KAR(1)(3)
KAR Mid-Cap Core Fund	KAR(1)(3)	Rampart Enhanced Core Equity Fund	Rampart Investment Management Company, LLC(3)
KAR Mid-Cap Growth Fund	KAR(1)(3)	Tactical Allocation Fund (Domestic Equity Portfolio)	KAR(1)(3)
KAR Small-Cap Core Fund	KAR(1)(3)	Tactical Allocation Fund (International Equity Portfolio)	DPIM(2)(3)
KAR Small-Cap Growth Fund	KAR(1)(3)	Tactical Allocation Fund (Fixed Income Portfolio)	Newfleet Asset Management, LLC(3)

⁽¹⁾  Kayne Anderson Rudnick Investment Management, LLC (“KAR”)

⁽²⁾  Duff & Phelps Investment Management Co. (“DPIM”)

⁽³⁾  An indirect, wholly-owned subsidiary of Virtus.

C. Expense Limits and Fee Waivers

The Adviser has contractually agreed to limit certain Funds’ total operating expenses (excluding front-end or contingent deferred loads, taxes, leverage expenses, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any), so that such expenses do not exceed the following percentages of the average annual daily net asset values for the following Funds.

	Class A			Class C			Class I			Class R6			Through Date
KAR Capital Growth Fund*		1.47	%‡		2.22	%‡		1.22	%‡		0.78	%		3/31/19
KAR Global Quality Dividend Fund		1.35			2.10			1.10			—			3/31/19
KAR Mid-Cap Core Fund**		1.20			1.95			0.95			0.87			3/31/19
KAR Mid-Cap Growth Fund#		1.40			2.15			1.15			0.90			3/31/19
KAR Small-Cap Growth Fund‡**		1.50			2.25			1.25			1.18			3/31/19
KAR Small-Cap Value Fund‡		1.42			2.17			1.17			1.06			3/31/19
KAR Small-Mid Cap Core Fund		1.30			2.05			1.05			0.97			3/31/19
Rampart Enhanced Core Equity Fund**		1.20			1.95			0.95			0.91			3/31/19

‡ Each share class is currently below its expense cap.

* Effective March 29, 2018 for Class R6. For the period of January 30, 2018 (inception of the class) to March 28, 2018 the expense cap for Class R6 was 1.19%.

# Effective March 29, 2018 for Class R6. For the period of January 30, 2018 (inception of the class) to March 28, 2018, the expense cap for Class R6 was 1.11%.

** Effective January 30, 2018 (inception date of Class) for Class R6.

54

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

D. Expense Recapture

For certain Funds, the Adviser may recapture operating expenses waived or reimbursed under these arrangements, within three years after the date in which such waiver or reimbursement occurred. A Fund must pay its ordinary operating expenses before the Adviser is entitled to any reimbursement and must remain in compliance with any applicable expense limitations 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 as follows:

Fund	2018		2019		2020		2021			Total
KAR Capital Growth Fund
Class R6	$	—	$	—	$	—	$	—	(1)	$	—	(1)
KAR Global Quality Dividend Fund
Class A		15		63		70		25			173
Class C		4		11		11		4			30
Class I		2		8		11		4			25
KAR Mid-Cap Core Fund
Class A		18		69		62		27			176
Class C		7		22		39		20			88
Class I		7		29		133		81			250
Class R6		—		—		—		—	(1)		—	(1)
KAR Mid-Cap Growth Fund
Class A		21		96		70		4			192
Class C		2		7		5		1			15
Class I		1		4		4		—			10
Class R6		—		—		—		—	(1)		—	(1)
KAR Small-Mid Cap Core Fund
Class A		—		—		—		—	(1)		—	(1)
Class C		—		—		—		—	(1)		—	(1)
Class I		—		—		—		—	(1)		—	(1)
Class R6		—		—		—		6			6
Rampart Enhanced Core Equity Fund
Class A		69		145		158		69			441
Class C		24		53		51		19			147
Class I		5		19		34		15			74
Class R6		—		—		—		1			1

⁽¹⁾  Amount is less than $500.

E. Distributor

VP Distributors, LLC (“VP Distributors”), an indirect, wholly-owned subsidiary of Virtus, serves as the distributor of each Fund’s shares. VP Distributors has advised the Funds that for the fiscal period (the “period”) ended March 31, 2018, it retained net commissions of $232 for Class A shares and CDSC of $—⁽¹⁾, and $10 for Class A shares, and Class C shares, respectively.

⁽¹⁾  Amount is less than $500.

In addition, each Fund pays VP Distributors 12b-1 fees under a 12b-1 Plan as a percentage of the average daily net assets of each respective class at the annual rates as follows: Class A shares 0.25%; Class C shares 1.00%; Class I shares and Class R6 shares are not subject to a 12b-1 Plan.

Under certain circumstances, shares of certain Virtus Mutual Funds may be exchanged for shares of the same class of certain other Virtus Mutual Funds on the basis of the relative NAV per share at the time of the exchange. On exchanges with share classes that carry a CDSC, the CDSC schedule of the original shares purchased continues to apply.

F. Administrator and Transfer Agent

Virtus Fund Services, LLC, an indirect, wholly-owned subsidiary of Virtus, serves as the administrator and transfer agent to the Trust.

For the period ended March 31, 2018, the Funds incurred administration fees totaling $2,087 which are included in the Statements of Operations within the line item “Administration fees”.

For the period ended March 31, 2018, the Funds incurred transfer agent fees totaling $2,513 which are included in the Statements of Operations within the line items “Transfer agent fees and expenses” and “Sub-transfer agent fees and expenses”. A portion of these fees was paid to outside entities that also provide services to the Trust.

G. Affiliated Shareholders

($ reported in thousands)

At March 31, 2018, Virtus and its affiliates and the retirement plans of Virtus and its affiliates held shares of certain Funds which may be redeemed at any time that aggregated to the following:

	Shares		Aggregate Net Asset Value
KAR Capital Growth Fund
Class A		14	$	—	(1)
Class R6		299,398		5,260

55

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

	Shares		Aggregate Net Asset Value
KAR Mid-Cap Core Fund
Class R6		3,051	$	96
KAR Mid-Cap Growth
Class R6		3,151		101
KAR Small-Cap Growth Fund
Class R6		131,675		3,957
KAR Small-Cap Value Fund
Class R6		313,854		5,791
KAR Small-Mid Cap Core Fund
Class A		10,000		98
Class C		10,000		98
Class I		10,000		98
Class R6		270,000		2,646
Rampart Enhanced Core Equity Fund
Class R6		351,517		6,549

⁽¹⁾ Amount is less than $500.

H. Investments in Affiliates

A summary of the Tactical Allocation Fund’s total long-term and short-term purchases and sales of the affiliated underlying fund during the period ended March 31, 2018, is as follows:

	Value, beginning of period		Purchases		Sales		Net Realized gain (loss)		Net change in unrealized appreciation (depreciation)			Shares		Value, end of period		Dividend Income		Distributions of Realized Gains
Affiliated Mutual Fund - 0.8%
Virtus Newfleet Credit Opportunities Fund Class R6(1)	$	1,295	$	—	$	—	$	—	$	(19	)		132,261	$	1,276	$	38	$	—

⁽¹⁾  Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

I. Trustee Compensation

The Trust provides a deferred compensation plan for its Trustees who receive compensation from the Trust. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are retained by the Trust, and then, to the extent permitted by the 1940 Act, in turn, may be invested in the shares of affiliated or unaffiliated mutual funds selected by the participating Trustees. Investments in such instruments are included in “Other assets” in the Statements of Assets and Liabilities at March 31, 2018.

Note 5. Purchases and Sales of Securities

($ reported in thousands)

Purchases and sales of securities (excluding U.S. Government and agency securities, short-term securities, and written options securities) during the period ended March 31, 2018, were as follows:

	Purchases		Sales
KAR Capital Growth Fund	$	49,477	$	58,636
KAR Global Quality Dividend Fund		10,314		29,130
KAR Mid-Cap Core Fund		40,806		14,627
KAR Mid-Cap Growth Fund		12,519		11,883
KAR Small-Cap Core Fund		415,453		62,867
KAR Small-Cap Growth Fund		805,958		165,101
KAR Small-Cap Value Fund		71,059		25,182
KAR Small-Mid Cap Core Fund		3,020		97
Rampart Enhanced Core Equity Fund		18,223		44,863
Tactical Allocation Fund		33,745		36,413

The Tactical Allocation Fund had purchases of $891, and sales of $809 of long-term U.S. Government and agency securities during the period ended March 31, 2018.

56

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

MARCH 31, 2018

Note 6. Capital Share Transactions

(reported in thousands)

Transactions in shares of capital stock, during the periods ended as indicated below, were as follows:

	KAR Capital Growth Fund
	Six Months Ended March 31, 2018 (Unaudited)						Fiscal Period Ended September 30, 2017(1)						Year Ended March 31, 2017
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		1,164		$	19,480			209		$	3,179			403		$	5,482
Conversion from Class B shares(2)		—			—			—			—			43			602
Reinvestment of distributions		1,328			21,556			263			4,031			2,208			28,727
Shares repurchased		(1,442	)		(24,562	)		(1,396	)		(21,262	)		(3,521	)		(48,786	)
Net Increase / (Decrease)		1,050		$	16,474			(924	)	$	(14,052	)		(867	)	$	(13,975	)
Class B
Sale of shares		—		$	—			—		$	—			—	(3)	$	—	(4)
Reinvestment of distributions		—			—			—			—			6			67
Shares repurchased		—			—			—			—			(78	)		(902	)
Conversion to Class A shares(2)		—			—			—			—			(54	)		(602	)
Net Increase / (Decrease)		—		$	—			—		$	—			(126	)	$	(1,437	)
Class C
Sale of shares		48		$	649			77		$	918			88		$	972
Reinvestment of distributions		64			817			12			152			109			1,140
Shares repurchased		(148	)		(1,992	)		(180	)		(2,209	)		(777	)		(8,801	)
Net Increase / (Decrease)		(36	)	$	(526	)		(91	)	$	(1,139	)		(580	)	$	(6,689	)
Class I
Sale of shares		502		$	8,572			120		$	1,893			272		$	3,894
Reinvestment of distributions		35			585			6			102			47			637
Shares repurchased		(422	)		(7,686	)		(81	)		(1,276	)		(206	)		(2,908	)
Net Increase / (Decrease)		115		$	1,471			45		$	719			113		$	1,623
Class R6
Sale of shares		324		$	5,979			—		$	—			—		$	—
Shares repurchased		(19	)		(320	)		—			—			—			—
Net Increase / (Decrease)		305		$	5,659			—		$	—			—		$	—
	KAR Global Quality Dividend Fund
	Six Months Ended March 31, 2018 (Unaudited)						Fiscal Period Ended September 30,  2017(1)						Year Ended March 31, 2017
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		33		$	493			44		$	724			128		$	1,985
Reinvestment of distributions		328			4,834			207			3,317			29			451
Shares repurchased		(1,222	)		(17,672	)		(298	)		(5,040	)		(700	)		(11,095	)
Net Increase / (Decrease)		(861	)	$	(12,345	)		(47	)	$	(999	)		(543	)	$	(8,659	)
Class C
Sale of shares		14		$	207			7		$	116			59		$	906
Reinvestment of distributions		43			618			26			403			—			—
Shares repurchased		(47	)		(690	)		(71	)		(1,145	)		(194	)		(2,981	)
Net Increase / (Decrease)		10		$	135			(38	)	$	(626	)		(135	)	$	(2,075	)
Class I
Sale of shares		171		$	2,776			38		$	626			94		$	1,535
Reinvestment of distributions		40			588			33			522			4			68
Shares repurchased		(271	)		(4,348	)		(89	)		(1,469	)		(107	)		(1,701	)
Net Increase / (Decrease)		(60	)	$	(984	)		(18	)	$	(321	)		(9	)	$	(98	)

⁽¹⁾  The Fund changed its fiscal year end to September 30 during the period.

⁽²⁾  See Note 1 in Notes to Financial Statements for more information.

⁽³⁾  Amount is less than 500 shares.

⁽⁴⁾  Amount is less than $500.

57

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

MARCH 31, 2018

	KAR Mid-Cap Core Fund
	Six Months Ended March 31, 2018 (Unaudited)						Fiscal Period Ended September 30, 2017(1)						Year Ended March 31, 2017
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		113		$	3,456			209		$	5,573			860		$	20,379
Reinvestment of distributions		—			—			3			80			—			—
Shares repurchased		(185	)		(5,660	)		(72	)		(1,928	)		(974	)		(23,609	)
Net Increase / (Decrease)		(72	)	$	(2,204	)		140		$	3,725			(114	)	$	(3,230	)
Class C
Sale of shares		172		$	4,958			138		$	3,470			409		$	9,372
Reinvestment of distributions		—			—			2			56			—			—
Shares repurchased		(54	)		(1,562	)		(47	)		(1,179	)		(134	)		(3,029	)
Net Increase / (Decrease)		118		$	3,396			93		$	2,347			275		$	6,343
Class I
Sale of shares		1,050		$	32,414			968		$	26,148			1,943		$	47,890
Reinvestment of distributions		—			—			7			194			—			—
Shares repurchased		(397	)		(12,212	)		(456	)		(12,244	)		(325	)		(7,950	)
Net Increase / (Decrease)		653		$	20,202			519		$	14,098			1,618		$	39,940
Class R6
Sale of shares		3		$	100			—		$	—			—		$	—
Net Increase / (Decrease)		3		$	100			—		$	—			—		$	—
	KAR Mid-Cap Growth Fund
	Six Months Ended March 31, 2018 (Unaudited)						Fiscal Period Ended September 30, 2017(1)						Year Ended March 31, 2017
		SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		45		$	1,311			55		$	1,451			127		$	2,897
Conversion from Class B shares(2)		—			—			—			—			6			156
Reinvestment of distributions		157			4,354			14			370			48			1,082
Shares repurchased		(156	)		(4,583	)		(291	)		(7,625	)		(396	)		(9,112	)
Net Increase / (Decrease)		46		$	1,082			(222	)	$	(5,804	)		(215	)	$	(4,977	)
Class B
Sale of shares		—		$	—			—		$	—			—		$	—	(4)
Reinvestment of distributions		—			—			—			—			—	(3)		3
Shares repurchased		—			—			—			—			(10	)		(196	)
Conversion to Class A shares(2)		—			—			—			—			(8	)		(156	)
Net Increase / (Decrease)		—		$	—			—		$	—			(18	)	$	(349	)
Class C
Sale of shares		26		$	638			15		$	330			89		$	1,704
Reinvestment of distributions		15			332			1			29			5			89
Shares repurchased		(26	)		(613	)		(63	)		(1,349	)		(121	)		(2,259	)
Net Increase / (Decrease)		15		$	357			(47	)	$	(990	)		(27	)	$	(466	)
Class I
Sale of shares		183		$	5,728			14		$	389			47		$	1,092
Reinvestment of distributions		8			227			1			19			2			47
Shares repurchased		(7	)		(204	)		(14	)		(376	)		(27	)		(638	)
Net Increase / (Decrease)		184		$	5,751			1		$	32			22		$	501
Class R6
Sale of shares		3		$	100			—		$	—			—		$	—
Net Increase / (Decrease)		3		$	100			—		$	—			—		$	—

⁽¹⁾  The Fund changed its fiscal year end to September 30 during the period.

⁽²⁾  See Note 1 in Notes to Financial Statement for more information.

⁽³⁾  Amount is less than 500 shares.

⁽⁴⁾  Amount is less than $500.

58

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

MARCH 31, 2018

	KAR Small-Cap Core Fund
	Six Months Ended March 31, 2018 (Unaudited)						Fiscal Period Ended September 30, 2017(1)						Year Ended March 31, 2017
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		1,520		$	46,516			608		$	16,037			1,507		$	34,529
Reinvestment of distributions		4			131			1			30			153			3,396
Shares repurchased		(717	)		(22,307	)		(332	)		(8,598	)		(1,606	)		(37,256	)
Net Increase / (Decrease)		807		$	24,340			277		$	7,469			54		$	669
Class C
Sale of shares		887		$	23,659			420		$	9,214			778		$	15,284
Reinvestment of distributions		4			108			1			29			123			2,351
Shares repurchased		(194	)		(5,098	)		(220	)		(4,822	)		(442	)		(8,547	)
Net Increase / (Decrease)		697		$	18,669			201		$	4,421			459		$	9,088
Class I
Sale of shares		11,432		$	380,504			4,161		$	114,129			7,980		$	188,854
Reinvestment of distributions		21			670			6			167			571			13,259
Shares repurchased		(2,151	)		(70,634	)		(1,387	)		(37,551	)		(3,695	)		(86,856	)
Net Increase / (Decrease)		9,302		$	310,540			2,780		$	76,745			4,856		$	115,257
Class R6
Sale of shares		633		$	21,092			373		$	10,312			446		$	10,598
Reinvestment of distributions		2			71			1			16			62			1,435
Shares repurchased		(81	)		(2,657	)		(97	)		(2,624	)		(208	)		(4,894	)
Net Increase/ (Decrease)		554		$	18,506			277		$	7,704			300		$	7,139
	KAR Small-Cap Growth Fund
	Six Months Ended March 31, 2018 (Unaudited)						Fiscal Period Ended September 30, 2017(1)						Year Ended March 31, 2017
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		4,598		$	127,692			3,221		$	75,203			9,213		$	178,982
Reinvestment of distributions		—			—			—	(2)		3			186			3,272
Shares repurchased		(1,837	)		(51,226	)		(1,594	)		(36,146	)		(5,694	)		(115,942	)
Net Increase / (Decrease)		2,761		$	76,466			1,627		$	39,060			3,705		$	66,312
Class C
Sale of shares		2,076		$	52,659			1,339		$	28,543			2,108		$	37,801
Reinvestment of distributions		—			—			—	(2)		1			44			711
Shares repurchased		(344	)		(8,630	)		(319	)		(6,772	)		(325	)		(5,799	)
Net Increase / (Decrease)		1,732		$	44,029			1,020		$	21,772			1,827		$	32,713
Class I
Sale of shares		31,162		$	890,158			22,541		$	539,222			22,582		$	452,219
Reinvestment of distributions		—			—			—	(2)		10			170			3,037
Shares repurchased		(7,223	)		(202,671	)		(3,312	)		(77,349	)		(5,416	)		(106,659	)
										��
Net Increase / (Decrease)		23,939		$	687,487			19,229		$	461,883			17,336		$	348,597
Class R6
Sale of shares		201		$	5,990			—		$	—			—		$	—
Shares repurchased		(6	)		(160	)		—			—			—			—
Net Increase / (Decrease)		195		$	5,830					$						$

⁽¹⁾  The Fund changed its fiscal year end to September 30 during the period.

⁽²⁾  Amount is less than 500 shares.

59

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

MARCH 31, 2018

	KAR Small-Cap Value Fund
	Six Months Ended March 31, 2018 (Unaudited)						Fiscal Period Ended September 30, 2017(1)						Year Ended March 31, 2017
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		318		$	5,993			318		$	5,561			1,626		$	26,711
Reinvestment of distributions		68			1,277			168			2,887			396			6,244
Shares repurchased		(481	)		(9,020	)		(794	)		(13,985	)		(1,515	)		(24,855	)
Net Increase / (Decrease)		(95	)	$	(1,750	)		(308	)	$	(5,537	)		507		$	8,100
Class C
Sale of shares		99		$	1,818			107		$	1,853			417		$	6,683
Reinvestment of distributions		25			464			61			1,032			123			1,918
Shares repurchased		(148	)		(2,704	)		(215	)		(3,708	)		(373	)		(5,888	)
Net Increase / (Decrease)		(24	)	$	(422	)		(47	)	$	(823	)		167		$	2,713
Class I
Sale of shares		5,223		$	98,153			4,212		$	73,980			8,261		$	134,255
Reinvestment of distributions		284			5,358			560			9,602			1,006			15,898
Shares repurchased		(2,815	)		(53,209	)		(2,237	)		(39,283	)		(4,704	)		(76,451	)
Net Increase / (Decrease)		2,692		$	50,302			2,535		$	44,299			4,563		$	73,702
Class R6
Sale of Shares		453		$	8,381			559		$	9,803			7		$	100
Reinvestment of distributions		13			236			9			155			—	(2)		3
Shares repurchased		(102	)		(1,925	)		(23	)		(405	)		—			—
Net Increase / (Decrease)		364		$	6,692			545		$	9,553			7		$	103
	KAR Small-Mid Cap Core Fund
	From inception March 7, 2018 to March 31, 2018 (Unaudited)
	SHARES			AMOUNT
Class A
Sale of shares		10		$	100
Net Increase / (Decrease)		10		$	100
Class C
Sale of shares		10		$	100
Net Increase / (Decrease)		10		$	100
Class I
Sale of shares		11		$	105
Net Increase / (Decrease)		11		$	105
Class R6
Sale of shares		270		$	2,700
Net Increase / (Decrease)		270		$	2,700

⁽¹⁾  The Fund changed its fiscal year end to September 30 during the period.

⁽²⁾  Amount is less than 500 shares.

60

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

MARCH 31, 2018

	Rampart Enhanced Core Equity Fund
	Six Months Ended March 31, 2018 (Unaudited)						Fiscal Period Ended September 30,  2017(1)						Year Ended March 31, 2017
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		133		$	2,701			296		$	6,015			750		$	14,419
Reinvestment of distributions		362			7,382			477			9,158			191			3,644
Shares repurchased		(539	)		(10,608	)		(424	)		(8,550	)		(920	)		(17,539	)
Net Increase / (Decrease)		(44	)	$	(525	)		349		$	6,623			21		$	524
Class C
Sale of shares		87		$	1,558			43		$	773			402		$	6,824
Reinvestment of distributions		119			2,172			169			2,918			51			887
Shares repurchased		(181	)		(3,301	)		(438	)		(8,125	)		(630	)		(10,821	)
Net Increase / (Decrease)		25		$	429			(226	)	$	(4,434	)		(177	)	$	(3,110	)
Class I
Sale of shares		172		$	3,517			664		$	13,051			671		$	12,576
Reinvestment of distributions		104			2,108			90			1,722			38			713
Shares repurchased		(742	)		(15,082	)		(186	)		(3,743	)		(331	)		(6,290	)
Net Increase / (Decrease)		(466	)	$	(9,457	)		568		$	11,030			378		$	6,999
Class R6
Sale of shares		365		$	7,574			—		$	—			—		$	—
Shares repurchased		(14	)		(250	)		—			—			—			—
Net Increase / (Decrease)		351		$	7,324			—		$	—			—		$	—
	Tactical Allocation Fund
	Six Months Ended March 31, 2018 (Unaudited)						Fiscal Period Ended September 30,  2017(1)						Year Ended March 31, 2017
	SHARES			AMOUNT			SHARES			AMOUNT			SHARES			AMOUNT
Class A
Sale of shares		453		$	4,267			55		$	472			131		$	1,089
Conversion from Class B shares(2)		—			—			—			—			12			97
Reinvestment of distributions		194			1,790			161			1,411			1,531			12,254
Shares repurchased		(758	)		(7,059	)		(873	)		(7,615	)		(2,669	)		(22,601	)
Net Increase / (Decrease)		(111	)	$	(1,002	)		(657	)	$	(5,732	)		(995	)	$	(9,161	)
Class B
Sale of shares		—		$	—			—		$	—			—	(3)	$	—	(4)
Reinvestment of distributions		—			—			—			—			1			11
Shares repurchased		—			—			—			—			(13	)		(122	)
Conversion to Class A shares(2)		—			—			—			—			(12	)		(97	)
Net Increase / (Decrease)		—		$	—			—		$	—			(24	)	$	(208	)
Class C
Sale of shares		14		$	128			14		$	127			63		$	536
Reinvestment of distributions		4			35			3			26			45			367
Shares repurchased		(52	)		(487	)		(90	)		(802	)		(228	)		(1,972	)
Net Increase / (Decrease)		(34	)	$	(324	)		(73	)	$	(649	)		(120	)	$	(1,069	)

⁽¹⁾  The Fund changed its fiscal year end to September 30 during the period.

⁽²⁾  See Note 1 in Notes to Financial Statements for more information.

⁽³⁾  Amount is less than 500 shares.

⁽⁴⁾  Amount is less than $500.

61

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

Note 7. Indemnifications

Under the Trust’s organizational documents and in separate agreements between each Trustee and the Trust, its Trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust and its funds. In addition, in the normal course of business, the Funds enter into contracts that provide a variety of indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds and that have not occurred. However, the Funds have not had prior claims or losses pursuant to these arrangements and expect the risk of loss to be remote.

Note 8. Credit Risk and Asset Concentration

In countries with limited or developing markets, investments may present greater risks than in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of these investments and the income they generate, as well as a Fund’s ability to repatriate such amounts.

High-yield/high-risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high-yield/high-risk securities may be complex, and as a result, it may be more difficult for the Adviser and/or subadviser to accurately predict risk.

Certain Funds may invest a high percentage of their assets in specific sectors of the market in the pursuit of their investment objectives. Fluctuations in these sectors of concentration may have a greater impact on a Fund, positive or negative, than if a Fund did not concentrate its investments in such sectors.

At March 31, 2018, the following Funds held securities issued by various companies in specific sectors as detailed below:

Fund	Sector	Percentage of Total Investments
KAR Capital Growth Fund	Information Technology		39	%
KAR Capital Growth Fund	Consumer Discretionary		25
KAR Mid-Cap Growth Fund	Information Technology		37
KAR Small-Cap Core Fund	Industrials		30
KAR Small-Cap Core Fund	Information Technology		26
KAR Small-Cap Growth Fund	Information Technology		31
KAR Small-Mid Cap Core Fund	Industrials		33
Rampart Enhanced Core Equity Fund	Information Technology		25

Note 9. 10% Shareholders

At March 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:

	% of Shares Outstanding			Number of Accounts
KAR Mid-Cap Core Fund		37	%		2
KAR Small-Cap Core Fund		15			1
KAR Small-Cap Growth Fund		26			2
KAR Small-Cap Value Fund		45			2
KAR Small-Mid Cap Core Fund		90			1	*

* Account is affiliated.

Note 10. Federal Income Tax Information

($ reported in thousands)

At March 31, 2018, federal tax cost and aggregate gross unrealized appreciation (depreciation) of securities held by the Funds were as follows:

Fund	Federal Tax Cost			Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
KAR Capital Growth Fund	$	284,610		$	238,826	$	(2,130	)	$	236,696
KAR Global Quality Dividend Fund		36,073			2,891		(1,957	)		934
KAR Mid-Cap Core Fund		118,085			30,544		(609	)		29,935
KAR Mid-Cap Growth Fund		62,632			51,767		(1,277	)		50,490
KAR Small-Cap Core Fund		862,128			301,281		(10,520	)		290,761
KAR Small-Cap Growth Fund		1,970,091			566,795		(15,159	)		551,636
KAR Small-Cap Value Fund		359,145			130,542		(10,231	)		120,311
KAR Small-Mid Cap Core Fund		2,917			21		(73	)		(52	)
Rampart Enhanced Core Equity Fund – Investments (including Purchased Options)		151,883			20,678		(5,007	)		15,671
Rampart Enhanced Core Equity Fund – Written Options		(314	)		182		(5	)		177
Tactical Allocation Fund		130,293			24,898		(2,782	)		22,116

Certain Funds have capital loss carryovers available to offset future realized capital gains, through the indicated expiration dates shown below:

	No Expiration				Total
	Short-Term		Long-Term		Short-Term		Long-Term
KAR Mid-Cap Core Fund	$	970	$	150	$	970	$	150
KAR Small-Cap Growth Fund		2,841		—		2,841		—

62

VIRTUS EQUITY TRUST

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

The Trust may not realize the benefit of these losses to the extent each Fund does not realize gains on investments prior to the expiration of the capital loss carryovers.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized for tax years beginning after December 22, 2010, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. Capital loss carryover may be subject to limits on use of losses.

Note 11. Borrowings

($ reported in thousands)

On September 18, 2017, the Funds and certain other affiliated funds entered into an $150,000 unsecured line of credit. This Credit Agreement, as amended, is with a commercial bank that allows the Funds to borrow cash from the bank to manage large unexpected redemptions and trade fails, up to a limit of one-third or one-fifth of each fund’s total net assets in accordance with the terms of the agreement. This Credit Agreement has a term of 364 days Interest is charged at the higher of the LIBOR or the Federal Funds rate plus an additional percentage rate on the amount borrowed. Commitment fees are charged on the undrawn balance. The Funds and other affiliated funds that are parties are individually, and not jointly, liable for their particular advances, if any, under the line of credit. The lending bank has the ability to require repayment of outstanding borrowings under this Credit Agreement upon certain circumstances such as an event of default.

From February 14, 2018 to February 19, 2018, the KAR Global Quality Dividend Fund made borrowings. The average daily borrowings under the agreement and the daily average interest rate was $2,967 and 2.84% respectively. No other Funds had borrowings during the period and no Fund had borrowings at March 31, 2018.

Note 12. Illiquid and Restricted Securities

Investments are generally considered illiquid if they cannot be disposed of within seven days in the ordinary course of business at the approximate amount at which such securities have been valued by a Fund. Additionally, the following information is also considered in determining liquidity: the frequency of trades and quotes for the investment, whether the investment is listed for trading on a recognized domestic exchange and/or whether two or more brokers are willing to purchase or sell the security at a comparable price, the extent of market making activity in the investment and the nature of the market for investment.

Restricted securities are illiquid securities, as defined above, not registered under the Securities Act of 1933, as amended (the “1933 Act”). Generally, 144A securities are excluded from this category, except where defined as illiquid.

Each Fund will bear any costs, including those involved in registration under the 1933 Act, in connection with the disposition of such securities.

At March 31, 2018, the Funds did not hold any securities that were restricted.

Note 13. Regulatory Matters and Litigation

From time to time, the Trust, the Funds’ Adviser and/or subadvisers and/or their affiliates may be involved in litigation and arbitration as well as examinations and investigations by various regulatory bodies, including the SEC, involving compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting their products and other activities. At this time, the Funds’ Adviser believes that the outcomes of such matters are not likely, either individually or in the aggregate, to be material to these financial statements.

Note 14. Recent Accounting Pronouncement

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the “ASU”) which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

Note 15. Subsequent Events

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available for issuance and has determined that there are no subsequent events requiring recognition or disclosure in these financial statements.

63

CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS

BY THE BOARD OF TRUSTEES

The Board of Trustees (the “Board”) of Virtus Equity Trust (the “Trust”) is responsible for determining whether to approve the continuation of the investment advisory agreement (the “Advisory Agreement”) between the Trust and Virtus Investment Advisers, Inc. (“VIA”) and of each subadvisory agreement (each, a “Subadvisory Agreement” and collectively, the “Subadvisory Agreements”)(together with the Advisory Agreement, the “Agreements”) with respect to the funds of the Trust, including Virtus Contrarian Value Fund, Virtus KAR Capital Growth Fund (formerly known as Virtus Strategic Growth Fund), Virtus KAR Global Quality Dividend Fund, Virtus KAR Mid-Cap Core Fund, Virtus KAR Mid-Cap Growth Fund, Virtus KAR Small-Cap Core Fund, Virtus KAR Small-Cap Growth Fund (formerly knowns as Virtus Small-Cap Sustainable Growth Fund), Virtus KAR Small-Cap Value Fund (formerly known as Virtus Quality Small-Cap Fund), Virtus Rampart Enhanced Core Equity Fund and Virtus Tactical Allocation Fund (individually and collectively, the “Funds”) of the Trust. At in-person meetings held on November 3, 2017 and November 15-16, 2017 (the “Meetings”), the Board, including a majority of the Trustees who are not interested persons of the Trust as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (such Act, the “1940 Act” and such Trustees, the “Independent Trustees”), considered and approved the continuation of each Agreement due for renewal, as further discussed below. In addition, prior to the Meetings, the Independent Trustees met with their independent legal counsel to discuss and consider the information provided by management and submitted questions to management, and they considered the responses provided.

In connection with the approval of the Agreements, the Board requested and evaluated information provided by VIA and each subadviser (each, a “Subadviser” and collectively, the “Subadvisers”) which, in the Board’s view, constituted information necessary for the Board to form a judgment as to whether the renewal of each of the Agreements would be in the best interests of each applicable Fund and its respective shareholders. The Board also considered information furnished throughout the year at regular Board meetings with respect to the services provided by VIA and the Subadvisers, including quarterly performance reports prepared by management containing reviews of investment results and periodic presentations from the Subadvisers with respect to the Fund(s) they manage. The Board noted the affiliation of certain of the Subadvisers with VIA and any potential conflicts of interest.

The Board was separately advised by independent legal counsel throughout the process. For each Agreement, the Board considered all the criteria separately with respect to the applicable Fund and its shareholders. In their deliberations, the Board considered various factors, including those discussed below, none of which were controlling, and each Trustee may have attributed different weights to the various factors. The Independent Trustees also discussed the proposed approval of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.

In considering whether to approve the renewal of the Agreements with respect to each Fund, the Board reviewed and analyzed the factors it deemed relevant, including: (1) the nature, extent and quality of the services to be provided to the Funds by VIA and each of the Subadvisers; (2) the performance of the Funds as compared to an appropriate peer group and an appropriate index; (3) the level and method of computing each Fund’s advisory and subadvisory fees, and comparisons of the Funds’ advisory fee rates with those of a group of funds with similar investment objective(s); (4) the profitability of VIA under the Advisory Agreement; (5) any “fall-out” benefits to VIA, the Subadvisers and their affiliates (i.e., ancillary benefits realized by VIA, the Subadvisers or their affiliates from VIA’s or the applicable Subadviser’s relationship with the Trust); (6) the anticipated effect of growth in size on each Fund’s performance and expenses; (7) fees paid to VIA and the Subadvisers by comparable accounts, as applicable; (8) possible conflicts of interest; and (9) the terms of the Agreements.

Nature, Extent and Quality of Services

The Trustees received in advance of the Meetings information provided by VIA and each Subadviser, including completed questionnaires, each concerning a number of topics, including such company’s investment philosophy, resources, operations and compliance structure. The Trustees also received a presentation by VIA’s senior management personnel, during which among other items, VIA’s history, investment process, investment strategies, personnel, compliance procedures and the firm’s overall performance were reviewed and discussed. The Trustees noted that the Funds are managed using a “manager of managers” structure that generally involves the use of one or more subadvisers to manage some or all of a Fund’s portfolio. Under this structure, VIA is responsible for the management of the Funds’ investment programs and for evaluating and selecting subadvisers on an ongoing basis and making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. In considering the Advisory Agreement with VIA, the Board considered VIA’s process for supervising and managing the Funds’ subadvisers, including (a) VIA’s ability to select and monitor the subadvisers; (b) VIA’s ability to provide the services necessary to monitor the subadvisers’ compliance with the Funds’ respective investment objectives, policies and restrictions as well as provide other oversight activities; and (c) VIA’s ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (a) the experience and capability of VIA’s management and other personnel; (b) the financial condition of VIA, and whether it had the financial wherewithal to provide a high level and quality of services to the Funds; (c) the quality of VIA’s own regulatory and legal compliance policies, procedures and systems; (d) the nature, extent and quality of administrative, transfer agency and other services provided by VIA and its affiliates to the Funds; (e) VIA’s supervision of the Funds’ other service providers; and (f) VIA’s risk management processes. It was noted that affiliates of VIA serve as administrator, transfer agent and distributor to the Funds. The Board also took into account its knowledge of VIA’s management and the quality of the performance of VIA’s duties through Board meetings, discussions and reports during the preceding year, as well as information from the Trust’s Chief Compliance Officer regarding the Funds’ compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act.

With respect to the services provided by each of the Subadvisers, the Board considered information provided to the Board by each Subadviser, including each Subadviser’s Form ADV, as well as information provided throughout the past year. With respect to the Subadvisory Agreements, the Board noted that each Subadviser provided portfolio management, compliance with the respective Funds’ investment policies and procedures, compliance with applicable securities laws and assurances thereof. The Board also noted that VIA’s and the Subadvisers’ management of the Funds is subject to the oversight of the Board and must be carried out in accordance with the investment objective(s), policies and restrictions set forth in the Funds’ prospectuses and statement of additional information. In considering the renewal of the Subadvisory Agreements, the Board also considered each Subadviser’s investment management process, including (a) the experience and capability of the Subadviser’s management and other personnel committed by the Subadviser to the respective Fund(s); (b) the financial condition of the Subadviser; (c) the quality of the Subadviser’s regulatory and legal compliance policies, procedures and systems; and (d) the Subadviser’s brokerage and trading practices, including with respect to best execution and soft dollars. The Board also took into account each Subadviser’s risk assessment and monitoring process. The Board noted each Subadviser’s regulatory history, including whether it was currently involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate.

64

CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS

BY THE BOARD OF TRUSTEES (Continued)

After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services provided by VIA and each Subadviser were satisfactory and that there was a reasonable basis on which to conclude that each would continue to provide a high quality of investment services to the applicable Fund(s).

Investment Performance

The Board considered performance reports and discussions at Board meetings throughout the year, as well as a report (the “Lipper Report”) for the Funds prepared by Broadridge, an independent third party provider of investment company data, furnished in connection with the contract renewal process. The Lipper Report presented each Fund’s performance relative to a peer group of other mutual funds (the “Performance Universe”) and relevant indexes, as selected by Broadridge. The Board also considered performance information presented by management and took into account management’s discussion of the same, including the effect of market conditions on each Fund’s performance. The Board evaluated each Fund’s performance in the context of the considerations that a “manager of managers” structure requires. The Board noted that it also reviews on a quarterly basis detailed information about both the Funds’ performance results and portfolio composition, as well as each Subadviser’s investment strategy. The Board noted VIA’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of each Subadviser. The Board also noted each Subadviser’s performance record with respect to a Fund. The Board was mindful of VIA’s focus on each Subadviser’s performance and noted VIA’s performance in monitoring and responding to any performance issues with respect to the Funds. The Board also took into account its discussions with management regarding factors that contributed to the performance of each Fund.

The Board considered, among other performance data, the information set forth below with respect to the performance of each Fund for the period ended June 30, 2017.

Virtus Contrarian Value Fund. The Board noted that the Fund underperformed the median of its Performance Universe and underperformed its benchmark for the 1-, 3-, 5- and 10-year periods.

Virtus KAR Capital Growth Fund. The Board noted that the Fund underperformed the median of its Performance Universe and underperformed its benchmark for the 5- and 10-year periods. The Board also noted that the Fund outperformed the median of its Performance Universe and outperformed its benchmark for the 1- and 3-year periods.

Virtus KAR Global Quality Dividend Fund. The Board noted that the Fund underperformed the median of its Performance Universe for the 1-year period and underperformed its benchmark for the 1-, 3-, 5- and 10-year periods. The Board also noted that the Fund outperformed the median of its Performance Universe for the 3-, 5- and 10-year periods.

Virtus KAR Mid-Cap Core Fund. The Board noted that the Fund outperformed the median of its Performance Universe for the 3- and 5-year periods and outperformed its benchmark for the 3-year period. The Board also noted that the Fund underperformed the median of its Performance Universe for the 1-year period and underperformed its benchmark for the 1- and 5-year periods.

Virtus KAR Mid-Cap Growth Fund. The Board noted that the Fund outperformed the median of its Performance Universe and outperformed its benchmark for the 1- and 3-year periods. The Board also noted that the Fund underperformed the median of its Performance Universe and underperformed its benchmark for the 5- and 10-year periods.

Virtus KAR Small-Cap Core Fund. The Board noted that the Fund outperformed the median of its Performance Universe for the 1-, 3-, 5- and 10-year periods and outperformed its benchmark for the 3- and 10-year periods. The Board also noted that the Fund underperformed its benchmark for the 1- and 5-year periods.

Virtus KAR Small-Cap Growth Fund. The Board noted that the Fund outperformed the median of its Performance Universe and outperformed its benchmark for the 1-, 3-, 5- and 10-year periods.

Virtus KAR Small-Cap Value Fund. The Board noted that the Fund outperformed the median of its Performance Universe and outperformed its benchmark for the 3-, 5- and 10-year periods. The Board also noted that the Fund underperformed the median of its Performance Universe and underperformed its benchmark for the 1-year period.

Virtus Rampart Enhanced Core Equity Fund. The Board noted that the Fund outperformed the median of its Performance Universe for the 1-, 3-, 5- and 10-year periods. The Board also noted that the Fund underperformed its benchmark for the 3-, 5- and 10- year periods and outperformed its benchmark for the 1-year period.

Virtus Tactical Allocation Fund. The Board noted that the Fund underperformed the median of its Performance Universe for the 3- and 5-year periods and outperformed the median of its Performance Universe for the 1- and 10-year periods. The Board also noted that the Fund outperformed its benchmark for the 1-year period and underperformed its benchmark for the 3-, 5- and 10-year periods.

With respect to certain Funds, including Virtus KAR Mid-Cap Growth Fund, Virtus KAR Global Quality Dividend Fund, Virtus KAR Capital Growth Fund, Virtus Rampart Enhanced Core Equity Fund and Virtus Tactical Allocation Fund, the Board also considered management’s discussion about the reasons for each Fund’s underperformance relative to its peer group or benchmark. With respect to Virtus Global Quality Dividend Fund, the Board considered that the Fund’s investment strategy had recently changed, so that the performance shown included that of a prior strategy. With respect to Virtus Tactical Allocation Fund, the Board also considered that the Fund had recently replaced one of the subadvisers, so that the longer-term performance shown included that of a prior subadviser. With respect to Virtus Contrarian Value Fund, the Board considered that there was a proposal out to shareholders that the Fund merge with and into Virtus Ceredex Mid-Cap Value Equity Fund, and as a result management anticipated that the proposed renewal would only be necessary for a short period prior to the expected merger. After reviewing these and related factors, the Board concluded that each Fund’s overall performance, or reasons for or plans discussed to address underperformance, was satisfactory.

Management Fees and Total Expenses

The Board considered the fees charged to the Funds for advisory services as well as the total expense levels of the Funds. This information included comparisons of each Fund’s net management fee and total expense level to those of its peer group (the “Expense Group”). In comparing each Fund’s net management fee to that of comparable funds, the Board noted that in the materials presented such fee included both advisory and administrative fees. The Board also noted that certain of the Funds had fee waivers and/or expense caps in place to limit the total expenses incurred by those Funds and their shareholders. The Board also noted that the subadvisory fees were paid by VIA out of its management fees rather than paid separately by the Funds. In this regard, the Board took into account management’s discussion with respect to the advisory/subadvisory fee structure, including the amount of the advisory fee retained by VIA after payment of the subadvisory fee. The Board also took into account the size of each of the Funds and the impact on expenses. The Subadvisers provided, and the Board considered, fee information of comparable accounts managed by the Subadvisers, as applicable.

65

CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS

BY THE BOARD OF TRUSTEES (Continued)

In addition to the foregoing, the Board considered, among other data, the information set forth below with respect to each Fund’s fees and expenses. In each case, the Board took into account management’s discussion of the Fund’s expenses, including the type and size of the Fund relative to the other funds in its Expense Group.

Virtus Contrarian Value Fund. The Board considered that the Fund’s net management fee and net total expenses after waivers were above the median of the Expense Group.

Virtus KAR Capital Growth Fund. The Board considered that the Fund’s net management fee and net total expenses were above the median of the Expense Group.

Virtus KAR Global Quality Dividend Fund. The Board considered that the Fund’s net management fee and net total expenses after waivers were above the median of the Expense Group.

Virtus KAR Mid-Cap Core Fund. The Board considered that the Fund’s net management fee and net total expenses after waivers were below the median of the Expense Group.

Virtus KAR Mid-Cap Growth Fund. The Board considered that the Fund’s net management fee and net total expenses after waivers were above the median of the Expense Group.

Virtus KAR Small-Cap Core Fund. The Board considered that the Fund’s net management fee and net total expenses were below the median of the Expense Group.

Virtus KAR Small-Cap Growth Fund. The Board considered that the Fund’s net management fee and net total expenses after waivers were above the median of the Expense Group.

Virtus KAR Small-Cap Value Fund. The Board considered that the Fund’s net management fee and net total expenses were equal to the median of the Expense Group.

Virtus Rampart Enhanced Core Equity Fund. The Board considered that the Fund’s net management fee after waivers was below the median of the Expense Group and net total expenses after waivers were above the median of the Expense Group.

Virtus Tactical Allocation Fund. The Board considered that the Fund’s net management fee and net total expenses after waivers were above the median of the Expense Group.

The Board concluded that the advisory and subadvisory fees for each Fund, including with any proposed amendments, were fair and reasonable in light of the usual and customary charges made for services of the same nature and quality and the other factors considered.

Profitability

The Board also considered certain information relating to profitability that had been provided by VIA. In this regard, the Board considered information regarding the overall profitability, as well as on a fund-by-fund basis, of VIA for its management of the Funds and the other funds of the Trust, as well as its profits and those of its affiliates for managing and providing other services to the Trust, such as distribution, transfer agency and administrative services provided to the Funds by a VIA affiliate. In addition to the fees paid to VIA and its affiliates, including the applicable Subadvisers, the Board considered any other benefits derived by VIA or its affiliates from their relationships with the Funds. The Board reviewed the methodology used to allocate costs to each Fund, taking into account the fact that allocation methodologies are inherently subjective and various allocation methodologies may each be reasonable while producing different results. The Board concluded that the profitability to VIA and its affiliates from each Fund was reasonable in light of the quality of the services rendered to the Funds by VIA and its affiliates.

In considering the profitability to the Subadvisers in connection with their relationship to the Funds, the Board noted that the fees under the Subadvisory Agreements are paid by VIA out of the fees that VIA receives under the Advisory Agreement, so that Fund shareholders are not directly impacted by those fees. In considering the reasonableness of the fees payable by VIA to the affiliated Subadvisers, the Board noted that, because such Subadvisers are affiliates of VIA, such profitability might be directly or indirectly shared by VIA. In addition, with respect to Sasco Capital, Inc., the unaffiliated Subadviser, the Board relied on the ability of VIA to negotiate the Subadvisory Agreement and the fees thereunder at arm’s length. For each of the above reasons, the Board concluded that the profitability to the Subadvisers and their affiliates from their relationship with the Funds was not a material factor in approval of the Subadvisory Agreements.

Economies of Scale

The Board received and discussed information concerning whether VIA realizes economies of scale as the Funds’ assets grow. The Board noted that the management fees for several of the Funds included breakpoints based on assets under management, and that fee waivers and/or expense caps were also in place for certain Funds. The Board also took into account management’s discussion of the Funds’ management fee and subadvisory fee structure, including with respect to the Funds that do not currently have breakpoints. The Board also took into account the current size of the Fund(s). The Board concluded that no changes to the advisory fee structure of the Funds were necessary at this time. The Board noted that VIA and the Funds may realize certain economies of scale if the assets of the Funds were to increase, particularly in relationship to certain fixed costs, and that shareholders of the Funds would have an opportunity to benefit from these economies of scale.

For similar reasons as stated above with respect to the Subadvisers’ profitability, and based upon the current size of the Funds managed by each Subadviser, the Board concluded that the potential for economies of scale in the Subadvisers’ management of the Funds was not a material factor in the approval of the Subadvisory Agreements at this time.

Other Factors. The Board considered other benefits that may be realized by VIA and each Subadviser and their respective affiliates from their relationships with the applicable Fund. Among them, the Board recognized that VP Distributors, LLC, an affiliate of VIA, serves as the distributor for the Trust, and, as such, receives payments pursuant to Rule 12b-1 from the Funds to compensate it for providing selling activities, which could lead to growth in the Trust’s assets and corresponding benefits from such growth, including economies of scale. The Board noted that an affiliate of VIA also provides administrative and transfer agency services to the Trust. The Board noted management’s discussion of the fact that, while certain of the Subadvisers are affiliates of VIA, there are no other direct benefits to the Subadvisers or VIA in providing investment advisory services to the Fund(s), other than the fee to be earned under the applicable Agreement(s). There may be certain indirect benefits gained, including to the extent that serving the Fund(s) could provide the opportunity to provide advisory services to additional portfolios of the Trust or certain reputational benefits.

Conclusion

Based on all of the foregoing considerations, the Board, including a majority of the Independent Trustees, determined that approval of each Agreement, as amended, was in the best interests of each applicable Fund and its respective shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Agreements, as amended, with respect to each Fund.

66

CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR

VIRTUS KAR SMALL-MID CAP CORE FUND (THE “FUND”)

BY THE BOARD OF TRUSTEES

The Board of Trustees (the “Board”) of Virtus Equity Trust (the “Trust”) is responsible for determining whether to approve the establishment and continuation of the investment advisory agreement (the “Advisory Agreement”) between the Fund and Virtus Investment Advisers, Inc. (“VIA”) and the subadvisory agreement (the “Subadvisory Agreement” and together with the Advisory Agreement, the “Agreements”) among the Fund, VIA and Kayne Anderson Rudnick Investment Management, LLC (“KAR” or the “Subadviser”). At an in-person meeting held on March 1, 2018, (the “Meeting”), the Board, including a majority of the Trustees who are not interested persons of the Trust as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and approved the establishment of the Agreements, as further discussed below.

In connection with the approval of the Agreements, the Board requested and evaluated information provided by VIA and the Subadviser which, in the Board’s view, constituted information necessary for the Board to form a judgment as to whether the approval of each of the Agreements would be in the best interests of the Fund and its shareholders. The Board noted the affiliation of the Subadviser with VIA and any potential conflicts of interest.

The Board was separately advised by independent legal counsel throughout the process. For each Agreement, the Board considered all the criteria separately with respect to the Fund and its shareholders. In their deliberations, the Board considered various factors, including those discussed below, none of which were controlling, and each Trustee may have attributed different weights to the various factors. The Independent Trustees also discussed the proposed approval of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.

In considering whether to approve the Agreements with respect to the Fund, the Board reviewed and analyzed the factors it deemed relevant, including: (1) the nature, extent and quality of the services to be provided to the Fund by VIA and the Subadviser; (2) information regarding performance of representative accounts; (3) the level and method of computing the Fund’s advisory and subadvisory fees, and comparisons of the Fund’s proposed advisory fee rates with those of a group of funds with similar investment objective(s); (4) the projected profitability of VIA and its affiliates under the Advisory Agreement; (5) any “fall-out” benefits to VIA, the Subadviser and their affiliates (i.e., ancillary benefits realized by VIA, the Subadviser or their affiliates from VIA’s or the Subadviser’s relationship with the Fund); (6) fees paid to VIA and the Subadviser by comparable accounts, as applicable; (7) possible conflicts of interest; and (8) the terms of the Agreements.

Nature, Extent and Quality of Services

The Trustees received in advance of the Meeting information from VIA and the Subadviser, including a completed questionnaire concerning a number of topics, including such company’s investment philosophy, resources, operations and compliance structure. The Trustees also received a presentation by VIA’s senior management personnel, during which among other items, VIA’s history, investment process, investment strategies, personnel, compliance procedures and the firm’s overall performance were reviewed and discussed. The Trustees noted that the Fund was proposed to be managed using a “manager of managers” structure that generally involves the use of one or more subadvisers to manage some or all of the Fund’s portfolio. Under this structure, VIA is responsible for the oversight of the Fund’s investment programs and day-to-day operations and for evaluating and selecting subadvisers on an ongoing basis and making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. In considering the Advisory Agreement with VIA, the Board considered VIA’s proposed process for supervising and managing the Fund’s subadviser(s), including (a) VIA’s ability to select and monitor subadvisers; (b) VIA’s ability to provide the services necessary to monitor the subadviser’s(s’) compliance with the Fund’s investment objectives, policies and restrictions as well as provide other oversight activities; and (c) VIA’s ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (a) the experience and capability of VIA’s management and other personnel; (b) the financial condition of VIA, and whether it had the financial wherewithal to provide a high level and quality of services to the Fund; (c) the quality of VIA’s own regulatory and legal compliance policies, procedures and systems; (d) the nature, extent and quality of administrative, transfer agency and other services expected to be provided by VIA and its affiliates to the Fund; (e) VIA’s expected supervision of the Fund’s other service providers; and (f) VIA’s risk management processes. It was noted that affiliates of VIA were expected to serve as administrator, transfer agent and distributor to the Fund. The Board also took into account its knowledge of VIA’s management and the quality of the performance of VIA’s duties with respect to other Virtus Mutual Funds through Board meetings, discussions and reports during the preceding year, as well as information from the Trust’s Chief Compliance Officer regarding the Fund’s compliance policies and procedures proposed to be established pursuant to Rule 38a-1 under the 1940 Act.

With respect to the services to be provided by the Subadviser, the Board considered information provided to the Board by the Subadviser, including the Subadviser’s Form ADV, as well as a presentation provided by portfolio management personnel of the Subadviser. With respect to the Subadvisory Agreement, the Board noted that the Subadviser would provide portfolio management, compliance with the Fund’s investment policies and procedures, compliance with applicable securities laws and assurances thereof. The Board also noted that VIA’s and the Subadviser’s management of the Fund is subject to the oversight of the Board and must be carried out in accordance with the investment objective(s), policies and restrictions set forth in the Fund’s prospectus and statement of additional information. In considering approval of the Subadvisory Agreement, the Board also considered the Subadviser’s investment management process, including (a) the experience and capability of the Subadviser’s management and other personnel committed by the Subadviser to the Fund; (b) the financial condition of the Subadviser; (c) the quality of the Subadviser’s regulatory and legal compliance policies, procedures and systems; and (d) the Subadviser’s brokerage and trading practices, including with respect to best execution and soft dollars. The Board also took into account the Subadviser’s risk assessment and monitoring process. The Board noted the Subadviser’s regulatory history, including whether it was currently involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate.

After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services expected to be provided by VIA and the Subadviser were satisfactory and that there was a reasonable basis on which to conclude that each would provide a high quality of investment services to the Fund.

Investment Performance

Because the Fund had not commenced operations, the Board could not evaluate prior investment performance for the Fund. The Board reviewed and was satisfied with the comparative performance of representative accounts that was based upon the Fund’s proposed investment strategies.

Management Fees and Total Expenses

The Board considered the fees proposed for the Fund for advisory services as well as the expected total expense levels of the Fund. Among other data provided, the Board noted that the proposed management fee and total expenses for the Fund were within the range of other funds deemed to be comparable to the Fund by management. The Board noted that the Fund was expected to have an expense cap in place to limit the total expenses incurred

67

CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR

VIRTUS KAR SMALL-MID CAP CORE FUND (THE “FUND”)

BY THE BOARD OF TRUSTEES (Continued)

by the Fund and its shareholders. The Board also noted that the subadvisory fee for the Fund would be paid by VIA out of its advisory fee rather than paid separately by the Fund. In this regard, the Board took into account management’s discussion with respect to the advisory/subadvisory fee structure, including the amount of the advisory fee retained by VIA after payment of the subadvisory fee. The Board also took into account the expected size of the Fund and the impact on expenses. The Subadviser provided, and the Board considered, fee information of comparable accounts managed by the Subadviser, as applicable.

The Board concluded that the proposed advisory and subadvisory fees for the Fund were fair and reasonable in light of the usual and customary charges made for services of the same nature and quality and the other factors considered.

Projected Profitability

The Board also considered certain information relating to expected profitability that had been provided by VIA. In this regard, the Board considered information regarding the projected profitability of VIA for its management of the Fund, as well as the projected profitability of its affiliates for managing and providing other services to the Fund, such as distribution, transfer agency and administrative services provided to the Fund by a VIA affiliate. In addition to the fees to be paid to VIA and its affiliates, including the Subadviser, the Board considered any other benefits expected to be derived by VIA or its affiliates from their relationships with the Fund. The Board reviewed the methodology used to allocate costs to the Fund, taking into account the fact that allocation methodologies are inherently subjective and various allocation methodologies may each be reasonable while producing different results. The Board concluded that the projected profitability to VIA and its affiliates from the Fund was reasonable in light of the quality of the services rendered to the Fund by VIA and its affiliates as well as other factors.

In considering the expected profitability to the Subadviser in connection with its relationship to the Fund, the Board noted that the fees under the Subadvisory Agreement would be paid by VIA out of the fees that VIA receives under the Advisory Agreement, so that Fund shareholders are not directly impacted by those fees. The Board noted that, because the Subadviser is an affiliate of VIA, such profitability might be directly or indirectly shared by VIA. For each of the above reasons, the Board concluded that the expected profitability to the Subadviser and its affiliates from their relationships with the Fund was not a material factor in approval of the Subadvisory Agreement.

Economies of Scale

The Board received and discussed information concerning whether VIA should be expected to realize economies of scale as the Fund’s assets grow. The Board noted that expense caps were expected to be implemented for the Fund. The Board noted that the management fee for the Fund included a breakpoint based on assets under management. The Board also took into account management’s discussion of the Fund’s management fee and subadvisory fee structure. The Board also took into account the projected size of the Fund. The Board noted that VIA and the Fund may realize certain economies of scale if the assets of the Fund were to be materially higher than anticipated, particularly in relationship to certain fixed costs, and that shareholders of the Fund would have an opportunity to benefit from these economies of scale.

For similar reasons as stated above with respect to the Subadviser’s profitability, and based upon the expected size of the Fund to be managed by the Subadviser, the Board concluded that the potential for economies of scale in the Subadviser’s management of the Fund was not a material factor in the approval of the Subadvisory Agreement at this time.

Other Factors. The Board considered other benefits that may be realized by VIA and the Subadviser and their respective affiliates from their relationships with the Fund. Among them, the Board recognized that VP Distributors, LLC, an affiliate of VIA, serves as the distributor for the Trust, and, as such, was expected to receive payments pursuant to Rule 12b-1 from the Fund to compensate it for performing selling activities, which could lead to growth in the Fund’s assets and corresponding benefits from such growth, including economies of scale. The Board also noted that an affiliate of VIA also provides administrative and transfer agency services to the Trust. The Board noted management’s discussion of the fact that, while the Subadviser is an affiliate of VIA, there are no other expected direct benefits to the Subadviser or VIA in providing investment advisory services to the Fund, other than the fee to be earned under the applicable Agreement. There may be certain indirect benefits gained, including to the extent that serving the Fund could provide the opportunity to provide advisory services to additional portfolios of the Trust or certain reputational benefits.

Conclusion

Based on all of the foregoing considerations, the Board, including a majority of the Independent Trustees, determined that approval of each Agreement was in the best interests of the Fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Agreements with respect to the Fund.

68

Virtus KAR Capital Growth Fund

and Virtus KAR Mid-Cap Growth Fund,

each a series of Virtus Equity Trust

Supplement dated March 19, 2018 to the Summary Prospectuses

and the Virtus Equity Trust Statutory Prospectus,

dated March 6, 2018, each as supplemented

IMPORTANT NOTICETO INVESTORS

Effective March 29, 2018, the changes described below will be made to the respective fund’s prospectuses.

Virtus KAR Capital Growth Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the “Annual Fund Operating Expenses” table and associated footnotes will be replaced with the following:

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)	Class R6
Management Fees	0.70%
Distribution and Shareholder Servicing (12b-1) Fees	None
Other Expenses	0.31%	(c)
Total Annual Fund Operating Expenses	1.01%
Less: Fee Waiver and/or Expense Reimbursement(d)	(0.23%	)
Total Annual Fund Operating Expenses After Expense Reimbursement(d)	0.78%

^(c)  Estimated for current fiscal year, as annualized.

^(d)  The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding certain expenses, such as front-end or contingent deferred sales charges, taxes, leverage expenses, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any) so that such expenses do not exceed 1.47% for Class A Shares, 2.22% for Class C Shares, 1.22% for Class I Shares, 0.78% for Class R6 Shares and 1.47% for Class T Shares through March 31, 2019. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years after the date on which it was incurred or waived by Virtus.

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the row showing Class R6 Shares in the “Example” table will be replaced with the following:

	Share Status	1 Year		3 Years		5 Years		10 Years
Class R6	Sold or Held	$	80	$	299	$	535	$	1,215

Virtus KAR Mid-Cap Growth Fund

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the information for Class R6 Shares in the “Annual Fund Operating Expenses” table and associated footnotes will be replaced with the following:

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)	Class R6
Management Fees	0.80%
Distribution and Shareholder Servicing (12b-1) Fees	None
Other Expenses	0.40%	(c)
Total Annual Fund Operating Expenses	1.20%
Less: Fee Waiver and/or Expense Reimbursement(d)	(0.30%	)
Total Annual Fund Operating Expenses After Expense Reimbursement(d)	0.90%

^(c)  Estimated for current fiscal year, as annualized.

^(d)  The fund’s investment adviser has contractually agreed to limit the fund’s total operating expenses (excluding certain expenses, such as front-end or contingent deferred sales charges, taxes, leverage expenses, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, unusual or infrequently occurring expenses (such as litigation), acquired fund fees and expenses, and dividend expenses, if any) so that such expenses do not exceed 1.40% for Class A Shares, 2.15% for Class C Shares, 1.15% for Class I Shares, 0.90% for Class R6 Shares and 1.40% for Class T Shares through March 31, 2019. Following the contractual period, the adviser may discontinue these expense reimbursement arrangements at any time. Under certain conditions, the adviser may recapture operating expenses reimbursed under these arrangements for a period of three years after the date on which it was incurred or waived by Virtus.

Under “Fees and Expenses” in the fund’s summary prospectus and the summary section of the statutory prospectus, the row showing Class R6 Shares in the “Example” table will be replaced with the following:

	Share Status	1 Year		3 Years		5 Years		10 Years
Class R6	Sold or Held	$	92	$	351	$	631	$	1,428

All Funds

In the first table in the section “More Information About Fund Expenses” on page 133 of the statutory prospectus, the row corresponding to each of the funds will be replaced with the following.

	Class A Shares		Class C Shares		Class I Shares		Class R6 Shares	Class T Shares
Virtus KAR Capital Growth Fund	1.47%	(1)	2.22%	(1)	1.22%	(1)	0.78%	1.47%	(1)
Virtus KAR Mid-Cap Growth Fund	1.40%		2.15%		1.15%		0.90%	1.40%

⁽¹⁾  Fund expenses currently below the capped level.

In the second table in the section “More Information About Fund Expenses” on page 133 of the statutory prospectus, the row corresponding to each of the funds will be replaced and a new footnote added as follows:

	Class A Shares	Class C Shares	Class I Shares	Class R6 Shares
Virtus KAR Capital Growth Fund	1.30%	2.08%	1.08%	1.01%	(1)(2)
Virtus KAR Mid-Cap Growth Fund	1.40%	2.15%	1.15%	1.11%	(1)(2)

⁽¹⁾  Estimated based on then-existing share classes.

⁽²⁾  Reflects estimated expenses under prior expense limitation arrangements.

Investors should retain this supplement with the Prospectuses for future reference.

VET 8019/CapGr&MCGrNewR6ExpCaps (3/2018)

VIRTUS EQUITY TRUST

101 Munson Street

Greenfield, MA 01301-9668

Trustees

George R. Aylward

Thomas J. Brown

Donald C. Burke

Roger A. Gelfenbien

Sidney E. Harris

John R. Mallin

Hassell H. McClellan

Connie D. McDaniel

Philip R. McLoughlin, Chairman

Geraldine M. McNamara

James M. Oates

Richard E. Segerson

Officers

George R. Aylward, President

Peter Batchelar, Senior Vice President

W. Patrick Bradley, Executive Vice President, Chief Financial Officer and Treasurer

Kevin J. Carr, Senior Vice President, Chief Legal Officer, Counsel and Secretary

Nancy J. Engberg, Senior Vice President and Chief Compliance Officer

Julia R. Short, Senior Vice President

Francis G. Waltman, Executive Vice President

Investment Adviser

Virtus Investment Advisers, Inc.

100 Pearl Street

Hartford, CT 06103-4506

Principal Underwriter

VP Distributors, LLC

100 Pearl Street

Hartford, CT 06103-4506

Administrator and Transfer Agent

Virtus Fund Services, LLC

100 Pearl Street

Hartford, CT 06103-4506

Custodian

The Bank of New York Mellon

225 Liberty Street

New York, NY 10286-1048

How to Contact Us

Mutual Fund Services	1-800-243-1574
Adviser Consulting Group	1-800-243-4361
Website	Virtus.com

Important Notice to Shareholders

The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574.

P.O. Box 9874

Providence, RI 02940-8074

For more information about Virtus Mutual Funds,

please call your financial representative, contact us

at 1-800-243-1574 or Virtus.com.

8029 5-18

SEMIANNUAL REPORT VIRTUS EQUITY TRUST

March 31, 2018

Virtus Strategic Allocation Fund

Not FDIC Insured

No Bank Guarantee

May Lose Value

Table of Contents

Virtus Strategic Allocation Fund

(“Strategic Allocation Fund”)

Message to Shareholders	1
Disclosure of Fund Expenses	2
Key Investment Terms	4
Schedule of Investments	6
Statement of Assets and Liabilities	24
Statement of Operations	25
Statements of Changes in Net Assets	26
Financial Highlights	27
Notes to Financial Statements	29
Consideration of Advisory and Subadvisory Agreements by The Board of Trustees	39

PROXY VOTING PROCEDURES AND VOTING RECORD (FORM N-PX)

The subadviser votes proxies relating to portfolio securities in accordance with procedures that have been approved by the Board of Trustees of the Trust (“Trustees,” or the “Board”). You may obtain a description of these procedures, along with information regarding how the Fund voted proxies during the most recent 12-month period ended June 30, free of charge, by calling toll-free 1-800-243-1574. This information is also available through the Securities and Exchange Commission’s (the “SEC”) website at http://www.sec.gov.

FORM N-Q INFORMATION

The Trust files a complete schedule of portfolio holdings for the Fund with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov. Form N-Q may be reviewed and copied at the SEC’s Public Reference Room. Information on the operation of the SEC’s Public Reference Room can be obtained by calling toll-free 1-800-SEC-0330.

This report is not authorized for distribution to prospective investors in the Strategic Allocation Fund unless preceded or accompanied by an effective prospectus which includes information concerning the sales charge, the Fund’s record and other pertinent information.

MESSAGE TO SHAREHOLDERS

To My Fellow Shareholders of Virtus Mutual Funds:

I am pleased to present this semiannual report that reviews the performance of your fund for the six months ended March 31, 2018.

Economic growth and strong corporate earnings were driving forces in the U.S. during the period, capped off by the sweeping tax overhaul that was signed into law at year-end. The optimism carried over into the start of 2018. However, with growth heating up, inflation fears caused stock markets to plunge in early February, ushering in the return of volatility after being conspicuously absent throughout 2017. Concerns over a potential global trade war, sparked by tariff talk by the Trump administration, caused markets to remain unsettled. Meanwhile, persistent economic strength moved the Federal Reserve to hike its key interest rate in March from 1.50% to 1.75%, its highest level in nearly a decade.

For the six months ended March 31, 2018, U.S. large-cap stocks, as measured by the S&P 500^® Index, returned 5.84%, outpacing small-cap stocks, which returned 3.25%, as measured by the Russell 2000^® Index. Within international equities, emerging markets led their developed peers, with the MSCI Emerging Markets Index (net) up 8.96%, compared with the MSCI EAFE^® Index (net), which returned 2.63%.

Demand for U.S. Treasuries remained strong, as foreign investors continued to favor their yield advantage and credit quality over many foreign government bonds. The yield on the 10-year Treasury was 2.74% at March 31, 2018, up from 2.33% at September 30, 2017. The broader U.S. fixed income market, as represented by the Bloomberg Barclays U.S. Aggregate Bond Index, which tracks Treasuries and other investment-grade debt securities, declined 1.08% for the six months. Non-investment grade bonds also lost ground but to a lesser extent, down 0.39%, as measured by the Bloomberg Barclays U.S. Corporate High Yield Bond Index.

Market uncertainty is an ever-present reminder of the importance of portfolio diversification, including exposure to traditional and alternative asset classes. While diversification cannot guarantee a profit or prevent a loss, owning a variety of asset classes may cushion your portfolio against inevitable market fluctuations. Your financial advisor can help you ensure that your portfolio is adequately diversified across asset classes and investment strategies, with a broad array of Virtus Funds available through your fund exchange privileges. These include distinctive equity, fixed income, international, and asset allocation funds managed by Virtus affiliates and select subadvisers. We invite you to learn more about the Virtus family of funds at Virtus.com.

On behalf of our investment affiliates, thank you for entrusting the Virtus Funds with your assets. Should you have questions about your account or require assistance, please visit Virtus.com, or call our customer service team at 1-800-243-1574. We appreciate your business and remain committed to your long-term financial success.

Sincerely,

George R. Aylward

President, Virtus Mutual Funds

May 2018

Performance data quoted represents past results. Past performance is no guarantee of future results, and current performance may be higher or lower than the performance shown above.

1

VIRTUS STRATEGIC ALLOCATION FUND

DISCLOSURE OF FUND EXPENSES (Unaudited)

FOR THE SIX-MONTH PERIOD OF OCTOBER 1, 2017 TO MARCH 31, 2018

We believe it is important for you to understand the impact of costs on your investment. All mutual funds have operating expenses. As a shareholder of the Strategic Allocation Fund (the “Fund”) you may incur two types of costs; (1) transaction costs, including sales charges on purchases of Class A shares and contingent deferred sales charges on Class C shares; and (2) ongoing costs, including investment advisory fees, distribution and service fees, and other expenses. For further information regarding applicable sales charges, see Note 1 in the Notes to Financial Statements. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period.

Please note that the expenses shown in the accompanying tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges or contingent deferred sales charges. Therefore, the accompanying tables are useful in comparing ongoing 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. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

Actual Expenses

The table below provides information about the Fund’s actual account values and actual expenses. You may use the information below, 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 table under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

	Beginning Account Value October 1, 2017		Ending Account Value March 31, 2018		Annualized Expense Ratio			Expenses Paid During Period*
Class A	$	1,000.00	$	1,057.90		1.08	%	$	5.54
Class C		1,000.00		1,053.70		1.85			9.47

* Expenses are equal to the Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (182) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.

The Fund may invest in other funds, and the annualized expense ratios noted above do not reflect fees and expenses associated with the underlying funds. If such fees and expenses had been included, the expense ratios would have been higher.

You can find more information about the Fund’s expenses in the Financial Statements section that follows.

For additional information on operating expenses and other shareholder costs, refer to the Fund’s prospectus.

2

VIRTUS STRATEGIC ALLOCATION FUND

DISCLOSURE OF FUND EXPENSES (Unaudited) (Continued)

FOR THE SIX-MONTH PERIOD OF OCTOBER 1, 2017 TO MARCH 31, 2018

Hypothetical Example for Comparison Purposes

The accompanying table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not your 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 this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.

	Beginning Account Value October 1, 2017		Ending Account Value March 31 2018		Annualized Expense Ratio			Expenses Paid During Period*
Class A	$	1,000.00	$	1,019.55		1.08	%	$	5.44
Class C		1,000.00		1,015.71		1.85			9.30

* Expenses are equal to the Fund’s annualized expense ratio, which is net of waived fees and reimbursed expenses, if applicable, multiplied by the average account value over the period, multiplied by the number of days (182) expenses were accrued in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period.

The Fund may invest in other funds, and the annualized expense ratios noted above do not reflect fees and expenses associated with the underlying funds. If such fees and expenses had been included, the expense ratios would have been higher.

You can find more information about the Fund’s expenses in the Financial Statements section that follows. For additional information on operating expenses and other shareholder costs, refer to the Fund’s prospectus.

3

VIRTUS STRATEGIC ALLOCATION FUND

KEY INVESTMENT TERMS (Unaudited)

MARCH 31, 2018

American Depositary Receipt (“ADR”)

Represents shares of foreign companies traded in U.S. dollars on U.S. exchanges that are held by a U.S. bank or a trust. Foreign companies use ADRs in order to make it easier for Americans to buy their shares.

Bloomberg Barclays U.S. Aggregate Bond Index

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 it is not available for direct investment.

Bloomberg Barclays U.S. Corporate High Yield Bond Index

The Bloomberg Barclays U.S. Corporate High Yield Bond Index measures the U.S. dollar-denominated, high yield, fixed-rate corporate 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 it is not available for direct investment.

Exchange-Traded Funds (“ETF”)

An open-end fund that is traded on a stock exchange. Most ETFs have a portfolio of stocks or bonds that track a specific market index.

Federal Reserve (the “Fed”)

The Central Bank of the U.S., responsible for controlling money supply, interest rates, and credit with the goal of keeping the U.S. economy and currency stable. Governed by a seven-member board, the system includes 12 regional Federal Reserve Banks, 25 Branches, and all national and state banks that are part of the system.

London Interbank Offered Rate (“LIBOR”)

A benchmark rate that some of the world’s leading banks charge each other for short-term loans and that serves as the first step to calculating interest rates on various loans throughout the world.

MSCI EAFE^® Index (net)

The MSCI EAFE^® (Europe, Australasia, Far East) Index (net) is a free float-adjusted market capitalization-weighted index that measures developed foreign market equity performance, excluding the U.S. and Canada. 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 it is not available for direct investment.

MSCI Emerging Markets Index (net)

The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization-weighted index designed to measure equity market performance in the global 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 it is not available for direct investment.

Real Estate Investment Trust (“REIT”)

A publicly traded company that owns, develops and operates income-producing real estate such as apartments, office buildings, hotels, shopping centers and other commercial properties.

4

VIRTUS STRATEGIC ALLOCATION FUND

KEY INVESTMENT TERMS (Unaudited) (Continued)

MARCH 31, 2018

Russell 2000^® Index

The Russell 2000^® Index is a market capitalization-weighted index of the 2,000 smallest companies in the Russell Universe, which comprises the 3,000 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 it is not available for direct investment.

S&P 500^® Index

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 it is not available for direct investment.

Sponsored ADR

An ADR which is issued with the cooperation of the company whose stock will underlie the ADR. Sponsored ADRs generally carry the same rights normally given to stockholders, such as voting rights. ADRs must be sponsored to be able to trade on a major U.S. exchange such as the New York Stock Exchange (“NYSE”).

5

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited)

MARCH 31, 2018

($ reported in thousands)

Asset Allocations
The following table presents the asset allocations within certain sectors as a percentage of total investments as of March 31, 2018.
Common Stocks			61	%
Information Technology	20	%
Consumer Discretionary	12
Financials	8
All Other Sectors in Common Stocks	21
Corporate Bonds & Notes			20
Financials	6
Consumer Discretionary	2
Energy	2
All Other Sectors in Corporate Bonds and Notes	10
Mortgage-Backed Securities			7
Asset-Backed Securities			4
U.S. Government Securities			2
Leveraged Loans			2
Other (includes Short-Term investment)			4
Total			100	%

	PAR VALUE		VALUE
U.S. GOVERNMENT SECURITIES—2.3%
U.S. Treasury Bond 2.500%, 2/15/46	$	7,525	$	6,834
U.S. Treasury Note 1.125%, 2/28/19		2,110		2,091
1.625%, 2/15/26		2,065		1,904
TOTAL U.S. GOVERNMENT SECURITIES
(Identified Cost $10,729)				10,829
MUNICIPAL BONDS—1.0%
California—0.4%
State of California, Build America Bonds Taxable 7.600%, 11/1/40		1,275		1,972

	PAR VALUE		VALUE
Georgia—0.1%
Rockdale County Water & Sewerage Authority Revenue Taxable 3.060%, 7/1/24	$	600	$	597
New York—0.4%
Port Authority of New York & New Jersey, Consolidated Bonds Revenue 5.000%, 4/15/57		1,560		1,763

See Notes to Financial Statements

6

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Virginia—0.1%
City of Bristol, General Obligation Taxable 4.210%, 1/1/42	$	640	$	651
TOTAL MUNICIPAL BONDS (Identified Cost $5,037)				4,983
FOREIGN GOVERNMENT SECURITIES—0.9%
Argentine Republic 7.500%, 4/22/26		505		539
5.875%, 1/11/28		165		155
7.625%, 4/22/46		195		194
6.875%, 1/11/48		165		151
Dominican Republic 144A, 5.950%, 1/25/27(3)		565		591
Kingdom of Abu Dhabi 144A, 2.500%, 10/11/22(3)		505		486
Kingdom of Bahrain 144A, 7.000%, 10/12/28(3)		485		467
Republic of South Africa 4.665%, 1/17/24		435		437
4.300%, 10/12/28		445		416
Republic of Turkey 7.375%, 2/5/25		268		297
Sultanate of Oman 144A, 5.375%, 3/8/27(3)		240		234
144A, 5.625%, 1/17/28(3)		200		195
TOTAL FOREIGN GOVERNMENT SECURITIES
(Identified Cost $4,217)				4,162
MORTGAGE-BACKED SECURITIES—6.9%
Agency—1.9%
Federal Home Loan Mortgage Corp.
Pool #A46224, 5.000%, 7/1/35		144		156
Pool #G01980, 5.000%, 12/1/35		480		523
Pool #A62213, 6.000%, 6/1/37		224		254
Pool #G08628, 4.000%, 2/1/45		424		436
Pool #G08702, 3.500%, 4/1/46		648		650

	PAR VALUE		VALUE
Agency (continued)
Federal National Mortgage Association
Pool #776432, 4.000%, 7/1/19	$	2	$	2
Pool #254549, 6.000%, 12/1/32		37		41
Pool #735061, 6.000%, 11/1/34		292		328
Pool #880117, 5.500%, 4/1/36		4		4
Pool #938574, 5.500%, 9/1/36		155		170
Pool #310041, 6.500%, 5/1/37		229		259
Pool #909092, 6.000%, 9/1/37		14		15
Pool #972569, 5.000%, 3/1/38		172		186
Pool #909175, 5.500%, 4/1/38		149		165
Pool #929625, 5.500%, 6/1/38		178		196
Pool #909220, 6.000%, 8/1/38		77		87
Pool #931995, 5.000%, 9/1/39		196		212
Pool #931983, 5.500%, 9/1/39		1,110		1,213
Pool #AE2496, 4.500%, 9/1/40		413		440
Pool #AO8769, 3.500%, 8/1/42		617		623
Pool #AL3000, 3.500%, 12/1/42		635		640
Pool #MA2471, 3.500%, 12/1/45		139		140
Pool #MA2495, 3.500%, 1/1/46		708		710
Pool #AS6515, 4.000%, 1/1/46		361		371
Pool #AS8483, 3.000%, 12/1/46		841		820
Pool #AS9393, 4.000%, 4/1/47		635		652
				9,293

See Notes to Financial Statements

7

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Non-Agency—5.0%
American Homes 4 Rent Trust 2014-SFR2, C 144A, 4.705%, 10/17/36(3)	$	615	$	646
2015-SFR2, C 144A, 4.691%, 10/17/45(3)		130		138
2015-SFR1, A 144A, 3.467%, 4/17/52(3)		880		890
Ameriquest Mortgage Securities, Inc. Pass-Through Certificates, 2003-AR3, M4, (5.850% minus 1 month LIBOR) 4.748%, 6/25/33(2)		381		378
AMSR Trust 2016-SFR1, C 144A, (1 month LIBOR + 2.250%) 4.058%, 11/17/33(2)(3)		243		245
Angel Oak Mortgage Trust I LLC 2018-1, A1 144A, 3.258%, 4/27/48(2)(3)		390		390
Aventura Mall Trust 2013-AVM, C 144A, 3.743%, 12/5/32(2)(3)		580		585
Banc of America Funding Trust 2004-B, 2A1, 3.778%, 11/20/34(2)		148		150
2005-1, 1A1, 5.500%, 2/25/35		199		199
Banc of America Mortgage Trust 2005-3, 1A15 5.500%, 4/25/35		112		113
Bank of America (Merrill Lynch—Countrywide) Home Loan Mortgage Pass-Through-Trust 2004-6, 1A2 3.586%, 5/25/34(2)		377		376
Bank of America (Merrill Lynch) Commercial Mortgage Securities Trust 2015-200P, A 144A, 3.218%, 4/14/33(3)		500		492
Bayview Opportunity Master Fund IVa Trust 2016-SPL1, B1 144A, 4.250%, 4/28/55(3)		390		402

	PAR VALUE		VALUE
Non-Agency (continued)
2017-SPL5, B1 144A, 4.000%, 6/28/57(2)(3)	$	100	$	103
2017-SPL1, B1 144A, 4.250%, 10/28/64(2)(3)		277		283
Bayview Opportunity Master Fund IVb Trust 2016-SPL2, B1 144A, 4.250%, 6/28/53(2)(3)		145		150
2017-SPL3, B1 144A, 4.250%, 11/28/53(2)(3)		355		371
Caesars Palace Las Vegas Trust 2017-VICI, C 144A, 4.138%, 10/15/34(3)		270		275
Citigroup Mortgage Loan Trust, Inc. 2018-RP1, A1 144A, 2.996%, 9/25/64(2)(3)		928		921
Colony Starwood Homes Trust 2016-2A, C 144A, (1 month LIBOR + 2.150%) 3.927%, 12/17/33(2)(3)		485		485
COLT Mortgage Loan Trust Funding LLC 2017-1, A3 144A, 3.074%, 5/27/47(2)(3)		104		104
2018-1, A1 144A, 2.930%, 2/25/48(2)(3)		326		326
Credit Suisse Commercial Mortgage-Backed Trust 2006-8, 3A1 6.000%, 10/25/21		131		122
Galton Funding Mortgage Trust 2017-1, A21 144A, 3.500%, 7/25/56(2)(3)		249		248
2018-1, A23 144A, 3.500%, 11/25/57(2)(3)		140		140
GSAA Home Equity Trust 2005-12, AF3W 4.999%, 9/25/35(2)		114		115
Hilton USA Trust 2016-SFP, B 144A, 3.323%, 11/5/35(3)		500		492
Jefferies Resecuritization Trust 2014-R1, 1A1 144A, 4.000%, 12/27/37(3)		27		27

See Notes to Financial Statements

8

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Non-Agency (continued)
JPMorgan Chase (WaMu) Mortgage Pass-Through Certificates 2003-S11, 3A5 5.950%, 11/25/33	$	293	$	297
JPMorgan Chase Commercial Mortgage Securities Trust 2014-C22, A4 3.801%, 9/15/47		300		307
JPMorgan Chase Mortgage Trust 2004-A4, 2A1, 3.584%, 9/25/34(2)		320		325
2016-1, M2 144A, 3.750%, 4/25/45(2)(3)		349		349
2016-2, M2 144A, 3.750%, 12/25/45(2)(3)		370		369
2017-3, 2A2 144A, 2.500%, 8/25/47(2)(3)		238		231
2017-5, A1 144A, 3.184%, 10/26/48(2)(3)		698		694
2017-4, A3 144A, 3.500%, 11/25/48(2)(3)		239		237
MASTR Alternative Loan Trust 2005-5, 2A3 5.500%, 7/25/25		172		163
MASTR Specialized Loan Trust 2005-3, A2 144A, 5.704%, 11/25/35(2)(3)		217		222
MetLife Securitization Trust 2017-1A, M1 144A, 3.640%, 4/25/55(2)(3)		100		101
Morgan Stanley—Bank of America (Merrill Lynch) Trust 2013-C13, AS, 4.266%, 11/15/46		275		284
2015-C22, AS, 3.561%, 4/15/48		835		820
Motel 6 Trust 2017-MTL6, A 144A, (1 month LIBOR + 0.920%) 2.697%, 8/15/34(2)(3)		622		624
New Residential Mortgage Loan Trust 2014-1A, A 144A, 3.750%, 1/25/54(2)(3)		491		495

	PAR VALUE		VALUE
Non-Agency (continued)
2015-2A, A1 144A, 3.750%, 8/25/55(2)(3)	$	352	$	355
2016-1A, A1 144A, 3.750%, 3/25/56(2)(3)		174		175
2016-4A, B1A 144A, 4.500%, 11/25/56(2)(3)		427		442
2018-1A, A1A 144A, 4.000%, 12/25/57(2)(3)		252		258
NovaStar Mortgage Funding Trust Series 2004-4, M5, (1 month LIBOR + 1.725%) 3.597%, 3/25/35(2)		486		487
Oak Hill Advisors Residential Loan Trust 2017-NPL2, A1 144A, 3.000%, 7/25/57(2)(3)		376		373
One Market Plaza Trust 2017-1MKT, A 144A, 3.614%, 2/10/32(3)		360		363
Pretium Mortgage Credit Partners I LLC 2017-NPL5, A1 144A, 3.327%, 12/30/32(2)(3)		155		155
Progress Residential Trust 2018-SFR1, B 144A, 3.484%, 3/17/35(3)		760		759
Residential Asset Securitization Trust 2005-A1, A3 5.500%, 4/25/35		357		366
RETL 2018-RVP, C144A, (1 month LIBOR + 2.050%) 3.827%, 3/15/33(2)(3)		470		473
Sequoia Mortgage Trust 2013-8, B1 3.533%, 6/25/43(2)		173		169
Towd Point Mortgage Trust 2015-1, A2 144A, 3.250%, 10/25/53(2)(3)		385		384
2016-1, A1B 144A, 2.750%, 2/25/55(2)(3)		98		98
2016-1, M1 144A, 3.500%, 2/25/55(2)(3)		160		160
2015-5, A2 144A, 3.500%, 5/25/55(2)(3)		480		483

See Notes to Financial Statements

9

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Non-Agency (continued)
2015-2, 1M1 144A, 3.250%, 11/25/60(2)(3)	$	1,245	$	1,228
Vericrest Opportunity Loan Trust LVI LLC 2017-NPL3, A1 144A, 3.500%, 3/25/47(2)(3)		290		290
Vericrest Opportunity Loan Trust LXIV LLC 2017-NP11, A1 144A, 3.375%, 10/25/47(2)(3)		738		736
Verus Securitization Trust 2017-2A, A1 144A, 2.485%, 7/25/47(2)(3)		408		406
2018-1, A1 144A, 2.929%, 2/25/48(2)(3)		319		319
Wells Fargo Commercial Mortgage Trust 2015-LC20, B 3.719%, 4/15/50		600		594
				23,757
TOTAL MORTGAGE-BACKED SECURITIES
(Identified Cost $32,829)				33,050
ASSET-BACKED SECURITIES—3.5%
Auto Floor Plan—0.2%
Navistar Financial Dealer Note Master Owner Trust II 2016-1, B 144A, (1 month LIBOR + 1.750%) 3.622%, 9/27/21(2)(3)		780		783
Automobiles—2.0%
American Credit Acceptance Receivables Trust 2017-2, C 144A, 2.860%, 6/12/23(3)		445		442
AmeriCredit Automobile Receivables Trust 2014-1, D 2.540%, 6/8/20		705		705
Avis Budget Rental Car Funding LLC (AESOP) 2016-1A, A 144A, 2.990%, 6/20/22(3)		500		497

	PAR VALUE		VALUE
Automobiles (continued)
Capital Auto Receivables Asset Trust 2017-1, C 144A, 2.700%, 9/20/22(3)	$	430	$	424
CarMax Auto Owner Trust 2015-2, C 2.390%, 3/15/21		715		712
Centre Point Funding LLC 2012-2A, 1 144A, 2.610%, 8/20/21(3)		340		337
Drive Auto Receivables Trust 2015-DA, C 144A, 3.380%, 11/15/21(3)		421		423
2017-2, C, 2.750%, 9/15/23		525		522
DT Auto Owner Trust 2016-4A, C 144A, 2.740%, 10/17/22(3)		585		584
Exeter Automobile Receivables Trust 2015-2A, C 144A, 3.900%, 3/15/21(3)		615		620
2017-1A, B 144A, 3.000%, 12/15/21(3)		470		470
Flagship Credit Auto Trust 2017-3, C 144A, 2.910%, 9/15/23(3)		520		514
Foursight Capital Automobile Receivables Trust 2017-1, B 144A, 3.050%, 12/15/22(3)		420		413
GLS Auto Receivables Trust 2017-1A, B 144A, 2.980%, 12/15/21(3)		530		526
Hyundai Auto Lease Securitization Trust 2018-A, A2A 144A, 2.550%, 8/17/20(3)		470		469
OneMain Direct Auto Receivables Trust 2017-2A, C 144A, 2.820%, 7/15/24(3)		420		413
Prestige Auto Receivables Trust 2017-1A, C 144A, 2.810%, 1/17/23(3)		520		511
Tesla Auto Lease Trust 2018-A, A 144A, 2.320%, 12/20/19(3)		377		376

See Notes to Financial Statements

10

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Automobiles (continued)
Westlake Automobile Receivables Trust 2017-2A, C 144A, 2.590%, 12/15/22(3)	$	525	$	520
				9,478
Other—1.2%
AXIS Equipment Finance Receivables IV LLC 2018-1A, A2 144A, 3.240%, 12/20/23(3)		470		469
CCG Receivables Trust 2018-1, A2 144A, 2.500%, 6/16/25(3)		570		568
DB Master Finance LLC 2017-1A, A2I 144A, 3.629%, 11/20/47(3)		429		427
Dell Equipment Finance Trust 2017-2, A3 144A, 2.190%, 10/24/22(3)		395		391
Diamond Resorts Owner Trust 2017-1A, A 144A, 3.270%, 10/22/29(3)		340		333
Drug Royalty II LP 2 2014-1, A2 144A, 3.484%, 7/15/23(3)		240		239
Mariner Finance Issuance Trust 2017-AA, A 144A, 3.620%, 2/20/29(3)		450		452
MVW Owner Trust
2016-1A, A 144A, 2.250%, 12/20/33(3)		360		351
2017-1A, A 144A, 2.420%, 12/20/34(3)		483		471
OneMain Financial Issuance Trust 2018-1A, A 144A, 3.300%, 3/14/29(3)		470		471
Prosper Marketplace Issuance Trust 2017-2A, B 144A, 3.480%, 9/15/23(3)		440		439
SoFi Consumer Loan Program LLC 2016-3, A 144A, 3.050%, 12/26/25(3)		521		521
Taco Bell Funding LLC 2016-1A, A21 144A, 3.832%, 5/25/46(3)		464		467

	PAR VALUE		VALUE
Other (continued)
TGIF Funding LLC 2017-1A, A2 144A, 6.202%, 4/30/47(3)	$	443	$	445
				6,044
Student Loans—0.1%
Laurel Road Prime Student Loan Trust 2017-B, A2FX 144A, 2.770%, 8/25/42(3)		525		516
SoFi Professional Loan Program LLC 2015-A, A2 144A, 2.420%, 3/25/30(3)		147		146
				662
TOTAL ASSET-BACKED SECURITIES (Identified Cost $17,070)				16,967
CORPORATE BONDS AND NOTES—19.7%
Consumer Discretionary—2.0%
Altice France S.A. 144A, 7.375%, 5/1/26(3)		465		443
Beazer Homes USA, Inc. 6.750%, 3/15/25		350		347
Charter Communications Operating LLC 4.908%, 7/23/25		515		526
CSC Holdings LLC 144A, 5.375%, 2/1/28(3)		300		283
Discovery Communications LLC 3.950%, 3/20/28		490		470
Dollar General Corp. 4.125%, 5/1/28		548		553
Ford Motor Credit Co., LLC 5.750%, 2/1/21		535		566
Gateway Casinos & Entertainment Ltd. 144A, 8.250%, 3/1/24(3)		155		165
General Motors Financial Co., Inc.
4.200%, 3/1/21		275		280
3.450%, 4/10/22		100		99
Horton (D.R.), Inc. 4.750%, 2/15/23		550		577

See Notes to Financial Statements

11

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Consumer Discretionary (continued)
L Brands, Inc. 6.875%, 11/1/35	$	187	$	181
Lear Corp. 3.800%, 9/15/27		615		591
Lennar Corp.
144A, 5.250%, 6/1/26(3)		380		375
144A, 4.750%, 11/29/27(3)		340		326
Live Nation Entertainment, Inc. 144A, 5.625%, 3/15/26(3)		310		314
MDC Holdings, Inc. 5.500%, 1/15/24		390		396
Meredith Corp. 144A, 6.875%, 2/1/26(3)		125		128
PulteGroup, Inc. 6.375%, 5/15/33		320		335
QVC, Inc. 4.375%, 3/15/23		700		700
Scientific Games International, Inc. 6.625%, 5/15/21		295		302
Sirius XM Radio, Inc. 144A, 5.000%, 8/1/27(3)		365		343
TRI Pointe Group, Inc. 5.875%, 6/15/24		280		284
William Lyon Homes, Inc. 144A, 6.000%, 9/1/23(3)		395		394
Wyndham Worldwide Corp.
5.100%, 10/1/25		655		677
4.500%, 4/1/27		140		139
				9,794
Consumer Staples—0.7%
Anheuser-Busch InBev Finance, Inc. 3.650%, 2/1/26		435		432
Anheuser-Busch Inbev Worldwide, Inc. 4.000%, 4/13/28		270		273
CVS Health Corp.
2.875%, 6/1/26		760		700
4.300%, 3/25/28		409		412
Flowers Foods, Inc. 4.375%, 4/1/22		700		725
Kraft Heinz Foods Co. (The) 3.000%, 6/1/26		510		470

	PAR VALUE		VALUE
Consumer Staples (continued)
Safeway, Inc. 7.250%, 2/1/31	$	335	$	271
Tops Holding LLC 144A, 8.000%, 6/15/22(3)(10)		475		219
				3,502
Energy—1.9%
Andeavor Logistics LP 4.250%, 12/1/27		510		497
Bristow Group, Inc. 144A, 8.750%, 3/1/23(3)		65		66
Cheniere Corpus Christi Holdings LLC 5.875%, 3/31/25		280		293
Crestwood Midstream Partners LP 5.750%, 4/1/25		310		307
Enbridge Energy Partners LP
4.375%, 10/15/20		105		107
5.875%, 10/15/25		415		455
Energy Transfer Partners LP 4.200%, 4/15/27		220		212
EP Energy LLC 144A, 8.000%, 11/29/24(3)		175		176
Gazprom OAO 144A, 4.950%, 2/6/28(3)(5)		485		481
Helmerich & Payne International Drilling Co. 4.650%, 3/15/25		395		410
HollyFrontier Corp. 5.875%, 4/1/26		475		511
Kinder Morgan Energy Partners LP 7.500%, 11/15/40		595		742
MPLX LP 4.875%, 12/1/24		915		959
NuStar Logistics LP 5.625%, 4/28/27		405		393
Parsley Energy LLC 144A, 5.625%, 10/15/27(3)		390		390
Petrobras Global Finance BV 7.375%, 1/17/27		575		623
Petroleos Mexicanos 6.500%, 3/13/27		490		523

See Notes to Financial Statements

12

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Energy (continued)
Range Resources Corp. 4.875%, 5/15/25	$	340	$	315
Sabine Pass Liquefaction LLC 6.250%, 3/15/22		425		461
SM Energy Co. 5.625%, 6/1/25		100		95
State Oil Co. of the Azerbaijan Republic RegS 6.950%, 3/18/30(4)		455		493
Sunoco LP 144A, 5.500%, 2/15/26(3)		155		150
TransMontaigne Partners LP 6.125%, 2/15/26		165		165
Valero Energy Partners LP 4.500%, 3/15/28		450		452
				9,276
Financials—6.1%
AerCap Ireland Capital DAC 3.650%, 7/21/27		570		533
Allstate Corp. (The) Series B, 5.750%(6)(7)		530		555
Apollo Management Holdings LP 144A, 4.000%, 5/30/24(3)		690		693
Ares Capital Corp.
3.500%, 2/10/23		215		209
4.250%, 3/1/25		395		384
Ares Finance Co., LLC 144A, 4.000%, 10/8/24(3)		595		578
Athene Holding Ltd. 4.125%, 1/12/28		470		451
Aviation Capital Group LLC 144A, 3.500%, 11/1/27(3)		515		483
Banco Bilbao Vizcaya Argentaria Bancomer S.A. 144A, 5.125%, 1/18/33(3)		340		326
Banco de Credito e Inversiones 144A, 3.500%, 10/12/27(3)		645		603
Banco Santander Chile 144A, 3.875%, 9/20/22(3)		430		433

	PAR VALUE		VALUE
Financials (continued)
Bank of America Corp.
144A, 3.004%, 12/20/23(3)	$	712	$	698
4.200%, 8/26/24		1,065		1,080
Bank of Montreal 3.803%, 12/15/32		803		761
BrightSphere Investment Group plc 4.800%, 7/27/26		585		587
Brookfield Finance LLC 4.000%, 4/1/24		671		676
Capital One Financial Corp.
4.200%, 10/29/25		630		624
3.750%, 7/28/26		580		552
Citigroup, Inc. 4.050%, 7/30/22		700		711
Compass Bank 3.875%, 4/10/25		705		689
Development Bank of Kazakhstan JSC 144A, 4.125%, 12/10/22(3)		640		638
Discover Financial Services 3.950%, 11/6/24		665		658
FS Investment Corp.
4.250%, 1/15/20		615		621
4.750%, 5/15/22		115		116
Goldman Sachs Group, Inc. (The) 5.750%, 1/24/22		1,020		1,103
ICAHN Enterprises LP 6.375%, 12/15/25		335		337
Jefferies Group LLC
5.125%, 1/20/23		305		323
4.850%, 1/15/27		300		307
JPMorgan Chase & Co. 3.300%, 4/1/26		1,025		991
Kazakhstan Temir Zholy Finance BV 144A, 6.950%, 7/10/42(3)		480		537
Leucadia National Corp. 5.500%, 10/18/23		535		550
Liberty Mutual Group, Inc. 144A, 4.250%, 6/15/23(3)		690		704
Lincoln National Corp. 4.200%, 3/15/22		695		716
Macquarie Group Ltd. 144A, 6.250%, 1/14/21(3)		570		612

See Notes to Financial Statements

13

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Financials (continued)
Manulife Financial Corp. 4.150%, 3/4/26	$	570	$	578
Mizuho Financial Group, Inc. 3.549%, 3/5/23		200		199
Morgan Stanley 3.125%, 7/27/26		730		690
6.375%, 7/24/42		710		917
Navient Corp. 7.250%, 9/25/23		100		104
6.750%, 6/25/25		275		279
Powszechna Kasa Oszczednosci Bank Polski S.A. 144A, 4.630%, 9/26/22(3)(5)		375		390
Prudential Financial, Inc. 5.625%(6)(7)		680		712
S&P Global, Inc. 4.000%, 6/15/25		480		490
Santander Holdings USA, Inc. 3.700%, 3/28/22		445		446
4.400%, 7/13/27		205		204
Societe Generale S.A. 144A, 4.750%, 11/24/25(3)		535		541
Springleaf Finance Corp. 6.875%, 3/15/25		185		186
Teachers Insurance & Annuity Association of America 144A, 4.375%, 9/15/54(3)		595		579
Trinity Acquisition plc 3.500%, 9/15/21		50		50
4.400%, 3/15/26		230		233
Turkiye Vakiflar Bankasi TAO 144A, 5.625%, 5/30/22(3)		445		437
UBS AG 7.625%, 8/17/22		500		561
Wells Fargo & Co. 3.069%, 1/24/23		240		236
(3 month LIBOR + 1.230%) 3.002%, 10/31/23(2)		40		41
3.550%, 9/29/25		375		368
Series S, 5.900%, 8/15/27		715		736
				28,816

	PAR VALUE		VALUE
Health Care—1.7%
Abbott Laboratories 3.400%, 11/30/23	$	125	$	124
3.750%, 11/30/26		730		726
AbbVie, Inc. 3.600%, 5/14/25		235		231
3.200%, 5/14/26		355		338
Allergan Sales LLC 144A, 4.875%, 2/15/21(3)		226		234
AmerisourceBergen Corp. 3.450%, 12/15/27		340		323
Anthem, Inc. 3.650%, 12/1/27		134		129
4.101%, 3/1/28		480		481
Becton Dickinson & Co.
(3 month LIBOR + 0.875%) 2.944%, 12/29/20(2)		125		125
3.363%, 6/6/24		113		109
3.700%, 6/6/27		645		622
Cardinal Health, Inc. 3.200%, 3/15/23		300		295
3.079%, 6/15/24		25		24
3.410%, 6/15/27		195		184
Community Health Systems, Inc. 6.250%, 3/31/23		225		207
Envision Healthcare Corp. 144A, 6.250%, 12/1/24(3)		85		88
Fresenius U.S. Finance II, Inc. 144A, 4.500%, 1/15/23(3)		120		123
HCA, Inc. 5.375%, 2/1/25		265		266
Mylan NV 3.150%, 6/15/21		160		158
3.950%, 6/15/26		400		388
Owens & Minor, Inc. 3.875%, 9/15/21		110		109
Shire Acquisitions Investments Ireland DAC 2.400%, 9/23/21		230		222
Surgery Center Holdings, Inc. 144A, 8.875%, 4/15/21(3)		295		308
Tenet Healthcare Corp. 4.500%, 4/1/21		200		198
144A, 4.625%, 7/15/24(3)		180		173

See Notes to Financial Statements

14

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Health Care (continued)
Teva Pharmaceutical Finance Netherlands III BV 3.150%, 10/1/26	$	215	$	173
Valeant Pharmaceuticals International, Inc. 144A, 7.500%, 7/15/21(3)		60		60
144A, 6.500%, 3/15/22(3)		25		26
144A, 5.500%, 3/1/23(3)		155		135
144A, 7.000%, 3/15/24(3)		45		47
Zimmer Biomet Holdings, Inc.
(3 month LIBOR + 0.750%) 2.928%, 3/19/21(2)		565		566
3.550%, 4/1/25		725		703
				7,895
Industrials—0.9%
Ashtead Capital, Inc. 144A, 4.375%, 8/15/27(3)		350		332
Bombardier, Inc. 144A, 6.125%, 1/15/23(3)		265		264
CNH Industrial N.V. 4.500%, 8/15/23		426		434
3.850%, 11/15/27		225		218
Continental Airlines Pass-Through-Trust 1999-2, C2 6.236%, 3/15/20		168		170
Masco Corp. 5.950%, 3/15/22		291		315
4.450%, 4/1/25		220		225
Owens Corning 3.400%, 8/15/26		590		568
Penske Truck Leasing Co., LP 144A, 3.375%, 2/1/22(3)		225		224
Pitney Bowes, Inc. 4.125%, 5/15/22		499		472
Standard Industries, Inc. 144A, 6.000%, 10/15/25(3)		365		374
TransDigm, Inc. 6.000%, 7/15/22		275		280
6.500%, 5/15/25		140		141
USA Compression Partners LP 144A, 6.875%, 4/1/26(3)		260		264
				4,281

	PAR VALUE		VALUE
Information Technology—1.2%
Apple, Inc. 3.000%, 11/13/27	$	340	$	325
Arrow Electronics, Inc. 3.875%, 1/12/28		525		508
Broadcom Corp. 3.000%, 1/15/22		195		191
3.625%, 1/15/24		370		364
Citrix Systems, Inc. 4.500%, 12/1/27		455		450
Dell International LLC 144A, 6.020%, 6/15/26(3)		100		108
144A, 8.100%, 7/15/36(3)		210		255
Flex Ltd. 4.750%, 6/15/25		695		725
Hewlett Packard Enterprise Co. 4.900%, 10/15/25		390		405
Jabil, Inc. 3.950%, 1/12/28		395		382
VeriSign, Inc. 4.750%, 7/15/27		395		378
Verisk Analytics, Inc. 4.000%, 6/15/25		685		689
VMware, Inc. 2.950%, 8/21/22		223		214
3.900%, 8/21/27		240		227
Western Digital Corp. 4.750%, 2/15/26		410		409
				5,630
Materials—1.5%
Anglo American Capital plc 144A, 4.000%, 9/11/27(3)		540		517
BHP Billiton Finance USA Ltd. 144A, 6.750%(3)(6)(7)		450		505
CRH America Finance, Inc. 144A, 3.400%, 5/9/27(3)		440		421
FMG Resources August 2006 Pty Ltd. 144A, 5.125%, 3/15/23(3)		245		243
Glencore Funding LLC 144A, 4.000%, 3/27/27(3)		520		502
GTL Trade Finance, Inc. 144A, 5.893%, 4/29/24(3)		305		325
INEOS Group Holdings S.A. 144A, 5.625%, 8/1/24(3)		495		501

See Notes to Financial Statements

15

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Materials (continued)
Inversiones CMPC S.A. 144A, 4.375%, 5/15/23(3)	$	850	$	867
NewMarket Corp. 4.100%, 12/15/22		759		778
NOVA Chemicals Corp. 144A, 4.875%, 6/1/24(3)		185		177
144A, 5.000%, 5/1/25(3)		250		240
OCP SA 144A, 5.625%, 4/25/24(3)		485		512
Rusal Capital DAC 144A, 5.125%, 2/2/22(3)		455		448
Teck Resources Ltd. 144A, 8.500%, 6/1/24(3)		105		117
United States Steel Corp. 6.250%, 3/15/26		375		374
Vulcan Materials Co. 3.900%, 4/1/27		520		511
				7,038
Real Estate—1.8%
Alexandria Real Estate Equities, Inc. 3.950%, 1/15/27		345		337
American Tower Corp. 3.000%, 6/15/23		231		223
Brixmor Operating Partnership LP 3.875%, 8/15/22		160		161
Corporate Office Properties LP 3.600%, 5/15/23		715		700
Education Realty Operating Partnership LP 4.600%, 12/1/24		595		603
EPR Properties 4.750%, 12/15/26		720		720
Healthcare Realty Trust, Inc. 3.875%, 5/1/25		440		433
Healthcare Trust of America Holdings LP 3.750%, 7/1/27		540		521
Hospitality Properties Trust 4.950%, 2/15/27		640		651
Kilroy Realty LP 4.375%, 10/1/25		640		648
LifeStorage LP 3.500%, 7/1/26		540		516

	PAR VALUE		VALUE
Real Estate (continued)
3.875%, 12/15/27	$	200	$	192
MPT Operating Partnership LP 6.375%, 3/1/24		55		58
5.500%, 5/1/24		275		281
5.000%, 10/15/27		200		196
National Retail Properties, Inc. 4.000%, 11/15/25		200		199
Physicians Realty LP 3.950%, 1/15/28		535		512
Retail Opportunity Investments Partnership LP 4.000%, 12/15/24		485		467
Select Income REIT 4.500%, 2/1/25		690		682
Welltower, Inc. 4.000%, 6/1/25		730		729
				8,829
Telecommunication Services—0.9%
AT&T, Inc. 3.900%, 8/14/27		230		231
144A, 4.100%, 2/15/28(3)		1,462		1,451
Consolidated Communications, Inc. 6.500%, 10/1/22		267		239
Frontier Communications Corp. 7.125%, 1/15/23		370		250
144A, 8.500%, 4/1/26(3)		175		170
Level 3 Financing, Inc. 5.375%, 1/15/24		330		322
Qwest Corp. 7.250%, 9/15/25		360		388
Telefonica Emisiones SAU 4.570%, 4/27/23		510		536
Telenet Finance Luxembourg Notes S.a.r.l. 144A, 5.500%, 3/1/28(3)		400		382
Verizon Communications, Inc. 4.125%, 3/16/27		525		531
				4,500

See Notes to Financial Statements

16

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Utilities—1.0%
American Electric Power Co., Inc. 3.200%, 11/13/27	$	465	$	443
Duke Energy Corp. 2.650%, 9/1/26		605		552
Eskom Holdings SOC Ltd. 144A, 7.125%, 2/11/25(3)		440		449
Exelon Corp. 3.497%, 6/1/22		725		718
FirstEnergy Transmission LLC 144A, 4.350%, 1/15/25(3)		735		756
PNM Resources, Inc. 3.250%, 3/9/21		420		419
Southern Power Co. 4.150%, 12/1/25		590		606
State Grid Overseas Investment 2014 Ltd. 144A, 4.125%, 5/7/24(3)		610		621
TerraForm Power Operating LLC 144A, 5.000%, 1/31/28(3)		290		275
				4,839
TOTAL CORPORATE BONDS AND NOTES
(Identified Cost $95,330)				94,400
LEVERAGED LOANS(2)—1.8%
Chemicals—0.0%
Tronox Blocked Borrower LLC First Lien, (3 month LIBOR + 3.000%) 5.302%, 9/23/24		20		20
Tronox Finance LLC First Lien, (3 month LIBOR + 3.000%) 5.302%, 9/23/24		45		45
				65
Consumer Durables—0.0%
Global Appliance, Inc. Tranche B, (1 month LIBOR + 4.000%) 5.880%, 9/29/24		144		146

	PAR VALUE		VALUE
Consumer Non-Durables—0.0%
HLF Financing S.a r.l. Senior Lien, (1 month LIBOR + 5.500%) 7.377%, 2/15/23	$	88	$	89
Energy—0.1%
Ultra Resources, Inc., (1 month LIBOR + 3.000%) 4.765%, 4/12/24		290		287
Financial—0.0%
Genworth Holdings, Inc., (1 month LIBOR + 4.500%) 6.202%, 3/7/23		15		15
Food / Tobacco—0.1%
Aramark Intermediate HoldCo Corp. Tranche B-1, (1 month LIBOR + 2.000%) 3.877%, 3/11/25		170		171
CHG PPC Parent LLC First Lien, (3 month LIBOR + 2.750%) 0.000%, 3/23/25(8)		25		25
JBS USA Lux S.A., (3 month LIBOR + 2.500%) 4.678%, 10/30/22		272		271
				467
Food and Drug—0.1%
Albertson’s LLC 2017-1, Tranche B-4, (1 month LIBOR + 2.750%) 4.627%, 8/25/21		322		318
Gaming / Leisure—0.2%
Gateway Casinos & Entertainment Ltd., (1 month LIBOR + 3.000%) 4.750%, 3/13/25		85		86
GVC Holdings PLC, (3 month LIBOR + 2.500%) 0.000%, 3/15/24(8)		245		245

See Notes to Financial Statements

17

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Gaming / Leisure (continued)
Playa Resorts Holding B.V., (3 month LIBOR + 3.250%) 5.000%, 4/29/24	$	219	$	220
Scientific Games International, Inc. Tranche B-5, (2 month LIBOR + 2.750%) 4.686%, 8/14/24		5		5
Seminole Tribe of Florida Tranche B, (1 month LIBOR + 2.000%) 3.877%, 7/8/24		284		284
UFC Holdings, LLC First Lien, (1 month LIBOR + 3.250%) 5.130%, 8/18/23		238		239
Wyndham Hotels & Resorts, Inc. Tranche B, (3 month LIBOR + 1.750%) 0.000%, 3/29/25(8)		75		75
				1,154
Healthcare—0.2%
CHG Healthcare Services, Inc. 2017, First Lien, (3 month LIBOR + 3.000%) 4.772%, 6/7/23		278		280
Concentra, Inc. Tranche B-1, First Lien, (3 month LIBOR + 2.750%) 4.530%, 6/1/22		25		25
Endo Luxembourg Finance Co. S.a.r.l., (1 month LIBOR + 4.250%) 6.188%, 4/29/24		129		128
Envision Healthcare Corp., (1 month LIBOR + 3.000%) 4.880%, 12/1/23		28		28
Parexel International Corp., (1 month LIBOR + 2.750%) 4.627%, 9/27/24		55		55
Quorum Health Corp., (1 month LIBOR + 6.750%) 8.627%, 4/29/22		214		218
				734

	PAR VALUE		VALUE
Housing—0.1%
Beacon Roofing Supply, Inc., (1 month LIBOR + 2.250%) 3.936%, 1/2/25	$	295	$	296
Capital Automotive LP Tranche B-2, First Lien, (1 month LIBOR + 2.500%) 4.380%, 3/25/24		386		388
				684
Information Technology—0.2%
Rackspace Hosting, Inc. Tranche B, First Lien, (3 month LIBOR + 3.000%) 4.787%, 11/3/23		393		391
SS&C Technologies Holdings, Inc.
Tranche B-3, (3 month LIBOR + 2.500%) 0.000%, 2/28/25(8)		287		289
Tranche B-4, (3 month LIBOR + 2.500%) 0.000%, 2/28/25(8)		103		103
				783
Manufacturing—0.2%
Accudyne Industries Borrower S.C.A., (1 month LIBOR + 3.250%) 5.127%, 8/18/24		199		200
CPI Acquisition, Inc. First Lien, (3 month LIBOR + 4.500%) 6.358%, 8/17/22		395		270
U.S. Farathane LLC Tranche B-4, (3 month LIBOR + 3.500%) 5.802%, 12/23/21		303		304
Zodiac Pool Solutions LLC
Tranche B-1, First Lien, (3 month LIBOR + 4.000%) 6.302%, 12/20/23		252		252
Tranche B, (3 month LIBOR + 2.250%) 0.000%, 3/7/25(8)		95		95
				1,121

See Notes to Financial Statements

18

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	PAR VALUE		VALUE
Media / Telecom - Broadcasting—0.0%
Sinclair Television Group, Inc. Tranche B, (3 month LIBOR + 2.500%) 0.000%, 12/12/24(8)		220		221
Media / Telecom - Cable/Wireless Video—0.0%
Telenet Financing USD LLC, (3 month LIBOR + 2.500%) 0.000%, 3/1/26(8)		10		10
Media / Telecom - Diversified Media—0.1%
Crown Finance US, Inc., (1 month LIBOR + 2.500%) 4.377%, 2/28/25		195		195
Meredith Corp., (1 month LIBOR + 3.000%) 4.877%, 1/31/25		215		216
				411
Media / Telecom - Telecommunications—0.1%
CenturyLink, Inc. Tranche B, (1 month LIBOR + 2.750%) 4.627%, 1/31/25	$	264	$	260
Level 3 Financing, Inc. 2024, Tranche B, (1 month LIBOR + 2.250%) 4.111%, 2/22/24		350		350
				610
Media / Telecom - Wireless Communications—0.0%
Digicel International Finance Ltd. Tranche B, First Lien, (3 month LIBOR + 3.250%) 5.020%, 5/27/24		25		25
Service—0.2%
ASGN, Inc. Tranche B-2, (3 month LIBOR + 2.000%) 0.000%, 4/2/25(8)		80		80
Delek US Holdings, Inc., (3 month LIBOR + 2.500%) 0.000%, 3/14/25(8)		75		75
Red Ventures, LLC First Lien, (1 month LIBOR + 4.000%) 5.877%, 11/8/24		169		171

	PAR VALUE			VALUE
Service (continued)
Sedgwick Claims Management Services, Inc. Second Lien, (3 month LIBOR + 5.750%) 7.734%, 2/28/22	$	355		$	356
TKC Holdings, Inc. First Lien, (3 month LIBOR + 4.250%) 6.030%, 2/1/23		203			205
					887
Transportation - Automotive—0.1%
Navistar, Inc. Tranche B, (1 month LIBOR + 3.500%) 5.210%, 11/6/24		225			226
Utility—0.1%
NRG Energy, Inc., (3 month LIBOR + 1.750%) 4.052%, 6/30/23		263			263
Vistra Operations Co. LLC
(1 month LIBOR + 2.500%) 4.377%, 8/4/23		168			169
Tranche C, (1 month LIBOR + 2.500%) 4.377%, 8/4/23		29			30
					462
TOTAL LEVERAGED LOANS (Identified Cost $8,781)					8,715
	SHARES
PREFERRED STOCKS—1.2%
Financials—0.9%
Bank of New York Mellon Corp. (The) Series E, 4.950%		525	(9)		538
Citigroup, Inc. Series T, 6.250%		303	(9)		320
Huntington Bancshares, Inc. Series E 5.700%(9)		480	(9)		482
JPMorgan Chase & Co. Series Z, 5.300%(11)		640	(9)		657
KeyCorp Series D, 5.000%(11)		490	(9)		483
M&T Bank Corp. Series F, 5.125%(11)		570	(9)		569

See Notes to Financial Statements

19

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	SHARES			VALUE
Financials (continued)
MetLife, Inc. Series D 5.875%		202	(9)	$	205
PNC Financial Services Group, Inc. (The) Series R, 4.850%		570	(9)		571
Series S, 5.000%		570	(9)		567
					4,392
Industrials—0.3%
General Electric Co. Series D, 5.000%		1,488	(9)		1,473
TOTAL PREFERRED STOCKS (Identified Cost $5,724)					5,865
COMMON STOCKS—60.7%
Consumer Discretionary—12.5%
Amazon.com, Inc.(1)		9,340			13,518
Booking Holdings, Inc.(1)		1,650			3,433
Ctrip.com International Ltd. ADR(1)		115,007			5,362
Home Depot, Inc. (The)		24,950			4,447
Las Vegas Sands Corp.		91,880			6,606
McDonald’s Corp.		18,760			2,934
Netflix, Inc.(1)		29,700			8,772
NIKE, Inc. Class B		63,990			4,251
Ross Stores, Inc.		50,960			3,974
Sony Corp. Sponsored ADR		48,721			2,355
Starbucks Corp.		71,670			4,149
					59,801
Consumer Staples—3.3%
Fomento Economico Mexicano SAB de C.V. Sponsored ADR		20,866			1,908
Marine Harvest ASA Sponsored ADR		94,341			1,897
Monster Beverage Corp.(1)		128,320			7,341
Philip Morris International, Inc.		46,110			4,583
					15,729
Energy—2.8%
Cabot Oil & Gas Corp.		137,290			3,292
Core Laboratories N.V.		21,280			2,303
Pioneer Natural Resources Co.		19,100			3,281

	SHARES		VALUE
Energy (continued)
Statoil ASA Sponsored ADR		111,114	$	2,628
TechnipFMC plc		72,896		2,147
				13,651
Financials—7.6%
Bank of America Corp.		249,150		7,472
BOC Hong Kong Holdings Ltd. Sponsored ADR		20,261		1,955
CaixaBank S.A. ADR		1,316,560		2,093
Charles Schwab Corp. (The)		63,440		3,313
China Construction Bank Corp. ADR		117,033		2,446
Credit Agricole S.A. ADR		253,589		2,064
DBS Group Holdings Ltd. Sponsored ADR		35,991		3,060
ING Groep N.V. Sponsored ADR		124,395		2,106
MarketAxess Holdings, Inc.		14,210		3,090
Nomura Holdings, Inc. Sponsored ADR		362,540		2,121
ORIX Corp. Sponsored ADR		27,157		2,440
SEI Investments Co.		30,240		2,265
UBS Group AG Registered Shares(1)		124,786		2,204
				36,629
Health Care—4.8%
Allergan plc		14,074		2,369
BioMarin Pharmaceutical, Inc.(1)		19,235		1,559
Bluebird Bio, Inc.(1)		11,105		1,896
Danaher Corp.		34,340		3,362
HealthEquity, Inc.(1)		60,580		3,668
ICON plc(1)		12,349		1,459
Illumina, Inc.(1)		15,800		3,735
Zoetis, Inc.		61,530		5,138
				23,186
Industrials—6.0%
Airbus SE ADR		82,352		2,375
Ashtead Group plc ADR		22,958		2,538
Caterpillar, Inc.		28,300		4,171
CoStar Group, Inc.(1)		10,010		3,630
easyJet plc Sponsored ADR		107,069		2,404
Golden Ocean Group Ltd.		202,902		1,613
Kansas City Southern		29,430		3,233
Nidec Corp. Sponsored ADR		66,419		2,560

See Notes to Financial Statements

20

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

	SHARES		VALUE
Industrials (continued)
Rockwell Automation, Inc.		10,970	$	1,911
Roper Technologies, Inc.		16,040		4,502
				28,937
Information Technology—19.8%
Accenture plc Class A		23,230		3,566
Activision Blizzard, Inc.		57,070		3,850
Alibaba Group Holding Ltd. Sponsored ADR(1)		74,420		13,659
Alphabet, Inc. Class A(1)		2,340		2,427
Amphenol Corp. Class A		71,930		6,195
Arista Networks, Inc.(1)		8,020		2,048
Broadcom Ltd.		8,191		1,930
Check Point Software Technologies Ltd.(1)		17,615		1,750
Facebook, Inc. Class A(1)		71,040		11,351
Gartner, Inc.(1)		18,440		2,169
Hitachi Ltd. ADR		33,754		2,467
MercadoLibre, Inc.		6,810		2,427
NVIDIA Corp.		37,100		8,592
Paycom Software, Inc.(1)		45,590		4,896
SAP SE Sponsored ADR		15,716		1,653
Tencent Holdings Ltd. ADR		111,640		5,949
Visa, Inc. Class A		72,290		8,647
Workday, Inc. Class A(1)		41,690		5,299
Yandex N.V. Class A(1)		153,580		6,059
				94,934
Materials—2.8%
Anhui Conch Cement Co., Ltd. ADR		106,537		2,929
Ecolab, Inc.		32,430		4,445
Glencore plc ADR(1)		230,299		2,294
HeidelbergCement AG ADR		98,822		1,941
Toray Industries, Inc. ADR		106,409		2,024
				13,633
Real Estate—0.4%
LendLease Group Sponsored ADR		136,042		1,832
Telecommunication Services—0.3%
BT Group plc Sponsored ADR		96,845		1,565

	SHARES		VALUE
Utilities—0.4%
Veolia Environnement S.A. ADR		69,908	$	1,660
TOTAL COMMON STOCKS (Identified Cost $217,711)				291,557
AFFILIATED MUTUAL FUND(12)—0.6%
Virtus Newfleet Credit Opportunities Fund Class R6		287,054		2,770
TOTAL AFFILIATED MUTUAL FUND (Identified Cost $2,869)				2,770
TOTAL LONG-TERM INVESTMENTS—98.6%
(Identified Cost $400,297)				473,298	(13)
SHORT-TERM INVESTMENT—1.6%
Money Market Mutual Fund(12)—1.6%
Dreyfus Government Cash Management Fund – Institutional Shares (seven-day effective yield 1.540%)		7,871,498		7,871
TOTAL SHORT-TERM INVESTMENT (Identified Cost $7,871)				7,871
TOTAL INVESTMENTS—100.2% (Identified Cost $408,168)			481,169
Other assets and liabilities, net—(0.2)%				(1,176	)
NET ASSETS—100.0%			$479,993

Abbreviations:

ADR American Depositary Receipt

LIBOR London Interbank Offered Rate

REIT Real Estate Investment Trust

See Notes to Financial Statements

21

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

Footnote Legend:

⁽¹⁾  Non-income producing.

⁽²⁾  Variable rate security. Rate disclosed is as of March 31, 2018. For leveraged loans, the rate shown may represent a weighted average interest rate. Information in parenthesis represents benchmark and reference rate for each security. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.

⁽³⁾  Security exempt from registration under Rule 144A, of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2018, these securities amounted to a value of $60,492 or 12.6% of net assets.

⁽⁴⁾  Regulation S security. Security is offered and sold outside of the United States, therefore, it is exempt from registration with the SEC under Rules 903 and 904 of the Securities Act of 1933.

⁽⁵⁾  This Note was issued for the sole purpose of funding a loan agreement between the issuer and the borrower. As the credit risk for this security lies solely with the borrower, the name represented here is that of the borrower.

⁽⁶⁾  Interest payments may be deferred.

⁽⁷⁾  No contractual maturity date.

⁽⁸⁾  This loan will settle after March 31, 2018, at which time the interest rate, based on the LIBOR and the agreed upon spread on trade date, will be reflected.

⁽⁹⁾  Value shown as par value.

⁽¹⁰⁾  Security in default, no interest payments are being received during the bankruptcy proceedings.

⁽¹¹⁾  Interest may be forfeited.

⁽¹²⁾  Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

⁽¹³⁾  All or a portion of the Fund’s assets have been segregated for delayed delivery security.

Country Weightings †
United States	74	%
China	6
Japan	3
France	2
United Kingdom	2
Russia	1
Norway	1
Other	11
Total	100	%

† % of total investments as of March 31, 2018.

For information regarding the abbreviations, see Key Investment Terms starting on page 4

See Notes to Financial Statements

22

VIRTUS STRATEGIC ALLOCATION FUND

SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

MARCH 31, 2018

($ reported in thousands)

The following table provides a summary of inputs used to value the Fund’s investments as of March 31, 2018 (See Security Valuation Note 2A in the Notes to Financial Statements):

	Total Value at March 31, 2018		Level 1 Quoted Prices		Level 2 Significant Observable Inputs
Debt Securities:
Asset-Backed Securities	$	16,967	$	—	$	16,967
Corporate Bonds and Notes		94,400		—		94,400
Foreign Government Securities		4,162		—		4,162
Leveraged Loans		8,715		—		8,715
Mortgage-Backed Securities		33,050		—		33,050
Municipal Bonds		4,983		—		4,983
U.S. Government Securities		10,829		—		10,829
Equity Securities:
Affiliated Mutual Fund		2,770		2,770		—
Common Stocks		291,557		291,557		—
Preferred Stocks		5,865		—		5,865
Short-Term Investment		7,871		7,871		—
Total Investments	$	481,169	$	302,198	$	178,971

There were no securities valued using significant unobservable inputs (Level 3) at March 31, 2018.

There were no transfers between Level 1, Level 2, or Level 3 related to securities held at March 31, 2018.

See Notes to Financial Statements

23

VIRTUS STRATEGIC ALLOCATION FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)

MARCH 31, 2018

(Reported in thousands except shares and per share amounts)

Assets
Investment in unaffiliated securities at value(1)	$	478,399
Investment in affiliated fund at value(2)		2,770
Cash		128
Receivables
Investment securities sold		1,313
Fund shares sold		66
Dividends and interest receivable		1,689
Tax reclaims		27
Prepaid expenses		31
Prepaid trustee retainer		6
Other assets		24
Total assets		484,453
Liabilities
Payables
Fund shares repurchased		73
Investment securities purchased		3,743
Investment advisory fees		227
Distribution and service fees		123
Administration fees		48
Transfer agent and sub-transfer agent fees and expenses		163
Trustees’ fees and expenses		—	(3)
Professional fees		15
Trustee deferred compensation plan		24
Other accrued expenses		44
Total liabilities		4,460
Net Assets	$	479,993
Net Assets Consist of:
Capital paid in on shares of beneficial interest	$	393,934
Accumulated undistributed net investment income (loss)		(1,026	)
Accumulated undistributed net realized gain (loss) from investments		14,084
Net unrealized appreciation (depreciation) on investments		73,001
Net Assets	$	479,993
Net Assets:
Class A	$	450,932
Class C	$	29,061
Shares Outstanding (unlimited number of shares authorized, no par value):
Class A		30,218,897
Class C		1,966,678
Net Asset Value and Redemption Price Per Share:
Class A	$	14.92
Class C	$	14.78
Offering Price Per Share NAV/(1-5.75%):
Class A	$	15.83
(1) Investment in unaffiliated securities at cost	$	405,299
(2) Investment in affiliated fund at cost		2,869
(3) Amount is less than $500.

See Notes to Financial Statements

24

VIRTUS STRATEGIC ALLOCATION FUND

STATEMENT OF OPERATIONS (Unaudited)

SIX MONTHS ENDED MARCH 31, 2018

($ reported in thousands)

Investment Income
Dividends	$	1,404
Dividends from affiliated fund		83
Interest		3,420
Foreign taxes withheld		(36	)
Total investment income		4,871
Expenses
Investment advisory fees		1,335
Distribution and service fees, Class A		570
Distribution and service fees, Class C		148
Administration fees		231
Transfer agent fees and expenses		228
Sub-transfer agent fees and expenses, Class A		74
Sub-transfer agent fees and expenses, Class C		9
Sub-administration fees		35
Registration fees		24
Printing fees and expenses		28
Custodian fees		23
Professional fees		19
Trustees’ fees and expenses		20
Miscellaneous expenses		16
Total expenses		2,760
Less expenses reimbursed and/or waived by investment adviser		(8	)
Low balance account fees		(11	)
Net expenses		2,741
Net investment income (loss)		2,130
Net Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) from:
Unaffiliated investments		15,064
Net change in unrealized appreciation (depreciation) from:
Unaffiliated investments		10,143
Affiliated investments		(40	)
Foreign currency transactions		—	(1)
Net realized and unrealized gain (loss) on Investments		25,167
Net increase (decrease) in net assets resulting from operations	$	27,297

⁽¹⁾  Amount less than $500.

See Notes to Financial Statements

25

VIRTUS STRATEGIC ALLOCATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

($ reported in thousands)

	Six Months Ended March 31, 2018 (Unaudited)			Fiscal Period Ended September 30, 2017(1)			Year Ended March 31, 2017
INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
Net investment income (loss)	$	2,130		$	3,056		$	7,222
Net realized gain (loss)		15,064			5,108			34,480
Net change in unrealized appreciation (depreciation)		10,103			33,961			(9,141	)
Increase (decrease) in net assets resulting from operations		27,297			42,125			32,561
Dividends and Distributions to Shareholders:
Net Investment Income:
Class A		(2,841	)		(3,099	)		(6,925	)
Class B		—			—			(3	)
Class C		(73	)		(88	)		(322	)
Net Realized Gains:
Class A		(3,103	)		(10	)		(33,970	)
Class B		—			—			(27	)
Class C		(203	)		(1	)		(2,686	)
Dividends and distributions to shareholders		(6,220	)		(3,198	)		(43,933	)
Change in Net Assets from Capital Transactions
Sale of shares
Class A (155, 382 and 485 shares, respectively)		2,300			5,244			6,467
Class B (0, 0 and —(2) shares, respectively)		—			—			—	(3)
Class C (34, 17 and 66 shares, respectively)		505			232			874
Reinvestment of distributions
Class A (375, 204 and 3,012 shares, respectively)		5,507			2,852			38,224
Class B (0, 0 and 2 shares, respectively)		—			—			30
Class C (19, 6 and 212 shares, respectively)		269			86			2,658
Conversion of shares(4)
To Class A (0, 0 and 21 shares, respectively)		—			—			279
From Class B (0, 0 and 21 shares, respectively)		—			—			(279	)
Shares repurchased
Class A (1,831, 2,079 and 4,545 shares, respectively)		(27,190	)		(28,665	)		(61,067	)
Class B (0, 0 and 21 shares, respectively)		—			—			(284	)
Class C (187, 401 and 694 shares, respectively)		(2,724	)		(5,452	)		(9,236	)
Increase (decrease) in net assets from share transactions		(21,333	)		(25,703	)		(22,334	)
Net increase (decrease) in net assets		(256	)		13,224			(33,706	)
Net Assets
Beginning of period		480,249			467,025			500,731
End of period	$	479,993		$	480,249		$	467,025
Accumulated undistributed net investment income (loss) at end of period	$	(1,026	)	$	(242	)	$	(129	)

⁽¹⁾  Fund changed its fiscal year end to September 30 during the period.

⁽²⁾  Amount is less than 500 shares.

⁽³⁾  Amount is less than $500.

⁽⁴⁾  See Note 1 in Notes to Financial Statements for more information.

See Notes to Financial Statements

26

VIRTUS STRATEGIC ALLOCATION FUND

FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(1)		Net Realized and Unrealized Gain (Loss)			Total from Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Gains			Total Distributions
Class A
10/1/17 to 3/31/18(10)		$	14.29		0.07		0.75			0.82			(0.09	)		(0.10	)		(0.19	)
4/1/17 to 9/30/17(7)			13.17		0.09		1.13			1.22			(0.10	)		—	(4)		(0.10	)
4/1/16 to 3/31/17			13.55		0.21		0.69			0.90			(0.21	)		(1.07	)		(1.28	)
4/1/15 to 3/31/16			15.18		0.29		(1.22	)		(0.93	)		(0.25	)		(0.45	)		(0.70	)
4/1/14 to 3/31/15			15.54		0.29		0.33			0.62			(0.30	)		(0.68	)		(0.98	)
4/1/13 to 3/31/14			15.35		0.30		1.65			1.95			(0.29	)		(1.47	)		(1.76	)
4/1/12 to 3/31/13			14.58		0.20		0.78			0.98			(0.21	)		—			(0.21	)
Class C
10/1/17 to 3/31/18(10)		$	14.16		0.01		0.75			0.76			(0.04	)		(0.10	)		(0.14	)
4/1/17 to 9/30/17(7)			13.04		0.04		1.12			1.16			(0.04	)		—	(4)		(0.04	)
4/1/16 to 3/31/17			13.44		0.11		0.68			0.79			(0.12	)		(1.07	)		(1.19	)
4/1/15 to 3/31/16			15.06		0.18		(1.21	)		(1.03	)		(0.14	)		(0.45	)		(0.59	)
4/1/14 to 3/31/15			15.43		0.17		0.33			0.50			(0.19	)		(0.68	)		(0.87	)
4/1/13 to 3/31/14			15.26		0.18		1.63			1.81			(0.17	)		(1.47	)		(1.64	)
4/1/12 to 3/31/13			14.50		0.09		0.77			0.86			(0.10	)		—			(0.10	)

See Notes to Financial Statements

27

VIRTUS STRATEGIC ALLOCATION FUND

FINANCIAL HIGHLIGHTS (Continued)

SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING

THROUGHOUT EACH PERIOD

Payments from Affiliates			Change in Net Asset Value			Net Asset Value, End of Period			Total Return(2)(9)			Net Assets, End of Period (in thousands)			Ratio of Net Expenses to Average Net Assets(3)(8)			Ratio of Gross Expenses to Average Net Assets(3)(8)			Ratio of Net Investment Income       (Loss) to Average Net Assets(8)			Portfolio Turnover Rate(9)
	—			0.63			$	14.92		5.79	%		$	450,932		1.08	%		1.09	%		0.92	%		22	%
	—			1.12				14.29		9.26				450,516		1.15			1.16			1.33			24
	—			(0.38	)			13.17		7.13	(6)			434,712		1.16	(5)(6)		1.16			1.46	(6)		100
	—	(4)		(1.63	)			13.55		(6.37	)			461,276		1.12			1.13			2.05			75
	—			(0.36	)			15.18		4.08				541,818		1.10			1.10			1.89			62
	—			0.19				15.54		13.79				570,784		1.10			1.10			1.97			57
	—			0.77				15.35		6.77				559,955		1.10			1.10			1.39			121
	—			0.62			$	14.78		5.37	%		$	29,061		1.85	%		1.85	%		0.16	%		22	%
	—			1.12				14.16		8.91				29,733		1.92			1.92			0.58			24
	—			(0.40	)			13.04		6.33	(6)			32,313		1.91	(5)(6)		1.91			0.71	(6)		100
	—	(4)		(1.62	)			13.44		(7.06	)			38,913		1.87			1.88			1.31			75
	—			(0.37	)			15.06		3.29				47,131		1.85			1.85			1.12			62
	—			0.17				15.43		12.89				41,713		1.85			1.85			1.22			57
	—			0.76				15.26		5.95				40,937		1.85			1.85			0.64			121

⁽¹⁾  Calculated using average shares outstanding.

⁽²⁾  Sales charges, where applicable, are not reflected in total return calculation.

⁽³⁾  The Fund will also indirectly bear its prorated share of expenses of any underlying funds in which it invests. Such expenses are not included in the calculation of this ratio.

⁽⁴⁾  Amount is less than $0.005 per share.

⁽⁵⁾  Net expense ratios includes extraordinary proxy expenses.

⁽⁶⁾  State Street Bank & Trust, custodian for the Fund through January 29, 2010, reimbursed the Fund for out-of-pocket custody expenses over billed for the period 1998 through January 29, 2010. Custody fees reimbursed were excluded from the Ratio of Net Expenses to Average Net Assets and the Ratio of Net Investment Income (Loss) to Average Net Assets. If it was included the impact would have been to lower the Ratio of Net Expenses and increase the Ratio of Net Investment Income (Loss) as follows:

Class A			Class C
	0.09	%		0.09	%

Custody fees reimbursed were included in Total Return. If excluded the impact would have been to lower the Total Return as follows:

Class A			Class C
	0.09	%		0.09	%

⁽⁷⁾  The Fund changed its fiscal year end to September 30 during the period.

⁽⁸⁾  Annualized for periods less than one year.

⁽⁹⁾  Not annualized for periods less than one year.

⁽¹⁰⁾  Unaudited.

See Notes to Financial Statements

28

VIRTUS STRATEGIC ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited)

MARCH 31, 2018

Note 1. Organization

Virtus Equity Trust (the “Trust”) is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Effective September 21, 2017 the Fund changed its fiscal year end from March 31 to September 30.

As of the date of this report, 11 diversified funds of the Trust are offered for sale, of which the Strategic Allocation Fund (the “Fund”) is reported in this semiannual report. The Fund has investment objectives of reasonable income, long-term capital growth and conservation of capital. There is no guarantee that the Fund will achieve its objectives.

The Fund offers Class A shares and Class C shares. Effective March 6, 2017, all Class B shares were converted to Class A shares. Prior to March 6, 2017, Class B shares could be purchased by existing shareholders through qualifying transactions.

Class A shares are sold with a front-end sales charge of up to 5.75% with some exceptions. Generally, Class A shares are not subject to any charges by the Fund when redeemed; however, a 1% contingent deferred sales charge (“CDSC”) may be imposed on certain redemptions made within a certain period following purchases on which a finder’s fee has been paid. The period for which the CDSC applies for the Fund is 18 months. The CDSC period begins on the last day of the month preceding the month in which the purchase was made.

Class C shares are generally sold with a 1% CDSC, applicable if redeemed within one year of purchase.

The Fund may impose an annual fee on accounts having balances of less than $2,500. The small account fee may be waived in certain circumstances, as disclosed in the prospectus and/or statement of additional information. The fees collected will be used to offset certain expenses of the Fund. These fees are reflected as “Low balance account fees” in the Fund’s Statement of Operations for the period, as applicable.

Each class of shares has identical voting, dividend, liquidation and other rights and the same terms and conditions, except that each class bears any expenses attributable specifically to that class (“class-specific expenses”) and has exclusive voting rights with respect to any Rule 12b-1 and/or shareholder service plan (“12b-1 Plan”) approved by the Board. Class I shares and Class R6 shares are not subject to a 12b-1 Plan. Class-specific expenses may include shareholder servicing fees, sub-transfer agency fees, and fees under a 12b-1 Plan, as well as certain other expenses as designated by the Funds’ Treasurer and approved by the Board. Investment income, common operating expenses and realized and unrealized gains and losses of each Fund are borne pro-rata by the holders of each class of shares.

Note 2. Significant Accounting Policies

The Trust is an investment company that follows the accounting and reporting guidance of Accounting Standards Certification Topic 946 applicable to Investment Companies. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make 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 the reported amounts of increases and decreases in net assets from

29

VIRTUS STRATEGIC ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

operations during the reporting period. Actual results could differ from those estimates, and those differences could be significant.

A. Security Valuation

Security valuation procedures for the Fund, which include nightly price variance, as well as back-testing items such as bi-weekly unchanged price, monthly secondary source and transaction analysis, have been approved by the Board. All internally fair valued securities are approved by a valuation committee appointed by the Board (the “Valuation Committee”). The Valuation Committee is comprised of certain members of management as identified to the Board and convenes independently from portfolio management. All internally fair valued securities are updated daily and reviewed in detail by the Valuation Committee monthly unless changes occur within the period. The Valuation Committee reviews the validity of the model inputs and any changes to the model. Fair valuations are reviewed by the Board at least quarterly.

The Fund utilizes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The Fund’s policy is to recognize transfers between levels at the end of the reporting period.

•    Level 1 – quoted prices in active markets for identical securities (security types generally include listed equities).

•    Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

•    Level 3 – prices determined using significant unobservable inputs (including the Valuation Committee’s own assumptions in determining the fair value of investments).

A description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis is as follows:

Equity securities are valued at the official closing price (typically last sale) on the exchange on which the securities are primarily traded or, if no closing price is available, at the last bid price and are categorized as Level 1 in the hierarchy. Restricted equity securities and private placements that are illiquid, or are internally fair valued by the Valuation Committee, are generally categorized as Level 3 in the hierarchy.

Certain non-U.S. securities may be fair valued in cases where closing prices are not readily available or are deemed not reflective of readily available market prices. For example, significant events (such as movement in the U.S. securities market, or other regional and local developments) may occur between the time that non-U.S. markets close (where the security is principally traded) and the time that the Fund calculates its net asset value (“NAV”) (at the close of regular trading on the NYSE, generally 4 p.m. Eastern time) that may impact the value of securities traded in these non-U.S. markets. In such cases, the Fund fair values non-U.S. securities using an independent pricing service which considers the correlation of the trading patterns of the non-U.S. security to the intraday trading in the U.S. markets for investments such as ADRs, financial futures, ETFs, and certain indexes, as well as prices for similar securities. Such fair valuations are categorized as Level 2 in the hierarchy. Because the frequency of significant events is not predictable, fair valuation of certain non-U.S. common stocks may occur on a frequent basis.

30

VIRTUS STRATEGIC ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

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. These valuations are generally categorized as Level 2 in the hierarchy. Structured debt instruments, such as mortgage-backed and asset-backed securities, may also incorporate collateral analysis and utilize cash flow models for valuation and are generally categorized as Level 2 in the hierarchy. Pricing services do not provide pricing for all securities and therefore indicative bids from dealers are utilized which are based on pricing models used by market makers in the security and are generally categorized as Level 2 in the hierarchy. Debt securities that are internally fair valued by the Valuation Committee are generally categorized as Level 3 in the hierarchy.

Claims are valued by brokers based on pricing models that take into account, among other factors, both cash and non-cash assets. The valuation is derived from expected cash flow of the claims and the non-cash assets, which include all real estate, private equity or other securities within the estate. To the extent that these inputs are observable, the values of the claims are categorized as Level 2. To the extent that these inputs are unobservable, the values are categorized as Level 3.

Listed derivatives, that are actively traded are valued based on quoted prices from the exchange and are categorized as Level 1 in the hierarchy. Over-the-counter derivative contracts, which include forward currency contracts and equity-linked instruments, do not require material subjectivity as pricing inputs are observed from actively quoted markets and are categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds are valued at NAV. Investments in closed-end funds are valued as of the close of regular trading on the NYSE each business day. Both are categorized as Level 1 in the hierarchy.

A summary of the inputs used to value the Fund’s net assets by each major security type is disclosed at the end of the Schedule of Investments for the Fund. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

B. Security Transactions and Investment Income

Security transactions are recorded on the trade date. Realized gains and losses from the sale of securities are determined on the identified cost basis. Dividend income is recognized on the ex-dividend date or, in the case of certain foreign securities, as soon as the Fund is notified. Interest income is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method.

Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

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 period-end, and may differ from the estimated amounts.

31

VIRTUS STRATEGIC ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

C. Income Taxes

The Fund is treated as a separate taxable entity. It is the intention of the Fund to comply with the requirements of Subchapter M of the Internal Revenue Code and to distribute substantially all of its taxable income to its shareholders. Therefore, no provision for federal income taxes or excise taxes has been made.

The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The 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.

Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. As of March 31, 2018, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations are from the year 2014 forward (with limited exceptions).

D. Distributions to Shareholders

Distributions are recorded by the Fund on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations that may differ from U.S. GAAP.

E. Expenses

Expenses incurred together by the Fund and other affiliated mutual funds are allocated in proportion to the net assets of each such fund, except where allocation of direct expenses to each fund or an alternative allocation method can be more appropriately used.

In addition to the net annual operating expenses that the Fund bears directly, the shareholders of the Fund indirectly bear the Fund’s pro-rata expenses of any underlying mutual funds in which the Fund invests.

F. Foreign Currency Transactions

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 income is accrued and the date it is paid is treated as a gain or loss on foreign currency. The Fund does 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.

G. Leveraged Loans

The Fund may invest in direct debt instruments which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. Leveraged loans are generally non-investment grade and often involve borrowers that are highly leveraged. The Fund may invest in obligations of borrowers who are in

32

VIRTUS STRATEGIC ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

bankruptcy proceedings. Leveraged loans 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 agent 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. Leveraged loans 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 leveraged loans 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 the LIBOR, the prime rate offered by one or more U.S. banks or the certificate of deposit rate. When a leveraged loan 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 leveraged loan. 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.

At March 31, 2018, all leveraged loans held by the Fund are assignment loans.

H. When-issued and Forward Commitments (Delayed Delivery)

The Fund may engage in when-issued or forward commitment transactions. Securities purchased on a when-issued or forward commitment basis are known as delayed delivery transactions. Delayed delivery transactions involve a commitment by the Fund to purchase or sell a security at a future date (ordinarily up to 90 days later). Delayed delivery enables the Fund to lock in what is believed to be an attractive price or yield on a particular security for a period of time, regardless of future changes in interest rates. The Fund records delayed delivery securities on the trade date. The Fund maintains collateral for the securities purchased. Securities purchased on a delayed delivery basis begin earning interest on the settlement date.

I. Securities Lending

($ reported in thousands)

The Fund is permitted to loan securities from its portfolio to qualifying brokers, dealers and other financial institutions deemed creditworthy and receive, as collateral, cash or United States government securities including agency securities which at all times while the loan is outstanding will be maintained in amounts equal to at least 100% of the current market value of the loaned securities.

33

VIRTUS STRATEGIC ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

Any cash collateral will be invested in short-term securities expected to increase the current income of the Fund lending its securities. Lending portfolio securities involves a risk of delay in the recovery of the loaned securities or in the declining value of the collateral. During the period ended March 31, 2018, the Fund did not loan securities.

Note 3. Investment Advisory Fees and Related Party Transactions

($ reported in thousands except as noted)

A. Adviser

Virtus Investment Advisers, Inc. (the “Adviser”), an indirect, wholly owned subsidiary of Virtus Investment Partners, Inc. (“Virtus”), is the investment adviser to the Fund. The Adviser manages the Fund’s investment program and general operations of the Fund, including oversight of the Fund’s subadvisers.

As compensation for its services to the Fund, the Adviser is entitled to a fee based upon the following annual rates as a percentage of the average daily net assets of the Fund:

First $1 Billion	$1+ Billion - $2 Billion	$2+ Billion
0.55%	0.50%	0.45%

During the period covered by these financial statements, the Fund invested a portion of its assets in Virtus Newfleet Credit Opportunities Fund, an affiliated mutual fund. In order to avoid any duplication of advisory fees, the Adviser has voluntarily waived its advisory fees in an amount equal to that which would otherwise be paid by the Fund on the assets invested in the Virtus Newfleet Credit Opportunities Fund. For the period covered by these financial statements, the waiver amounted to $8. This waiver is included in “Less expenses reimbursed and/or waived by investment adviser” in the Statement of Operations.

B. Subadvisers

The subadvisers manage the investments of the Fund for which they are paid a fee by the Adviser.

Newfleet Asset Management, LLC, an indirect, wholly-owned subsidiary of Virtus, is the subadviser to the Fund’s fixed income portfolio. Kayne Anderson Rudnick Investment Management, LLC, an indirect, wholly-owned subsidiary of Virtus, is the subadviser to the Fund’s domestic equity portfolio and Duff & Phelps Investment Management Co., an indirect, wholly-owned subsidiary of Virtus, is the subadviser to the Fund’s international equity portfolio.

C. Distributor

VP Distributors, LLC (“VP Distributors”), an indirect, wholly-owned subsidiary of Virtus, serves as the distributor of the Fund’s shares. VP Distributors has advised the Fund that for the fiscal period (the “period”) ended March 31, 2018, it retained net commissions of $11 for Class A shares and CDSC of $—⁽¹⁾ and $9 for Class A shares and Class C shares, respectively.

In addition, the Fund pays VP Distributors 12b-1 fees under a 12b-1 Plan as a percentage of the average daily net assets of each respective class at the annual rates as follows: Class A shares 0.25%; and Class C shares 1.00%.

34

VIRTUS STRATEGIC ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

Under certain circumstances, shares of certain Virtus Mutual Funds may be exchanged for shares of the same class of certain other Virtus Mutual Funds on the basis of the relative NAV per share at the time of the exchange. On exchanges with share classes that carry a CDSC, the CDSC schedule of the original shares purchased continues to apply.

⁽¹⁾  Amount is less than $500.

D. Administrator and Transfer Agent

Virtus Fund Services, LLC, an indirect, wholly-owned subsidiary of Virtus, serves as the administrator and transfer agent to the Trust.

For the period ended March 31, 2018, the Fund incurred administration fees totaling $231 which are included in the Statement of Operations within the line item “Administration fees”.

For the period ended March 31, 2018, the Fund incurred transfer agent fees totaling $186 which are included in the Statement of Operations within the line items “Transfer agent fees and expenses” and “Sub-transfer agent fees Class A and Class C”. A portion of these fees were paid to outside entities that also provide services to the Trust.

E. Investments in Affiliates

A summary of total long-term and short-term purchases and sales of the affiliated underlying fund during the period ended March 31, 2018, is as follows:

	Value, beginning of period		Purchases		Sales		Realized gain (loss)		Net Change in Unrealized Appreciation (Depreciation)			Shares		Value, end of period		Dividend Income		Distributions of Realized Gains
Affiliated Mutual Fund—0.6%
Virtus Newfleet Credit Opportunities Fund Class R6(1)	$	2,810	$	—	$	—		—		(40	)		287,054	$	2,770	$	83	$	—

⁽¹⁾  Shares of this fund are publicly offered, and its prospectus and annual report are publicly available.

The Fund does not invest in the underlying fund for the purpose of exercising management or control; however, investments made by the Fund within each of its principal investment strategies may represent a significant portion of an underlying fund’s net assets.

F. Trustee Compensation

The Trust provides a deferred compensation plan for its Trustees who receive compensation from the Trust. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are retained by the Trust, and then, to the extent permitted by the 1940 Act, in turn, may be invested in the shares of affiliated or unaffiliated mutual funds selected by the participating Trustees. Investments in such instruments are included in “Other assets” in the Statement of Assets and Liabilities at March 31, 2018.

35

VIRTUS STRATEGIC ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

Note 4. Purchases and Sales of Securities

($ reported in thousands)

Purchases and sales of securities (excluding U.S. Government and agency securities and short-term securities) during the period ended March 31, 2018, were as follows:

Purchases		Sales
$	96,355	$	120,704

Purchases and sales of long-term U.S. Government and agency securities during the period ended March 31, 2018, were as follows:

Purchases		Sales
$	7,726	$	8,733

Note 5. Indemnifications

Under the Trust’s organizational documents and in separate agreements between each Trustee and the Trust, its Trustees and officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust and its funds. In addition, in the normal course of business, the Fund enters into contracts that provide a variety of indemnifications to other parties. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund and that have not occurred. However, the Fund has not had prior claims or losses pursuant to these arrangements and expects the risk of loss to be remote.

Note 6. Credit Risk and Asset Concentration

In countries with limited or developing markets, investments may present greater risks than in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of these investments and the income they generate, as well as the Fund’s ability to repatriate such amounts.

High-yield/high-risk securities typically entail greater price volatility and/or principal and interest rate risk. There is a greater chance that an issuer will not be able to make principal and interest payments on time. Analysis of the creditworthiness of issuers of high-yield/high-risk securities may be complex, and as a result, it may be more difficult for the Adviser and/or subadvisers to accurately predict risk.

The Fund may invest a high percentage of its assets in specific sectors of the market in the pursuit of its investment objectives. Fluctuations in these sectors of concentration may have a greater impact on the Fund, positive or negative, than if the Fund did not concentrate its investments in such sectors.

Note 7. Federal Income Tax Information

($ reported in thousands)

At March 31, 2018, federal tax cost and aggregate gross unrealized appreciation (depreciation) of securities held by the Fund were as follows:

Federal Tax Cost	Unrealized Appreciation	Unrealized (Depreciation)	Net Unrealized Appreciation (Depreciation)
$408,711	$78,523	$(6,065)	$72,458

36

VIRTUS STRATEGIC ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

Note 8. Borrowings

($ reported in thousands)

On September 18, 2017, the Fund and certain other affiliated funds entered into a $150,000 unsecured line of credit. This Credit Agreement as amended, is with a commercial bank that allows the funds to borrow cash from the bank to manage large unexpected redemptions and trade fails, up to a limit of one-third of each fund’s total net assets in accordance with the terms of the agreement. This Credit Agreement has a term of 364 days. Interest is charged at the higher of the LIBOR or the Federal Funds rate plus an additional percentage rate on the amount borrowed. Commitment fees are charged on the undrawn balance. The Fund and other affiliated funds that are parties are individually, and not jointly, liable for their particular advances, if any, under the line of credit. The lending bank has the ability to require repayment of outstanding borrowings under this Credit Agreement upon certain circumstances such as an event of default.

The Fund had no borrowings at any time during the period ended March 31, 2018.

Note 9. Illiquid and Restricted Securities

Investments are generally considered illiquid if they cannot be disposed of within seven days in the ordinary course of business at the approximate amount at which such securities have been valued by the Fund. Additionally, the following information is also considered in determining liquidity: the frequency of trades and quotes for the investment, whether the investment is listed for trading on a recognized domestic exchange and/or whether two or more brokers are willing to purchase or sell the security at a comparable price, the extent of market making activity in the investment and the nature of the market for investment.

Restricted securities are illiquid securities, as defined above, not registered under the Securities Act of 1933, as amended (the “1933 Act”). Generally, 144A securities are excluded from this category, except where defined as illiquid.

The Fund will bear any costs, including those involved in registration under the 1933 Act, in connection with the disposition of such securities.

At March 31, 2018, the Fund did not hold any securities that were restricted.

Note 10. Regulatory Matters and Litigation

From time to time, the Trust, the Fund’s Adviser and/or subadvisers and/or their affiliates may be involved in litigation and arbitration as well as examinations and investigations by various regulatory bodies, including the SEC, involving compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting their products and other activities. At this time, the Fund’s Adviser believes that the outcomes of such matters are not likely, either individually or in the aggregate, to be material to these financial statements.

Note 11. Recent Accounting Pronouncement

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the “ASU”) which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within

37

VIRTUS STRATEGIC ALLOCATION FUND

NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)

MARCH 31, 2018

those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

Note 12. Subsequent Events

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available for issuance and has determined that there are no subsequent events requiring recognition or disclosure in these financial statements.

38

CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR VIRTUS STRATEGIC ALLOCATION FUND

BY THE BOARD OF TRUSTEES

The Board of Trustees (the “Board”) of Virtus Equity Trust (the “Trust”) is responsible for determining whether to approve the continuation of the investment advisory agreement (the “Advisory Agreement”) between the Trust and Virtus Investment Advisers, Inc. (“VIA”) and of each subadvisory agreement (each, a “Subadvisory Agreement” and collectively, the “Subadvisory Agreements”) (together with the Advisory Agreement, the “Agreements”) with respect to the funds of the Trust, including Virtus Strategic Allocation Fund (the “Fund”). At in-person meetings held on November 3, 2017 and November 15-16, 2017 (the “Meetings”), the Board, including a majority of the Trustees who are not interested persons of the Trust as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (such Act, the “1940 Act” and such Trustees, the “Independent Trustees”), considered and approved the continuation of each Agreement due for renewal, as further discussed below. In addition, prior to the Meetings, the Independent Trustees met with their independent legal counsel to discuss and consider the information provided by management and submitted questions to management, and they considered the responses provided.

In connection with the approval of the Agreements, the Board requested and evaluated information provided by VIA and each subadviser (each, a “Subadviser” and collectively, the “Subadvisers”) which, in the Board’s view, constituted information necessary for the Board to form a judgment as to whether the renewal of each of the Agreements would be in the best interests of the Fund and its shareholders. The Board also considered information furnished throughout the year at regular Board meetings with respect to the services provided by VIA and the Subadvisers, including quarterly performance reports prepared by management containing reviews of investment results and periodic presentations from the Subadvisers with respect to the Fund. The Board noted the affiliation of the Subadvisers with VIA and any potential conflicts of interest.

The Board was separately advised by independent legal counsel throughout the process. For each Agreement, the Board considered all the criteria separately with respect to the Fund and its shareholders. In their deliberations, the Board considered various factors, including those discussed below, none of which were controlling, and each Trustee may have attributed different weights to the various factors. The Independent Trustees also discussed the proposed approval of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.

In considering whether to approve the renewal of the Agreements, the Board reviewed and analyzed the factors it deemed relevant, including: (1) the nature, extent and quality of the services to be provided to the Fund by VIA and each of the Subadvisers; (2) the performance of the Fund as compared to an appropriate peer group and an appropriate index; (3) the level and method of computing the Fund’s advisory and subadvisory fees, and comparisons of the Fund’s advisory fee rates with those of a group of funds with similar investment objective(s); (4) the profitability of VIA under the Advisory Agreement; (5) any “fall-out” benefits to VIA, the Subadvisers and their affiliates (i.e., ancillary benefits realized by VIA, the Subadvisers or their affiliates from VIA’s or the applicable Subadviser’s relationship with the Trust); (6) the anticipated effect of growth in size on the Fund’s performance and expenses; (7) fees paid to VIA and the Subadvisers by comparable accounts, as applicable; (8) possible conflicts of interest; and (9) the terms of the Agreements.

Nature, Extent and Quality of Services

The Trustees received in advance of the Meetings information from VIA and each Subadviser, including completed questionnaires concerning a number of topics, including such company’s investment philosophy, resources, operations and compliance structure. The Trustees also

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CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR VIRTUS STRATEGIC ALLOCATION FUND

BY THE BOARD OF TRUSTEES (Continued)

received a presentation by VIA’s senior management personnel, during which among other items, VIA’s history, investment process, investment strategies, personnel, compliance procedures and the firm’s overall performance were reviewed and discussed. The Trustees noted that the Fund is managed using a “manager of managers” structure that generally involves the use of one or more subadvisers to manage some or all of the Fund’s portfolio. Under this structure, VIA is responsible for the oversight of the Fund’s investment programs and day-to-day operations and for evaluating and selecting subadvisers on an ongoing basis and making any recommendations to the Board regarding hiring, retaining or replacing subadvisers. In considering the Advisory Agreement with VIA, the Board considered VIA’s process for supervising and managing the Fund’s subadvisers, including (a) VIA’s ability to select and monitor the subadvisers; (b) VIA’s ability to provide the services necessary to monitor the subadvisers’ compliance with the Fund’s investment objectives, policies and restrictions as well as provide other oversight activities; and (c) VIA’s ability and willingness to identify instances in which a subadviser should be replaced and to carry out the required changes. The Trustees also considered: (a) the experience and capability of VIA’s management and other personnel; (b) the financial condition of VIA, and whether it had the financial wherewithal to provide a high level and quality of services to the Fund; (c) the quality of VIA’s own regulatory and legal compliance policies, procedures and systems; (d) the nature, extent and quality of administrative, transfer agency and other services provided by VIA and its affiliates to the Fund; (e) VIA’s supervision of the Fund’s other service providers; and (f) VIA’s risk management processes. It was noted that affiliates of VIA serve as administrator, transfer agent and distributor to the Fund. The Board also took into account its knowledge of VIA’s management and the quality of the performance of VIA’s duties through Board meetings, discussions and reports during the preceding year, as well as information from the Trust’s Chief Compliance Officer regarding the Fund’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act.

With respect to the services provided by each of the Subadvisers, the Board considered information provided to the Board by each Subadviser, including each Subadviser’s Form ADV, as well as information provided throughout the past year. With respect to the Subadvisory Agreements, the Board noted that each Subadviser provided portfolio management, compliance with the Fund’s investment policies and procedures, compliance with applicable securities laws and assurances thereof. The Board also noted that VIA’s and the Subadvisers’ management of the Fund is subject to the oversight of the Board and must be carried out in accordance with the investment objective(s), policies and restrictions set forth in the Fund’s prospectus and statement of additional information. In considering the renewal of the Subadvisory Agreements, the Board also considered each Subadviser’s investment management process, including (a) the experience and capability of the Subadviser’s management and other personnel committed by the Subadviser to the Fund; (b) the financial condition of the Subadviser; (c) the quality of the Subadviser’s regulatory and legal compliance policies, procedures and systems; and (d) the Subadviser’s brokerage and trading practices, including with respect to best execution and soft dollars. The Board also took into account each Subadviser’s risk assessment and monitoring process. The Board noted each Subadviser’s regulatory history, including whether it was currently involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate.

After considering all of the information provided to them, the Trustees concluded that the nature, extent and quality of the services provided by VIA and each Subadviser were satisfactory and that there was a reasonable basis on which to conclude that each would continue to provide a high quality of investment services to the Fund.

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CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR VIRTUS STRATEGIC ALLOCATION FUND

BY THE BOARD OF TRUSTEES (Continued)

Investment Performance

The Board considered performance reports and discussions at Board meetings throughout the year, as well as a report (the “Lipper Report”) for the Fund prepared by Broadridge, an independent third party provider of investment company data, furnished in connection with the contract renewal process. The Lipper Report presented the Fund’s performance relative to a peer group of other mutual funds (the “Performance Universe”) and relevant indexes, as selected by Broadridge. The Board also considered performance information presented by management and took into account management’s discussion of the same, including the effect of market conditions on the Fund’s performance. The Board evaluated the Fund’s performance in the context of the considerations that a “manager of managers” structure requires. The Board noted that it also reviews on a quarterly basis detailed information about the Fund’s performance results and portfolio composition, as well as each Subadviser’s investment strategy. The Board noted VIA’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of each Subadviser. The Board also noted each Subadviser’s performance record with respect to the Fund. The Board was mindful of VIA’s focus on each Subadviser’s performance and noted VIA’s performance in monitoring and responding to any performance issues with respect to the Fund. The Board also took into account its discussions with management regarding factors that contributed to the performance of the Fund.

The Board considered, among other performance data, the information set forth below with respect to the performance of the Fund for the period ended June 30, 2017.

The Board noted that the Fund underperformed the median of its Performance Universe for the 3-, 5- and 10- year periods and underperformed its benchmark for the 1-, 3-, 5- and 10- year periods. The Board also noted that the Fund outperformed the median of its Performance Universe for the 1- year period.

The Board considered that the Fund had recently replaced one of the Subadvisers, so that the longer-term performance shown included that of the prior subadviser, as well as management’s discussion about the reasons for the Fund’s underperformance. After reviewing these and related factors, the Board concluded that the Fund’s overall performance, or reasons discussed for underperformance, were satisfactory.

Management Fees and Total Expenses

The Board considered the fees charged to the Fund for advisory services as well as the total expense levels of the Fund. This information included comparisons of the Fund’s net management fee and total expense level to those of its peer group (the “Expense Group”). In comparing the Fund’s net management fee to that of comparable funds, the Board noted that in the materials presented such fee included both advisory and administrative fees. The Board also noted that the subadvisory fees were paid by VIA out of its management fees rather than paid separately by the Fund. In this regard, the Board took into account management’s discussion with respect to the advisory/subadvisory fee structure, including the amount of the advisory fee retained by VIA after payment of the subadvisory fee. The Board also took into account the size of the Fund and the impact on expenses. The Subadvisers provided, and the Board considered, fee information of comparable accounts managed by the Subadvisers, as applicable.

In addition to the foregoing, the Board considered, among other data, the information set forth below with respect to the Fund’s fees and expenses. In each case, the Board took into account management’s discussion of the Fund’s expenses, including the type and size of the Fund relative to the other funds in its Expense Group.

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CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR VIRTUS STRATEGIC ALLOCATION FUND

BY THE BOARD OF TRUSTEES (Continued)

The Board considered that the Fund’s net management fee was slightly higher than the median of the Expense Group, while the Fund’s net total expenses were below the median of the Expense Group.

The Board concluded that the advisory and subadvisory fees, including with any proposed amendments, were fair and reasonable in light of the usual and customary charges made for services of the same nature and quality and the other factors considered.

Profitability

The Board also considered certain information relating to profitability that had been provided by VIA. In this regard, the Board considered information regarding the overall profitability, as well as on a fund-by-fund basis, of VIA for its management of the Fund and other funds of the Trust, as well as its profits and those of its affiliates for managing and providing other services to the Trust, such as distribution, transfer agency and administrative services provided to the Fund by a VIA affiliate. In addition to the fees paid to VIA and its affiliates, including the Subadvisers, the Board considered any other benefits derived by VIA or its affiliates from their relationships with the Fund. The Board reviewed the methodology used to allocate costs to the Fund, taking into account the fact that allocation methodologies are inherently subjective and various allocation methodologies may each be reasonable while producing different results. The Board concluded that the profitability to VIA and its affiliates from the Fund was reasonable in light of the quality of the services rendered to the Fund by VIA and its affiliates as well as other factors.

In considering the profitability to the Subadvisers in connection with their relationship to the Fund, the Board noted that the fees under the Subadvisory Agreements are paid by VIA out of the fees that VIA receives under the Advisory Agreement, so that Fund shareholders are not directly impacted by those fees. In considering the reasonableness of the fees payable by VIA to the affiliated Subadvisers, the Board noted that, because the Subadvisers are affiliates of VIA, such profitability might be directly or indirectly shared by VIA. For each of the above reasons, the Board concluded that the profitability to the Subadvisers and their affiliates from their relationship with the Fund was not a material factor in approval of the Subadvisory Agreements.

Economies of Scale

The Board received and discussed information concerning whether VIA realizes economies of scale as the Fund’s assets grow. The Board noted that the management fee for the Fund included breakpoints based on assets under management. The Board also took into account management’s discussion of the Fund’s management fee and subadvisory fee structure. The Board also took into account the current size of the Fund. The Board concluded that no change to the advisory fee structure of the Fund was necessary at this time. The Board noted that VIA and the Fund may realize certain economies of scale if the assets of the Fund were to increase, particularly in relationship to certain fixed costs, and that shareholders of the Fund would have an opportunity to benefit from these economies of scale.

For similar reasons as stated above with respect to the Subadvisers’ profitability, and based upon the current size of the portion of the Fund managed by each Subadviser, the Board concluded that the potential for economies of scale in the Subadvisers’ management of the Fund was not a material factor in the approval of the Subadvisory Agreements at this time.

Other Factors. The Board considered other benefits that may be realized by VIA and each Subadviser and their respective affiliates from their relationships with the Fund. Among them, the Board recognized that VP Distributors, LLC, an affiliate of VIA, serves as the distributor for the Trust, and, as such, receives payments pursuant to Rule 12b-1 from the Fund to compensate it

42

CONSIDERATION OF ADVISORY AND SUBADVISORY AGREEMENTS FOR VIRTUS STRATEGIC ALLOCATION FUND

BY THE BOARD OF TRUSTEES (Continued)

for performing selling activities, which could lead to growth in the Trust’s assets and corresponding benefits from such growth, including economies of scale. The Board noted that an affiliate of VIA also provides administrative and transfer agency services to the Trust. The Board noted management’s discussion of the fact that, while the Subadvisers are affiliates of VIA, there are no other direct benefits to the Subadvisers or VIA in providing investment advisory services to the Fund, other than the fee to be earned under the applicable Agreement. There may be certain indirect benefits gained, including to the extent that serving the Fund could provide the opportunity to provide advisory services to additional portfolios of the Trust or certain reputational benefits.

Conclusion

Based on all of the foregoing considerations, the Board, including a majority of the Independent Trustees, determined that approval of each Agreement, as amended, was in the best interests of the Fund and its shareholders. Accordingly, the Board, and the Independent Trustees voting separately, approved the Agreements, as amended, with respect to the Fund.

43

VIRTUS EQUITY TRUST

101 Munson Street

Greenfield, MA 01301-9668

Trustees

George R. Aylward

Thomas J. Brown

Donald C. Burke

Roger A. Gelfenbien

Sidney E. Harris

John R. Mallin

Hassell H. McClellan

Connie D. McDaniel

Philip R. McLoughlin, Chairman

Geraldine M. McNamara

James M. Oates

Richard E. Segerson

Officers

George R. Aylward, President

Peter Batchelar, Senior Vice President

W. Patrick Bradley, Executive Vice President, Chief Financial Officer and Treasurer

Kevin J. Carr, Senior Vice President, Chief Legal Officer, Counsel and Secretary

Nancy J. Engberg, Senior Vice President and Chief Compliance Officer

Julia R. Short, Senior Vice President

Francis G. Waltman, Executive Vice President

Investment Adviser

Virtus Investment Advisers, Inc.

100 Pearl Street

Hartford, CT 06103-4506

Principal Underwriter

VP Distributors, LLC

100 Pearl Street

Hartford, CT 06103-4506

Administrator and Transfer Agent

Virtus Fund Services, LLC

100 Pearl Street

Hartford, CT 06103-4506

Custodian

The Bank of New York Mellon

225 Liberty Street

New York, NY 10286-1048

How to Contact Us

Mutual Fund Services 1-800-243-1574

Adviser Consulting Group 1-800-243-4361

Website Virtus.com

Important Notice to Shareholders

The Securities and Exchange Commission has modified mailing regulations for semiannual and annual shareholder fund reports to allow mutual fund companies to send a single copy of these reports to shareholders who share the same mailing address. If you would like additional copies, please call Mutual Fund Services at 1-800-243-1574.

For more information about

Virtus Mutual Funds, please call

your financial representative,

contact us at 1-800-243-1574,

or visit Virtus.com.

8027 5-18

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

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.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

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.

[Note that until the date that the registrant has filed its first report on Form N-PORT (17 CFR 270.150), the registrant’s disclosures required by this Item are limited to any change in the registrant’s internal control over financial reporting 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) Not applicable.

(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.

[Note that until the date that the registrant has filed its first report on Form N-PORT (17 CFR 270.150), in the certification required by Item 13(a)(2), the registrant’s certifying officers must certify that they have disclosed in the report any change in the registrant’s internal control over financial reporting that occurred during the

registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting.]

(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)       Virtus Equity Trust

By (Signature and Title)*	/s/ George R Aylward
	George R. Aylward, President
	(principal executive officer)

Date     June 8, 2018

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/ George R Aylward
	George R. Aylward, President
	(principal executive officer)

Date     June 8, 2018

By (Signature and Title)*	/s/ W. Patrick Bradley
	W. Patrick Bradley, Executive Vice President, Chief Financial Officer, and Treasurer
	(principal financial officer)

Date     June 8, 2018

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