Excellent. Yet another approach...
Place a black blank clip on track one
Click its FX icon and apply a mask (inside) - shape it into a reasonably large circle
Add the TRANSPARENCY effect set to 0.00
Add the MOTION effect
Animate SCALE where the start fills the screen and the end is 0.00
Animate BASE X and BASE Y as desired
Save this as "Circle Close" effects template
When you want to apply it...
Place the cursor where you want the effect to be
Create a blank clip with the color wanted for the circle's background
Right-click the blank and OVERLAY AT CURSOR
Click the FX on this blank clip in the sequence and apply the custom template
Circle_close_VP_screen.mp4