Vident launches second ETF
Vident Financial is launching its second exchange-traded fund, The Vident Core US Equity Fund (VUSE), which will track the Vident Core US Equity Index (VIUSX).
The launch comes as Vident surpasses the USD500m mark in assets just two months after launching its debut ETF the Vident International Equity Fund (VIDI).
Vident believes that the new ETF represents a novel approach to US equity diversification providing investors with access to a principles-based strategy.
VIUSX seeks to identify companies in the US that demonstrate higher standards of corporate governance and accounting, as measured by numerous research metrics and seeks to integrate this research while taking into account each company's valuation, momentum and risk contribution (at the sector level) within the portfolio. The result is a systematic and structured selection process that Vident believes results in the selection of higher quality US companies across small, medium and large-capitalisation ranges.
The entire selection process applies a systematic, rules-based approach, which may help to limit ‘stock picker’ bias and emotional decision-making.
The resulting portfolio allocates capital across 500 companies in large, mid and small-cap sectors. The strategy was established in 2013 and is reconstituted and rebalanced semi-annually.
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