Vident Financial

Our Approach

Vident Financial is a financial services innovator that develops transparent investment solutions (indices and funds) based on a distinct philosophy and rigorous global research. Our indices track adherence to sound principles, expressed through our principles-based investment framework. These indices combine time-tested principles, sophisticated risk-balancing methodologies, economic freedom metrics, valuation, and investor behavior with a systematic, structured, and rules-based investment process. Since Vident was founded in 2013, it has collaborated with industry-leading firms to establish two ETFs that seek to track their very own indices—the Vident International Equity FundTM (VIDI) and the Vident Core U.S. Equity FundTM (VUSE).

Many equity strategies are tracked to capitalization-weighted indices. These indices may introduce unintended risks by overweighting certain countries, companies and currencies, thereby creating high exposure to potentially slower-growing, developed markets. Vident Financial’s solutions seek to balance risk across developed and emerging economies and emphasize those with favorable conditions for growth. Our selection process applies a systematic, rules-based approach to select countries and/or companies according to our multi-layered methodology.

The Vident International Equity FundTM (VIDI) seeks to closely track the price and total return of the Vident International Equity IndexTM (VIDIX). This index seeks to combine principles-based country and securities selection with sophisticated risk management. The index also seeks to provide greater exposure to faster growing economies that tend to be less encumbered by regulation, debt, deficits and higher taxation. These nations may sometimes have stable currencies and favorable demographics, allowing their populations, and resident companies, to flourish.

The Vident Core U.S. Equity FundTM (VUSE) seeks to closely track the price and total return of the Vident Core U.S. Equity IndexTM (VIUSX). The VIUSX Index seeks to represent U.S. equities that adhere to higher standards of corporate governance and accounting, as measured by numerous research metrics. This research is integrated into a systematic and structured selection process that we believe results in an index of higher quality U.S. companies across small, medium and large-capitalization ranges. While many U.S. Equity indices are weighted using other considerations such as market capitalization, the VIUSX is represented by companies that we believe exhibit higher principle expression. The fund was established in 2014 and is comprised of approximately 550 securities.