Vident Financial
Index Repurposing Announcement

Effective at the close of business on January 6, 2016, the funds will begin tracking the following indices: Vident Core International Equity Index (VIEQX), Vident Core U.S. Stock Index (VCUSX), and Vident Core U.S. Bond Index (VUBDX). Each new index continues to employ Vident’s fundamental principles-based investment framework, but each provides material enhancements over the existing indices.

The Vident International Equity ETF’s underlying index, Vident International Equity Index (VIDIX), will be replaced with the Vident Core International Equity Index (VIEQX) and effective January 6, 2016 Vident International Equity Fund (VIDI) will begin tracking VIEQX. The new index (VIEQX), seeks to enhance principle expression through country allocation and stock selection. It aims to provide investors with a well-diversified set of global equities exposures across countries, regions and stocks, emphasizing countries with more favorable conditions for investment as well as economic and financial market resilience. At the individual stock level, the new index also seeks to enhance investors’ stock exposures, systematically selecting higher quality stocks with more favorable valuations and with a confirming price trend. The index is designed to be fully investable and fully replicable, with explicit consideration given to turnover, trading costs and liquidity.

The Vident Core U.S. Equity ETF’s underlying index, Vident Core U.S. Equity Index (VIUSX), will be replaced with the Vident Core U.S. Stock Index (VCUSX) and effective January 6, 2016 the Vident Core U.S. Equity Fund (VUSE) will begin tracking VCUSX. The new index (VCUSX), seeks to enhance principle expression through improved stock selection. It achieves this by systematically selecting higher quality stocks with more favorable valuations and with a confirming price trend. The index is designed to be fully investable and fully replicable, with explicit additional consideration given to turnover, trading costs and liquidity.

The Vident Core Bond Strategy ETF’s underlying index, Vident Core Bond Strategy Index (VBNDX), will be replaced with the Vident Core U.S. Bond Index (VUBDX) and effective January 6, 2016 the Vident Core U.S. Bond Strategy Fund (VBND) will begin tracking VUBDX.


Disclosure:

The Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contains this and other important information about the investment company and may be obtained by calling 1-800-617-0004.

Investments involve risk. Principal loss is possible. The Funds have the same risks as the underlying securities traded on the exchange throughout the day at market price. Redemptions are limited and often commissions are charged on each trade. VIDI is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in emerging markets. A fund that concentrates its investments in the securities of a particular industry or geographic area may be more volatile than a fund that invests in a broader range of industries. VIDI and VBND may invest in illiquid or thinly traded securities which involve additional risks such as limited liquidity and greater volatility. VBND may make investments in debt securities. The Fund's investments in high yield securities expose it to a substantial degree of credit risk. These investments are considered speculative under traditional investment standards. Debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies. An increase in interest rates may cause the value of fixed-income securities held by the Fund to decline. During periods of rising interest rates, certain debt obligations will be paid off substantially more slowly than originally anticipated and the value of those securities may fall sharply, resulting in a decline in the Fund's income and potentially in the value of the Fund's investments. VBND may also invest in asset backed and mortgage backed securities which include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The performance of the funds may diverge from that of the Index. Because the Funds employ a representative sampling strategy and may also invest up to 20% of its assets in securities that are not included in the Index, the Funds may experience tracking error to a greater extent than a fund that seeks to replicate an index. The Funds are not actively managed and may be affected by a general decline in market segments related to the index. The Funds invest in securities included in, or representative of securities included in, the index, regardless of their investment merits. Small and medium-capitalization companies tend to have more limited liquidity and greater price volatility than large-capitalization companies. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value.

The Vident Core International Equity Index (Bloomberg Symbol: VIEQX) is a strategy seeking to balance risk across developed and emerging countries and emphasize those with favorable conditions for growth. The Vident Core US Stock Index (Bloomberg Symbol: VCUSX) is a strategy which seeks to apply principles-based reasoning, expressed through innovative risk design to address the risks and opportunities of US equity investing. It is not possible to invest directly in an index. The Vident Core US Bond Index (Bloomberg Symbol: VUBDX) is a strategy which seeks to utilize time-tested principles to improve corporate bond exposures by screening for companies with strong leadership, governance and creditworthiness factors. You cannot invest directly in an Index.

The Vident International Equity Index (Bloomberg Symbol: VIDIX) is a strategy seeking to balance risk across developed and emerging countries and emphasize those with favorable conditions for growth. The Vident Core US Equity Index (Bloomberg Symbol: VIUSX) is a strategy which seeks to apply principles-based reasoning, expressed through innovative risk design to address the risks and opportunities of US equity investing. It is not possible to invest directly in an index. The Vident Core US Bond Strategy Index (Bloomberg Symbol: VBNDX) is a strategy which seeks to utilize time-tested principles to improve corporate bond exposures by screening for companies with strong leadership, governance and creditworthiness factors. You cannot invest directly in an Index.

Diversification does not assure a profit or protect against loss in a declining market.

The Vident Funds are distributed by Quasar Distributors, LLC

A systematic & rules-based investment process

Applying timeless wisdom & established principles

A distinct philosophy & rigorous global research

Our Team

Vince Birley Chief Executive Officer

Mr. Birley has over 30 years of experience in the personal and institutional financial services industry. Prior to co-founding Vident, he was the Chief Strategy Officer and Chairman of the Investment Policy Committee for Ronald Blue and Co. While serving in that role, he was responsible for leading the efforts to develop the Principled Reasoning investment philosophy that the Vident indices utilize. Prior to joining Ronald Blue & Co. in 2000, Vince was a Founder and Principal with Atlantic Capital Management, LLC, where he served as Managing Partner. Vince holds a B.A. in Business from Central College and is a CERTIFIED FINANCIAL PLANNERTM certificant.


Deborah Kimery, CFA Chief Operations Officer

Deborah Kimery, CFA, has over 30 years of institutional investment management and financial services industry experience. As Chief Operational Officer, she is responsible for increasing the operational efficiency of the firm and enhancing our client service and investment deliverables. She works closely with our CEO to execute on firm strategy, innovation and building organizational alignment around our principles-based investing framework and its core principles. Prior to joining Vident, she was an Executive Vice President and Principal of Ronald Blue & Company and contributed to the development of the Principled Reasoning investment philosophy that the Vident indices utilize. Deborah began her career as an Institutional Portfolio Manager for Carillon Advisors and then ING North America Investment Centre, Inc. Deborah holds a BS in Accounting and Finance, and Masters in Organizational Behavior from Miami University and is a Chartered Financial Analyst designation.


Shirish Malekar Chief Investment Officer

With over 25 years of investment experience, Mr. Malekar leads the development of innovative long/short global asset strategies for a Vident Financial entity, WeatherStorm Capital and advises on risk-based smart beta ETF strategies for Vident. Prior to founding WeatherStorm, he was Partner and Managing Director at Lattice Strategies, overseeing portfolio and risk management and research for global multi-asset portfolios and custom ETFs. Previously, Mr. Malekar developed and ran a global all asset hedge fund at SSGAM. He founded a similar fund at Deccan that was acquired by Allianz Global Investors. Prior to Allianz, Mr. Malekar developed the first global fixed-income fund at Strong Capital Management. He began his investment career at PIMCO, working on Bill Gross’ portfolio team. Mr. Malekar obtained an MS from MIT, an MS in Petroleum Engineering from the University of Pittsburgh and a BS in Chemical Engineering from the University of Mumbai (Bombay). He was a teaching and research assistant for International Finance at MIT’s Sloan School of Management and an adjunct professor of Portfolio Management at University of San Francisco.


Denise Krisko, CFA Co-Founder and President of Vident Investment Advisory

Ms. Krisko has over 20 years of index management experience, with an expertise in ETF management. Prior to co-founding Vident Investment Advisory, she was the Chief Investment Officer and Managing Director at Index Management Solution. Previously, she worked at Deutsche Bank, Northern Trust and BNY Mellon. She began her career at The Vanguard Group as a Portfolio Manager. Ms. Krisko obtained an MBA, Finance from Villanova University and a BS in Finance from Pennsylvania State University. She holds a Chartered Financial Analyst designation.


Rafael Zayas, CFA Senior Portfolio Manager, International Equities, Vident Investment Advisory

Mr. Zayas has over 15 years of trading and portfolio management experience in global equity products and ETFs. He specializes in managing developed, emerging, and frontier market portfolios, including currency and market hedged strategies. Prior to joining Vident Investment Advisory, he was a Portfolio Manager at Russell Investments for over $5 billion in quantitative strategies across global markets, including emerging, developed and frontier markets and listed alternatives. Before that, he was an equity Portfolio Manager at BNY Mellon Asset Management, where he was responsible for $150 million in internationally listed global equity ETFs and assisted in managing $3 billion of global ETF assets. Mr. Zayas holds a BS in Electrical Engineering from Cornell University. He also holds the Chartered Financial Analyst designation.


Jim Iredale, CFA Senior Portfolio Manager, Vident Investment Advisory

Mr. Iredale has over 15 years of investment experience and manages the fixed income side of the Vident portfolio. Prior to joining Vident Financial, he was the Fixed Income Manager at Ronald Blue & Co. Mr. Iredale obtained a BBA, Finance from the University of Georgia, Terry College of Business and JD, Law from the University of Georgia, School of Law. He holds a Chartered Financial Analyst designation.


Andrew Alden, CFA Head of Quantitative Research

Mr. Alden has seven years of investment management experience. Prior to joining the Vident Financial team, he was a senior portfolio strategist at Lattice Strategies and the lead researcher designing systematic equities strategies. Prior to earning his MFE, he worked at Guggenheim Partners and Citco Fund Services. Mr. Alden obtained a Masters in Financial Engineering from University of California Berkeley and a BCom in Economics & Finance from University of Cape Town, South Africa. He holds a Chartered Financial Analyst designation.


Austin Wen Senior Analyst, Vident Investment Advisory

Mr. Wen has four years of experience in trading, portfolio management and operations. Mr. Wen focuses on trading, risk monitoring and investment analysis for Vident Financial. Prior to Vident, Mr. Wen was a State Examiner at the Georgia Department of Banking and Finance. Mr. Wen obtained a BA, Finance from the University of Georgia.

The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus and summary prospectus (VIDI, VUSE, VBND) contains this and other important information about the investment company, and a free hardcopy of the prospectus may be obtained by calling 1-800-617-0004. Read carefully before investing.

Investments involve risk. Principal loss is possible. The Funds have the same risks as the underlying securities traded on the exchange throughout the day at market price. Redemptions are limited and often commissions are charged on each trade. VIDI is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in emerging markets. A fund that concentrates its investments in the securities of a particular industry or geographic area may be more volatile than a fund that invests in a broader range of industries. VIDI and VBND may invest in illiquid or thinly traded securities which involve additional risks such as limited liquidity and greater volatility. VBND may make investments in debt securities. The Fund's investments in high yield securities expose it to a substantial degree of credit risk. These investments are considered speculative under traditional investment standards. Debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies. An increase in interest rates may cause the value of fixed-income securities held by the Fund to decline. During periods of rising interest rates, certain debt obligations will be paid off substantially more slowly than originally anticipated and the value of those securities may fall sharply, resulting in a decline in the Fund's income and potentially in the value of the Fund's investments. VBND may also invest in asset backed and mortgage backed securities which include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The performance of the funds may diverge from that of the Index. Because the Funds employ a representative sampling strategy and may also invest up to 20% of its assets in securities that are not included in the Index, the Funds may experience tracking error to a greater extent than a fund that seeks to replicate an index. The Funds are not actively managed and may be affected by a general decline in market segments related to the index. The Funds invest in securities included in, or representative of securities included in, the index, regardless of their investment merits. Small and medium-capitalization companies tend to have more limited liquidity and greater price volatility than large-capitalization companies. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value.

The Vident Funds are distributed by Quasar Distributors, LLC. The fund's investment advisor is Exchange Traded Concepts LLC. VIDI, VBND, and VUSE's sub-advisor is Vident Investment Advisory (VIA). Vident Financial owns the indexes that underline the funds. Quasar is not affiliated with Vident Financial, Exchange Traded Concepts, or Vident Investment Advisory.

Diversification does not guarantee a profit or protect from loss in a declining market.

Full Website Disclosure