Vident Financial

VBND



Vident Core U.S. Bond Strategy ETF

As of 5/22/2019

Fund Details


Ticker VBND
Primary Exchange NYSE
CUSIP 26922A602
Net Assets $481,611,265.01
Expense Ratio 0.41%
Total Annual Operating Expenses 0.43%
Inception Date 10/16/2014
Shares Outstanding 9,800,000.00
30 day SEC yield (as of 04.30.19) 3.66%
Market Price $49.12
NAV $49.14
Premium/Discount -0.06%
Distribution Frequency Quarterly





Fund Summary: The Vident Core U.S. Bond Strategy ETFTM (VBND) seeks to track the performance of the Vident Core U.S. Bond IndexTM (VUBDX), a strategy that applies time-tested principles to allocate capital across sectors and seeks to achieve better diversification of credit and interest rate risks. In addition, the strategy seeks to improve corporate bond exposures by screening for companies with stronger leadership, governance and credit-worthiness.

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Fund Objectives: The Vident Core U.S. Bond Strategy ETFTM*Duration is a measure of a bond’s price sensitivity to changes in interest rates.
**Yield to worst is the lowest potential rate of return for a bond.


UNCERTAINTY & INSTABILITY

Diversified sector allocation broadens interest rate and credit risks and is systematically adjusted to help protect during flight to quality. Unlike traditional bond funds, issuers are not debt weighted but selected and weighted based on creditworthiness.

HUMAN PRODUCTIVITY

Companies with highest financial distress are removed while companies with higher creditworthiness are selected.


LEADERSHIP & GOVERNANCE

Companies with better leadership and governance and higher creditworthiness are included while the worst companies are eliminated.

VALUATION

Sectors with attractive valuations are over weighted. Additionally, issues/companies with attractive valuations are also over weighted.






Premium Discount Chart

Total Returns

Month End Performance (4/30/2019)
VBND NAV Returns
VBND Market Price Returns
Cumulative
1 Month
0.59
0.46
3 Month
2.84
2.63
Year-to-date
4.11
4.06
Since Inception*
8.56
8.39
Average Annual
1 Year
6.03
5.84
3 Year
1.77
1.69
5 Year
-
-
Since Inception*
1.83
1.79

Quarter End Performance (3/31/2019)
VBND NAV Returns
VBND Market Price Returns
Cumulative
Quarter
3.50
3.59
Year-to-date
3.50
3.59
Since Inception*
7.92
7.90
Average Annual
1 Year
4.64
4.58
3 Year
1.61
1.65
5 Year
-
-
10 Year
-
-
Since Inception*
1.73
1.72

*Fund Inception Date: 10/16/2014

Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. Short term performance is not a good indication of the fund's future performance, and an investment should not be made based solely on returns. To obtain performance data current to the most recent month-end, please call 404-267-1501.




As of 4/30/2019

Fund Facts

Fund Sector Breakdown
US Treasuries 37.62%
Investment Grade Corporate 24.65%
TIPS 14.89%
Mortgage Backed Securities 9.98%
High Yield 9.75%
Agencies 2.98%
Cash 0.14%



As of 5/22/2019

Top Holdings

Top Holdings Weight
1. FIRST AMERN FDS INC GOVT OBLIGS X 2.32% 12/01/2031 8.99%
2. FNMA TBA 30YR 4% JUN 4% 06/15/2040 2.33%
3. UNITED STATES TREAS NTS 3.5% 05/15/2020 2.17%
4. UNITED STATES TREAS BDS 8.75% 08/15/2020 2.12%
5. FNMA TBA 30YR TBA 4.50% JUN 4.5% 06/15/2041 1.93%
6. UNITED STATES TREAS NTS 1.5% 05/31/2020 1.9%
7. UNITED STATES TREAS NTS 1.5% 05/15/2020 1.85%
8. UNITED STATES TREAS NTS 1.38% 05/31/2020 1.81%
9. UNITED STATES TREAS NTS 2.5% 05/31/2020 1.81%
10. UNITED STATES TREAS NTS 1.5% 06/15/2020 1.68%

“Holdings and allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.”


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. Holdings information for each fund as follows: VIDI, VUSE, VBND, PPTY.

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. Market vs. NAV Returns. The total return of an ETF based on its market price and its NAV at the beginning and end of the holding period. The market return, not the NAV return, is the return actually earned by ETF investors, except for those who hold creation units. The NAV is the value of each share of a fund as determined by the value of its underlying holdings, including any cash in the portfolio. NAV is calculated by dividing a fund's total net assets by its number of shares outstanding.

The Vident Funds are distributed by Quasar Distributors, LLC. The fund's investment advisor is Vident Advisory, 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, Vident Advisory, LLC, or Vident Investment Advisory. Quasar is not the distributor of FLAG ETF.

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

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