Vident Financial

A satellite image of the Korean peninsula at night exemplifies the principles we look for in principles-based investing, namely good leadership and governance and the ability for human flourishing to occur.

Principles-Based Investing

An investment decision-making framework that combines time-tested principles, rigorous global research and an in-depth evaluation of risk dynamics.


    The future is uncertain. Provision against uncertainty is a reason to plan, save, and invest. As a result, we offer solutions for long-term investment planning.


    The markets and economies are not stable. Due to this instability, provisions and measures taken against uncertainty may fail. One way to protect your investments against instability is to manage risk through diversification and an appropriate allocation of wealth. As result, our solutions provide diversification that seeks to avoid the pitfalls associated with concentration risks (cap-weighting).

Leadership & Governance

    The manner in which leaders govern (governments, corporations, etc.) significantly influences the productivity of the people they lead. Therefore, environments with greater civil and economic freedom tend to provide more fertile ground for investment due to increased human productivity. We believe that wealth is created where growth and inflation levels tilt toward favorable environments (fiscal, policies, indebtedness, civil freedoms, etc.).

Human Productivity

    Productivity is the combination of human creativity and natural resources. We believe wealth is created because of human productivity. Our solutions seek to allocate towards countries, companies, and sectors with higher productivity levels (lower taxes, favorable demographics, etc.) and environments more conducive to human flourishing.

Applied Wisdom

    The world is uncertain but not chaotic. Therefore, reasonable decisions can reduce exposure to high-risk environments. Applying wisdom principles may not eliminate risk, but it can improve the chance of successful outcomes. We provide solutions that seek to implement a principles-based investment decision-making framework, focused on long-term risks rather than short-term volatility.


    Investors and markets are not always rational and eagerness for gain, or fear of loss, can drive investors into bubbles and crashes. Opportunities or risks can be identified when a disciplined valuation process is used to determine the inherent value of an investment. Our solutions seek to follow a disciplined valuation methodology to avoid “chasing returns.”

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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