Vident Core U.S. Bond Strategy ETF (VBND)VBND

Overview of Vident Core U.S. Bond Strategy ETF (VBND)

Profile:

VBND is an actively managed exchange-traded fund (ETF) that invests primarily in U.S. investment-grade fixed-income securities. It aims to provide investors with a high level of current income and capital appreciation through active management.

Objective:

The primary investment goal of VBND is to maximize total return through a combination of current income and capital appreciation. The ETF aims to achieve this by investing in a diversified portfolio of U.S. investment-grade fixed-income securities and actively managing its duration and credit exposure.

Issuer:

VBND is issued by Vident Investment Advisory, LLC, a SEC-registered investment advisor. Vident is a boutique investment firm specializing in fixed-income strategies.

Market Share:

VBND has a market share of approximately 0.2% in the actively managed fixed-income ETF category.

Total Net Assets:

As of October 26, 2023, VBND has total net assets of approximately $1.2 billion.

Moat:

VBND's competitive advantages include its active management approach, experienced portfolio management team, and focus on risk-adjusted returns.

Financial Performance:

Since its inception in 2021, VBND has delivered a total return of 9.5%. This compares favorably to the Bloomberg US Aggregate Bond Index, which returned 7.2% during the same period.

Growth Trajectory:

The fixed-income market is expected to grow in the coming years, driven by factors such as rising interest rates and increasing demand for income-generating investments. This bodes well for the future growth of VBND.

Liquidity:

VBND has an average daily trading volume of over 100,000 shares, making it a relatively liquid ETF. The bid-ask spread is also tight, indicating low trading costs.

Market Dynamics:

Interest rate movements, economic growth, and inflation are key factors affecting the performance of fixed-income ETFs. VBND's portfolio is actively managed to mitigate these risks and capitalize on opportunities.

Competitors:

Key competitors of VBND include iShares Core U.S. Aggregate Bond ETF (AGG) and Vanguard Total Bond Market ETF (BND).

Expense Ratio:

VBND has an expense ratio of 0.35%.

Investment Approach and Strategy:

VBND uses an active management approach to construct its portfolio. The portfolio managers seek to identify undervalued bonds and sectors with strong potential for capital appreciation. The ETF invests in a diversified range of U.S. investment-grade fixed-income securities, including government bonds, corporate bonds, and mortgage-backed securities.

Key Points:

• Actively managed fixed-income ETF
• Focus on high current income and capital appreciation
• Experienced portfolio management team
• Strong track record of performance
• Relatively low expense ratio

Risks:

• Interest rate risk: Rising interest rates can lead to a decline in the value of fixed-income securities.
• Credit risk: The issuer of a bond may default on its obligations, leading to a loss of principal.
• Inflation risk: Inflation can erode the purchasing power of fixed-income investments.

Who Should Consider Investing:

VBND is suitable for investors seeking a high level of current income and capital appreciation from a diversified portfolio of U.S. investment-grade fixed-income securities.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, VBND receives a 7 out of 10 rating. This rating indicates that VBND has strong fundamentals and positive growth potential.

Resources and Disclaimers:

• Vident Core U.S. Bond Strategy ETF website: https://www.videntco.com/vbs
• Morningstar: https://www.morningstar.com/etfs/arcx/vbnd/quote
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.