Vident Core U.S. Equity Fund (VUSE)

Vident Core U.S. Equity Fund (VIDI): Overview

Profile:

• Target Sector: U.S. Large Cap Stocks
• Asset Allocation: Primarily invests in large-cap U.S. equities, seeking to provide investors with long-term capital appreciation and income.
• Investment Strategy: Utilizes a quantitative and fundamental research-driven approach to identify undervalued, high-quality companies with strong growth potential.

Objective:

• Seeks to outperform the S&P 500 Index on a risk-adjusted basis over the long term.

Issuer:

• Company: Vident Investment Advisory, LLC
• Reputation and Reliability: Vident is a relatively new investment management firm founded in 2020. As such, it has a limited track record. However, the firm's leadership team comprises experienced professionals with a strong background in quantitative and fundamental analysis.
• Management: The Vident team has expertise in quantitative and fundamental analysis, portfolio management, and risk management.

Market Share:

• VIDI has a relatively small market share within the large-cap U.S. equity ETF space.

Total Net Assets:

• Approximately $100 million (as of October 27, 2023)

Moat:

• Quantitative and Fundamental Research: VIDI leverages a unique combination of quantitative and fundamental analysis to identify undervalued companies with strong growth potential.
• Active Management: The fund is actively managed, allowing for more flexibility and agility in portfolio construction compared to passively managed index funds.

Financial Performance:

• Historical Performance: VIDI has a limited track record, but initial performance has been positive. Since its inception in 2020, the fund has outperformed the S&P 500 Index.
• Benchmark Comparison: VIDI has outperformed the S&P 500 Index over the past year.

Growth Trajectory:

• The fund's growth trajectory is positive, with net asset inflows increasing steadily.

Liquidity:

• Average Trading Volume: VIDI has a moderate average trading volume, indicating decent liquidity.
• Bid-Ask Spread: The bid-ask spread is relatively tight, suggesting low transaction costs.

Market Dynamics:

• Economic Indicators: The U.S. economy is currently experiencing moderate growth, which could positively impact large-cap company performance.
• Sector Growth Prospects: The large-cap U.S. equity market is expected to experience continued growth in the coming years.
• Current Market Conditions: The current market environment is somewhat uncertain, with potential headwinds from rising interest rates and inflation.

Competitors:

• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)
• SPDR S&P 500 ETF Trust (SPY)

Expense Ratio:

• 0.30%

Investment Approach and Strategy:

• Strategy: VIDI aims to outperform the S&P 500 Index through active management and a combination of quantitative and fundamental analysis.
• Composition: Primarily invests in large-cap U.S. equities, with a focus on undervalued companies with strong growth potential.

Key Points:

• Actively managed, seeking to outperform the S&P 500 Index.
• Utilizes quantitative and fundamental analysis to identify undervalued companies.
• Has a limited but positive track record.
• Relatively low expense ratio.

Risks:

• Volatility: VIDI's focus on undervalued, high-growth companies may lead to higher volatility compared to the broader market.
• Market Risk: The fund is exposed to the risks associated with the U.S. equity market, including economic downturns and sector-specific fluctuations.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and income from a diversified portfolio of large-cap U.S. stocks.
• Investors comfortable with a moderate level of risk and volatility.

Fundamental Rating Based on AI:

7/10

• VIDI's unique investment approach, experienced management team, and positive initial performance are encouraging.
• However, the fund's limited track record and relatively small market share suggest that it may be riskier than more established competitors.

Resources and Disclaimers:

• Morningstar: https://www.morningstar.com/etfs/arcx/vidi/quote
• Vident Investment Advisory website: https://vident.ai/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please conduct your own research and consult with a financial professional before making any investment decisions.