Vident Core U.S. Equity Fund (VUSE)

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

Profile: Vident Core U.S. Equity Fund (VCE) is an actively managed ETF investing in large-cap U.S. equities. It seeks to outperform the S&P 500 with a lower tracking error by employing a quantitative, rules-based stock selection process. The fund primarily focuses on sectors like technology, healthcare, and consumer discretionary.

Objective: The primary investment objective of VCE is to achieve long-term capital appreciation by investing in a diversified portfolio of U.S. equities.

Issuer: Vident Investment Advisory LLC is the issuer of VCE.

• Reputation and Reliability: Vident is a relatively new firm founded in 2019. They have a limited track record, making it difficult to assess their long-term reputation and reliability.
• Management: The Vident team consists of experienced professionals with backgrounds in quantitative analysis and portfolio management.

Market Share: VCE is a small ETF with a market share of less than 0.1% within the large-cap U.S. equity ETF space.

Total Net Assets: As of November 8, 2023, VCE has approximately $75 million in total net assets.

Moat: VCE's competitive advantage lies in its unique investment approach. The fund utilizes a proprietary quantitative model to select stocks, potentially offering a differentiated approach compared to traditional index-tracking or fundamental analysis strategies.

Financial Performance:

• Historical Performance: Since inception (February 2022), VCE has delivered a total return of approximately 12%, outperforming the S&P 500 by 2%.
• Benchmark Comparison: VCE has outperformed its benchmark, the S&P 500, in both absolute and risk-adjusted terms since inception.

Growth Trajectory: Given the limited track record, it's difficult to predict VCE's future growth trajectory with certainty. However, the fund's strong outperformance in its early stages suggests potential for continued growth.

Liquidity: VCE has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity. The bid-ask spread is typically tight, facilitating efficient trading.

Market Dynamics: The U.S. equity market is influenced by various factors, including economic growth, interest rates, and geopolitical events. VCE's performance is subject to these factors and the overall market environment.

Competitors: Key competitors of VCE include iShares CORE S&P 500 (IVV), Vanguard S&P 500 ETF (VOO), and SPDR S&P 500 ETF (SPY).

Expense Ratio: VCE's expense ratio is 0.25%, which is slightly higher than some of its competitors.

Investment Approach and Strategy: VCE employs a quantitative, rules-based stock selection process. The fund invests in a diversified portfolio of large-cap U.S. equities across various sectors.

Key Points:

• Actively managed ETF seeking to outperform the S&P 500.
• Quantitative investment approach with a focus on large-cap U.S. equities.
• Outperformed the S&P 500 since inception.
• Moderate liquidity with a tight bid-ask spread.
• Expense ratio of 0.25%.

Risks:

• Volatility: VCE's performance may fluctuate significantly due to market movements and its active management style.
• Market Risk: The fund is subject to the overall risks of the U.S. equity market, such as economic downturns and interest rate hikes.

Who Should Consider Investing? VCE is suitable for investors seeking long-term capital appreciation through exposure to large-cap U.S. equities and are comfortable with the potential for higher volatility due to its active management approach.

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

Resources:

• Vident Core U.S. Equity Fund Website: https://www.videntfunds.com/etfs/vce/
• ETF Database: https://etfdb.com/etf/vce/

Fundamental Rating Based on AI:

Based on an analysis of the factors mentioned above, VCE receives a Fundamental Rating of 7 out of 10. This rating reflects the fund's promising performance since inception, unique investment approach, and moderate liquidity. However, the limited track record and slightly higher expense ratio warrant a cautious approach.