Editor's Note: An earlier version of this story contained a number errors, including the identity of ETF Series Solutions. The ETF trust is associated U.S. Bancorp and with Oklahoma City-based Exchange Traded Concepts and not FactorShares. We regret the errors.
ETF Series Solutions, an ETF trust backed by U.S. Bancorp and Exchange Traded Concepts, filed a prospectus for a U.S. equity fund last week—the Vident Core U.S. Equity Fund—the second fund involving Atlanta-based Vident Financial to go into registration this year.
The first fund, the “Vident International Equity Fund” is likely to go live soon after it was put in the regulatory pipeline earlier this year. It was first registered by WisdomTree Investments, though the firm cancelled that filing early in the summer. It was subsequently re-registered using Exchange Traded Concepts exemptive relief and the ETF Series Solutions exemptive relief.
The new filing, detailing the Vident Core U.S. Equity Fund, will carry the ticker ‘VIUS,’ and will have a fundamental indexing methodology, according to the filing.
The new prospectus also outlined that the unnamed underlying index will be rules-based and diversified, ranking U.S. equity securities to determine an “eligibility universe” and selecting at least 10 of the best-ranked securities from each sector within that universe to make up the index’s constituents.
ETF Series Solutions filed a prospectus for three funds in February 2012 with the help of subadvisor Exchange Traded Concepts. Only one of the three funds in that prospectus has since launched, the AlphaClone Alternative Alpha ETF (ALFA | D-50). The other two registration statements have since been withdrawn.
The two Vident funds now in registration are using the ETF Series Solutions trust.
The newly registered Vident fund will be listed on the Nasdaq exchange and cost investors 55 basis points, or $55 per $10,000 invested in the fund.
Examining the basic structure that allows lots of investors to pool their money together and invest.
Women in ETFs made its San Francisco debut this week. It’s about time.
A new ETF canvassing online life in the emerging markets really is a distinct idea.
ETFs are cheap, but not always in the way you think.