Vident Financial, the new exchange-traded fund firm that launched the Vident International Equity ETF (VIDI) in October 2013 via ETF Series Solutions, rolled out the Vident Core U.S. Equity ETF (VUSE) on the Nasdaq stock market on Jan. 22. The new fund has an annual expense ratio of 0.55 percent.
VUSE has an underlying index that selects stocks based on their above-average corporate governance and accounting practices and the relative strength of their valuations in relation to their overall sector. The index also takes into account earnings quality, growth and market sentiment, VUSE’s prospectus said.
The benchmark selects its components from all portions of the U.S. stock market. Individual component weightings are based on risk levels, taking into account how each stock responds to volatile markets and its risk contribution to the sector to which it is assigned, according to VUSE’s prospectus. A fact sheet provided by Vident noted the fund had 550 holdings at its launch.