Vident Financial

A systematic & rules-based investment process

Applying timeless wisdom & established principles

A distinct philosophy & rigorous global research

Message from the CEO

When Vident Financial began in 2013, it was primarily for the purpose of providing new indices for financial markets. Before long, however, Vident-related investment professionals began to discuss a series of investment solutions based on time-tested economic principles underlying those indices. Principles founded on the application of wisdom … that go beyond the traditional stock earnings, share prices, dividends, and bond categories, delving into not only the standard fundamentals of the companies themselves, but into characteristics and data far beyond the typical. Those professionals did more than just talk, and the result is Vident Financial, a different kind of ETF provider that now offers three distinct, principle-based exchange-traded funds.

Vident is a Latin word that means “they see, they oversee, they care for.” At Vident Financial, our goal is to conduct research for optimal investment opportunities that require deep insight, and to create and nurture ETFs that seek to track the Vident indices. Vident’s principle-based market indices were created to administer long-term perspective alongside long-term investment dollars.

Vident International Equity Fund® (VIDI) seeks to track the performance of the Vident Core International Equity Index® (VIEQX), balancing risk across global economies, both developed and emerging, and emphasizing those with favorable conditions for growth.

Vident Core U.S. Equity Fund™ (VUSE) focuses on tracking the performance of the Vident Core U.S. Stock Index™ (VCUSX). This rules-oriented and principles-based U.S. equity strategy prioritizes companies with high-quality leadership and governance standards that also trade at attractive valuations.

Vident Core U.S. Bond Strategy ETF™ (VBND) aims to track the performance of the Vident Core U.S. Bond Index™ (VUBDX). It seeks to diversify interest rate and credit risks through the application of time-tested principles developed by Vident Financial. It diversifies across fixed-income sectors, screening corporate bond issuers for strong leadership and governance and creditworthiness.

I invite you to explore a brief summary of Vident's Principles and the index strategies. We hope that you will join us in adding a principles-based focus to your investing.

Sincerely,

Nick Stonestreet

*An investor may not invest directly in an index such as VIEQX. In addition, emerging markets investments may expose investors to risks not typically associated with similar investments in more developed markets. The classification of a country as an "emerging market" is generally based on the relative economic, political and social development and is by necessity subjective.