Fixed Income Strategy Designed to Guard Against Credit and Inflation Risks
NEW YORK, Oct. 16 (Korea Bizwire) – Nasdaq today announced that Vident Financial, LLC will list a new exchange-traded fund, Vident Core U.S. Bond Strategy ETF (Symbol: VBND), on The Nasdaq Stock Market. VBND will begin trading on Nasdaq today, October 16th, 2014.
“Fixed income is a critical asset class in our client’s portfolios and we set out to address some of the risk challenges they are facing in the core of their fixed income portfolio,” said Nick Stonestreet, Chief Executive Officer of Vident Financial. “Our clients were proactive with their concern about concentrated risks in the fixed income markets and asked us to develop a transparent, systematic strategy to replace the uncertainty around certain star-manager led funds.”
VBND is a fixed income strategy that seeks to track the performance of the Vident Core U.S. Bond Strategy Index (Bloomberg Symbol VBNDX). This rules-based strategy index is designed to try to diversify some of the risks (credit, inflation, counter-party and star-manager) associated with fixed income strategies through the use of time-tested economic and investment principles. The fund aims to improve corporate bond exposure by including companies Vident believes to have stronger leadership, governance and creditworthiness characteristics.
“Vident Financial will benefit from Nasdaq’s highly efficient, transparent listing program for exchange-traded products and the liquidity spectrum we represent,” said Walt Smith, Vice President, Head of U.S. Equities at Nasdaq. “We are thrilled to launch VBND with our partners at Vident Financial and appreciate their confidence in choosing The Nasdaq Stock Market to list and trade ETFs.”
Nasdaq operates an efficient platform for successfully introducing a product suite into one of the single largest pools of liquidity, including market participants which represent a full spectrum of investors. ETF issuers benefit from an end-to-end solution that provides ongoing product support including index licensing, listings opportunities, data offerings and trading services. As the home to some of the world’s most innovative ventures, Nasdaq generates opportunities for issuers to access new markets and deliver new concepts that change the way the industry develops, manages and applies ETFs.
About Vident Financial:
Vident Financial is a financial services innovator that develops and licenses transparent investment market solutions based on a distinct framework and rigorous global research. Based in Atlanta, GA, Vident’s solutions utilize sophisticated risk-balancing methodologies, economic freedom metrics, valuation, and investor behavior with a systematic, structured, and rules-based investment process. In short, Vident was founded with the purpose of applying timeless wisdom and established principles to today’s complex investment decisions. The name Vident comes from a Latin word meaning, “they oversee, they care for.” The company is wholly owned by the Vident Investors’ Oversight Trust and has no shareholders–thus is solely focused on serving the needs of investors.
Vident Financial partnered with Lattice Strategies on the custom design and development of the VBNDX strategy. Vident also engaged in strategic relationships with industry-leading firms such as Exchange Traded Concepts (ETC), U.S. Bancorp Fund Services (USBFS), Mellon Capital Management, (MCM), Index Management Solutions (IMS), as well as Overture Financial and Bowyer Research. ETC is a private-label ETF advisor, which seeks to provide the operational and regulatory experience necessary to manage the complexities of launching and managing an ETF. For more information, please visit www.videntfinancial.com.
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world’s securities transactions. Nasdaq is home to more than 3,400 listed companies with a market value of over $8.5 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaqomx.com.
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The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about Nasdaq and its products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to factors detailed in Nasdaq’s annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.
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CONTACT: Vident Financial Media Contact:
+1 (404) 267-1504 (direct)
Nasdaq Media Contact:
+1 (212) 231-5552 (office)
+1 (646) 577-3157 (mobile)
Source: NASDAQ OMX Group via Globe Newswire