The Vident Core U.S. Equity Index starts its selection universe with 3,000 companies with market values of at least $500 million and average daily volume of at least $1.5 million. From there, the top 80% as ranked by corporate governance, financial reporting and expense recognition are selected.
The third step in the selection process employs risk premia factors such as strong governance, higher relative quality, positive momentum and earnings quality, according to Vident. Vident then uses a risk-balance approach to sector weightings. The resulting portfolio is 500 large-, mid- and small-cap companies.
Vident’s other ETF, the Vident International Equity Fund (NasdaqGM: VIDI), raced to $500 million in assets in just 12 weeks. [Vident Global ETF Quick to $500M in Assets]
Vident Core U.S. Equity ETF
ETF Trends editorial team contributed to this post.