Vident Core U.S. Bond Strategy ETF (VBND)

Overview

The Vident Core U.S. Bond Strategy ETF (VBND) is an actively managed ETF that seeks to provide total return by investing primarily in U.S. dollar-denominated investment-grade fixed income securities. It aims for a core bond portfolio that adapts to changing market conditions.

Reputation and Reliability

Vident Investment Advisory has a growing reputation for its rules-based and thematic ETF offerings.

Management Expertise

The management team has experience in fixed income investing and active portfolio management.

Goal

To provide total return, primarily through income and secondarily through capital appreciation, by investing in U.S. dollar-denominated investment-grade fixed income securities.

Investment Approach and Strategy

Strategy: The ETF is actively managed and does not track a specific index. It uses a proprietary strategy to select and allocate bonds based on macroeconomic factors and risk considerations.

Composition Primarily U.S. dollar-denominated investment-grade fixed income securities, including government bonds, corporate bonds, and mortgage-backed securities.

Market Share: VBND's market share in the core bond ETF sector is relatively small compared to larger established funds.

Total Net Assets (AUM): 58500000

Key Competitors

• AGG
• BND
• LQD
• IEF

Competitive Landscape

The core bond ETF market is highly competitive, dominated by large, established funds with significant AUM. VBND differentiates itself through its active management approach, which aims to outperform passive benchmarks, while its smaller size may limit its liquidity and brand recognition compared to larger competitors.

Historical Performance: Historical performance data should be reviewed to assess the ETF's track record over different time periods. (Specific data needed for accurate values).

Benchmark Comparison: The ETF's performance should be compared to benchmarks like the Bloomberg Barclays U.S. Aggregate Bond Index to evaluate its active management strategy. (Specific data needed for accurate values).

Expense Ratio: 0.39

Average Trading Volume

The average trading volume is moderate, which may impact the ease of trading large positions.

Bid-Ask Spread

The bid-ask spread is typically competitive, but can widen during periods of market volatility.

Market Environment Factors

Economic indicators, interest rate movements, inflation expectations, and credit spreads all influence the performance of VBND.

Growth Trajectory

The ETF's growth depends on its ability to attract assets by delivering competitive returns and maintaining a consistent investment strategy.

Competitive Edge

VBND's competitive advantage lies in its active management strategy, which seeks to generate alpha by dynamically adjusting its portfolio based on macroeconomic analysis. It offers potential for outperformance in various market environments through its flexible approach. The ETF's strategic portfolio positioning based on in-depth analysis may offer better risk-adjusted returns. This active management approach aims to adapt to changing market conditions and capitalize on opportunities.

Volatility

The ETF's volatility will depend on the composition of its portfolio and the overall volatility of the fixed income market.

Market Risk

Risks include interest rate risk, credit risk, and liquidity risk, which can affect the value of the underlying bonds.

Ideal Investor Profile

VBND is suitable for investors seeking income and capital appreciation from investment-grade fixed income securities. It is ideal for investors comfortable with active management.

Market Risk

The ETF is suitable for long-term investors seeking diversification and income, as well as potentially active traders looking to capitalize on market movements.

Vident Core U.S. Bond Strategy ETF (VBND) is an actively managed core bond ETF seeking total return by investing in U.S. dollar-denominated investment-grade fixed income securities. Its active management strategy differentiates it from passive index-tracking funds. While its AUM is smaller compared to competitors, its potential for outperformance through strategic portfolio adjustments makes it an option for investors. Risks to consider include interest rate, credit, and liquidity risk, alongside the higher expenses associated with active management.

Data Sources:

• Vident Investment Advisory
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.