Vident Financial has listed a new exchange-traded fund, Vident Core US Bond Strategy ETF (VBND), on The Nasdaq Stock Market.
VBND began trading on Nasdaq on 16 October 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," says 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 US 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," says Walt Smith, vice president, head of US 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."