Vident Files ETF Targeting Hard-to-Access International Stocks

Vident Asset Management has filed for the Aligned Pathway International Completion ETF, an actively managed fund designed to provide exposure to international, emerging and frontier-market stocks that can be difficult or costly for U.S. retail investors to access directly. The fund will normally invest at least 40% of assets outside the U.S. and will screen securities based on market accessibility, liquidity, ownership restrictions, trading costs and pricing differences between local shares and U.S.-listed equivalents such as ADRs. Securities are then assessed using factors including global index representation and historical volatility. The strategy may also exclude companies involved in activities that conflict with certain ethical or religious values, including alcohol, tobacco, gambling and abortion-related products or services. Holdings will generally be weighted by market capitalization and global market influence, with derivatives available to manage equity exposure.