Fund Description: Vident Core U.S. Bond Strategy ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the ETF Series Solutions, an open-end investment management company. INVESTMENT OBJECTIVE: The Vident Core U.S. Bond Strategy ETF seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Vident Core US Bond Index. INDEX DESCRIPTION: The Vident Core US Bond Index seeks to diversify and improve interest rate and credit risks of traditional U.S. core bonds. Based on a principled reasoning investment framework, the Index diversifies interest rate risks across all core U.S. bond sectors, including U.S. Treasuries, U.S. agency securities, mortgage backed securities (MBS) and investment-grade corporate bonds, as well as non-core fixed income sectors such as high-yield corporate bonds (also known as junk bonds) and Treasury Inflation-Protected Securities. While diversification among sectors is an important factor that will drive the risk/return profile of the strategy, another source of risk management is derived from the rules-based process that systematically over- or under-weights each sector based on macroeconomics (e.g., fiscal policy and demographic factors) and valuation (e.g., expected tail loss). Within the investment grade and high yield corporate sectors, the strategy seeks to improve corporate bond exposures by screening for companies with relatively stronger leadership, governance, and creditworthiness factors. Within each sector, individual bonds are weighted based on a combination of yield, interest rate risk and creditworthiness rather than amount of debt/bonds outstanding, a common approach of traditional bond indices. The Index limits exposure to each of the high-yield corporate bonds and TIPS sectors to 20% of the Index. The Index will generally have an effective duration of three to seven years and will generally have an average credit quality of investment grade. FUND STRATEGY: The Fund attempts to invest all, or substantially all, of its assets in the bonds that make up the Index. The Fund expects to use a replication strategy to achieve its investment objective, meaning it may invest in all of the component securities of the Index, but may, when the sub-adviser believes it is in the best interests of the Fund, use a representative sampling strategy, meaning it may invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole. The Fund may utilize the To Be Announced (TBA) market for MBS investments. The TBA market allows investors to gain exposure to MBS securities with certain broad characteristics (maturity, coupon, age) without taking delivery of the actual securities until the settlement day which is once every month. In addition, the Fund may utilize the TBA roll market, in which one sells, in the TBA market, the security for current month settlement, while simultaneously committing to buy the same TBA security for next month settlement. The Fund may utilize the TBA roll market for extended periods of time without taking delivery of the physical securities. FUND MANAGEMENT: Exchange Traded Concepts, LLC serves as investment adviser to the Fund. Mellon Capital Management Corp. serves as the sub-adviser to the Fund.