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Is Vident International Equity Strategy ETF (VIDI) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Vident International Equity Strategy ETF (VIDI - Free Report) debuted on 10/29/2013, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
VIDI is managed by Vident Financial, and this fund has amassed over $358.59 million, which makes it one of the average sized ETFs in the World ETFs. Before fees and expenses, this particular fund seeks to match the performance of the Vident International Equity Index.
The Vident Core International Equity Index is an international equity index that combines principles-based country and securities selection with sophisticated risk management. The index balances risk across developed and emerging economies and emphasizes those with favorable conditions for growth.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for VIDI are 0.61%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.85%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Wistron Corp accounts for about 1.24% of the fund's total assets, followed by Giga-Byte Tech and Lite-On Technology.
VIDI's top 10 holdings account for about 6.4% of its total assets under management.
Performance and Risk
Year-to-date, the Vident International Equity Strategy ETF return is roughly 7.88% so far, and was up about 5.10% over the last 12 months (as of 08/21/2023). VIDI has traded between $19.23 and $24.52 in this past 52-week period.
VIDI has a beta of 0.94 and standard deviation of 16.75% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 249 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident International Equity Strategy ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $56.19 billion in assets, Vanguard FTSE Developed Markets ETF has $110.60 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Vident International Equity Strategy ETF (VIDI) a Strong ETF Right Now?
A smart beta exchange traded fund, the Vident International Equity Strategy ETF (VIDI - Free Report) debuted on 10/29/2013, and offers broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
VIDI is managed by Vident Financial, and this fund has amassed over $358.59 million, which makes it one of the average sized ETFs in the World ETFs. Before fees and expenses, this particular fund seeks to match the performance of the Vident International Equity Index.
The Vident Core International Equity Index is an international equity index that combines principles-based country and securities selection with sophisticated risk management. The index balances risk across developed and emerging economies and emphasizes those with favorable conditions for growth.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for VIDI are 0.61%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.85%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Wistron Corp accounts for about 1.24% of the fund's total assets, followed by Giga-Byte Tech and Lite-On Technology.
VIDI's top 10 holdings account for about 6.4% of its total assets under management.
Performance and Risk
Year-to-date, the Vident International Equity Strategy ETF return is roughly 7.88% so far, and was up about 5.10% over the last 12 months (as of 08/21/2023). VIDI has traded between $19.23 and $24.52 in this past 52-week period.
VIDI has a beta of 0.94 and standard deviation of 16.75% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 249 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident International Equity Strategy ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $56.19 billion in assets, Vanguard FTSE Developed Markets ETF has $110.60 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.