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Is Vident International Equity ETF (VIDI) a Strong ETF Right Now?
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The Vident International Equity ETF (VIDI - Free Report) made its debut on 10/29/2013, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Vident Financial, and has been able to amass over $389.39 million, which makes it one of the larger ETFs in the World ETFs. Before fees and expenses, VIDI 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 this ETF are 0.61%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 5.13%.
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, Loblaw Companies Ltd (L - Free Report) accounts for about 0.82% of the fund's total assets, followed by Zim Integrated Shipping Serv Shs (ZIM - Free Report) and Pacific Basin Ship.
Its top 10 holdings account for approximately 6.83% of VIDI's total assets under management.
Performance and Risk
The ETF has lost about -7.95% so far this year and is down about -9.25% in the last one year (as of 05/23/2022). In the past 52-week period, it has traded between $23.57 and $29.58.
The ETF has a beta of 0.93 and standard deviation of 23.30% for the trailing three-year period, making it a medium risk choice in the space. With about 248 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident International Equity 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 $47.98 billion in assets, Vanguard FTSE Developed Markets ETF has $98.75 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 ETF (VIDI) a Strong ETF Right Now?
The Vident International Equity ETF (VIDI - Free Report) made its debut on 10/29/2013, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Vident Financial, and has been able to amass over $389.39 million, which makes it one of the larger ETFs in the World ETFs. Before fees and expenses, VIDI 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 this ETF are 0.61%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 5.13%.
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, Loblaw Companies Ltd (L - Free Report) accounts for about 0.82% of the fund's total assets, followed by Zim Integrated Shipping Serv Shs (ZIM - Free Report) and Pacific Basin Ship.
Its top 10 holdings account for approximately 6.83% of VIDI's total assets under management.
Performance and Risk
The ETF has lost about -7.95% so far this year and is down about -9.25% in the last one year (as of 05/23/2022). In the past 52-week period, it has traded between $23.57 and $29.58.
The ETF has a beta of 0.93 and standard deviation of 23.30% for the trailing three-year period, making it a medium risk choice in the space. With about 248 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident International Equity 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 $47.98 billion in assets, Vanguard FTSE Developed Markets ETF has $98.75 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.