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Is Vident International Equity ETF (VIDI) a Strong ETF Right Now?
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Making its debut on 10/29/2013, smart beta exchange traded fund Vident International Equity ETF (VIDI - Free Report) provides investors broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Vident Financial. It has amassed assets over $345.40 million, making it one of the larger ETFs in the World ETFs. VIDI seeks to match the performance of the Vident International Equity Index before fees and expenses.
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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.61% for VIDI, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 6.65%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Taking into account individual holdings, Cash & Other (Cash&Other) accounts for about 1.26% of the fund's total assets, followed by Tgs Asa (TGS - Free Report) and Loblaw Companies Ltd (L - Free Report) .
Its top 10 holdings account for approximately 8.08% of VIDI's total assets under management.
Performance and Risk
The ETF has lost about -15.07% and is down about -15% so far this year and in the past one year (as of 07/25/2022), respectively. VIDI has traded between $21.22 and $27.96 during this last 52-week period.
The fund has a beta of 0.94 and standard deviation of 23.67% for the trailing three-year period, which makes VIDI a medium risk choice in this particular space. With about 249 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 $45.65 billion in assets, Vanguard FTSE Developed Markets ETF has $92.76 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?
Making its debut on 10/29/2013, smart beta exchange traded fund Vident International Equity ETF (VIDI - Free Report) provides investors broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Vident Financial. It has amassed assets over $345.40 million, making it one of the larger ETFs in the World ETFs. VIDI seeks to match the performance of the Vident International Equity Index before fees and expenses.
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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.61% for VIDI, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 6.65%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Taking into account individual holdings, Cash & Other (Cash&Other) accounts for about 1.26% of the fund's total assets, followed by Tgs Asa (TGS - Free Report) and Loblaw Companies Ltd (L - Free Report) .
Its top 10 holdings account for approximately 8.08% of VIDI's total assets under management.
Performance and Risk
The ETF has lost about -15.07% and is down about -15% so far this year and in the past one year (as of 07/25/2022), respectively. VIDI has traded between $21.22 and $27.96 during this last 52-week period.
The fund has a beta of 0.94 and standard deviation of 23.67% for the trailing three-year period, which makes VIDI a medium risk choice in this particular space. With about 249 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 $45.65 billion in assets, Vanguard FTSE Developed Markets ETF has $92.76 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.