We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Vident Core U.S. Equity ETF (VUSE) a Strong ETF Right Now?
Read MoreHide Full Article
Launched on 01/22/2014, the Vident Core U.S. Equity ETF (VUSE - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value 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 work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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. VUSE has been able to amass assets over $483.53 million, making it one of the larger ETFs in the Style Box - All Cap Value. This particular fund seeks to match the performance of the Vident Core U.S. Equity Fund Index before fees and expenses.
The Vident Core US Stock Index represents a portfolio of US companies that adhere to higher standards of corporate governance and accounting, as measured by numerous research metrics.
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.50%.
It has a 12-month trailing dividend yield of 1.41%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 20% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Civitas Resources Inc (CIVI - Free Report) accounts for about 0.80% of total assets, followed by Marathon Oil Corp (MRO - Free Report) and Ovintiv Inc (OVV - Free Report) .
Its top 10 holdings account for approximately 7.33% of VUSE's total assets under management.
Performance and Risk
The ETF has lost about -8.24% and is down about -1.13% so far this year and in the past one year (as of 08/24/2022), respectively. VUSE has traded between $38.25 and $47.51 during this last 52-week period.
VUSE has a beta of 1.15 and standard deviation of 28.45% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 232 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident Core U.S. Equity ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT - Free Report) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV - Free Report) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $7.09 billion in assets, iShares Core S&P U.S. Value ETF has $12.08 billion. DFAT has an expense ratio of 0.29% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Vident Core U.S. Equity ETF (VUSE) a Strong ETF Right Now?
Launched on 01/22/2014, the Vident Core U.S. Equity ETF (VUSE - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value 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 work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other 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. VUSE has been able to amass assets over $483.53 million, making it one of the larger ETFs in the Style Box - All Cap Value. This particular fund seeks to match the performance of the Vident Core U.S. Equity Fund Index before fees and expenses.
The Vident Core US Stock Index represents a portfolio of US companies that adhere to higher standards of corporate governance and accounting, as measured by numerous research metrics.
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.50%.
It has a 12-month trailing dividend yield of 1.41%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 20% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Civitas Resources Inc (CIVI - Free Report) accounts for about 0.80% of total assets, followed by Marathon Oil Corp (MRO - Free Report) and Ovintiv Inc (OVV - Free Report) .
Its top 10 holdings account for approximately 7.33% of VUSE's total assets under management.
Performance and Risk
The ETF has lost about -8.24% and is down about -1.13% so far this year and in the past one year (as of 08/24/2022), respectively. VUSE has traded between $38.25 and $47.51 during this last 52-week period.
VUSE has a beta of 1.15 and standard deviation of 28.45% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 232 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident Core U.S. Equity ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT - Free Report) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV - Free Report) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $7.09 billion in assets, iShares Core S&P U.S. Value ETF has $12.08 billion. DFAT has an expense ratio of 0.29% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
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.