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Is Vident International Equity Strategy ETF (VIDI) a Strong ETF Right Now?
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Launched on 10/29/2013, the Vident International Equity Strategy ETF (VIDI - Free Report) is a smart beta exchange traded fund offering broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
The fund is managed by Vident Financial, and has been able to amass over $383.14 million, which makes it one of the larger ETFs in the World ETFs. VIDI, before fees and expenses, 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.61% for VIDI, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.15%.
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.
Looking at individual holdings, Cash & Other (Cash&Other) accounts for about 1.13% of total assets, followed by Chicony Electroni and Compeq Mfg.
The top 10 holdings account for about 7.42% of total assets under management.
Performance and Risk
The ETF has lost about -0.20% so far this year and was up about 11.85% in the last one year (as of 03/04/2024). In the past 52-week period, it has traded between $21.52 and $24.61.
VIDI has a beta of 0.96 and standard deviation of 15.97% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 247 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 $65.55 billion in assets, Vanguard FTSE Developed Markets ETF has $126.56 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?
Launched on 10/29/2013, the Vident International Equity Strategy ETF (VIDI - Free Report) is a smart beta exchange traded fund offering broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
The fund is managed by Vident Financial, and has been able to amass over $383.14 million, which makes it one of the larger ETFs in the World ETFs. VIDI, before fees and expenses, 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.61% for VIDI, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.15%.
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.
Looking at individual holdings, Cash & Other (Cash&Other) accounts for about 1.13% of total assets, followed by Chicony Electroni and Compeq Mfg.
The top 10 holdings account for about 7.42% of total assets under management.
Performance and Risk
The ETF has lost about -0.20% so far this year and was up about 11.85% in the last one year (as of 03/04/2024). In the past 52-week period, it has traded between $21.52 and $24.61.
VIDI has a beta of 0.96 and standard deviation of 15.97% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 247 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 $65.55 billion in assets, Vanguard FTSE Developed Markets ETF has $126.56 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.