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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?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $319.68 million, this makes it one of the larger ETFs in the World ETFs. VIDI is managed by Vident Financial. 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
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.
Annual operating expenses for this ETF are 0.61%, making it on par with most peer products in the space.
VIDI's 12-month trailing dividend yield is 4.91%.
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.
When you look at individual holdings, Hellofresh Se (HFG) accounts for about 0.99% of the fund's total assets, followed by Geely Automobile Holdings Ltd and Celestica Inc (CLS - Free Report) .
The top 10 holdings account for about 7.71% of total assets under management.
Performance and Risk
Year-to-date, the Vident International Equity Strategy ETF has added roughly 0.37% so far, and is up about 10.68% over the last 12 months (as of 01/17/2025). VIDI has traded between $23.49 and $27.19 in this past 52-week period.
The fund has a beta of 0.94 and standard deviation of 15.96% for the trailing three-year period, which makes VIDI a medium risk choice in this particular space. With about 253 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 $75.43 billion in assets, Vanguard FTSE Developed Markets ETF has $134.95 billion. VXUS has an expense ratio of 0.08% and VEA charges 0.06%.
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?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $319.68 million, this makes it one of the larger ETFs in the World ETFs. VIDI is managed by Vident Financial. 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
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.
Annual operating expenses for this ETF are 0.61%, making it on par with most peer products in the space.
VIDI's 12-month trailing dividend yield is 4.91%.
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.
When you look at individual holdings, Hellofresh Se (HFG) accounts for about 0.99% of the fund's total assets, followed by Geely Automobile Holdings Ltd and Celestica Inc (CLS - Free Report) .
The top 10 holdings account for about 7.71% of total assets under management.
Performance and Risk
Year-to-date, the Vident International Equity Strategy ETF has added roughly 0.37% so far, and is up about 10.68% over the last 12 months (as of 01/17/2025). VIDI has traded between $23.49 and $27.19 in this past 52-week period.
The fund has a beta of 0.94 and standard deviation of 15.96% for the trailing three-year period, which makes VIDI a medium risk choice in this particular space. With about 253 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 $75.43 billion in assets, Vanguard FTSE Developed Markets ETF has $134.95 billion. VXUS has an expense ratio of 0.08% and VEA charges 0.06%.
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.