Back to top

Image: Bigstock

Is Vident International Equity Strategy ETF (VIDI) a Strong ETF Right Now?

Read MoreHide Full Article

Designed to provide broad exposure to the Foreign Large Value ETF category of the market, the Vident International Equity Strategy ETF (VIDI - Free Report) is a smart beta exchange traded fund launched on 10/29/2013.

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 offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

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.

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. VIDI has been able to amass assets over $366.37 million, making it one of the average sized ETFs in the Foreign Large Value ETF. 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 VIDI are 0.61%, which makes it one of the more expensive products in the space.

It has a 12-month trailing dividend yield of 4.28%.

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, Cash & Other (Cash&Other) accounts for about 0.89% of the fund's total assets, followed by Sino Biopharmaceutical Ltd and Orlen Sa (PKN).

Its top 10 holdings account for approximately 7.25% of VIDI's total assets under management.

Performance and Risk

So far this year, VIDI has added about 22.72%, and is up about 24.74% in the last one year (as of 07/22/2025). During this past 52-week period, the fund has traded between $23.03 and $30.06.

The ETF has a beta of 0.80 and standard deviation of 15.76% for the trailing three-year period, making it a medium risk choice in the space. With about 258 holdings, it effectively diversifies company-specific risk .

Alternatives

Vident International Equity Strategy ETF is not a suitable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. Instead, there are other ETFs in the space which investors should consider.

Vanguard International High Dividend Yield ETF (VYMI) tracks FTSE All-World ex US High Dividend Yield Index and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Vanguard International High Dividend Yield ETF has $11.01 billion in assets, Schwab Fundamental International Equity ETF has $16.54 billion. VYMI has an expense ratio of 0.17% and FNDF changes 0.25%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF

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:


Vident International Equity Strategy ETF (VIDI) - free report >>

Published in