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Is Vident U.S. Equity Strategy ETF (VUSE) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Vident U.S. Equity Strategy ETF (VUSE - Free Report) debuted on 01/22/2014, and offers broad exposure to the Style Box - All Cap Value 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.
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.
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.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $624.16 million, this makes it one of the larger ETFs in the Style Box - All Cap Value. VUSE is managed by Vident Financial. VUSE seeks to match the performance of the Vident Core U.S. Equity Fund Index before fees and expenses.
The Vident U.S. Quality Index is a rules-based, systematic strategy index comprised of equity securities principally traded in the U.S. market of issuers domiciled in the United States.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.50% for VUSE, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.63%.
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.
VUSE's heaviest allocation is in the Information Technology sector, which is about 28.4% of the portfolio. Its Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Oracle Corp (ORCL) accounts for about 3.29% of total assets, followed by Broadcom Inc (AVGO) and Nvidia Corp (NVDA).
VUSE's top 10 holdings account for about 24.35% of its total assets under management.
Performance and Risk
The ETF has gained about 8.8% so far this year and it's up approximately 16.94% in the last one year (as of 07/30/2025). In the past 52-week period, it has traded between $50.72 and $63.86
VUSE has a beta of 0.98 and standard deviation of 16.53% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 130 holdings, it effectively diversifies company-specific risk .
Alternatives
Vident U.S. Equity Strategy 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.
Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Fidelity High Dividend ETF has $6.15 billion in assets, iShares Core S&P U.S. Value ETF has $21.31 billion. FDVV has an expense ratio of 0.16% and IUSV changes 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.
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Is Vident U.S. Equity Strategy ETF (VUSE) a Strong ETF Right Now?
A smart beta exchange traded fund, the Vident U.S. Equity Strategy ETF (VUSE - Free Report) debuted on 01/22/2014, and offers broad exposure to the Style Box - All Cap Value 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.
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.
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.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $624.16 million, this makes it one of the larger ETFs in the Style Box - All Cap Value. VUSE is managed by Vident Financial. VUSE seeks to match the performance of the Vident Core U.S. Equity Fund Index before fees and expenses.
The Vident U.S. Quality Index is a rules-based, systematic strategy index comprised of equity securities principally traded in the U.S. market of issuers domiciled in the United States.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.50% for VUSE, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.63%.
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.
VUSE's heaviest allocation is in the Information Technology sector, which is about 28.4% of the portfolio. Its Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Oracle Corp (ORCL) accounts for about 3.29% of total assets, followed by Broadcom Inc (AVGO) and Nvidia Corp (NVDA).
VUSE's top 10 holdings account for about 24.35% of its total assets under management.
Performance and Risk
The ETF has gained about 8.8% so far this year and it's up approximately 16.94% in the last one year (as of 07/30/2025). In the past 52-week period, it has traded between $50.72 and $63.86
VUSE has a beta of 0.98 and standard deviation of 16.53% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 130 holdings, it effectively diversifies company-specific risk .
Alternatives
Vident U.S. Equity Strategy 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.
Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Fidelity High Dividend ETF has $6.15 billion in assets, iShares Core S&P U.S. Value ETF has $21.31 billion. FDVV has an expense ratio of 0.16% and IUSV changes 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.