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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 Foreign Large Value ETF category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

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.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

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.

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

Managed by Vident Financial, VIDI has amassed assets over $390.22 million, making it one of the average sized ETFs in the Foreign Large Value ETF. This particular fund seeks to match the performance of the Vident International Equity Index before fees and expenses.

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

Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.

Annual operating expenses for VIDI are 0.61%, which makes it one of the more expensive products in the space.

VIDI's 12-month trailing dividend yield is 4.80%.

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.

Looking at individual holdings, Mobvista Inc accounts for about 0.79% of total assets, followed by Cash & Other (Cash&Other) and Zhen Ding Technology Holding Ltd.

Its top 10 holdings account for approximately 6.23% of VIDI's total assets under management.

Performance and Risk

So far this year, VIDI has added roughly 31.62%, and it's up approximately 27.97% in the last one year (as of 09/22/2025). During this past 52-week period, the fund has traded between $23.03 and $32.46.

The fund has a beta of 0.82 and standard deviation of 15.46% for the trailing three-year period, which makes VIDI a medium risk choice in this particular space. With about 255 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 $12.24 billion in assets, Schwab Fundamental International Equity ETF has $17.66 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.

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