We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Vident U.S. Equity Strategy ETF (VUSE) a Strong ETF Right Now?
Read MoreHide Full Article
Launched on 01/22/2014, the Vident U.S. Equity Strategy ETF (VUSE - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value 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.
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.
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.
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
VUSE is managed by Vident Financial, and this fund has amassed over $647.43 million, which makes it one of the larger ETFs in the Style Box - All Cap Value. Before fees and expenses, VUSE seeks to match the performance of the Vident Core U.S. Equity Fund Index.
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
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 VUSE are 0.50%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.78%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For VUSE, it has heaviest allocation in the Information Technology sector --about 29.1% of the portfolio --while Financials and Healthcare round out the top three.
Taking into account individual holdings, Broadcom Inc (AVGO) accounts for about 2.86% of the fund's total assets, followed by Eli Lilly & Co (LLY) and Alphabet Inc (GOOGL).
VUSE's top 10 holdings account for about 24.2% of its total assets under management.
Performance and Risk
The ETF has added roughly 13.41% and it's up approximately 8.09% so far this year and in the past one year (as of 12/04/2025), respectively. VUSE has traded between $50.72 and $67.51 during this last 52-week period.
VUSE has a beta of 0.95 and standard deviation of 15.04% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 124 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 $7.68 billion in assets, iShares Core S&P U.S. Value ETF has $24.05 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Vident U.S. Equity Strategy ETF (VUSE) a Strong ETF Right Now?
Launched on 01/22/2014, the Vident U.S. Equity Strategy ETF (VUSE - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value 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.
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.
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.
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
VUSE is managed by Vident Financial, and this fund has amassed over $647.43 million, which makes it one of the larger ETFs in the Style Box - All Cap Value. Before fees and expenses, VUSE seeks to match the performance of the Vident Core U.S. Equity Fund Index.
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
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 VUSE are 0.50%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.78%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For VUSE, it has heaviest allocation in the Information Technology sector --about 29.1% of the portfolio --while Financials and Healthcare round out the top three.
Taking into account individual holdings, Broadcom Inc (AVGO) accounts for about 2.86% of the fund's total assets, followed by Eli Lilly & Co (LLY) and Alphabet Inc (GOOGL).
VUSE's top 10 holdings account for about 24.2% of its total assets under management.
Performance and Risk
The ETF has added roughly 13.41% and it's up approximately 8.09% so far this year and in the past one year (as of 12/04/2025), respectively. VUSE has traded between $50.72 and $67.51 during this last 52-week period.
VUSE has a beta of 0.95 and standard deviation of 15.04% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 124 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 $7.68 billion in assets, iShares Core S&P U.S. Value ETF has $24.05 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.