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Is Vident International Equity ETF (VIDI) a Strong ETF Right Now?
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Designed to provide broad exposure to the World ETFs category of the market, the Vident International Equity ETF (VIDI - Free Report) is a smart beta exchange traded fund launched on 10/29/2013.
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 offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
The fund is managed by Vident Financial, and has been able to amass over $425.20 million, which makes it one of the larger ETFs in the World ETFs. 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for VIDI are 0.61%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 4.75%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Cash & Other (Cash&Other) accounts for about 1.29% of the fund's total assets, followed by China Res Pwr Hldg and Aspen Pharmacare .
VIDI's top 10 holdings account for about 7.53% of its total assets under management.
Performance and Risk
The ETF has lost about -0.76% and is up roughly 1.38% so far this year and in the past one year (as of 03/23/2022), respectively. VIDI has traded between $24.45 and $29.58 during this last 52-week period.
VIDI has a beta of 0.96 and standard deviation of 23.07% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 248 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident International Equity 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 $51.89 billion in assets, Vanguard FTSE Developed Markets ETF has $106.89 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
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 ETF (VIDI) a Strong ETF Right Now?
Designed to provide broad exposure to the World ETFs category of the market, the Vident International Equity ETF (VIDI - Free Report) is a smart beta exchange traded fund launched on 10/29/2013.
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 offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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
The fund is managed by Vident Financial, and has been able to amass over $425.20 million, which makes it one of the larger ETFs in the World ETFs. 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for VIDI are 0.61%, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 4.75%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Cash & Other (Cash&Other) accounts for about 1.29% of the fund's total assets, followed by China Res Pwr Hldg and Aspen Pharmacare .
VIDI's top 10 holdings account for about 7.53% of its total assets under management.
Performance and Risk
The ETF has lost about -0.76% and is up roughly 1.38% so far this year and in the past one year (as of 03/23/2022), respectively. VIDI has traded between $24.45 and $29.58 during this last 52-week period.
VIDI has a beta of 0.96 and standard deviation of 23.07% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 248 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident International Equity 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 $51.89 billion in assets, Vanguard FTSE Developed Markets ETF has $106.89 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
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.