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Is Vident Core U.S. Equity ETF (VUSE) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Vident Core U.S. Equity ETF (VUSE - Free Report) is a smart beta exchange traded fund launched on 01/22/2014.
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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
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 $468.50 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 Core US Stock Index represents a portfolio of US companies that adhere to higher standards of corporate governance and accounting, as measured by numerous research metrics.
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.
Operating expenses on an annual basis are 0.50% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.46%.
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.
This ETF has heaviest allocation in the Information Technology sector - about 21.20% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, First Solar Inc (FSLR - Free Report) accounts for about 0.75% of total assets, followed by Atlas Air Worldwide Hldgs Inc Com New and Pbf Energy Inc (PBF - Free Report) .
The top 10 holdings account for about 6.43% of total assets under management.
Performance and Risk
The ETF has lost about -11.81% so far this year and is down about -6.93% in the last one year (as of 10/27/2022). In the past 52-week period, it has traded between $37.13 and $47.51.
The fund has a beta of 1.13 and standard deviation of 28.94% for the trailing three-year period, which makes VUSE a medium risk choice in this particular space. With about 231 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident Core U.S. Equity 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.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV - Free Report) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $7.12 billion in assets, iShares Core S&P U.S. Value ETF has $11.85 billion. DFAT has an expense ratio of 0.29% and IUSV charges 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 Core U.S. Equity ETF (VUSE) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Vident Core U.S. Equity ETF (VUSE - Free Report) is a smart beta exchange traded fund launched on 01/22/2014.
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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
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 $468.50 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 Core US Stock Index represents a portfolio of US companies that adhere to higher standards of corporate governance and accounting, as measured by numerous research metrics.
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.
Operating expenses on an annual basis are 0.50% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.46%.
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.
This ETF has heaviest allocation in the Information Technology sector - about 21.20% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, First Solar Inc (FSLR - Free Report) accounts for about 0.75% of total assets, followed by Atlas Air Worldwide Hldgs Inc Com New and Pbf Energy Inc (PBF - Free Report) .
The top 10 holdings account for about 6.43% of total assets under management.
Performance and Risk
The ETF has lost about -11.81% so far this year and is down about -6.93% in the last one year (as of 10/27/2022). In the past 52-week period, it has traded between $37.13 and $47.51.
The fund has a beta of 1.13 and standard deviation of 28.94% for the trailing three-year period, which makes VUSE a medium risk choice in this particular space. With about 231 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident Core U.S. Equity 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.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV - Free Report) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $7.12 billion in assets, iShares Core S&P U.S. Value ETF has $11.85 billion. DFAT has an expense ratio of 0.29% and IUSV charges 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.