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Is Vident International Equity Strategy ETF (VIDI) a Strong ETF Right Now?
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The Vident International Equity Strategy ETF (VIDI - Free Report) was launched on 10/29/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the World ETFs 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.
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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Vident Financial. VIDI has been able to amass assets over $365.01 million, making it one of the larger ETFs in the World ETFs. Before fees and expenses, VIDI seeks to match the performance of the Vident International Equity Index.
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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics 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 3.50%.
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, Cosco Shipping Holdings Co Ltd accounts for about 0.85% of the fund's total assets, followed by Sitc International Holdings Co Ltd and Hon Hai Precision Industry Co Ltd.
Its top 10 holdings account for approximately 7.2% of VIDI's total assets under management.
Performance and Risk
The ETF has added roughly 6.18% so far this year and was up about 14.80% in the last one year (as of 07/12/2024). In the past 52-week period, it has traded between $21.52 and $26.33.
VIDI has a beta of 0.95 and standard deviation of 15.66% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 252 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident International Equity Strategy 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 $74.59 billion in assets, Vanguard FTSE Developed Markets ETF has $136.83 billion. VXUS has an expense ratio of 0.08% and VEA charges 0.06%.
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 Strategy ETF (VIDI) a Strong ETF Right Now?
The Vident International Equity Strategy ETF (VIDI - Free Report) was launched on 10/29/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the World ETFs 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.
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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Vident Financial. VIDI has been able to amass assets over $365.01 million, making it one of the larger ETFs in the World ETFs. Before fees and expenses, VIDI seeks to match the performance of the Vident International Equity Index.
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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics 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 3.50%.
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, Cosco Shipping Holdings Co Ltd accounts for about 0.85% of the fund's total assets, followed by Sitc International Holdings Co Ltd and Hon Hai Precision Industry Co Ltd.
Its top 10 holdings account for approximately 7.2% of VIDI's total assets under management.
Performance and Risk
The ETF has added roughly 6.18% so far this year and was up about 14.80% in the last one year (as of 07/12/2024). In the past 52-week period, it has traded between $21.52 and $26.33.
VIDI has a beta of 0.95 and standard deviation of 15.66% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 252 holdings, it effectively diversifies company-specific risk.
Alternatives
Vident International Equity Strategy 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 $74.59 billion in assets, Vanguard FTSE Developed Markets ETF has $136.83 billion. VXUS has an expense ratio of 0.08% and VEA charges 0.06%.
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.