Is Vident International Equity Strategy ETF (VIDI) a strong ETF right now?

A smart beta exchange traded fund, the Vident International Equity Strategy ETF (VIDI – Free Report) debuted on 10/29/2013, and offers broad exposure to the Foreign Large Value ETF category of the market.

What are smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

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.

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.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of 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 and index

The fund is managed by Vident Financial. VIDI has been able to amass assets over $383.26 million, making it one of the average sized ETFs in the Foreign Large Value ETF. This particular fund, before fees and expenses, 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 and other expenses

When considering an ETF’s total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0.61%, making it one of the more expensive products in the space.

It’s 12-month trailing dividend yield comes in at 4.72%.

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.

Looking at individual holdings, Mobvista Inc accounts for about 1.11% of total assets, followed by Kioxia Holdings Corp (285A) and Oceanagold Corp (OGC).

VIDI’s top 10 holdings account for about 7.84% of its total assets under management.

Performance and risk

Year-to-date, the Vident International Equity Strategy ETF return is roughly 33.65% so far, and was up about 30.95% over the last 12 months (as of 11/24/2025). VIDI has traded between $23.03 $33.81 in this past 52-week period.

The fund has a beta of 0.82 and standard deviation of 14.48% for the trailing three-year period, which makes VIDI a medium risk choice in this particular space. With about 249 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 $13.14 billion in assets, Schwab Fundamental International Equity ETF has $18.27 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

Want the latest recommendations from Zacks Investment Research? Download 7 Best Stocks for the Next 30 Days. Click to get this free report