U.S. markets open in 3 hours 17 minutes
  • S&P Futures

    -8.50 (-0.19%)
  • Dow Futures

    -83.00 (-0.23%)
  • Nasdaq Futures

    -17.00 (-0.11%)
  • Russell 2000 Futures

    -7.50 (-0.33%)
  • Crude Oil

    -0.64 (-0.77%)
  • Gold

    +3.50 (+0.20%)
  • Silver

    -0.11 (-0.45%)

    -0.0007 (-0.06%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    +0.27 (+1.72%)

    -0.0032 (-0.23%)

    -0.3090 (-0.27%)

    +1,978.66 (+3.09%)
  • CMC Crypto 200

    +80.80 (+5.46%)
  • FTSE 100

    -24.60 (-0.34%)
  • Nikkei 225

    -546.97 (-1.87%)

Newcomer Vident Launches International Equity ETF (VIDI)

Taper talks came into focus once again this week after the Federal Reserve gave somewhat of a positive outlook on the economy, leaving investors speculating when the central bank will begin tapering its bond purchases. Meanwhile, investors also weighed a slew of earnings reports this week from big name companies; ConocoPhillips (COP), Apple (AAPL), and Facebook (FB) all beat analysts’ expectations, while Exxon Mobil (XOM) posted better-than-expected Q3 profit and revenue, despite an 18% decline in profits [see How To Invest In 2013's Breakthrough Technologies].

On the ETF front, the industry saw only one new launch this week from a newcomer to the ETF space.

Georgia-based Vident Financial made its debut in the ETF world with its launch on Thursday:

Global ETF
Global ETF
  • International Equity Fund (VIDI) : This fund tracks the Vident International Equity Index , which combines principles-based country and securities selection with sophisticated risk management. Unlike traditional market cap weighted funds, VIDI selects its securities using a unique methodology that uses metrics like debt-to-GDP ratios, valuations, as well as country and company specific risk measurements to determine each holding’s weighting. Currently, the fund allocates roughly one-third of its assets to companies from emerging Asia, while stocks from developed Europe and developed Asia Pacific account for roughly half of the portfolio [see Single Country ETFs: Everything Investors Need To Know].

Meet The Competition

Vident’s new fund will face some steep competition from other ex-U.S. funds in the Global Equities ETFdb Category. VIDI’s expense ratio of 0.75% falls toward the steeper end of the category, whose average expense ratio is 0.52%:

  • FTSE All-World ex US Index Fund (VEU, A): This fund is home to over $11 billion AUM

  • Total International Stock ETF (VXUS, A): Another popular option, this ETF charges only 16 basis points.

  • SPDR S&P World ex-US ETF (GWL, B+) : This fund is comprised of more than 700 individual holdings, though it focuses only on developed economies [see 101 ETF Lessons Every Financial Advisor Should Learn].

  • Core MSCI Total International Stock ETF (IXUS, A-): Part of iShares’ “core” lineup, this fund offers exposure to more than 3300 international stocks.

  • International Quality Dividend Index Fund (IQDF, n/a): This ETF focuses on high-quality, income-oriented international stocks, with an emphasis on long-term capital growth and a targeted overall volatility.

  • International Quality Dividend Defensive Index Fund (IQDE, n/a) : Similar to IQDF, this fund focuses on high quality dividend-paying securities, but focuses on low beta stocks.

Follow me on Twitter @DPylypczak.

Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.

Related Posts: