Everyone is talking about Trump, Tweets, Tariffs, Trade Wars and the impact they are having on markets. Is now the time to back away from international investing, hold steady, or double down?
On the upcoming webcast, Trump and Trade Wars: How to Manage Your International Exposure, Kevin Davis, Chief Growth Officer, Vident Financial; and Jerry Bowyer, Chief Economist, Vident Financial, will talk about where economic growth is coming today and how international exposure cold improve the risk-adjusted return of a portfolio.
Specifically, investors can look to something like the Vident International Equity Fund (NASDAQ: VIDI), which tracks the Vident Core International Equity Index. VIDI’s undelrying index evaluates constituent countries based on growth, sound money, political stability and value factors. The index rebalances twice a year and seeks to reduce country, currency, and company concentration risks that can sometimes be typical amongst traditional capitalization-weighted approaches.
“The index seeks to improve risk adjusted returns by addressing the inherent weakness in a market cap weighting international strategy: Overexposure to risk concentrations and overvalued securities,” according to Vident Financial.
VIDI’s nearly 500 holdings are selected from 35 developed and emerging markets with an emphasis on quality traits such as robust GDP growth, high productivity ratios and low debt-to-GDP ratios.
VIDI is a well diversified international investment with access to both developed and emerging economies, regions, countries, and stocks. The ETF favors countries with lower government debt, lower government spending, higher savings and better current account balances. The underlying portfolio tilts towards countries with better demographics and higher productivity. Additionally, the fund focuses on countries at cheaper valuations and incorporates relative valuation in assessing and weighting companies within countries, seeking to acquire principles at favorable prices.
“Vident’s principles are woven throughout the construction of the indices and therefore the funds that track them. The application of principles-based investing results in a portfolio with improved exposure to countries with faster economic growth potential, lower fundamental risk, and more favorable demographics relative to a traditional cap-weighted international equity approach,” according to Vident Financial.
Financial advisors who are interested in learning more about international investment strategies can register for the Tuesday, October 29 webcast here.