Don't Overlook International Smart Beta ETFs

VIDI’s geographic allocations are evaluated across growth, sound money, political stability and value factors.  VIE rebalances twice a year and “seeks to reduce country, currency, and company concentration risks that can sometimes be typical amongst traditional capitalization-weighted approaches,” according to Vident.

Related: Smart Beta and Dividends Meet Here

VIDI features exposure to 36 countries, including developed and emerging markets, at weights ranging from 0.14% to 8.14%. The ETF is heavily allocated to the Asia-Pacific region as its top four geographic allocations – South Korea, Japan, Singapore and Australia – combine for about 30% of the fund’s weight.

Since coming to market, VIDI has returned 8.3%, easily topping the 1.1% returned by the MSCI ACWI ex USA Index, the benchmark VIDI attempts to beat. VIDI charges 0.68% per year, or $68 on a $10,00 investment, and has nearly $710 million in assets under management.

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