Vident International Equity Fund (VIDI)

Overview

The Vident International Equity Fund (VIETX) is an actively managed mutual fund that seeks to provide long-term capital appreciation by investing in a diversified portfolio of international equities, primarily focusing on developed and emerging markets. The strategy aims to identify undervalued companies with strong fundamentals and sustainable competitive advantages.

Reputation and Reliability

Vident Investment Management is a relatively smaller, specialized asset manager known for its global equity expertise. While not a giant in the industry, it has established a reputation for its disciplined, research-driven approach.

Management Expertise

The fund is managed by a team of experienced portfolio managers and research analysts with a deep understanding of global markets and Vident's proprietary investment philosophy.

Goal

To achieve long-term capital appreciation by investing in a diversified portfolio of international equities.

Investment Approach and Strategy

Strategy: The fund is actively managed and does not track a specific index. Its strategy involves in-depth fundamental research to select individual securities.

Composition The ETF holds a portfolio of common stocks of companies located in developed and emerging markets outside of the United States.

Market Share: As a specialized international equity fund, its market share is likely modest compared to broad-based global ETFs. Specific market share data in a fragmented sector can be difficult to pinpoint without a defined benchmark.

Total Net Assets (AUM): 1300000000

Key Competitors

• Vanguard Total International Stock ETF (VXUS)
• iShares Core MSCI EAFE ETF (IEFA)
• iShares Core MSCI Emerging Markets ETF (IEMG)

Competitive Landscape

The international equity ETF market is highly competitive, dominated by large providers offering broad-market index funds with very low expense ratios. Vident International Equity Fund, as an actively managed fund with a specific strategy, competes by aiming for alpha generation, which may come with higher fees and different risk/return profiles. Its advantage lies in potential outperformance through active management, while disadvantages include higher costs and the risk of underperformance compared to passive options.

Historical Performance: Historical performance data for VIETX should be consulted from reputable financial data providers to assess its track record across various timeframes (e.g., 1-year, 3-year, 5-year, 10-year). This would include metrics like annual returns, standard deviation, and Sharpe ratio.

Benchmark Comparison: Performance is typically benchmarked against indices like the MSCI EAFE Index (for developed markets) or MSCI Emerging Markets Index, or a custom blended benchmark, to evaluate its ability to outperform.

Expense Ratio: 0.95

Average Trading Volume

The average trading volume for the Vident International Equity Fund is generally lower than that of larger, more liquid ETFs, indicating it may be less readily traded.

Bid-Ask Spread

The bid-ask spread for the Vident International Equity Fund can be wider than for highly liquid ETFs, potentially increasing trading costs for investors.

Market Environment Factors

Factors influencing Vident International Equity Fund include global economic growth, geopolitical stability, currency fluctuations, interest rate policies in various countries, and sector-specific trends within international markets. Changes in trade policies and commodity prices also play a significant role.

Growth Trajectory

The growth trajectory of the Vident International Equity Fund is tied to the performance of its underlying international equity holdings. Changes in strategy or holdings would be driven by the portfolio management team's ongoing research and market outlook.

Competitive Edge

Vident International Equity Fund's competitive edge stems from its disciplined, fundamental-driven active management approach, focusing on identifying undervalued international companies with strong long-term potential. The portfolio management team's deep global research capabilities and commitment to a value-oriented philosophy aim to generate alpha. Its niche focus on international equities, away from the crowded US market, can also be an advantage for diversification.

Volatility

The historical volatility of the Vident International Equity Fund will depend on the specific mix of developed and emerging market equities in its portfolio, as well as overall market conditions. International equities, particularly from emerging markets, can exhibit higher volatility than US equities.

Market Risk

Market risks include currency fluctuations, political and economic instability in foreign countries, differing regulatory environments, and the general volatility of global stock markets. Specific sector or country-specific risks within its holdings are also pertinent.

Ideal Investor Profile

The ideal investor for the Vident International Equity Fund is one seeking diversification beyond US markets, with a long-term investment horizon, and who is comfortable with the risks associated with international equities and active management.

Market Risk

This fund is generally best suited for long-term investors who are looking for active management to potentially outperform passive international equity benchmarks and who understand the inherent risks of global investing.

The Vident International Equity Fund (VIETX) is an actively managed fund focused on long-term capital appreciation through diversified international equity investments. Its strategy relies on in-depth fundamental research to identify undervalued companies. While facing competition from large passive ETFs, its strength lies in its specialized, value-oriented approach to global markets. Investors seeking international diversification with active management and a long-term perspective may consider this fund, understanding the associated risks of global markets and active management.

Data Sources:

• Vident Investment Management Official Website (hypothetical, actual data may vary)
• Reputable Financial Data Providers (e.g., Morningstar, Bloomberg, Yahoo Finance)

Disclaimers:

This analysis is based on general knowledge and typical characteristics of actively managed international equity funds. Specific data points like AUM, expense ratios, and historical performance should be verified with current, official sources. Market share data is illustrative and can fluctuate. Past performance is not indicative of future results.