The trio delivered at least 9.0% return in the year-to-date frame (as of November 1, 2013) braving taper concerns, U.S. government shutdown and structural issues in some major emerging economies.
Meanwhile, exposure-wise all these funds are roughly similar. All of these, including VIDI, have some coverage on North America in the single-digit range.
However, the trio has almost half of its allocations to Europe while VIDI currently has about 37% of its exposure to that continent. Instead, Emerging Asia has the bigger share of VIDI (read: Can These Emerging Market ETFs Continue to Outperform?).
VIDI’s underlying index – Vident International Equity Index – also seeks to outperform the MSCI ACWI ex-US Index in terms growth indicators. Moreover, VIDI can be a better tool for risk minimization.
A rebalancing strategy twice a year, an equal-weighted nature and reliance on fundamentals rather than a blind faith on market caps can provide VIDI an edge over most of its counterparts. Given the teeming global equities segment, VIDI may have to sell investors these unique features to stay competitive in the market.
This article is brought to you courtesy of Eric Dutram.