New ETF player launches international equity fund

|By:, SA News Editor

Vident Financial enters the ETF industry with the launch of the Vident International Equity Fund (VIDI), with the pricey cost of 0.75% compared to vaguely similar Vanguard funds VXUS and VEU with expense ratios of 0.16% and 0.15%, respectively. IndexUniverse's Paul Britt notes, however, 0.75% is competitive with what one might expect for an actively-managed fund.

Vident tracks a proprietary index investing through a complex system hoping to beat the returns of market-cap weighted funds. VIdent calls its approach "principled investing."

Maybe closer competitors are FlexShares' International Quality Dividend Defensive ETF (IQDE) and International Quality Dividend ETF (IQDF), each with 0.47 expense ratio, but also each subject to closure risk because of their lack of assets.