Is Vident U.S. Equity Strategy ETF (VUSE) a Strong ETF Right Now?

A smart beta exchange traded fund, the Vident U.S. Equity Strategy ETF (VUSE) debuted on 01/22/2014, and offers broad exposure to the Style Box - All Cap Value category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexBecause the fund has amassed over $560.75 million, this makes it one of the larger ETFs in the Style Box - All Cap Value. VUSE is managed by Vident Financial. Before fees and expenses, this particular fund seeks to match the performance of the Vident Core U.S. Equity Fund Index.The Vident U.S. Quality Index is a rules-based, systematic strategy index comprised of equity securities principally traded in the U.S. market of issuers domiciled in the United States.Cost & Other ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.Operating expenses on an annual basis are 0.50% for VUSE, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.81%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Representing 25.80% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Consumer Discretionary round out the top three.Taking into account individual holdings, Walmart Inc (WMT) accounts for about 2.60% of the fund's total assets, followed by Apple Inc (AAPL) and Oracle Corp (ORCL).VUSE's top 10 holdings account for about 22.46% of its total assets under management.Performance and RiskYear-to-date, the Vident U.S. Equity Strategy ETF has lost about -0.77% so far, and it's up approximately 8.84% over the last 12 months (as of 03/26/2025). VUSE has traded between $51.31 and $62.63 in this past 52-week period.The fund has a beta of 1.09 and standard deviation of 16.84% for the trailing three-year period, which makes VUSE a medium risk choice in this particular space. With about 130 holdings, it effectively diversifies company-specific risk.AlternativesVident U.S. Equity Strategy ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.Capital Group Dividend Value ETF (CGDV) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Capital Group Dividend Value ETF has $14.54 billion in assets, iShares Core S&P U.S. Value ETF has $20.31 billion. CGDV has an expense ratio of 0.33% and IUSV charges 0.04%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vident U.S. Equity Strategy ETF (VUSE): ETF Research Reports Apple Inc. (AAPL): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Capital Group Dividend Value ETF (CGDV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks