Investing in Mid-Cap Growth with SPDR S&P 400 ETF: A Comprehensive Guide

The SPDR S&P 400 Mid Cap Growth ETF (MDYG) is a passively managed ETF that tracks the S&P MidCap 400 Growth Index, targeting the mid-cap growth segment of the US equity market. It has $2.37 billion in assets and charges an annual operating expense of 0.15%. The ETF has a 12-month trailing dividend yield of 0.83% and is heavily allocated to the Industrials sector, with top holdings including Interactive Brokers Group and Emcor Group. It has gained 4.07% so far this year and is up 4.47% in the last year.

The SPDR S&P 400 Mid Cap Growth ETF (MDYG) is a passively managed exchange-traded fund (ETF) that seeks to provide exposure to the mid-cap growth segment of the U.S. equity market. Launched on November 8, 2005, the ETF tracks the S&P MidCap 400 Growth Index and has amassed assets of over $2.37 billion [2].

Key Features

Expense Ratio and Yield
MDYG charges an annual operating expense of 0.15%, making it one of the more cost-effective options in the mid-cap growth ETF space. It offers a 12-month trailing dividend yield of 0.83%, providing investors with a steady income stream [2].

Sector Allocation
The ETF has a significant allocation to the Industrials sector, with about 28.7% of its portfolio. Other major sectors include Financials and Consumer Discretionary. This sector diversification helps to minimize single stock risk and provides broad exposure to the mid-cap growth segment of the U.S. equity market [2].

Top Holdings
MDYG's top holdings include Interactive Brokers Group (IBKR) and Emcor Group (EME), with Interactive Brokers Group accounting for approximately 1.67% of total assets. The top 10 holdings account for about 12.48% of the fund's total assets under management [2].

Performance

Year-to-Date and One-Year Returns
As of July 2, 2025, MDYG has gained 4.07% so far this year and has seen a 4.47% increase in the last year. This performance reflects the strong growth prospects of mid-cap companies, which typically exhibit higher growth rates and lower volatility compared to large and small-cap companies [2].

Risk and Volatility
The ETF has a beta of 1.06 and a standard deviation of 19.96% for the trailing three-year period, indicating a medium risk profile. With about 245 holdings, MDYG effectively diversifies company-specific risk, providing investors with a balanced portfolio [2].

Alternatives

Investors may also consider other ETFs in the mid-cap growth space, such as the Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP). While VOT has a lower expense ratio of 0.07%, IWP charges 0.23%, making MDYG a competitive option in terms of cost and performance [2].

Conclusion

The SPDR S&P 400 Mid Cap Growth ETF (MDYG) offers investors a cost-effective and diversified way to gain exposure to the mid-cap growth segment of the U.S. equity market. With a strong performance record and a focus on the Industrials sector, MDYG is a solid choice for investors seeking long-term growth opportunities.

References

[1] https://money.usnews.com/funds/etfs/mid-cap-growth/spdr-s-p-400-mid-cap-growth-etf/mdyg
[2] https://finance.yahoo.com/news/spdr-p-400-mid-cap-102002893.html
[3] https://finance.yahoo.com/news/bny-mellon-us-mid-cap-102002455.html