Should Vanguard S&P Mid-Cap 400 Value Index Fund ETF Shares (IVOV) Be on Your Investing Radar?

Launched on September 9, 2010, the Vanguard S&P Mid-Cap 400 Value Index Fund ETF Shares (IVOV) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Value segment of the US equity market.

The fund is sponsored by Vanguard. It has amassed assets over $1.15 billion, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.

Why Mid Cap Value

Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus they have a nice balance of growth potential and stability.

While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.1%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 23% of the portfolio. Industrials and Consumer Discretionary round out the top three.

Looking at individual holdings, Us Foods Holding Corp (USFD) accounts for about 1.15% of total assets, followed by Reliance Inc (RS) and Jones Lang Lasalle Inc (JLL).

The top 10 holdings account for about 5.14% of total assets under management.

Performance and Risk

IVOV seeks to match the performance of the S&P MidCap 400 Value Index before fees and expenses. The S&P MidCap 400 Value Index measures the performance of value stocks of medium-size U.S. companies.

The ETF has lost about 1.4% so far this year and is up about 8.57% in the last one year (as of 03/31/2026). In the past 52-week period, it has traded between $79.85 and $110.38.

The ETF has a beta of 1.02 and standard deviation of 17.9% for the trailing three-year period, making it a medium risk choice in the space. With about 312 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard S&P Mid-Cap 400 Value Index Fund ETF Shares holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IVOV is an excellent option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $13.98 billion in assets, Vanguard Mid-Cap Value Index Fund ETF Shares has $20.78 billion. IWS has an expense ratio of 0.23% and VOE charges 0.05%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

To 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.

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Vanguard S&P Mid-Cap 400 Value Index Fund ETF Shares (IVOV): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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