Vanguard Mid-Cap ETF: A Low-Cost Option for Mid-Cap Exposure

The Vanguard Mid-Cap ETF (VO) is a passively managed exchange traded fund that offers broad exposure to the Mid Cap Blend segment of the US equity market. It has $85.49 billion in assets and an expense ratio of 0.04%. The ETF has a beta of 1.02 and standard deviation of 17.15% for the trailing three-year period, making it a medium risk choice. It has a Zacks ETF Rank of 2 (Buy) and is suitable for investors seeking exposure to the Style Box - Mid Cap Blend.

The Vanguard Mid-Cap ETF (VO) is a passively managed exchange-traded fund (ETF) that provides broad exposure to the Mid Cap Blend segment of the U.S. equity market. Launched on January 26, 2004, the fund has amassed assets totaling $85.49 billion, making it one of the largest ETFs in its category [1][2].

Mid-cap companies, with market capitalization between $2 billion and $10 billion, offer a balance of stability and growth potential. These companies typically exhibit higher growth prospects than large-cap companies and are less volatile than small-cap companies. Blend ETFs like VO hold a mix of growth and value stocks, providing a diversified investment strategy [1][2].

One of the key advantages of VO is its low cost. The ETF has an annual operating expense ratio of 0.04%, one of the lowest in the space. Additionally, it offers a 12-month trailing dividend yield of 1.51%, providing investors with a steady income stream [1][2].

Sector-wise, VO has the heaviest allocation to the Industrials sector, accounting for about 17.7% of the portfolio. Financials and Information Technology round out the top three sectors. The top 10 holdings account for approximately 5.78% of the fund's total assets, with Constellation Energy Corp (CEG), Transdigm Group Inc (TDG), and Doordash Inc (DASH) being significant individual holdings [1][2].

The ETF seeks to match the performance of the CRSP US Mid Cap Index before fees and expenses. Over the past year, VO has added about 8.2% and was up about 17.93%, demonstrating strong performance. It has a beta of 1.02 and a standard deviation of 17.15% for the trailing three-year period, classifying it as a medium-risk choice. The fund's diversified portfolio, comprising about 304 holdings, effectively minimizes company-specific risk [1][2].

Investors should also consider alternatives, such as the iShares Russell Mid-Cap ETF (IWR) and the iShares Core S&P Mid-Cap ETF (IJH), which track similar indices. While IWR has $42.76 billion in assets and an expense ratio of 0.19%, IJH has $95.63 billion in assets and charges 0.05% [1][2].

In conclusion, the Vanguard Mid-Cap ETF (VO) is an excellent option for investors seeking broad exposure to the Mid Cap Blend segment of the U.S. equity market. Its low cost, strong performance, and diversification make it a popular choice among both institutional and retail investors. For more information, visit Zacks ETF Center [1][2].

References:
[1] https://finviz.com/news/134746/should-vanguard-mid-cap-etf-vo-be-on-your-investing-radar
[2] https://finance.yahoo.com/news/vanguard-mid-cap-etf-vo-102002161.html