Should Vanguard Mid-Cap ETF (VO) Be on Your Investing Radar?

Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the Vanguard Mid-Cap ETF (VO) is a passively managed exchange traded fund launched on 01/26/2004.The fund is sponsored by Vanguard. It has amassed assets over $70.16 billion, making it one of the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.Why Mid Cap BlendCompared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus, companies that fall under this category provide a stable and growth-heavy investment.Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 1.68%.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.This ETF has heaviest allocation to the Industrials sector--about 17.70% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, Welltower Inc (WELL) accounts for about 1.14% of total assets, followed by Palantir Technologies Inc (PLTR) and Arthur J Gallagher & Co (AJG).The top 10 holdings account for about 5.06% of total assets under management.Performance and RiskVO seeks to match the performance of the CRSP US Mid Cap Index before fees and expenses. The CRSP US Mid Cap Index targets inclusion of the U.S. companies that fall between the top 70%-85% of investable market capitalization.The ETF has lost about -6.16% so far this year and it's up approximately 1.39% in the last one year (as of 04/10/2025). In the past 52-week period, it has traded between $228.54 and $284.63.The ETF has a beta of 1.04 and standard deviation of 18.82% for the trailing three-year period, making it a medium risk choice in the space. With about 325 holdings, it effectively diversifies company-specific risk.AlternativesVanguard Mid-Cap ETF 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, VO is an excellent option for investors seeking exposure to the Style Box - Mid Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.The iShares Russell Mid-Cap ETF (IWR) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While iShares Russell Mid-Cap ETF has $36.77 billion in assets, iShares Core S&P Mid-Cap ETF has $85.70 billion. IWR has an expense ratio of 0.19% and IJH charges 0.05%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.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.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 Vanguard Mid-Cap ETF (VO): ETF Research Reports Arthur J. Gallagher & Co. (AJG): Free Stock Analysis Report iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports iShares Russell Mid-Cap ETF (IWR): ETF Research Reports Welltower Inc. (WELL): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks