Should Vanguard S&P Mid-Cap 400 ETF (IVOO) Be on Your Investing Radar?

Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the Vanguard S&P Mid-Cap 400 ETF (IVOO), a passively managed exchange traded fund launched on 09/09/2010.The fund is sponsored by Vanguard. It has amassed assets over $2.43 billion, making it one of the average sized 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.Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.CostsCost 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 0.07%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 1.31%.Sector Exposure and Top HoldingsWhile 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 Industrials sector--about 22.10% of the portfolio. Financials and Consumer Discretionary round out the top three.Looking at individual holdings, Emcor Group Inc (EME) accounts for about 0.75% of total assets, followed by Illumina Inc (ILMN) and Williams-Sonoma Inc (WSM).The top 10 holdings account for about 4.84% of total assets under management.Performance and RiskIVOO seeks to match the performance of the S&P MidCap 400 Index before fees and expenses. The S&P MidCap 400 Index measures the performance of the mid-cap segment of the U.S. equity universe. The Index is a capitalization-weighted index composed of 400 domestic common stocks.The ETF has lost about -0.44% so far this year and it's up approximately 11.84% in the last one year (as of 02/24/2025). In the past 52-week period, it has traded between $95.60 and $115.08.The ETF has a beta of 1.13 and standard deviation of 19.68% for the trailing three-year period, making it a medium risk choice in the space. With about 406 holdings, it effectively diversifies company-specific risk.AlternativesVanguard S&P Mid-Cap 400 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IVOO is a sufficient option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $74.79 billion in assets, iShares Core S&P Mid-Cap ETF has $94.63 billion. VO has an expense ratio of 0.04% 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 S&P Mid-Cap 400 ETF (IVOO): ETF Research Reports Illumina, Inc. (ILMN): Free Stock Analysis Report EMCOR Group, Inc. (EME): Free Stock Analysis Report Williams-Sonoma, Inc. (WSM): Free Stock Analysis Report iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports Vanguard Mid-Cap ETF (VO): 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