Should WisdomTree U.S. MidCap ETF (EZM) Be on Your Investing Radar?

Launched on 02/23/2007, the WisdomTree U.S. MidCap ETF (EZM) 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 Wisdomtree. It has amassed assets over $868.41 million, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.Why Mid Cap ValueMid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential.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. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.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 0.38%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.17%.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 Financials sector--about 19.10% of the portfolio. Consumer Discretionary and Industrials round out the top three.Looking at individual holdings, Fox Corp - Class A (FOXA) accounts for about 0.88% of total assets, followed by Ovintiv Inc (OVV) and Aptiv Holdings Ltd (APTV).The top 10 holdings account for about 7.34% of total assets under management.Performance and RiskEZM seeks to match the performance of the WisdomTree U.S. MidCap Earnings Index before fees and expenses. The WisdomTree U.S. MidCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the mid-capitalization segment of the U.S. Stock Market.The ETF has gained about 3.63% so far this year and is up roughly 13.89% in the last one year (as of 01/30/2025). In the past 52-week period, it has traded between $55.61 and $68.19.The ETF has a beta of 1.22 and standard deviation of 21.10% for the trailing three-year period, making it a medium risk choice in the space. With about 560 holdings, it effectively diversifies company-specific risk.AlternativesWisdomTree U.S. MidCap 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, EZM is a sufficient option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $13.89 billion in assets, Vanguard Mid-Cap Value ETF has $17.77 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.Bottom-LinePassively 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.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 WisdomTree U.S. MidCap ETF (EZM): ETF Research Reports Fox Corporation (FOXA): Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports iShares Russell Mid-Cap Value ETF (IWS): ETF Research Reports Aptiv PLC (APTV): Free Stock Analysis Report Ovintiv Inc. (OVV): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks