Launched on 09/09/2010, the Vanguard S&P MidCap 400 ETF (IVOO) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $1.46 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 Blend
Compared 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 are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.10%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.48%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 19.90% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Targa Resources Corp. (TRGP) accounts for about 0.73% of total assets, followed by Carlisle Cos. Inc. (CSL) and Steel Dynamics Inc. (STLD).
The top 10 holdings account for about 6.02% of total assets under management.
Performance and Risk
IVOO 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 -10.75% so far this year and is down about -8.33% in the last one year (as of 11/29/2022). In the past 52-week period, it has traded between $148.60 and $193.12.
The ETF has a beta of 1.12 and standard deviation of 29.75% for the trailing three-year period, making it a medium risk choice in the space. With about 404 holdings, it effectively diversifies company-specific risk.