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Should SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) Be on Your Investing Radar?
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Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the SPDR Portfolio S&P 400 Mid Cap ETF (SPMD - Free Report) is a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $4.75 billion, making it one of the larger ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid 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. Thus they have a nice balance of growth potential and stability.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.05%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.07%.
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 18.90% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Generac Holdings Inc. (GNRC - Free Report) accounts for about 0.89% of total assets, followed by Caesars Entertainment Inc (CZR - Free Report) and Penn National Gaming Inc. (PENN - Free Report) .
The top 10 holdings account for about 6.79% of total assets under management.
Performance and Risk
SPMD seeks to match the performance of the S&P 1000 Index before fees and expenses. The S&P 1000 Index combines the S&P MidCap 400 and the S&P SmallCap 600 to form an investable benchmark for the mid to small cap segment of the U.S. equity market.
The ETF return is roughly 21.10% so far this year and it's up approximately 73.73% in the last one year (as of 05/07/2021). In the past 52-week period, it has traded between $27.23 and $48.44.
The ETF has a beta of 1.20 and standard deviation of 26.99% for the trailing three-year period. With about 402 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 400 Mid Cap ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPMD is an outstanding 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 Vanguard MidCap ETF (VO - Free Report) and the iShares Core S&P MidCap ETF (IJH - Free Report) track a similar index. While Vanguard MidCap ETF has $47.23 billion in assets, iShares Core S&P MidCap ETF has $65.17 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
While 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.
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Should SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) Be on Your Investing Radar?
Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the SPDR Portfolio S&P 400 Mid Cap ETF (SPMD - Free Report) is a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $4.75 billion, making it one of the larger ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid 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. Thus they have a nice balance of growth potential and stability.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.05%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.07%.
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 18.90% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Generac Holdings Inc. (GNRC - Free Report) accounts for about 0.89% of total assets, followed by Caesars Entertainment Inc (CZR - Free Report) and Penn National Gaming Inc. (PENN - Free Report) .
The top 10 holdings account for about 6.79% of total assets under management.
Performance and Risk
SPMD seeks to match the performance of the S&P 1000 Index before fees and expenses. The S&P 1000 Index combines the S&P MidCap 400 and the S&P SmallCap 600 to form an investable benchmark for the mid to small cap segment of the U.S. equity market.
The ETF return is roughly 21.10% so far this year and it's up approximately 73.73% in the last one year (as of 05/07/2021). In the past 52-week period, it has traded between $27.23 and $48.44.
The ETF has a beta of 1.20 and standard deviation of 26.99% for the trailing three-year period. With about 402 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 400 Mid Cap ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPMD is an outstanding 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 Vanguard MidCap ETF (VO - Free Report) and the iShares Core S&P MidCap ETF (IJH - Free Report) track a similar index. While Vanguard MidCap ETF has $47.23 billion in assets, iShares Core S&P MidCap ETF has $65.17 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
While 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.