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The Zacks Analyst Blog Highlights Vanguard Mid-Cap ETF, SPDR Portfolio S&P 400 Mid Cap ETF, Vanguard S&P Mid-Cap 400 ETF, iShares Russell Mid-Cap Growth ETF and Vanguard Mid-Cap Value ETF
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For Immediate Release
Chicago, IL – April 18, 2024 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Vanguard Mid-Cap ETF (VO - Free Report) , SPDR Portfolio S&P 400 Mid Cap ETF (SPMD - Free Report) , Vanguard S&P Mid-Cap 400 ETF (IVOO - Free Report) , iShares Russell Mid-Cap Growth ETF (IWP - Free Report) and Vanguard Mid-Cap Value ETF (VOE - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
A Spread of Top-Ranked Mid-Cap ETFs to Bet On Now
After a solid first quarter, Wall Street has been struggling this month as growing inflation worries and escalating geopolitical tensions take a toll on investors’ confidence.
The bouts of economic data points to a stronger economy, dialing back expectations for rate cuts in the first half of this year. Manufacturing activities unexpectedly expanded in March for the first time since September 2022 on a sharp rebound in production and stronger demand. Consumer prices and retail sales accelerated at a faster-than-expected pace in March, pushing inflation higher. This has outlined the case for longer-than-expected higher rates.
Notably, the Federal Reserve, in its latest comments, said that it will take "longer than expected" to achieve the confidence needed to get inflation down to its 2% target.
Further, the tensions in the Middle East have intensified after Iran launched a barrage of missiles and drones on Israel, heightening fears of a wider conflict in the volatile region (read: 5 ETF Zones to Keep Your Money Safe Amid Market Volatility).
In such a scenario, mid-cap investing can be a strong option, offering a unique balance between growth and stability, diversification benefits and potential for undervalued opportunities.
Why Mid-Caps?
Large-cap stocks tend to be household names with established businesses, while small-cap stocks offer the excitement of undiscovered opportunities. Mid-cap stocks occupy a unique position in the market, combining the stability of large-cap stocks with the growth potential of small-cap ones.
Mid-cap companies occupy a sweet spot in the market, as they have typically outgrown their small-cap counterparts and proven their business models but have not yet reached the size and maturity of large-cap companies. This transitional stage often results in higher growth rates and attractive risk-return characteristics.
Including mid-cap stocks in a portfolio can provide valuable diversification benefits, as they often exhibit different risk-return characteristics compared to large-cap and small-cap stocks. This diversification can help reduce the overall risk of a portfolio, particularly during periods of market volatility, by spreading investments across various market segments that may be impacted differently by market fluctuations (read: 3 Safe-Haven ETFs to Gain on Middle East Crisis).
As a result, mid-cap stocks often exhibit greater growth potential than large caps while providing more stability than small-cap stocks.
Our Picks
ETFs have emerged as a popular way for investors to access mid-cap stocks, offering several advantages. While there are several ETF choices available in the mid-cap space, we have highlighted some solid choices that currently boast a Zacks ETF Rank #1 (Strong Buy) or #2 (Buy), suggesting their outperformance in the months ahead.
Vanguard Mid-Cap ETF
Vanguard Mid-Cap ETF tracks the CRSP US Mid-Cap Index. It holds 328 stocks with a well-diversified portfolio, with each firm holding no more than 0.9% of the total assets. Vanguard Mid-Cap ETF has key holdings in industrials, technology, consumer discretionary and financials.
With AUM of $62.6 billion, Vanguard Mid-Cap ETF charges investors 4 bps in fees per year and has a Zacks ETF Rank #1.
SPDR Portfolio S&P 400 Mid Cap ETF
SPDR Portfolio S&P 400 Mid Cap ETF targets the broad mid-cap segment of the U.S. market. It tracks the S&P MidCap 400 Index and holds 401 stocks in its basket, with each accounting for no more than 1% share. Industrials, financials and consumer discretionary are the top three sectors with a double-digit allocation each.
SPDR Portfolio S&P 400 Mid Cap ETF has accumulated $9.7 billion in its asset base. It charges 3 bps in annual fees and has a Zacks ETF Rank #2.
Vanguard S&P Mid-Cap 400 ETF
Vanguard S&P Mid-Cap 400 ETF offers exposure to broad mid-capitalization stocks. It follows the S&P MidCap 400 Index, holding 401 securities with none accounting for more than 1% share. Industrials, consumer discretionary and financials are the top three sectors with double-digit exposure each.
Vanguard S&P Mid-Cap 400 ETF has managed $1.9 billion in its asset base. The ETF charges 10 bps in annual fees and has a Zacks ETF Rank #2.
iShares Russell Mid-Cap Growth ETF
With AUM of $15 billion, iShares Russell Mid-Cap Growth ETF offers exposure to mid-sized U.S. companies whose earnings are expected to grow at an above-average rate relative to the market by tracking the Russell MidCap Growth Index. It holds 330 securities in its basket, with none accounting for more than 2% of the total assets.
iShares Russell Mid-Cap Growth ETF charges 23 bps in annual fees and has a Zacks ETF Rank #2.
Vanguard Mid-Cap Value ETF
Vanguard Mid-Cap Value ETF follows the CRSP US Mid Cap Value Index, which measures the investment return of mid-capitalization value stocks. It holds 195 stocks in its basket, with each accounting for less than 1.6% of the assets. Industrials, financials, consumer discretionary and utilities are the top four sectors with double-digit exposure each (read: Top-Ranked Value ETFs to Buy Amid Uncertainty Around Rate Cut).
Vanguard Mid-Cap Value ETF has amassed $15.8 billion and charges 7 bps in fees per year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Vanguard Mid-Cap ETF, SPDR Portfolio S&P 400 Mid Cap ETF, Vanguard S&P Mid-Cap 400 ETF, iShares Russell Mid-Cap Growth ETF and Vanguard Mid-Cap Value ETF
For Immediate Release
Chicago, IL – April 18, 2024 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Vanguard Mid-Cap ETF (VO - Free Report) , SPDR Portfolio S&P 400 Mid Cap ETF (SPMD - Free Report) , Vanguard S&P Mid-Cap 400 ETF (IVOO - Free Report) , iShares Russell Mid-Cap Growth ETF (IWP - Free Report) and Vanguard Mid-Cap Value ETF (VOE - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
A Spread of Top-Ranked Mid-Cap ETFs to Bet On Now
After a solid first quarter, Wall Street has been struggling this month as growing inflation worries and escalating geopolitical tensions take a toll on investors’ confidence.
The bouts of economic data points to a stronger economy, dialing back expectations for rate cuts in the first half of this year. Manufacturing activities unexpectedly expanded in March for the first time since September 2022 on a sharp rebound in production and stronger demand. Consumer prices and retail sales accelerated at a faster-than-expected pace in March, pushing inflation higher. This has outlined the case for longer-than-expected higher rates.
Notably, the Federal Reserve, in its latest comments, said that it will take "longer than expected" to achieve the confidence needed to get inflation down to its 2% target.
Further, the tensions in the Middle East have intensified after Iran launched a barrage of missiles and drones on Israel, heightening fears of a wider conflict in the volatile region (read: 5 ETF Zones to Keep Your Money Safe Amid Market Volatility).
In such a scenario, mid-cap investing can be a strong option, offering a unique balance between growth and stability, diversification benefits and potential for undervalued opportunities.
Why Mid-Caps?
Large-cap stocks tend to be household names with established businesses, while small-cap stocks offer the excitement of undiscovered opportunities. Mid-cap stocks occupy a unique position in the market, combining the stability of large-cap stocks with the growth potential of small-cap ones.
Mid-cap companies occupy a sweet spot in the market, as they have typically outgrown their small-cap counterparts and proven their business models but have not yet reached the size and maturity of large-cap companies. This transitional stage often results in higher growth rates and attractive risk-return characteristics.
Including mid-cap stocks in a portfolio can provide valuable diversification benefits, as they often exhibit different risk-return characteristics compared to large-cap and small-cap stocks. This diversification can help reduce the overall risk of a portfolio, particularly during periods of market volatility, by spreading investments across various market segments that may be impacted differently by market fluctuations (read: 3 Safe-Haven ETFs to Gain on Middle East Crisis).
As a result, mid-cap stocks often exhibit greater growth potential than large caps while providing more stability than small-cap stocks.
Our Picks
ETFs have emerged as a popular way for investors to access mid-cap stocks, offering several advantages. While there are several ETF choices available in the mid-cap space, we have highlighted some solid choices that currently boast a Zacks ETF Rank #1 (Strong Buy) or #2 (Buy), suggesting their outperformance in the months ahead.
Vanguard Mid-Cap ETF
Vanguard Mid-Cap ETF tracks the CRSP US Mid-Cap Index. It holds 328 stocks with a well-diversified portfolio, with each firm holding no more than 0.9% of the total assets. Vanguard Mid-Cap ETF has key holdings in industrials, technology, consumer discretionary and financials.
With AUM of $62.6 billion, Vanguard Mid-Cap ETF charges investors 4 bps in fees per year and has a Zacks ETF Rank #1.
SPDR Portfolio S&P 400 Mid Cap ETF
SPDR Portfolio S&P 400 Mid Cap ETF targets the broad mid-cap segment of the U.S. market. It tracks the S&P MidCap 400 Index and holds 401 stocks in its basket, with each accounting for no more than 1% share. Industrials, financials and consumer discretionary are the top three sectors with a double-digit allocation each.
SPDR Portfolio S&P 400 Mid Cap ETF has accumulated $9.7 billion in its asset base. It charges 3 bps in annual fees and has a Zacks ETF Rank #2.
Vanguard S&P Mid-Cap 400 ETF
Vanguard S&P Mid-Cap 400 ETF offers exposure to broad mid-capitalization stocks. It follows the S&P MidCap 400 Index, holding 401 securities with none accounting for more than 1% share. Industrials, consumer discretionary and financials are the top three sectors with double-digit exposure each.
Vanguard S&P Mid-Cap 400 ETF has managed $1.9 billion in its asset base. The ETF charges 10 bps in annual fees and has a Zacks ETF Rank #2.
iShares Russell Mid-Cap Growth ETF
With AUM of $15 billion, iShares Russell Mid-Cap Growth ETF offers exposure to mid-sized U.S. companies whose earnings are expected to grow at an above-average rate relative to the market by tracking the Russell MidCap Growth Index. It holds 330 securities in its basket, with none accounting for more than 2% of the total assets.
iShares Russell Mid-Cap Growth ETF charges 23 bps in annual fees and has a Zacks ETF Rank #2.
Vanguard Mid-Cap Value ETF
Vanguard Mid-Cap Value ETF follows the CRSP US Mid Cap Value Index, which measures the investment return of mid-capitalization value stocks. It holds 195 stocks in its basket, with each accounting for less than 1.6% of the assets. Industrials, financials, consumer discretionary and utilities are the top four sectors with double-digit exposure each (read: Top-Ranked Value ETFs to Buy Amid Uncertainty Around Rate Cut).
Vanguard Mid-Cap Value ETF has amassed $15.8 billion and charges 7 bps in fees per year.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.