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Should Vanguard Mid-Cap Value ETF (VOE) Be on Your Investing Radar?
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The Vanguard Mid-Cap Value ETF (VOE - Free Report) was launched on 08/17/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Value segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $17.53 billion, making it the largest ETFs attempting to match the Mid Cap Value segment of the US equity market.
Why Mid Cap Value
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. These types of companies, then, have a good balance of stability and growth potential.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
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 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.65%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 20.10% of the portfolio. Industrials and Utilities round out the top three.
Looking at individual holdings, Arthur J Gallagher & Co (AJG - Free Report) accounts for about 1.84% of total assets, followed by Oneok Inc (OKE - Free Report) and Paccar Inc (PCAR - Free Report) .
The top 10 holdings account for about 4.35% of total assets under management.
Performance and Risk
VOE seeks to match the performance of the CRSP U.S. Mid Cap Value Index before fees and expenses. The CRSP U.S. Mid Cap Value Index measures the investment return of mid-capitalization value stocks.
The ETF has gained about 0.46% so far this year and is up roughly 8.33% in the last one year (as of 03/26/2025). In the past 52-week period, it has traded between $146.82 and $176.18.
The ETF has a beta of 1.04 and standard deviation of 16.04% for the trailing three-year period, making it a medium risk choice in the space. With about 198 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mid-Cap Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOE is an outstanding option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The First Trust SMID Cap Rising Dividend Achievers ETF (SDVY - Free Report) and the iShares Russell Mid-Cap Value ETF (IWS - Free Report) track a similar index. While First Trust SMID Cap Rising Dividend Achievers ETF has $8.04 billion in assets, iShares Russell Mid-Cap Value ETF has $13.47 billion. SDVY has an expense ratio of 0.59% and IWS charges 0.23%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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.
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Should Vanguard Mid-Cap Value ETF (VOE) Be on Your Investing Radar?
The Vanguard Mid-Cap Value ETF (VOE - Free Report) was launched on 08/17/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Value segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $17.53 billion, making it the largest ETFs attempting to match the Mid Cap Value segment of the US equity market.
Why Mid Cap Value
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. These types of companies, then, have a good balance of stability and growth potential.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
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 0.07%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.65%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 20.10% of the portfolio. Industrials and Utilities round out the top three.
Looking at individual holdings, Arthur J Gallagher & Co (AJG - Free Report) accounts for about 1.84% of total assets, followed by Oneok Inc (OKE - Free Report) and Paccar Inc (PCAR - Free Report) .
The top 10 holdings account for about 4.35% of total assets under management.
Performance and Risk
VOE seeks to match the performance of the CRSP U.S. Mid Cap Value Index before fees and expenses. The CRSP U.S. Mid Cap Value Index measures the investment return of mid-capitalization value stocks.
The ETF has gained about 0.46% so far this year and is up roughly 8.33% in the last one year (as of 03/26/2025). In the past 52-week period, it has traded between $146.82 and $176.18.
The ETF has a beta of 1.04 and standard deviation of 16.04% for the trailing three-year period, making it a medium risk choice in the space. With about 198 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mid-Cap Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOE is an outstanding option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The First Trust SMID Cap Rising Dividend Achievers ETF (SDVY - Free Report) and the iShares Russell Mid-Cap Value ETF (IWS - Free Report) track a similar index. While First Trust SMID Cap Rising Dividend Achievers ETF has $8.04 billion in assets, iShares Russell Mid-Cap Value ETF has $13.47 billion. SDVY has an expense ratio of 0.59% and IWS charges 0.23%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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.