The Vanguard S&P Mid-Cap 400 Value ETF (IVOV) offers a solid investment option for those looking at mid-cap value stocks.
This fund is backed by Vanguard and has gathered over $904 million in assets, making it a decent-sized player in the ETF world. Mid-cap companies, which are valued between $2 billion and $10 billion, often show better growth potential than larger firms while being less volatile than smaller ones.
Value stocks, which typically have lower price-to-earnings ratios, have historically outperformed growth stocks in the long run. However, in booming markets, growth stocks can shine brighter.
When picking an ETF, costs matter. The IVOV has low annual operating expenses of just 0.15%, which is a big plus. Plus, it offers a 12-month trailing dividend yield of 1.76%.
This ETF mainly invests in the Financials sector, making up about 25.3% of its portfolio, followed by Industrials and Consumer Discretionary. Its top holdings include Illumina, Expand Energy, and Fidelity National Financial, with the top ten holdings accounting for nearly 8% of total assets.
IVOV aims to track the S&P MidCap 400 Value Index, which measures medium-sized U.S. value stocks. So far this year, it’s down about 1.03%, but it gained around 12.35% over the last year. It has a beta of 1.17, indicating medium risk, and with 296 holdings, it helps spread out company-specific risks.
If you’re considering alternatives, the iShares Russell Mid-Cap Value ETF and Vanguard Mid-Cap Value ETF are worth a look. They track similar indices but have different asset sizes and expense ratios.
In short, more investors are leaning towards passively managed ETFs like IVOV for their low costs and transparency. They’re great for long-term investing. If you want to dive deeper into ETFs, check out Zacks ETF Center for more info and updates.
