The equal-weight index “is composed of 50 small- and mid-cap securities selected using criteria based on Value Line’s Timeliness1, Performance2, and Safety Ranks3, and the Financial Strength Rating,” according to Direxion. Value Line reviews the index weekly and stocks will be removed if their financial health rapidly weakens or if their Value Line safety and timeliness ranks fall.

Despite some obvious advantages, some investors have a tendency to ignore mid-caps.

“Mid-caps stocks are also relatively neglected and often overlooked – to the detriment of equity investors who may miss out on holding future leaders in their respective industries before becoming better known large-cap names,” said S&P Dow Jones Indices Vice President Philip Murphy in a research note published last year. [Mid-Cap ETFs Keep Shining]

While mid-caps are often prized for their growth traits, VLSM has the look of a value ETF. Richly valued utilities and consumer staples stocks combine for over 13% of the ETF’s weight, but VLSM also allocates almost 44% of its weight to financial services, one of the sectors that is currently attractively valued relative to the broader market.

VLSM’s top 10 holdings include CVR Partners (NYSE: UAN), Domtar (NYSE: UFS) and Tupperware (NYSE: TUP). Eight of those 10 stocks yield over 3% and three yield over 8%.