Alternatively, the SPDR Mid-Cap 400 (NYSEArca: MDY) covers the same mid-cap index. However, due to the older unit investment trust structure, the ETF is less flexible than Regulated Investment Company fund structures found in most other ETFs, like IJH. Consequently, MDY can not lend shares or efficiently reinvest dividends. MDY also issues a costlier a 0.25% expense ratio. The fund is down 1.7% year-to-date.
The Vanguard Mid-Cap ETF (NYSEArca: VO) tries to reflect the performance of the CRSP US Mid Cap Index. CRSP’s weighting methodology differs from the S&P. Consequently, the average market for a stock in the underlying index is $9 billion, which is less than the $62 billion in the S&P 500 and a little more than the $4 billion for the S&P 400. VO is down 1.0% year-to-date and comes with a 0.10% expense ratio.
The Schwab U.S. Mid-Cap ETF (NYSEArca: SCHM) tracks the Dow Jones U.S. Mid-Cap Total Stock Market Index, which includes the 500 stocks by market cap after the largest 500. The average market-capitalization in the index is about $5.3 billion. SCHM is up 0.8% year-to-date and has a cheap 0.07% expense ratio.
Additionally, investors interested in a smart-beta offering can look at the First Trust Mid Cap Core AlphaDEX Fund (NYSEArca: FNX). The fund selects stocks from the S&P 400 Index, but chooses stocks based on growth factors, sales to price and one year sales growth, along with value factors like book value to price, cash flow to price and return on assets. Consequently, the ETF leans toward more small-cap names, which make up aout 40.2% of the portfolio. FNX is down 4.6% year-to-date and comes with a 0.66% expense ratio.
For more information on middle capitalization stocks, visit our mid-cap category.
Max Chen contributed to this article.