Mid cap equities strike the perfect balance between large and small cap, but now investors can also side with growth or value using the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) and Vanguard Mid-Cap Growth Index Fund ETF Shares (VOT).
If investors think a value comeback is forthcoming, VOE seeks to track the performance of the CRSP US Mid Cap Value Index that measures the investment return of mid-capitalization value stocks. The fund employs an indexing investment approach designed to track the performance of the CRSP US Mid Cap Value Index, a broadly diversified index of value stocks of mid-size U.S. companies.
The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. VOE comes with a low expense ratio of 0.07% in an already-low 0.18% category average.
Value strategies often come with biases toward specific sectors, and may outperform more broadly-based indexes in certain economic environments such as recessions. Overall, VOE:
- Seeks to track the performance of the CRSP US Mid Cap Value Index, which measures the investment return of mid-capitalization value stocks.
- Provides a convenient way to match the performance of a diversified group of mid-size value companies.
- Follows a passively managed, full-replication approach.
- Has posted strong performance, with the fund up about 24% the last six months.
And to Err on the Side of Growth?
With a global vaccine rollout in full swing, investors may want to err on the side of growth. VOT seeks to track the performance of the CRSP US Mid Cap Growth Index that measures the investment return of mid-capitalization growth stocks.
The fund employs an indexing investment approach designed to track the performance of the CRSP US Mid Cap Growth Index, a broadly diversified index of growth stocks of mid-size U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. The ETF:
- Seeks to track the performance of the CRSP US Mid Cap Growth Index, which measures the investment return of mid-capitalization growth stocks.
- Provides a convenient way to match the performance of a diversified group of midsize growth companies.
- Follows a passively managed, full-replication approach.
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