 The
Vanguard Mid-Cap Value ETF seeks to track the performance of the CRSP
US Mid Cap Value Index, which measures the performance of mid-sized US
companies with market capitalizations between $2 billion and $10
billion that are considered value stocks. The fund is managed by
Vanguard, one of the largest investment management companies in the
world.
As of September 2021, the VOE ETF had a net asset value
of approximately $28 billion and held over 200 individual stocks. The
fund's portfolio is diversified across various sectors of the US
economy, with a focus on mid-sized companies that are considered
undervalued relative to their fundamentals, such as earnings, book
value, and dividends.
Value stocks may offer investors the
potential for higher returns over the long term, as these companies
may be undervalued by the market and have the potential for price
appreciation. However, value stocks may also be subject to higher
volatility than growth stocks, particularly during periods of economic
uncertainty.
The expense ratio for the VOE ETF is 0.07%, which
is relatively low compared to some other mid-cap value ETFs. This may
make the VOE ETF an attractive option for investors seeking exposure
to mid-sized US value stocks at a low cost.
Overall, the
Vanguard Mid-Cap Value ETF may be a suitable investment for investors
seeking exposure to mid-sized US companies with value-oriented
characteristics, such as undervaluation and attractive dividends.
However, as with any investment, it is important to conduct your own
research and consider your investment goals and risk tolerance before
investing in the fund. Investors should also keep in mind the risks
associated with investing in mid-cap stocks, which may be more
volatile than large-cap stocks.
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