S&P Midcap 400 Index ETF: A Comprehensive Overview

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The S&P Midcap 400 Index ETF is a popular investment option for those looking to tap into the growth potential of mid-sized companies. It tracks the S&P MidCap 400 Index, which consists of 400 mid-cap stocks.

The S&P Midcap 400 Index ETF is designed to provide broad exposure to the mid-cap segment of the US stock market. This segment is often seen as a sweet spot for investors, offering a balance between growth and stability.

The ETF is an index fund, meaning it holds a basket of stocks that mirror the S&P Midcap 400 Index. This allows investors to benefit from the diversification of the underlying index.

Fees

The fees associated with the S&P MidCap 400 Index ETF are relatively low. The management fee comes in at 0.18%, which is a standard rate for most index funds.

You'll notice that the acquired fund fees and expenses are zero, which is a plus for long-term investors. Other expenses are also a flat 0.00%, so you won't have to worry about any surprise charges.

The total expense ratio, which includes all of these fees, is also 0.18%. This is a great sign, as it means you'll be able to keep more of your investment returns.

Here are the fees broken down in a table:

Performance and Returns

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The return of your investment in the S&P Midcap 400 Index ETF may increase or decrease as a result of currency fluctuations if your investment is made in a currency other than that used in the past performance calculation.

Performance is shown on a Net Asset Value (NAV) basis, with gross income reinvested where applicable.

For another approach, see: Wealthfront Performance vs S&p 500

Alternative to Dow Jones

The Dow Jones is a well-established index, but it's missing a crucial piece of the market puzzle. The blue-chip index is made up of rock-solid companies, but it's not representative of the entire market.

Investors looking for a more comprehensive portfolio might consider alternatives to the Dow Jones. You can do better than the Dow Jones by investing in an ETF that covers a broader range of companies.

The Dow Jones is limited in its scope, focusing primarily on large-cap stocks. This sliver of the market leaves out the smaller, mid-cap companies that can provide significant growth opportunities.

For your interest: Dow Jones Utility Index Etf

Investment Details

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The S&P MidCap 400 Index ETF is a popular investment option for those looking to tap into the growth potential of mid-sized companies.

The S&P MidCap 400 Index is a market-capitalization-weighted index that tracks the performance of 400 mid-cap stocks in the United States.

This index covers approximately 7% of the U.S. stock market's total capitalization and provides exposure to a diverse range of industries and sectors.

The S&P MidCap 400 Index ETF typically holds a portfolio of 400 stocks and has an expense ratio of around 0.35%.

The ETF's holdings are subject to change over time as the underlying index is rebalanced quarterly to ensure it remains representative of the mid-cap market segment.

This rebalancing process helps maintain the ETF's tracking error within a reasonable range, allowing investors to stay aligned with the performance of the S&P MidCap 400 Index.

Expand your knowledge: Vanguard Index Funds S

Index Overview

The S&P MidCap 400 index is a benchmark for the US mid-cap market, covering the 400 smallest companies in the S&P 1500 index.

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ETFs tracking this index are a popular choice for investors looking to gain exposure to this market segment.

The SPDR S&P 400 US Mid Cap UCITS ETF is one of the most well-known ETFs on this index, with a fund size of 4,452 million euros.

This ETF has a TER (Total Expense Ratio) of 0.30% per annum, which is relatively low compared to other ETFs on the market.

The fund distributes dividends, allowing investors to receive regular income from their investment.

The SPDR S&P 400 US Mid Cap UCITS ETF uses full replication to track the S&P MidCap 400 index, holding all the underlying securities in the index.

Expand your knowledge: Vanguard S&p 500 Ucits Etf

Frequently Asked Questions

What is the difference between S&P 500 and S&P MidCap 400?

The S&P 400 (MidCap 400) has a smaller gap between large and small company weights compared to the S&P 500, with average companies being significantly smaller. This distinction makes the S&P 400 a more focused index on mid-sized companies, offering a unique investment opportunity.

What is Vanguard S&P mid-cap 400 Growth ETF?

Vanguard S&P MidCap 400 Growth ETF invests in mid-cap growth stocks, tracking the S&P MidCap 400 Growth Index for U.S. mid-cap growth returns. This ETF aims to mirror the index's performance, offering a diversified portfolio of growth companies.

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