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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.
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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
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.
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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.
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Investment Details
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.
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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.
Sources
- https://www.blackrock.com/us/individual/products/239764/ishares-sp-midcap-400-value-etf
- https://www.ishares.com/ch/professionals/en/products/239762/ishares-sp-midcap-400-growth-etf
- https://www.fool.com/quote/nysemkt/mdy/
- https://markets.businessinsider.com/etfs/spdr-sp-midcap-400-etf-trust-us78467y1073
- https://www.justetf.com/en/etf-profile.html
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