Is WisdomTree U.S. MidCap ETF (EZM) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Mid Cap Value category of the market, the WisdomTree U.S. MidCap ETF (EZM) is a smart beta exchange traded fund launched on 02/23/2007.

What Are Smart Beta ETFs?

The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is sponsored by Wisdomtree. It has amassed assets over $795.22 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. EZM seeks to match the performance of the WisdomTree U.S. MidCap Earnings Index before fees and expenses.

The WisdomTree U.S. MidCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the mid-capitalization segment of the U.S. Stock Market.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Annual operating expenses for this ETF are 0.38%, making it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 1.29%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

Taking into account individual holdings, Us Dollaraccounts for about 100% of the fund's total assets, followed by Fox Corp - Class A (FOXA) and Aptiv Holdings Ltd (APTV).

The top 10 holdings account for about 107.03% of total assets under management.

Performance and Risk

Year-to-date, the WisdomTree U.S. MidCap ETF has gained about 3.77% so far, and it's up approximately 9.17% over the last 12 months (as of 08/21/2025). EZM has traded between $51.81 $68.19 in this past 52-week period.

EZM has a beta of 1.07 and standard deviation of 20.65% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 550 holdings, it effectively diversifies company-specific risk .

Alternatives

WisdomTree U.S. MidCap ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.

iShares Russell Mid-Cap Value ETF (IWS) tracks Russell MidCap Value Index and the Vanguard Mid-Cap Value ETF (VOE) tracks CRSP U.S. Mid Cap Value Index. iShares Russell Mid-Cap Value ETF has $13.76 billion in assets, Vanguard Mid-Cap Value ETF has $18.64 billion. IWS has an expense ratio of 0.23% and VOE changes 0.07%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Value

Bottom Line

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This article originally published on Zacks Investment Research (zacks.com).

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