Launched on 11/08/2005, the SPDR S&P 400 Mid Cap Value ETF (MDYV) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Value segment of the US equity market.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $2.05 billion, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.
Why Mid Cap Value
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.20%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 20.40% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Expand Energy Corp (EXE) accounts for about 1.46% of total assets, followed by Fidelity National Financial (FNF) and Us Foods Holding Corp (USFD).
The top 10 holdings account for about 10.58% of total assets under management.
Performance and Risk
MDYV seeks to match the performance of the S&P MidCap 400 Value Index before fees and expenses. The S&P MidCap 400 Value Index measures the performance of the mid-capitalization value sector in the U.S. equity market.
The ETF has lost about -16.31% so far this year and is down about -8.45% in the last one year (as of 04/09/2025). In the past 52-week period, it has traded between $66.87 and $87.17.
The ETF has a beta of 1.05 and standard deviation of 19.80% for the trailing three-year period, making it a medium risk choice in the space. With about 299 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 400 Mid Cap Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, MDYV is a great option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $11.49 billion in assets, Vanguard Mid-Cap Value ETF has $15.18 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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SPDR S&P 400 Mid Cap Value ETF (MDYV): ETF Research Reports Fidelity National Financial, Inc. (FNF): Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports US Foods Holding Corp. (USFD): Free Stock Analysis Report iShares Russell Mid-Cap Value ETF (IWS): ETF Research Reports Expand Energy Corporation (EXE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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