The Vanguard Mid-Cap ETF (VO) was launched on January 26, 2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $95.20 billion, making it one of the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
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 0.03%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 18.5% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Constellation Energy Corp (CEG) accounts for about 1.2% of total assets, followed by Newmont Corp (NEM) and Robinhood Markets Inc (HOOD).
The top 10 holdings account for about 1.2% of total assets under management.
Performance and Risk
VO seeks to match the performance of the CRSP US Mid Cap Index before fees and expenses. The CRSP US Mid Cap Index targets inclusion of the U.S. companies that fall between the top 70%-85% of investable market capitalization.
The ETF return is roughly 4.44% so far this year and was up about 10.8% in the last one year (as of 02/20/2026). In the past 52-week period, it has traded between $228.54 and $303.71.
The ETF has a beta of 1.03 and standard deviation of 14.85% for the trailing three-year period, making it a medium risk choice in the space. With about 297 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Mid-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, VO is a good option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell Mid-Cap ETF (IWR) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While iShares Russell Mid-Cap ETF has $48.95 billion in assets, iShares Core S&P Mid-Cap ETF has $112.00 billion. IWR has an expense ratio of 0.18% and IJH charges 0.05%.
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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Vanguard Mid-Cap ETF (VO): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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