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 traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of 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 $871.46 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. EZM, before fees and expenses, seeks to match the performance of the WisdomTree U.S. MidCap Earnings Index.

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

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

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

It has a 12-month trailing dividend yield of 1.31%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

Representing 18.7% of the portfolio, the fund has heaviest allocation to the Industrials sector; Financials and Consumer Discretionary round out the top three.

When you look at individual holdings, Viatris Inc (VTRS) accounts for about 1.32% of the fund's total assets, followed by Aes Corp/the (AES) and Cf Industries Holdings Inc (CF).

EZM's top 10 holdings account for about 7.31% of its total assets under management.

Performance and Risk

The ETF has added roughly 5.84% so far this year and was up about 14.24% in the last one year (as of 02/26/2026). In the past 52-week period, it has traded between $51.81 and $71.83

The fund has a beta of 1.06 and standard deviation of 19.04% for the trailing three-year period, which makes EZM a medium risk choice in this particular space. With about 512 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 $15.21 billion in assets, Vanguard Mid-Cap Value ETF has $22.07 billion. IWS has an expense ratio of 0.23% and VOE changes 0.05%.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research