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 $2.37 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
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. Thus they have a nice balance of growth potential and stability.
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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
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 1.87%.
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 Financials sector--about 20.60% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Fidelity National Financial (FNF) accounts for about 1.27% of total assets, followed by Reliance Inc (RS) and Us Foods Holding Corp (USFD).
The top 10 holdings account for about 10.57% 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 -1.48% so far this year and it's up approximately 9.10% in the last one year (as of 06/13/2025). In the past 52-week period, it has traded between $66.87 and $87.17.
The ETF has a beta of 1.04 and standard deviation of 20.02% 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 an excellent 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 $13.15 billion in assets, Vanguard Mid-Cap Value ETF has $17.70 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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 Reliance, Inc. (RS): Free Stock Analysis Report 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 ReportsThis article originally published on Zacks Investment Research (zacks.com).
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