VO
As of February 7, 2025, the Vanguard Mid-Cap ETF (VO) is trading at $276.31, reflecting a slight decrease of $0.81 (-0.29%) from the previous close.
1. Overview of VO
The Vanguard Mid-Cap ETF (VO) seeks to track the performance of the CRSP US Mid Cap Index, providing investors with exposure to a diversified portfolio of U.S. mid-capitalization stocks. Mid-cap companies are typically characterized by their potential for growth, offering a balance between the stability of large-cap firms and the high growth potential of small-cap companies.
- Ticker Symbol: VO
- Issuer: Vanguard
- Expense Ratio: 0.04%
- Dividend Yield: Approximately 1.4% (subject to change based on market conditions)
- Inception Date: January 26, 2004
- Assets Under Management (AUM): Over $72 billion
2. Performance Analysis
VO aims to replicate the performance of the mid-cap segment of the U.S. equity market.
2.1 Year-to-Date (YTD) and Historical Returns
As of December 31, 2024:
- YTD (2024): +15.23%
- 1-Year (2024): +15.23%
- 3-Year Annualized Return: +2.82%
- 5-Year Annualized Return: +9.85%
- 10-Year Annualized Return: +9.56%
Source: Vanguard
The fund has demonstrated solid performance, particularly over longer time horizons, reflecting the growth potential inherent in mid-cap equities.
2.2 Risk and Volatility
- Standard Deviation (3-Year): 19.85% (indicating moderate volatility)
Source: Vanguard
The standard deviation suggests that while VO experiences typical market fluctuations, its volatility is in line with expectations for mid-cap investments.
3. Portfolio Composition
VO provides exposure to a broad range of mid-cap stocks across various sectors. As of December 31, 2024, the top holdings include:
| Company Name | Sector | Weight (%) |
|---|---|---|
| Amphenol Corp. | Technology | 1.0 |
| Welltower Inc. | Real Estate | 1.0 |
| Palantir Technologies Inc. | Technology | 0.9 |
| Motorola Solutions Inc. | Technology | 0.9 |
| Arthur J. Gallagher & Co. | Financials | 0.9 |
| Constellation Energy Corp. | Utilities | 0.9 |
| TransDigm Group Inc. | Industrials | 0.8 |
| Digital Realty Trust Inc. | Real Estate | 0.7 |
| ONEOK Inc. | Energy | 0.7 |
| Carrier Global Corp. | Industrials | 0.7 |
Source: Vanguard
Sector Allocation:
- Industrials: 19.9%
- Technology: 13.9%
- Financials: 13.5%
- Consumer Discretionary: 13.1%
- Health Care: 8.6%
- Utilities: 8.3%
- Real Estate: 7.6%
- Consumer Staples: 6.0%
- Energy: 5.5%
- Basic Materials: 2.6%
- Telecommunications: 1.0%
Source: Vanguard
This diversified sector allocation provides investors with broad exposure to the U.S. mid-cap market, balancing growth potential across various industries.
4. Strengths and Risks
4.1 Strengths
- Diversification: Offers exposure to a broad range of mid-cap companies across various sectors.
- Low Expense Ratio: At 0.04%, VO is cost-effective compared to many actively managed funds.
- Growth Potential: Mid-cap companies often have significant growth opportunities, potentially leading to higher returns.
4.2 Risks
- Market Risk: As an equity fund, VO is subject to market fluctuations, which can affect its performance.
- Liquidity Risk: Some mid-cap stocks may have lower trading