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Should WisdomTree U.S. MidCap ETF (EZM) Be on Your Investing Radar?
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The WisdomTree U.S. MidCap ETF (EZM - Free Report) was launched on 02/23/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Value segment of the US equity market.
The fund is sponsored by Wisdomtree. It has amassed assets over $817.20 million, 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. These types of companies, then, have a good balance of stability and growth potential.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
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 0.38%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.84%.
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 23.40% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Diamondback Energy Inc (FANG - Free Report) accounts for about 1.04% of total assets, followed by Signature Bank/new York Ny (SBNY - Free Report) and Jones Lang Lasalle Inc (JLL - Free Report) .
The top 10 holdings account for about 8.62% of total assets under management.
Performance and Risk
EZM seeks to match the performance of the WisdomTree U.S. MidCap Earnings Index before fees and expenses. 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.
The ETF has added about 29.69% so far this year and is up about 29.24% in the last one year (as of 12/23/2021). In the past 52-week period, it has traded between $42.79 and $57.03.
The ETF has a beta of 1.29 and standard deviation of 29.49% for the trailing three-year period, making it a medium risk choice in the space. With about 458 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. MidCap 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, EZM 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 MidCap Value ETF (IWS - Free Report) and the Vanguard MidCap Value ETF (VOE - Free Report) track a similar index. While iShares Russell MidCap Value ETF has $15.01 billion in assets, Vanguard MidCap Value ETF has $15.50 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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Should WisdomTree U.S. MidCap ETF (EZM) Be on Your Investing Radar?
The WisdomTree U.S. MidCap ETF (EZM - Free Report) was launched on 02/23/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Value segment of the US equity market.
The fund is sponsored by Wisdomtree. It has amassed assets over $817.20 million, 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. These types of companies, then, have a good balance of stability and growth potential.
While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
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 0.38%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.84%.
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 23.40% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Diamondback Energy Inc (FANG - Free Report) accounts for about 1.04% of total assets, followed by Signature Bank/new York Ny (SBNY - Free Report) and Jones Lang Lasalle Inc (JLL - Free Report) .
The top 10 holdings account for about 8.62% of total assets under management.
Performance and Risk
EZM seeks to match the performance of the WisdomTree U.S. MidCap Earnings Index before fees and expenses. 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.
The ETF has added about 29.69% so far this year and is up about 29.24% in the last one year (as of 12/23/2021). In the past 52-week period, it has traded between $42.79 and $57.03.
The ETF has a beta of 1.29 and standard deviation of 29.49% for the trailing three-year period, making it a medium risk choice in the space. With about 458 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. MidCap 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, EZM 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 MidCap Value ETF (IWS - Free Report) and the Vanguard MidCap Value ETF (VOE - Free Report) track a similar index. While iShares Russell MidCap Value ETF has $15.01 billion in assets, Vanguard MidCap Value ETF has $15.50 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.