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Should Invesco S&P MidCap 400 Equal Weight ETF (EWMC) Be on Your Investing Radar?
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Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the Invesco S&P MidCap 400 Equal Weight ETF , a passively managed exchange traded fund launched on 12/03/2010.
The fund is sponsored by Invesco. It has amassed assets over $200.99 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
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. Thus they have a nice balance of growth potential and stability.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.40%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.15%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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 17.90% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Pbf Energy Inc (PBF - Free Report) accounts for about 0.30% of total assets, followed by Antero Resources Corp (AR - Free Report) and Jazz Pharmaceuticals Plc (JAZZ - Free Report) .
The top 10 holdings account for about 2.69% of total assets under management.
Performance and Risk
EWMC seeks to match the performance of the S&P MidCap 400 Equal Weight Index before fees and expenses. The S&P MidCap 400 Equal Weight Index equally weights mid-cap securities in the S&P MidCap 400 Index.
The ETF return is roughly 11.15% so far this year and was up about 3.77% in the last one year (as of 02/14/2023). In the past 52-week period, it has traded between $75.06 and $95.15.
The ETF has a beta of 1.21 and standard deviation of 30.90% for the trailing three-year period, making it a medium risk choice in the space. With about 402 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap 400 Equal Weight 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, EWMC 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 Vanguard Mid-Cap ETF (VO - Free Report) and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) track a similar index. While Vanguard Mid-Cap ETF has $54.67 billion in assets, iShares Core S&P Mid-Cap ETF has $70.29 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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 Invesco S&P MidCap 400 Equal Weight ETF (EWMC) Be on Your Investing Radar?
Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the Invesco S&P MidCap 400 Equal Weight ETF , a passively managed exchange traded fund launched on 12/03/2010.
The fund is sponsored by Invesco. It has amassed assets over $200.99 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
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. Thus they have a nice balance of growth potential and stability.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.40%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.15%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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 17.90% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Pbf Energy Inc (PBF - Free Report) accounts for about 0.30% of total assets, followed by Antero Resources Corp (AR - Free Report) and Jazz Pharmaceuticals Plc (JAZZ - Free Report) .
The top 10 holdings account for about 2.69% of total assets under management.
Performance and Risk
EWMC seeks to match the performance of the S&P MidCap 400 Equal Weight Index before fees and expenses. The S&P MidCap 400 Equal Weight Index equally weights mid-cap securities in the S&P MidCap 400 Index.
The ETF return is roughly 11.15% so far this year and was up about 3.77% in the last one year (as of 02/14/2023). In the past 52-week period, it has traded between $75.06 and $95.15.
The ETF has a beta of 1.21 and standard deviation of 30.90% for the trailing three-year period, making it a medium risk choice in the space. With about 402 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap 400 Equal Weight 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, EWMC 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 Vanguard Mid-Cap ETF (VO - Free Report) and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) track a similar index. While Vanguard Mid-Cap ETF has $54.67 billion in assets, iShares Core S&P Mid-Cap ETF has $70.29 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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.