We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Invesco S&P MidCap 400 Equal Weight ETF (EWMC) Be on Your Investing Radar?
Read MoreHide Full Article
Launched on 12/03/2010, the Invesco S&P MidCap 400 Equal Weight ETF is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $200.72 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, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
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 1.23%.
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 Industrials sector--about 19.30% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Gamestop Corp (GME - Free Report) accounts for about 0.33% of total assets, followed by Blackbaud Inc (BLKB - Free Report) and Shockwave Medical Inc .
The top 10 holdings account for about 2.96% 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 has gained about 6.91% so far this year and it's up approximately 4.05% in the last one year (as of 06/09/2023). In the past 52-week period, it has traded between $75.06 and $95.15.
The ETF has a beta of 1.20 and standard deviation of 22.73% 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 $52 billion in assets, iShares Core S&P Mid-Cap ETF has $67.31 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Invesco S&P MidCap 400 Equal Weight ETF (EWMC) Be on Your Investing Radar?
Launched on 12/03/2010, the Invesco S&P MidCap 400 Equal Weight ETF is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $200.72 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, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
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 1.23%.
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 Industrials sector--about 19.30% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Gamestop Corp (GME - Free Report) accounts for about 0.33% of total assets, followed by Blackbaud Inc (BLKB - Free Report) and Shockwave Medical Inc .
The top 10 holdings account for about 2.96% 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 has gained about 6.91% so far this year and it's up approximately 4.05% in the last one year (as of 06/09/2023). In the past 52-week period, it has traded between $75.06 and $95.15.
The ETF has a beta of 1.20 and standard deviation of 22.73% 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 $52 billion in assets, iShares Core S&P Mid-Cap ETF has $67.31 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.