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Is WisdomTree U.S. MidCap ETF (EZM) a Strong ETF Right Now?
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The WisdomTree U.S. MidCap ETF (EZM - Free Report) was launched on 02/23/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Mid Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
EZM is managed by Wisdomtree, and this fund has amassed over $847.37 million, which makes it one of the average sized ETFs in the Style Box - Mid Cap Value. 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.
Cost & Other Expenses
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 0.38%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.16%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
EZM's heaviest allocation is in the Financials sector, which is about 21.70% of the portfolio. Its Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Toll Brothers Inc (TOL - Free Report) accounts for about 1.17% of the fund's total assets, followed by Unum Group (UNM - Free Report) and East West Bancorp Inc (EWBC - Free Report) .
EZM's top 10 holdings account for about 7.64% of its total assets under management.
Performance and Risk
So far this year, EZM has added about 16.75%, and was up about 26.61% in the last one year (as of 12/09/2024). During this past 52-week period, the fund has traded between $53.91 and $68.19.
The fund has a beta of 1.20 and standard deviation of 21.32% for the trailing three-year period, which makes EZM a medium risk choice in this particular space. With about 541 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. MidCap ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell Mid-Cap Value ETF (IWS - Free Report) tracks Russell MidCap Value Index and the Vanguard Mid-Cap Value ETF (VOE - Free Report) tracks CRSP U.S. Mid Cap Value Index. IShares Russell Mid-Cap Value ETF has $14.16 billion in assets, Vanguard Mid-Cap Value ETF has $18.48 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Value.
Bottom Line
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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Is WisdomTree U.S. MidCap ETF (EZM) a Strong ETF Right Now?
The WisdomTree U.S. MidCap ETF (EZM - Free Report) was launched on 02/23/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Mid Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
EZM is managed by Wisdomtree, and this fund has amassed over $847.37 million, which makes it one of the average sized ETFs in the Style Box - Mid Cap Value. 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.
Cost & Other Expenses
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 0.38%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.16%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
EZM's heaviest allocation is in the Financials sector, which is about 21.70% of the portfolio. Its Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Toll Brothers Inc (TOL - Free Report) accounts for about 1.17% of the fund's total assets, followed by Unum Group (UNM - Free Report) and East West Bancorp Inc (EWBC - Free Report) .
EZM's top 10 holdings account for about 7.64% of its total assets under management.
Performance and Risk
So far this year, EZM has added about 16.75%, and was up about 26.61% in the last one year (as of 12/09/2024). During this past 52-week period, the fund has traded between $53.91 and $68.19.
The fund has a beta of 1.20 and standard deviation of 21.32% for the trailing three-year period, which makes EZM a medium risk choice in this particular space. With about 541 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. MidCap ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell Mid-Cap Value ETF (IWS - Free Report) tracks Russell MidCap Value Index and the Vanguard Mid-Cap Value ETF (VOE - Free Report) tracks CRSP U.S. Mid Cap Value Index. IShares Russell Mid-Cap Value ETF has $14.16 billion in assets, Vanguard Mid-Cap Value ETF has $18.48 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Value.
Bottom Line
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.