Designed to provide broad exposure to the Mid Cap Value segment of the US equity market, the WisdomTree U.S. MidCap Dividend ETF (DON Quick QuoteDON - Free Report) is a passively managed exchange traded fund launched on June 16, 2006.

The fund is sponsored by Wisdomtree. It has amassed assets over $3.77 billion, making it one of the larger ETFs attempting to match the Mid Cap Value segment of the US equity market.

Why Mid Cap Value

With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus they have a nice balance of growth potential and stability.

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 2.32%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Energy sector -- about -999900% of the portfolio. Industrials and Materials round out the top three.

Looking at individual holdings, Us Dollar accounts for about 100% of total assets, followed by Westar Energy Inc (WR) and Gaming & Leisure Porperties Inc (GLPI).

The top 10 holdings account for about 109.02% of total assets under management.

Performance and Risk

DON seeks to match the performance of the WisdomTree U.S. MidCap Dividend Index before fees and expenses. The WisdomTree U.S. MidCap Dividend Index is a fundamentally weighted index that measures the performance of the mid-capitalization segment of the US dividend-paying market.

The ETF return is roughly 2.73% so far this year and is up roughly 8.56% in the last one year (as of 08/21/2025). In the past 52-week period, it has traded between $43.28 and $55.55.

The ETF has a beta of 0.92 and standard deviation of 18% for the trailing three-year period, making it a medium risk choice in the space. With about 331 holdings, it effectively diversifies company-specific risk.

Alternatives

WisdomTree U.S. MidCap Dividend 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, DON is a sufficient option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $13.76 billion in assets, Vanguard Mid-Cap Value ETF has $18.64 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.