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Is WisdomTree U.S. MidCap ETF (EZM) a Strong ETF Right Now?

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Designed to provide broad exposure to the Style Box - Mid Cap Value category of the market, the WisdomTree U.S. MidCap ETF (EZM - Free Report) is a smart beta exchange traded fund launched on 02/23/2007.

What Are Smart Beta ETFs?

The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

The fund is sponsored by Wisdomtree. It has amassed assets over $795.22 million, making 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

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Annual operating expenses for this ETF are 0.38%, making it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 1.29%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

Taking into account individual holdings, Us Dollaraccounts for about 100% of the fund's total assets, followed by Fox Corp - Class A (FOXA) and Aptiv Holdings Ltd (APTV).

The top 10 holdings account for about 107.03% of total assets under management.

Performance and Risk

Year-to-date, the WisdomTree U.S. MidCap ETF has gained about 3.77% so far, and it's up approximately 9.17% over the last 12 months (as of 08/21/2025). EZM has traded between $51.81 $68.19 in this past 52-week period.

EZM has a beta of 1.07 and standard deviation of 20.65% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 550 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) tracks Russell MidCap Value Index and the Vanguard Mid-Cap Value ETF (VOE) tracks CRSP U.S. Mid Cap Value Index. 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 changes 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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