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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.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

The fund is managed by Wisdomtree. EZM has been able to amass assets over $789.65 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. This particular fund 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

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Operating expenses on an annual basis are 0.38% for this ETF, which makes it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.35%.

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.

Taking into account individual holdings, Dreyfus Trsy Oblig Cash Mgmt Cl Insaccounts for about 67.99% of the fund's total assets, followed by Us Dollar and Aptiv Holdings Ltd (APTV).

The top 10 holdings account for about 107.17% of total assets under management.

Performance and Risk

So far this year, EZM has added about 5.47%, and it's up approximately 6.24% in the last one year (as of 10/23/2025). During this past 52-week period, the fund has traded between $51.81 and $68.19.

The fund has a beta of 1.09 and standard deviation of 19.88% for the trailing three-year period, which makes EZM a medium risk choice in this particular space. With about 544 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 $13.95 billion in assets, Vanguard Mid-Cap Value ETF has $19.17 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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