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Should Vanguard Extended Market ETF (VXF) Be on Your Investing Radar?

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Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the Vanguard Extended Market ETF (VXF - Free Report) , a passively managed exchange traded fund launched on December 27, 2001.

The fund is sponsored by Vanguard. It has amassed assets over $25.52 billion, making it one of the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market.

Why Mid Cap Blend

Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus, companies that fall under this category provide a stable and growth-heavy investment.

Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.07%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 18.9% of the portfolio. Industrials and Financials round out the top three.

Looking at individual holdings, Slcmt1142 accounts for about 2.03% of total assets, followed by Snowflake Inc (SNOW) and Marvell Technology Inc (MRVL).

Performance and Risk

VXF seeks to match the performance of the S&P Completion Index before fees and expenses. The S&P Completion Index contains all of the U.S. common stocks regularly traded on the New York Stock Exchange and the Nasdaq over-the-counter market, except those stocks included in the S&P 500 Index.

The ETF has gained about 14.3% so far this year and was up about 7.99% in the last one year (as of 12/11/2025). In the past 52-week period, it has traded between $150.43 and $215.42.

The ETF has a beta of 1.14 and standard deviation of 20.12% for the trailing three-year period, making it a medium risk choice in the space. With about 3440 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard Extended Market 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, VXF is a reasonable 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) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $90.95 billion in assets, iShares Core S&P Mid-Cap ETF has $103.33 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

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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