Designed to provide broad exposure to the Mid Cap Value segment of the US equity market, the State Street SPDR S&P 400 Mid Cap Value ETF (MDYV Quick QuoteMDYV - Free Report) is a passively managed exchange traded fund launched on November 8, 2005.

The fund is sponsored by State Street Investment Management. It has amassed assets over $2.47 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

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.

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. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.

Costs

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.

Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.79%.

Sector Exposure and Top Holdings

ETFs offer a 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.

This ETF has heaviest allocation to the Financials sector -- about 21% of the portfolio. Industrials and Consumer Discretionary round out the top three.

Looking at individual holdings, Flex Ltd (FLEX) accounts for about 1.52% of total assets, followed by Talen Energy Corp (TLN) and Us Foods Holding Corp (USFD).

The top 10 holdings account for about 10.73% of total assets under management.

Performance and Risk

MDYV seeks to match the performance of the S&P MidCap 400 Value Index before fees and expenses. The S&P MidCap 400 Value Index measures the performance of the mid-capitalization value sector in the U.S. equity market.

The ETF return is roughly 8.19% so far this year and is up about 3.92% in the last one year (as of 12/17/2025). In the past 52-week period, it has traded between $66.87 and $87.28.

The ETF has a beta of 1.03 and standard deviation of 18.51% for the trailing three-year period, making it a medium risk choice in the space. With about 296 holdings, it effectively diversifies company-specific risk.

Alternatives

State Street SPDR S&P 400 Mid Cap Value ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, MDYV is an excellent option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

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 $14.30 billion in assets, Vanguard Mid-Cap Value ETF has $19.86 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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.