Designed to provide broad exposure to the Mid Cap Value segment of the US equity market, the Vanguard Mid-Cap Value ETF (VOE Quick QuoteVOE - Free Report) is a passively managed exchange traded fund launched on August 17, 2006.

The fund is sponsored by Vanguard. It has amassed assets over $21.30 billion, making it the largest ETF 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. These types of companies, then, have a good balance of stability and growth potential.

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

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.07%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.99%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 18.1% of the portfolio. Industrials and Utilities round out the top three.

Looking at individual holdings, Newmont Corp (NEM) accounts for about 2.04% of total assets, followed by Crh Plc (CRH) and General Motors Co (GM).

The top 10 holdings account for about 6.35% of total assets under management.

Performance and Risk

VOE seeks to match the performance of the CRSP U.S. Mid Cap Value Index before fees and expenses. The CRSP U.S. Mid Cap Value Index measures the investment return of mid-capitalization value stocks.

The ETF has added about 5.45% so far this year and is up roughly 15.57% in the last one year (as of 02/04/2026). In the past 52-week period, it has traded between $141.87 and $187.03.

The ETF has a beta of 0.92 and standard deviation of 14.12% for the trailing three-year period, making it a medium risk choice in the space. With about 185 holdings, it effectively diversifies company-specific risk.

Alternatives

Vanguard 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, VOE is an outstanding 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 First Trust SMID Cap Rising Dividend Achievers ETF (SDVY) and the iShares Russell Mid-Cap Value ETF (IWS) track a similar index. While First Trust SMID Cap Rising Dividend Achievers ETF has $10.23 billion in assets, iShares Russell Mid-Cap Value ETF has $14.75 billion. SDVY has an expense ratio of 0.59% and IWS charges 0.23%.

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.