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Should Vanguard Morningstar Mid-Cap ETF (VO) Be on Your Investing Radar?
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Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the Vanguard Morningstar Mid-Cap ETF (VO - Free Report) is a passively managed exchange traded fund launched on January 26, 2004.
The fund is sponsored by Vanguard. It has amassed assets over $108.24 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 they have a nice balance of growth potential and stability.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.03%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.34%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 18.5% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Cloudflare Inc (NET) accounts for about 1.11% of total assets, followed by Marathon Petroleum Corp (MPC) and Valero Energy Corp (VLO).
The top 10 holdings account for about 4.32% of total assets under management.
Performance and Risk
VO seeks to match the performance of the CRSP US Mid Cap Index before fees and expenses. The Morningstar US Mid Cap Index represents the universe of mid-capitalization companies in the U.S. equity market.
The ETF has added about 14.47% so far this year and it's up approximately 14.43% in the last one year (as of 10/30/2026). In the past 52-week period, it has traded between $69.51 and $84.46.
The ETF has a beta of 1.00 and standard deviation of 14.28% for the trailing three-year period, making it a medium risk choice in the space. With about 278 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Morningstar Mid-Cap ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VO is an excellent option for investors seeking exposure to the Style Box - Mid Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell Mid-Cap ETF (IWR) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While iShares Russell Mid-Cap ETF has $58.24 billion in assets, iShares Core S&P Mid-Cap ETF has $124.14 billion. IWR has an expense ratio of 0.18% and IJH charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.
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Should Vanguard Morningstar Mid-Cap ETF (VO) Be on Your Investing Radar?
Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the Vanguard Morningstar Mid-Cap ETF (VO - Free Report) is a passively managed exchange traded fund launched on January 26, 2004.
The fund is sponsored by Vanguard. It has amassed assets over $108.24 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 they have a nice balance of growth potential and stability.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.03%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.34%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 18.5% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Cloudflare Inc (NET) accounts for about 1.11% of total assets, followed by Marathon Petroleum Corp (MPC) and Valero Energy Corp (VLO).
The top 10 holdings account for about 4.32% of total assets under management.
Performance and Risk
VO seeks to match the performance of the CRSP US Mid Cap Index before fees and expenses. The Morningstar US Mid Cap Index represents the universe of mid-capitalization companies in the U.S. equity market.
The ETF has added about 14.47% so far this year and it's up approximately 14.43% in the last one year (as of 10/30/2026). In the past 52-week period, it has traded between $69.51 and $84.46.
The ETF has a beta of 1.00 and standard deviation of 14.28% for the trailing three-year period, making it a medium risk choice in the space. With about 278 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Morningstar Mid-Cap ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VO is an excellent option for investors seeking exposure to the Style Box - Mid Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell Mid-Cap ETF (IWR) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While iShares Russell Mid-Cap ETF has $58.24 billion in assets, iShares Core S&P Mid-Cap ETF has $124.14 billion. IWR has an expense ratio of 0.18% and IJH charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.