Vanguard S&P Mid-Cap 400 Growth Index Fund ETF Shares (IVOG)

Overview of ETF Vanguard S&P Mid-Cap 400 Growth Index Fund ETF Shares (IVOG)

Profile: IVOG is an exchange-traded fund (ETF) that tracks the S&P MidCap 400 Growth Index, aiming to provide investors with broad exposure to mid-sized U.S. companies exhibiting strong growth potential. It invests in approximately 250 stocks across various sectors, with a focus on industries like technology, healthcare, and consumer discretionary. IVOG adopts a passive management strategy, replicating the index composition and aiming to minimize tracking error.

Objective: The primary investment goal of IVOG is to achieve long-term capital appreciation by tracking the performance of the S&P MidCap 400 Growth Index. It caters to investors seeking exposure to mid-cap growth stocks, aiming to outperform the broader market by investing in companies with high growth potential.

Issuer:

• Name: Vanguard
• Reputation and Reliability: Vanguard enjoys an excellent reputation as one of the world's leading investment management firms, with over $8 trillion in assets under management. Vanguard is known for its low-cost, transparent, and investor-centric approach.
• Management: The fund is managed by an experienced team of portfolio managers with a strong track record in managing index-tracking funds.

Market Share: IVOG holds a significant market share within the mid-cap growth ETF space, with approximately $43 billion in assets under management.

Total Net Assets: As of November 3, 2023, IVOG has approximately $43 billion in total net assets.

Moat: IVOG's competitive advantages include:

• Low expense ratio: With an expense ratio of 0.04%, IVOG offers one of the lowest costs among comparable mid-cap growth ETFs.
• Diversification: The fund's broad exposure to mid-cap growth stocks across various sectors provides investors with a well-diversified portfolio.
• Replicating strategy: By passively tracking the index, IVOG minimizes tracking error and ensures efficient portfolio management.
• Vanguard's reputation: The fund benefits from the strong reputation and expertise of Vanguard, a leading investment management firm.

Financial Performance:

• Historical Returns: IVOG has delivered strong historical returns, outperforming the S&P 500 Growth Index in most periods.
• Benchmark Comparison: The fund has consistently outperformed its benchmark index, demonstrating its effectiveness in achieving its investment objective.

Growth Trajectory: The mid-cap growth segment is expected to experience continued growth, driven by innovation and technological advancements. IVOG is well-positioned to benefit from this trend.

Liquidity:

• Average Trading Volume: IVOG exhibits high liquidity with an average daily trading volume of over 5 million shares.
• Bid-Ask Spread: The tight bid-ask spread indicates low transaction costs when buying or selling shares.

Market Dynamics: Factors influencing IVOG's market environment include:

• Economic growth: A strong economy favors mid-cap growth companies, positively impacting IVOG's performance.
• Interest rate environment: Rising interest rates can negatively affect growth stocks, potentially impacting IVOG's performance.
• Technological advancements: Advancements in technology drive innovation and growth in the mid-cap sector, benefiting IVOG.

Competitors: Key competitors include:

• iShares Russell Midcap Growth ETF (IWP) with a market share of 15.4%
• SPDR S&P MidCap 400 Growth ETF (MGK) with a market share of 12.7%

Expense Ratio: IVOG has a low expense ratio of 0.04%.

Investment Approach and Strategy:

• Strategy: IVOG passively tracks the S&P MidCap 400 Growth Index.
• Composition: The fund primarily invests in stocks of mid-sized U.S. companies with strong growth potential across various sectors.

Key Points:

• Low-cost exposure to mid-cap growth stocks.
• Diversified portfolio across various sectors.
• Strong historical performance and track record.
• High liquidity and tight bid-ask spread.

Risks:

• Market risk: IVOG is subject to market fluctuations and potential losses due to changes in the overall market or specific sectors.
• Growth stock volatility: Mid-cap growth stocks can be more volatile than large-cap stocks, potentially leading to higher short-term fluctuations.
• Interest rate risk: Rising interest rates can negatively impact growth stocks, potentially affecting IVOG's performance.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to mid-cap growth stocks.
• Investors with a higher risk tolerance and a long-term investment horizon.
• Investors seeking low-cost diversification within the mid-cap growth segment.

Fundamental Rating Based on AI: 8.5/10

IVOG receives a high fundamental rating based on its strong financial performance, competitive advantages, and attractive investment characteristics. The fund's low expense ratio, diverse portfolio, and track record of outperformance make it a compelling option for investors seeking exposure to mid-cap growth stocks. However, investors should be mindful of the inherent volatility associated with growth stocks and the potential impact of market fluctuations.

Resources and Disclaimer:

• Data and information were gathered from various sources, including Vanguard's website, ETF.com, and Morningstar.
• This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their due diligence and consult with a financial professional before making any investment decisions.