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

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. This index comprises 400 mid-sized companies in the United States with strong growth potential, as determined by factors such as earnings growth, sales growth, and momentum. IVOG aims to provide investors with a convenient and low-cost way to invest in a diversified portfolio of these growth-oriented companies.

Objective

The primary investment goal of IVOG is to track the performance of the S&P MidCap 400 Growth Index and provide investors with long-term capital appreciation.

Issuer

Vanguard

• Reputation and Reliability: Vanguard is a highly reputable and reliable asset management company with over $8 trillion in assets under management. It is known for its low-cost funds, strong investment performance, and commitment to client service.
• Management: Vanguard's experienced management team is led by CEO Tim Buckley, who has been with the firm since 1996. The team has a strong track record of managing index funds and ETFs.

Market Share

IVOG is the second-largest ETF in the mid-cap growth category, with a market share of approximately 11.5%.

Total Net Assets

As of November 10, 2023, IVOG has total net assets of approximately $23 billion.

Moat

• Low Cost: IVOG has an expense ratio of just 0.04%, making it one of the lowest-cost mid-cap growth ETFs available.
• Diversification: IVOG provides investors with instant diversification across 400 different companies, reducing their exposure to individual stock risk.
• Proven Track Record: The S&P MidCap 400 Growth Index has historically outperformed the broader market over the long term.

Financial Performance

Historical Performance:

• 1 Year: +13.74%
• 3 Years: +32.14%
• 5 Years: +114.53%

Benchmark Comparison:

• S&P MidCap 400 Growth Index: +13.21% (1 Year), +31.54% (3 Years), +110.89% (5 Years)

Growth Trajectory

The mid-cap growth segment is expected to continue growing in the coming years, driven by factors such as positive economic growth and technological innovation. IVOG is well-positioned to benefit from this trend.

Liquidity

Average Trading Volume: Approximately 1.5 million shares per day.

Bid-Ask Spread: Approximately 0.01%.

Market Dynamics

• Economic Indicators: Strong economic growth can lead to higher corporate profits and stock prices, benefiting growth-oriented companies.
• Sector Growth Prospects: The technology, healthcare, and consumer discretionary sectors are expected to experience strong growth in the coming years, which could benefit IVOG.
• Current Market Conditions: Rising interest rates and inflation can pose challenges for growth stocks.

Competitors

• iShares S&P Mid-Cap 400 Growth Index (IJK): 14.3% market share
• SPDR S&P MidCap 400 Growth ETF (MDYG): 7.8% market share

Expense Ratio

0.04%

Investment Approach and Strategy

• Strategy: IVOG tracks the S&P MidCap 400 Growth Index, which means it invests in the same securities as the index in the same proportions.
• Composition: IVOG holds a diversified portfolio of mid-sized companies across various sectors, with a focus on growth stocks.

Key Points

• Low-cost, index-tracking ETF
• Invests in 400 mid-sized growth companies
• Proven track record of outperforming the broader market
• Well-positioned for future growth

Risks

• Volatility: Mid-cap growth stocks can be more volatile than the broader market.
• Market Risk: IVOG's performance is tied to the performance of the underlying companies in the S&P MidCap 400 Growth Index.
• Interest Rate Risk: Rising interest rates can make growth stocks less attractive to investors.

Who Should Consider Investing

Investors who are looking for:

• Long-term capital appreciation
• Exposure to mid-sized growth companies
• Low-cost and diversified investment

Fundamental Rating Based on AI

Based on an analysis of IVOG's financial health, market position, and future prospects, an AI-based rating system gives it a Fundamental Rating of 8 out of 10. This rating is supported by IVOG's low expense ratio, strong historical performance, and favorable growth trajectory.

Disclaimer:

The information provided above is for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.