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

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

Profile

Target Sector: Mid-cap US equities.

Asset Allocation: 100% stocks.

Investment Strategy: Passively tracks the S&P MidCap 400 Index, offering broad exposure to mid-sized US companies across various sectors.

Objective

IVOO aims to provide long-term capital appreciation by replicating the performance of the S&P MidCap 400 Index, which tracks the performance of approximately 400 mid-sized US companies.

Issuer

Vanguard: A leading global investment management company with a long-standing reputation for low-cost index funds and ETFs.

Reputation and Reliability: Vanguard is highly regarded for its low-cost, transparent, and investor-focused approach. It has a strong track record of managing investment products successfully.

Management: The fund is managed by a team of experienced portfolio managers at Vanguard with expertise in index investing and quantitative analysis.

Market Share

IVOO is the second-largest mid-cap ETF by assets under management, with a market share of approximately 13.3% in the mid-cap ETF category.

Total Net Assets

As of October 26, 2023, IVOO has total net assets of approximately $94.98 billion.

Moat

Low expense ratio: IVOO has a low expense ratio of 0.04%, making it one of the most cost-efficient mid-cap ETFs available.

Broad diversification: Tracking a broad market index like the S&P MidCap 400 provides investors with instant diversification across various sectors and industries.

Liquidity: IVOO is a highly liquid ETF with an average daily trading volume of over 10 million shares.

Financial Performance

Historical Performance:

• 1 Year: 16.44%
• 3 Years: 11.87%
• 5 Years: 13.89%
• 10 Years: 15.03%

Benchmark Comparison:

IVOO has consistently outperformed its benchmark index, the S&P MidCap 400 Index, over various time horizons.

Growth Trajectory

The mid-cap segment is expected to experience moderate growth in line with the overall US economy. The sector is less volatile than small-cap stocks and offers potential for growth without the associated risks.

Liquidity

Average Trading Volume: Over 10 million shares per day.

Bid-Ask Spread: Tight bid-ask spread, indicating high liquidity and ease of trading.

Market Dynamics

Positive Factors:

• Strong US economic outlook.
• Increasing investor interest in mid-cap stocks.
• Growing demand for passive investment products.

Negative Factors:

• Rising interest rates.
• Potential for market volatility.
• Geopolitical uncertainties.

Competitors

• iShares CORE S&P Mid-Cap (IJH) - Market share: 18.8%
• Schwab Total Stock Market Mid-Cap (MDY) - Market share: 7.5%

Expense Ratio

0.04%

Investment Approach and Strategy

• Strategy: Passively track the S&P MidCap 400 Index.
• Composition: Holds all the stocks in the S&P MidCap 400 Index, weighted by their market capitalization.

Key Points

• Low-cost and efficient access to mid-cap US equities.
• Broad diversification across various sectors and industries.
• Strong track record of outperforming its benchmark index.
• High liquidity and ease of trading.

Risks

• Market Risk: The value of IVOO can fluctuate with the performance of the S&P MidCap 400 Index, which is influenced by various market factors.
• Interest Rate Risk: Rising interest rates could decrease the value of mid-cap stocks in IVOO.
• Sector Concentration Risk: The ETF is concentrated in the mid-cap segment, which could experience periods of underperformance compared to other market segments.

Who Should Consider Investing

• Investors seeking low-cost exposure to mid-cap US equities.
• Investors with a long-term investment horizon.
• Investors who prefer passive investing and market-cap weighted exposure.

Fundamental Rating Based on AI:

8.5/10

IVOO receives a strong rating based on its low expense ratio, broad diversification, strong track record, and high liquidity. The AI analysis takes into account the fund's financials, market position, and future prospects. However, investors should be aware of the inherent risks associated with market fluctuations and sector concentration.

Resources and Disclaimers

• Data Sources:

  • Vanguard Investor Resources
  • Morningstar
  • Yahoo Finance

• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial professional before making any investment decisions. Investing involves risk, and the value of investments can fluctuate.