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

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

Profile:

VOE is an exchange-traded fund (ETF) that tracks the performance of the S&P MidCap 400 Value Index. This index comprises 400 mid-sized companies in the United States that are considered value stocks based on their financial ratios and other factors.

Objective:

The primary objective of VOE is to provide investors with long-term capital appreciation by tracking the performance of the S&P MidCap 400 Value Index. It aims to achieve this by investing in a diversified portfolio of mid-cap value stocks.

Issuer:

• Company: Vanguard
• Reputation and Reliability: Vanguard is one of the world's largest and most reputable investment management firms, with over $8.1 trillion in assets under management. The company has a long history of providing low-cost, high-quality investment products.
• Management: The ETF is managed by Vanguard's experienced team of portfolio managers, who have a deep understanding of the mid-cap value market.

Market Share:

VOE is the second-largest ETF in the mid-cap value space, with over $47 billion in assets under management. It accounts for roughly 20% of the market share in this category.

Total Net Assets:

As of November 10, 2023, VOE has total net assets of over $47 billion.

Moat:

• Low Cost: VOE has an expense ratio of just 0.07%, making it one of the cheapest mid-cap value ETFs available. This low cost allows investors to keep more of their returns.
• Diversification: The ETF provides investors with exposure to a large and diversified basket of mid-cap value stocks, reducing their risk compared to investing in individual stocks.
• Experienced Management: Vanguard's experienced management team has a strong track record of managing mid-cap value funds.

Financial Performance:

• Historical Returns: VOE has delivered strong historical returns, outperforming the S&P MidCap 400 Value Index in most years. Its 5-year annualized return as of November 10, 2023, is 14.78%.
• Benchmark Comparison: VOE has consistently outperformed its benchmark index, the S&P MidCap 400 Value Index, over the past several years.

Growth Trajectory:

The mid-cap value segment is expected to continue growing in the coming years, driven by the strong performance of mid-sized companies in the US economy.

Liquidity:

• Average Trading Volume: VOE is a highly liquid ETF, with an average daily trading volume of over 10 million shares. This ensures investors can easily buy and sell shares without impacting the price.
• Bid-Ask Spread: The bid-ask spread for VOE is typically very tight, indicating low transaction costs.

Market Dynamics:

• Economic Conditions: The ETF's performance is influenced by the overall economic conditions, as economic growth tends to benefit mid-cap companies.
• Interest Rates: Rising interest rates can put pressure on the performance of value stocks, as they tend to be more sensitive to changes in interest rates.
• Sector Performance: The performance of the mid-cap value sector can also be affected by the performance of specific industries represented in the index.

Competitors:

• iShares S&P Mid-Cap 400 Value Index ETF (IJJ) - 17.6% market share
• Schwab Mid-Cap Value Index ETF (SCHV) - 12.7% market share
• Invesco S&P MidCap 400 Value ETF (IĴI) - 10.5% market share

Expense Ratio:

The expense ratio for VOE is 0.07%.

Investment Approach and Strategy:

• Strategy: VOE tracks the S&P MidCap 400 Value Index, which means it invests in the same proportion as the index.
• Composition: The ETF primarily holds mid-cap value stocks across various sectors of the US economy, including financials, industrials, and healthcare.

Key Points:

• Low-cost and diversified exposure to mid-cap value stocks.
• Strong historical performance and benchmark outperformance.
• Manages by Vanguard, a reputable and experienced investment management firm.
• Highly liquid and easily traded.

Risks:

• Market Volatility: The stock market can be volatile, and the ETF's value can fluctuate accordingly.
• Value Stock Risk: Value stocks can underperform growth stocks, especially during periods of high economic growth.
• Interest Rate Risk: Rising interest rates can negatively impact the performance of value stocks.

Who Should Consider Investing:

VOE is suitable for investors seeking long-term capital appreciation through exposure to mid-cap value stocks. It is appropriate for investors with a moderate risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

This analysis assigns a fundamental rating of 8.5 out of 10 to VOE. This rating is based on the ETF's strong financial performance, competitive moat, experienced management team, and low expense ratio. However, investors should be aware of the risks associated with the ETF, such as market volatility and value stock risk.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• Vanguard website (https://investor.vanguard.com/etf/profile/VOE/overview)
• Morningstar (https://www.morningstar.com/etfs/tan/voe/quote)
• ETF.com (https://www.etf.com/etf/VOE)

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.