Vanguard Mid-Cap Value Index Fund ETF Shares (VOE)

ETF Vanguard Mid-Cap Value Index Fund ETF Shares (VOE)

Profile:

VOE is an exchange-traded fund (ETF) that tracks the CRSP US Mid Cap Value Index. This index comprises of mid-cap companies with value-oriented characteristics, meaning they are considered undervalued by the market based on factors like price-to-book ratio and price-to-earnings ratio. VOE invests in a broad range of U.S. mid-cap stocks across various sectors.

Objective:

The primary objective of VOE is to provide long-term capital appreciation by replicating the performance of the CRSP US Mid Cap Value Index.

Issuer:

VOE is issued by Vanguard, one of the world's largest and most reputable investment management companies.

Reputation and Reliability:

Vanguard has been in the investment industry for over 50 years and has a solid reputation for low fees, transparency, and shareholder focus.

Management:

The Vanguard Mid-Cap Value Index Fund is managed by a team of experienced professionals with expertise in index investing and mid-cap securities.

Market Share:

VOE is one of the largest mid-cap value ETFs in the market, with around $1.8 billion in assets under management (AUM) as of November 2023.

Total Net Assets:

As of November 2023, VOE has total net assets of $1.8 billion.

Moat:

The main competitive advantages of VOE are:

• Low expense ratio: 0.07%
• Broad diversification: Provides exposure to a wide range of mid-cap value stocks
• Liquidity: High average trading volume
• Trustworthy issuer: Vanguard has a strong reputation and focus on investor interests

Financial Performance:

VOE has historically tracked the performance of its benchmark index closely. Over the past 5 years, VOE has delivered an annualized return of 13.3%, outperforming the S&P 500 Index by 2.6%.

Growth Trajectory:

The mid-cap value segment is expected to continue growing steadily in the future, driven by the recovery of the overall economy and increasing demand for value stocks.

Liquidity:

Average Trading Volume: VOE has an average trading volume of over 500,000 shares per day, indicating a high level of liquidity.

Bid-Ask Spread: The bid-ask spread for VOE is typically very narrow, indicating low transaction costs.

Market Dynamics:

The mid-cap value market is influenced by various factors, including:

• Economic conditions: A strong economy typically benefits value stocks as earnings grow and valuations become more attractive.
• Interest rates: Rising interest rates can make value stocks less attractive as they tend to offer lower dividends than growth stocks.
• Market sentiment: Investor sentiment towards value stocks can fluctuate depending on market conditions.

Competitors:

Key competitors of VOE:

• iShares S&P MidCap 400 Value Index ETF (IJJ)
• Schwab U.S. Mid-Cap Value Index ETF (SCHV)
• SPDR S&P MidCap 400 Value ETF (MDYV)

Expense Ratio:

The expense ratio of VOE is 0.07%.

Investment Approach and Strategy:

Strategy: VOE tracks the CRSP US Mid Cap Value Index, investing in the same companies and weightings as the index.

Composition: VOE invests in a diversified portfolio of mid-cap value stocks across various sectors, including financials, industrials, healthcare, and consumer discretionary.

Key Points:

• Low-cost access to mid-cap value stocks
• Broad diversification
• Strong track record
• High liquidity

Risks:

• Market risk: The value of VOE's shares can fluctuate depending on market conditions and the performance of the underlying companies.
• Value investing style risk: Value investing can underperform in certain market environments, such as periods of high growth or inflation.
• 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
• Exposure to mid-cap value stocks
• A low-cost and diversified investment option

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various factors, including financial health, market position, and future prospects, VOE receives a strong rating of 8 out of 10. This rating is supported by the fund's strong track record, competitive advantages, and favorable market outlook for mid-cap value stocks.

Resources and Disclaimers:

This analysis has utilized data from the following sources:

• Vanguard website: https://investor.vanguard.com/etf/profile/overview/voe
• Morningstar: https://www.morningstar.com/etfs/arcx/voe/quote
• CRSP Indexes: https://www.crspdindexes.com/

Disclaimer: This information is provided for educational purposes only and should not be considered as investment advice. Please consult with a financial professional for personalized advice before making any investment decisions.