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

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

Profile: VOE is an exchange-traded fund (ETF) that tracks the performance of the CRSP US Mid Cap Value Index. Its primary focus is on mid-sized companies with a value investment style. The ETF invests in approximately 294 stocks across various sectors, including Financials, Industrials, and Healthcare. It utilizes a passive management strategy, aiming to replicate the underlying index.

Objective: The primary investment goal of VOE is to provide long-term capital appreciation through exposure to mid-cap value stocks. This strategy seeks to capitalize on the potential for these companies to outperform the broader market over time.

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

Reputation and Reliability: Vanguard enjoys a strong reputation for its low-cost, passively managed funds and its commitment to investor interests. The company has a long history of success, with over $8 trillion in assets under management.

Management: The ETF is managed by a team of experienced investment professionals at Vanguard. They have a deep understanding of the value investing philosophy and extensive experience in managing index-tracking funds.

Market Share: VOE is the second-largest mid-cap value ETF in the market, with a market share of approximately 4.2%.

Total Net Assets: VOE has approximately $13.4 billion in total net assets.

Moat: VOE's competitive advantages include:

• Low expense ratio: The ETF has a low expense ratio of 0.04%, making it one of the most cost-effective ways to gain access to mid-cap value stocks.
• Diversification: VOE's holdings are spread across a wide range of companies, sectors, and industries, which helps to mitigate risk.
• Liquidity: VOE is a highly liquid ETF, with an average daily trading volume of over 4 million shares.

Financial Performance: VOE has historically outperformed its benchmark index, the CRSP US Mid Cap Value Index. Over the past 5 years, the ETF has returned an average of 15.4% annually, compared to the benchmark's 14.2% return.

Benchmark Comparison: VOE's outperformance can be attributed to its low expense ratio and efficient tracking of the underlying index.

Growth Trajectory: The mid-cap value sector is expected to continue growing in the coming years, driven by favorable economic conditions and increasing investor interest in value investing.

Liquidity: VOE has a high average trading volume and a tight bid-ask spread, making it easy to buy and sell shares.

Market Dynamics: The ETF's market environment is influenced by factors such as economic growth, interest rates, and investor sentiment.

Competitors: VOE's main competitors include the iShares S&P Mid-Cap 400 Value Index ETF (IJJ) and the Schwab Mid-Cap Value ETF (SCHM).

Expense Ratio: The expense ratio for VOE is 0.04%.

Investment Approach and Strategy: VOE tracks the CRSP US Mid Cap Value Index, which consists of mid-sized companies with a value investment style. The ETF passively invests in all the stocks included in the index with weights proportional to their market capitalization.

Key Points:

• Low-cost exposure to mid-cap value stocks
• Diversified portfolio across various sectors
• Strong track record of outperformance
• High liquidity

Risks:

• Market volatility: The value of VOE can fluctuate significantly due to changes in market conditions.
• Value investing style risk: Value stocks may underperform growth stocks during certain periods.
• Specific sector risk: VOE is concentrated in certain sectors, which can expose it to specific risks.

Who Should Consider Investing: VOE is suitable for investors seeking long-term capital appreciation and believe in the value investing style. It is also appropriate for investors looking for a diversified and cost-effective way to gain exposure to mid-sized companies.

Fundamental Rating Based on AI: 8.5/10

VOE receives a strong rating based on its robust underlying index, low expense ratio, and proven track record of outperformance. However, the value investing style may not always outperform, and the ETF is exposed to certain sector risks.

Resources and Disclaimers:

• Vanguard Mid-Cap Value Index Fund ETF Shares Website: https://investor.vanguard.com/etf/profile/VOE
• CRSP US Mid Cap Value Index: https://www.crsp.com/indices/us-indexes/crsp-us-mid-cap-value-index
• Morningstar: https://www.morningstar.com/etfs/xnys/voe/quote.html

Disclaimer: This information is provided for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.