Vanguard Mid-Cap ETF

VO

Market cap $96.4B

As a group, mid-cap stocks boast a stronger long-term track record of returns than their large-cap counterparts. This ETF is not only better balanced in terms of sector allocation but also offers a distinctly different sector weighting that might complement most large-cap index fund holdings.

The Vanguard Mid-Cap ETF (VO) was launched on January 26, 2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.

The outperformance of the S&P 500 over the past few years has left many parts of the U.S. equity market ignored. Historically, mid-caps have outperformed large-caps and small-caps over time.

A well-rounded portfolio should include different industries, company sizes, and locations. An S&P 500 ETF can be a foundational investment in most investors' portfolios.

Vanguard is one of the top ETF providers I've long thought is the best in the business.

Mid-cap stocks boast a better long-term track record of performance than large caps. This hasn't been the case of late mostly because of a once-in-a-generation tech revolution.

The Vanguard Mid-Cap Index Fund ETF is rated Hold, lacking a compelling Buy thesis due to an unsupportive macro backdrop. VO's sector allocation favors defensives, utilities, and energy, making it more resilient in drawdowns but limiting upside in momentum-driven rallies. Midcaps, including VO, remain reliant on broad market rallies and macro support, with little benefit from AI-driven large-cap outperformance.

There's a lot to like with this Vanguard ETF. Often overlooked, mid-cap stocks are important diversifiers in large-cap-heavy portfolios.

Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the Vanguard Mid-Cap ETF (VO), a passively managed exchange traded fund launched on January 26, 2004.

It's possible to become a multimillionaire if you contribute a substantial amount to the Vanguard Mid-Cap ETF every month for many years. The fund has a historic average annual return of nearly 10%.