Vanguard Mid-Cap ETF

VO

Market cap $94.1B

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%.

A well-rounded portfolio should include stocks from different industries and sizes. Mid-cap stocks are generally the sweet spot between stability and risk.

The S&P 500 includes large-cap stocks and excludes mid-cap and small-cap stocks. Vanguard's mid- and small-cap ETFs have lower valuations than their S&P 500 counterpart.

The S&P 500 is the best way to get overall exposure to the broader U.S. economy. Investing in mid- and small-cap stocks gives you exposure to the additional opportunities.

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

I reiterate my buy rating on the Vanguard Mid-Cap ETF, expecting solid returns as mid-caps emerge from an earnings recession. VO offers diversified mid-cap exposure with low expenses, attractive valuation versus the S&P 500, and minimal single-stock risk. Technical trends are healthy, with a rising 200-day moving average and strong RSI; a buy-the-dip strategy near $275 is appealing.