Should SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) Be on Your Investing Radar?

Core Viewpoint - The SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) is a passively managed ETF that provides broad exposure to the Mid Cap Blend segment of the US equity market, with assets exceeding $13.78 billion, making it one of the larger ETFs in this category [1] Group 1: Mid Cap Blend Characteristics - Mid cap companies, with market capitalizations between $2 billion and $10 billion, typically offer higher growth prospects compared to large cap companies while being less risky than small cap companies, providing a balance of stability and growth potential [2] - Blend ETFs hold a mix of growth and value stocks, exhibiting characteristics of both types of equities [2] Group 2: Cost Structure - The annual operating expenses for SPMD are 0.03%, making it one of the least expensive options in the ETF space [3] - The ETF has a 12-month trailing dividend yield of 1.41% [3] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising about 23.10% of the portfolio, followed by Financials and Consumer Discretionary [4] - Interactive Brokers Gro Cl A (IBKR) represents approximately 0.87% of total assets, with the top 10 holdings accounting for about 6.81% of total assets under management [5] Group 4: Performance Metrics - SPMD aims to match the performance of the S&P 1000 Index, having gained about 3.93% year-to-date and 6.76% over the past year as of July 24, 2025 [6] - The ETF has traded between $44.89 and $59.56 in the past 52 weeks [6] - It has a beta of 1.05 and a standard deviation of 19.52% over the trailing three-year period, indicating effective diversification of company-specific risk with approximately 404 holdings [7] Group 5: Alternatives and Market Position - SPMD holds a Zacks ETF Rank of 2 (Buy), indicating favorable expected asset class return, expense ratio, and momentum [8] - Other comparable ETFs include the Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH), with assets of $85.79 billion and $98.68 billion respectively, and expense ratios of 0.04% and 0.05% [9] Group 6: Investment Appeal - Passively managed ETFs like SPMD are increasingly favored by retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10]