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

Core Insights - The SPDR S&P 400 Mid Cap Growth ETF (MDYG) is designed to provide exposure to the Mid Cap Growth segment of the US equity market, with assets over $2.37 billion, making it an average-sized ETF in this category [1] - Mid cap companies, with market capitalizations between $2 billion and $10 billion, are noted for having higher growth prospects and lower volatility compared to large and small cap companies [2] - Growth stocks typically exhibit higher sales and earnings growth rates but come with higher valuations and volatility, performing better in strong bull markets [3] Costs - The annual operating expenses for MDYG are 0.15%, positioning it as one of the cheaper options in the ETF space, with a 12-month trailing dividend yield of 0.83% [4] Sector Exposure and Top Holdings - The ETF has a significant allocation to the Industrials sector, comprising about 28.7% of the portfolio, followed by Financials and Consumer Discretionary [5] - Individual holdings include Interactive Brokers Group Cl A (IBKR) at approximately 1.67% of total assets, with the top 10 holdings accounting for about 12.48% of total assets under management [6] Performance and Risk - MDYG aims to match the performance of the S&P MidCap 400 Growth Index, having gained about 4.07% year-to-date and approximately 4.47% over the past year, with a trading range between $70.44 and $94.90 in the last 52 weeks [7] - The ETF has a beta of 1.06 and a standard deviation of 19.96% over the trailing three-year period, indicating a medium risk profile with effective diversification across 245 holdings [7] Alternatives - MDYG holds a Zacks ETF Rank of 2 (Buy), indicating it is a strong option for investors seeking exposure to the Mid Cap Growth segment [9] - Other comparable ETFs include the Vanguard Mid-Cap Growth ETF (VOT) with $17.67 billion in assets and an expense ratio of 0.07%, and the iShares Russell Mid-Cap Growth ETF (IWP) with $20.22 billion in assets and an expense ratio of 0.23% [10] Bottom-Line - Passively managed ETFs like MDYG are increasingly favored by retail and institutional investors for their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11]