Should Vanguard Extended Market ETF (VXF) Be on Your Investing Radar?

Core Insights - The Vanguard Extended Market ETF (VXF) is designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, with assets exceeding $22.36 billion, making it one of the larger ETFs in this category [1] Group 1: Mid Cap Blend Characteristics - Mid cap companies have market capitalizations between $2 billion and $10 billion, offering a balance of stability and growth potential compared to large and small cap companies [2] - Blend ETFs hold a mix of growth and value stocks, exhibiting characteristics of both types of equities [2] Group 2: Cost Structure - VXF has an annual operating expense ratio of 0.05%, positioning it as one of the cheaper options in the ETF space [3] - The ETF has a 12-month trailing dividend yield of 1.14% [3] Group 3: Sector Exposure and Holdings - The ETF's largest allocation is to the Information Technology sector, comprising about 19% of the portfolio, followed by Industrials and Financials [4] - Individual holdings include Slcmt1142 at approximately 2.01% of total assets, with Microstrategy Inc (MSTR) and Applovin Corp (APP) also notable [5] Group 4: Performance Metrics - VXF aims to match the performance of the S&P Completion Index, with a year-to-date return of approximately 2.53% and a 12-month return of about 12.22% as of August 4, 2025 [6] - The ETF has traded between $150.43 and $207.15 over the past 52 weeks [6] Group 5: Risk Assessment - VXF has a beta of 1.17 and a standard deviation of 21.74% over the trailing three-year period, categorizing it as a medium risk investment [7] - The ETF holds about 3,383 assets, effectively diversifying company-specific risk [7] Group 6: Alternatives - VXF carries a Zacks ETF Rank of 3 (Hold), indicating it is a reasonable option for investors seeking exposure to the Mid Cap Blend market segment [8] - Alternatives include the Vanguard Mid-Cap ETF (VO) with $84.02 billion in assets and an expense ratio of 0.04%, and the iShares Core S&P Mid-Cap ETF (IJH) with $95.08 billion in assets and a 0.05% expense ratio [9] Group 7: Market Trends - Passively managed ETFs are gaining popularity among both institutional and retail investors due to their low cost, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10]