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

Core Viewpoint - The SPDR S&P 400 Mid Cap Value ETF (MDYV) is a passively managed ETF that provides exposure to the Mid Cap Value segment of the US equity market, with assets exceeding $2.41 billion, making it a significant player in this category [1]. Group 1: Mid Cap Value Characteristics - Mid cap companies, with market capitalizations between $2 billion and $10 billion, offer a balance of stability and growth potential, presenting less risk and higher growth opportunities compared to small and large companies [2]. - Value stocks typically exhibit lower price-to-earnings and price-to-book ratios, along with lower sales and earnings growth rates. Historically, value stocks have outperformed growth stocks in long-term performance, although growth stocks may excel in strong bull markets [3]. Group 2: Cost Structure - The ETF has an annual operating expense ratio of 0.15%, positioning it as one of the more cost-effective options in the market. It also offers a 12-month trailing dividend yield of 1.84% [4]. Group 3: Sector Exposure and Holdings - The ETF's largest allocation is to the Financials sector, comprising approximately 20.9% of the portfolio, followed by Industrials and Consumer Discretionary sectors [5]. - Flex Ltd (FLEX) represents about 1.39% of total assets, with Us Foods Holding Corp (USFD) and Reliance Inc (RS) also among the top holdings. The top 10 holdings account for roughly 10.46% of total assets under management [6]. Group 4: Performance Metrics - MDYV aims to replicate the performance of the S&P MidCap 400 Value Index, with a year-to-date return of approximately 2.87% and a one-year return of about 11.18% as of August 15, 2025. The ETF has traded between $66.87 and $87.17 over the past 52 weeks [7]. - The ETF has a beta of 1.04 and a standard deviation of 19.58% over the trailing three-year period, indicating a medium risk profile with effective diversification across 298 holdings [8]. Group 5: Alternatives and Market Position - The SPDR S&P 400 Mid Cap Value ETF holds a Zacks ETF Rank of 2 (Buy), indicating strong expected performance based on various factors. It is a solid choice for investors interested in the Mid Cap Value segment [9]. - Other comparable ETFs include the iShares Russell Mid-Cap Value ETF (IWS) with $13.70 billion in assets and an expense ratio of 0.23%, and the Vanguard Mid-Cap Value ETF (VOE) with $18.56 billion in assets and a lower expense ratio of 0.07% [10]. Group 6: Investment Trends - There is a growing trend among retail and institutional investors towards passively managed ETFs due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11].