Should Vanguard Mid-Cap Growth ETF (VOT) Be on Your Investing Radar?

Core Viewpoint - The Vanguard Mid-Cap Growth ETF (VOT) is a significant player in the Mid Cap Growth segment of the US equity market, with over $17.41 billion in assets, making it one of the largest ETFs in this category [1] Group 1: Mid Cap Growth Overview - Mid cap companies, with market capitalizations between $2 billion and $10 billion, provide a balance of growth potential and stability, offering less risk compared to small and large companies [2] - Growth stocks typically exhibit higher sales and earnings growth rates, but they also come with higher valuations and volatility, performing well in bull markets but struggling in other market conditions [3] Group 2: Cost and Performance - The annual operating expenses for VOT are 0.07%, positioning it as one of the least expensive ETFs in its category, with a 12-month trailing dividend yield of 0.63% [4] - VOT aims to match the performance of the CRSP U.S. Mid Cap Growth Index, achieving a return of approximately 12.81% year-to-date and 22.06% over the past year, with a trading range between $216.28 and $293.03 in the last 52 weeks [7] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising about 22.7% of the portfolio, followed by Information Technology and Consumer Discretionary [5] - Constellation Energy Corp (CEG) represents about 2.62% of total assets, with the top 10 holdings accounting for approximately 12.74% of total assets under management [6] Group 4: Risk Assessment - VOT has a beta of 1.13 and a standard deviation of 19.91% over the trailing three-year period, categorizing it as a medium-risk investment with effective diversification across approximately 130 holdings [8] Group 5: Alternatives - Other ETFs in the Mid Cap Growth space include the iShares S&P Mid-Cap 400 Growth ETF (IJK) with $8.93 billion in assets and an expense ratio of 0.17%, and the iShares Russell Mid-Cap Growth ETF (IWP) with $19.96 billion in assets and an expense ratio of 0.23% [11] Group 6: Market 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 [12]