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

Core Viewpoint - The State Street SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) is a passively managed ETF aimed at providing broad exposure to the Mid Cap Blend segment of the US equity market, with assets exceeding $15.07 billion, making it one of the larger ETFs in this category [1] Group 1: Fund Overview - Launched on November 8, 2005, SPMD is designed to track the Mid Cap Blend segment of the US equity market [1] - The fund is sponsored by State Street Investment Management [1] Group 2: Investment Characteristics - Mid cap companies, with market capitalizations between $2 billion and $10 billion, are generally seen as having higher growth prospects compared to large cap companies and are less risky than small cap companies [2] - Blend ETFs typically hold a mix of growth and value stocks, providing a stable and growth-oriented investment [2] Group 3: Cost Structure - SPMD has an annual operating expense ratio of 0.03%, making it one of the least expensive options in the ETF space [3] - The ETF offers a 12-month trailing dividend yield of 1.37% [3] Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising about 23.7% of the portfolio, followed by Financials and Information Technology [4] - Comfort Systems USA Inc (FIX) represents approximately 0.94% of total assets, with the top 10 holdings accounting for about 7.21% of total assets under management [5] Group 5: Performance Metrics - SPMD aims to match the performance of the S&P 1000 Index, with a year-to-date increase of roughly 6.83% and a decline of about 0.72% over the past year as of November 28, 2025 [6] - The ETF has traded between $44.89 and $59.14 in the past 52 weeks [6] - It has a beta of 1.08 and a standard deviation of 18.24% over the trailing three-year period, indicating effective diversification of company-specific risk with about 405 holdings [7] Group 6: Alternatives - SPMD carries a Zacks ETF Rank of 3 (Hold), indicating a reasonable option for investors seeking exposure to the Mid Cap Blend area [8] - Other comparable ETFs include the Vanguard Mid-Cap ETF (VO) with $89.06 billion in assets and an expense ratio of 0.04%, and the iShares Core S&P Mid-Cap ETF (IJH) with $101.32 billion in assets and an expense ratio of 0.05% [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]