Core Insights - The VanEck Morningstar SMID Moat ETF (SMOT) debuted on October 4, 2022, providing broad exposure to the Style Box - All Cap Blend category of the market [1] Fund Overview - SMOT has accumulated over $372.58 million in assets, positioning it as an average-sized ETF within its category [5] - The fund is managed by Van Eck and aims to match the performance of the Morningstar US Small-Mid Cap Moat Focus Index, which tracks small and mid-cap companies with sustainable competitive advantages [5] Cost Structure - SMOT has an annual expense ratio of 0.49%, which is competitive with peer products [6] - The fund's 12-month trailing dividend yield is 1.11% [6] Sector Allocation and Holdings - The fund's largest sector allocation is to Industrials at 20.7%, followed by Consumer Discretionary and Information Technology [7] - Ionis Pharmaceuticals Inc (IONS) is the largest individual holding at approximately 1.99% of total assets, with the top 10 holdings comprising about 15.5% of total assets [8] Performance Metrics - As of October 28, 2025, SMOT has gained approximately 6.69% year-to-date and 6.55% over the past year [10] - The fund has traded between $28.40 and $37.49 in the past 52 weeks, with a beta of 1.24 and a standard deviation of 18.74% over the trailing three-year period [10] Alternatives - While SMOT is a viable option for investors seeking to outperform the Style Box - All Cap Blend segment, there are alternative ETFs available, such as iShares Core S&P Total U.S. Stock Market ETF (ITOT) and Vanguard Total Stock Market ETF (VTI) [11][12]

Core Insights - Midcap stocks are positioned as a "sweet spot" in the market, offering a blend of growth potential and profitability, yet they have been overlooked in 2025 despite representing about 25% of the overall market capitalization [1][2] Group 1: Performance and Market Position - Midcap stocks have underperformed this year compared to large and small caps, primarily due to market focus on AI-centric megacap stocks and speculative small-cap names [1][2] - Current average portfolio allocations to midcaps are around 11% to 12%, with some advisors reporting as low as 5%, contrasting sharply with their market capitalization share [1][2] Group 2: Future Opportunities - The opportunity for midcaps is expected to improve, particularly during rate-cutting cycles, as they have historically performed well in such environments [2] - Key drivers for midcap performance include attractive valuations, the expanding AI theme, and greater diversification compared to large-cap stocks [2][3] Group 3: Valuations - Midcap stocks are trading at approximately a 25.5% discount to large-cap stocks, a trend that has persisted and remains above historical averages [2] Group 4: AI Integration - Mid-sized companies are seen as agile in integrating new technologies, which can help them manage costs effectively, contrasting with larger firms burdened by legacy systems [3][4] Group 5: Diversification - The Russell Midcap Index shows a more diversified sector representation, with technology comprising only about 12% of the portfolio, compared to 35% in the S&P 500 [4] Group 6: ETF Access - Various ETFs provide access to midcap stocks, including the SPDR S&P MIDCAP 400 ETF Trust (MDY) and the lower-cost SPDR Portfolio S&P 400 Mid Cap ETF (SPMD), which has nearly $15 billion in assets [5][6] - Actively managed options like the Argent Mid Cap ETF (AMID) focus on high-quality midcap stocks, while other strategies blend quality and valuation [5][6]