U.S. Mid Cap Value ETF Rankings

by: MyPlanIQ

In this article, we are completing the ranking of the mid cap ETFs. We have already completed the blend and growth ETFs and we came up with the following graph of performance.

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We have two from each subclass although, when we come to implement a plan of funds, we may only select one.

In this article, we move on to mid cap value ETFs with the goal of providing the same ranking.

We rank and determine a cutoff based on trading volume for liquidity and low trading friction, then rank them based on their returns and assign a score.

We start with a fuller list of mid cap value ETFs:

Symbol

Name

(NYSEARCA:IWS)

iShares Russell Midcap Value I

(NYSEARCA:IJJ)

iShares S&P MidCap 400 Value I

(NYSEARCA:VOE)

Vanguard Mid-Cap Value ETF

(NYSEARCA:DON)

WisdomTree MidCap Dividend

(NYSEARCA:JKI)

iShares Morningstar Mid Value

(NYSEARCA:EZM)

WisdomTree MidCap Earnings

(NYSEARCA:RFV)

Rydex S&P Midcap 400 Pure Valu

(PWP)

PowerShares Dynamic Mid Cap Va

(NYSEARCA:MDYV)

SPDR S&P 400 Mid Cap Value ETF

(NYSEARCA:IVOV)

Vanguard S&P Mid-Cap 400 Value

Click to enlarge
We reviewed daily trading volume data and applied a cutoff. We have been gradually sliding down and in this case, IWS is the only ETF above 200,000 and to squeeze three in for comparison, we have to drop to 90,000. We will do that for the comparison, but we are aware that lower trading volumes could become an issue.

Symbol

Name

5 Yr AR%

3yr AR%

1yr AR%

IJJ

iShares S&P MidCap 400 Value I

3.49%

4.57%

31.63%

IWS

iShares Russell Midcap Value I

3.31%

2.68%

27.16%

VOE

Vanguard Mid-Cap Value ETF

0.00%

2.95%

29.26%

Click to enlarge

IJJ's trading level is around 150,000 and IWS is over a million, so those
two are qualifiers. VOE is there for completeness, but needs to be selected carefully.

Ticker

Property

2004

2005

2006

2007

2008

2009

2010

2011

IJJ

Draw Down(%)

9.83

8.42

11.90

15.04

51.95

30.20

18.63

2.25

Return(%)

16.41

10.81

12.41

0.40

(35.53)

35.12

21.94

4.52

IWS

Draw Down(%)

9.25

7.38

7.80

15.84

53.10

33.13

16.98

1.80

Return(%)

22.12

12.51

18.87

(2.70)

(38.30)

33.86

23.40

3.40

VOE

Draw Down(%)

NA

NA

1.63

16.99

52.16

32.58

17.25

1.86

Return(%)

NA

NA

12.05

(4.39)

(38.41)

38.28

21.57

4.51

Click to enlarge

IJJ and IWS qualify for the next round, but IWS is going to be one of the first candidates to be considered for elimination in order to simplify an overall plan.

We can now summarize the ETFs selected from the Mid Cap Sub-category:

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This can now be contrasted with what we saw from the large cap ETF summary:

Click to enlarge

We can see different behavior, which will provide diversification for the portfolio when we come to build it.

The final phase for the US asset class are the small cap ETFs.

Disclosure: I am long IJR, IWO. MyPlanIQ does not have any business relationship with the company or companies providing the ETFs mentioned in this article.