Entering text into the input field will update the search result below

VOT: Large-Cap High-Quality Mix With Overstretched Valuation

Vasily Zyryanov profile picture
Vasily Zyryanov


  • VOT’s investment mandate is to track the CRSP US Mid Cap Growth Index.
  • The principal issue with VOT is that despite its seemingly mid-cap focus, over 96% of its net assets are invested in 170 companies with market capitalizations above $10 billion.
  • VOT has a large exposure to growth but terrible valuation.
  • VOT did deliver superb returns in the past, trouncing IVV in 2020 and 2019, with 2012, 2013, 2014, and 2017 returns on par with the bellwether ETF. It failed to beat the blue-chip index last year, partly because of the capital rotation.
  • I opt for a Hold rating.

Arrow sign growth on blue background. Business development to success and growing growth concept. 3d illustration

marchmeena29/iStock via Getty Images

Today, we are discussing yet another exchange-traded fund, with an article on the Vanguard Mid-Cap Growth ETF (NYSEARCA:VOT), a fund with total net assets of around $25 billion.

The mid-cap echelon is supposed to provide

This article was written by

Vasily Zyryanov profile picture
Vasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor's primary goal to delve deeper and uncover if the market's current opinion is correct or not.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You


Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.