VO Is A High-Quality Mid-Cap ETF

Feb. 04, 2022 4:43 AM ETVanguard Mid-Cap Index Fund ETF Shares (VO)SPY, IJH, VO
Unlocking Alpha
794 Followers

Summary

  • VO provides exposure to a diversified basket of US mid-cap stocks. This ETF is very well diversified, both across sectors and issuers.
  • Mid-cap stocks have generally delivered higher risk-adjusted returns than small-caps and large-caps over long periods of time.
  • VO is not cheap at the moment, and I would personally prefer to wait for a 15-20% pullback before buying this ETF.

Investment management. Portfolio diversification.

Olivier Le Moal/iStock via Getty Images

Investment Thesis

Over the years there has been significant research around the small-firm effect, which states there are two classifications of stocks (large and small) and that the companies with small-market capitalizations have higher returns. Institutional and retail

This article was written by

794 Followers
About me: Value-oriented investor, seeking low-risk investments with the potential to deliver high returns. I like to analyze commodities, ETFs, and cash-flow positive businesses that have a moat and growth opportunities.

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

About VO ETF

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Compare to Peers

More on VO

Related Stocks

SymbolLast Price% Chg
VO
--