QMID: Meet WisdomTree's Brand New Mid-Cap Quality Growth ETF

Summary

• QMID is WisdomTree's newly-launched MidCap Quality Growth Fund. Fees are 0.38%, and QMID aims to provide mid-cap investors with consistent exposure to the quality and growth factors.
• Growth is measured by 80% historical three-year sales and earnings growth and 20% estimated one-year earnings growth, while quality is measured by three-year ROE and ROA.
• This article compares QMID with IJH and IJK, two S&P MidCap 400 and S&P MidCap 400 Growth ETFs. While QMID improves on growth, its quality advantage over IJK is unclear.
• Other findings include potential diversification issues and high volatility, supported by a five-year backtest and the portfolio's 1.33 five-year beta. With earnings growth rates on the decline, I don't recommend readers buy QMID at this time.

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Introduction

On January 25, 2024, WisdomTree launched the WisdomTree U.S. MidCap Quality Growth Fund (NASDAQ:QMID) on the Nasdaq Exchange. Since this ETF has yet to be covered, the purpose of this article is to briefly introduce it to Seeking Alpha

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.