Mid-cap growth stocks allow you to bet on growth within the mid cap segment. Below we’ll review the 4 best mid cap growth ETFs for 2022.
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In a hurry? Here’s the list:
- VOT – Vanguard Mid-Cap Growth ETF
- MDYG – SPDR S&P 400 Mid Cap Growth ETF
- IVOG – Vanguard S&P Mid-Cap 400 Growth ETF
- IJK – iShares S&P MidCap 400 Growth ETF
Contents
Introduction – Why Mid Cap Growth?
Those wanting to bet on Growth may desire to do so within mid caps, which are sometimes said to be “forgotten,” as investors and fund managers tend to focus on large caps and small caps more, suggesting that there may be more price discovery (and subsequent alpha) available in mid caps.
Let’s explore the best mid cap growth ETFs.
The 4 Best Mid Cap Growth ETFs
Below are the 4 best mid cap growth ETFs.
VOT – Vanguard Mid-Cap Growth ETF
The Vanguard Mid-Cap Growth ETF (VOT) is one of the most popular mid cap growth ETFs, with over $20 billion in assets. The fund seeks to track the CRSP US Mid Cap Growth Index and has an expense ratio of 0.07%, making it the cheapest on the list.
MDYG – SPDR S&P 400 Mid Cap Growth ETF
MDYG is the first of 3 ETFs that seeks to track the S&P MidCap 400 Growth Index. This index has an earnings screen that provides some convenient exposure to the Profitability factor.
Compared to VOT, funds that track this index also skew smaller, meaning comparatively higher loading on the Size factor as well, which should probably be preferable.
Licensing the S&P name adds costs though, so these ETFs are a little more expensive than VOT above. MDYG has a fee of 0.15% and assets of about $1.5 billion.
IVOG – Vanguard S&P Mid-Cap 400 Growth ETF
IVOG is another fund from Vanguard that specifically tracks the aforementioned index. Again, using the S&P name means this fund is more expensive than VOT. IVOG has the same fee as MDYG at 0.15%. This fund has roughly $1 billion in assets.
IJK – iShares S&P MidCap 400 Growth ETF
IJK is the last fund to track that same S&P MidCap 400 Growth Index. It is comparable to IVOG and MDYG above but is slightly costlier with a fee 0.17%. This fund has over $8 billion in assets. Day traders will appreciate this greater liquidity for IJK.
Where to Buy These Mid Cap Growth ETFs
All these mid cap growth ETFs should be available at any major broker. My choice is M1 Finance. M1 has zero trade commissions and zero account fees, and offers fractional shares, dynamic rebalancing, and a sleek, user-friendly interface and mobile app. I wrote a comprehensive review of M1 Finance here.
Interested in more Lazy Portfolios? See the full list here.
Disclaimer: While I love diving into investing-related data and playing around with backtests, I am in no way a certified expert. I have no formal financial education. I am not a financial advisor, portfolio manager, or accountant. This is not financial advice, investing advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. Do your own due diligence. Past performance does not guarantee future returns. Read my lengthier disclaimer here.
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