Vanguard S&P Mid-Cap 400 Value Index Fund ETF Shares (IVOV)

Overview

The Vanguard S&P Mid-Cap 400 Value Index Fund ETF Shares (IVOV) seeks to track the performance of the S&P Mid-Cap 400 Value Index, which measures the investment return of mid-capitalization U.S. stocks exhibiting value characteristics. It focuses on providing exposure to mid-cap companies with relatively lower valuations. The fund employs a passive management strategy, attempting to replicate the index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index.

Reputation and Reliability

Vanguard is a highly reputable and reliable investment management company with a long track record of providing low-cost, index-tracking ETFs.

Management Expertise

Vanguard has a highly experienced management team with significant expertise in passive investment strategies and ETF management.

Goal

To track the performance of a benchmark index that measures the investment return of mid-capitalization U.S. stocks exhibiting value characteristics.

Investment Approach and Strategy

Strategy: The fund employs a passive management strategy, attempting to replicate the S&P Mid-Cap 400 Value Index.

Composition The ETF holds stocks of mid-cap U.S. companies that are considered to be value stocks based on factors such as book value-to-price ratio, earnings-to-price ratio, and sales-to-price ratio.

Market Share: IVOV's market share within the mid-cap value ETF category is considerable, reflecting Vanguard's prominence in the ETF market.

Total Net Assets (AUM): 2714000000

Key Competitors

• IJJ
• RFV
• MVV

Competitive Landscape

The mid-cap value ETF market is competitive, with several established players. IVOV benefits from Vanguard's brand recognition and low expense ratio, however, other ETFs may offer slightly different methodologies for selecting value stocks or have different sector exposures. Its competitors can have lower costs. IVOV's competitive advantage is its trusted brand name and low expense ratio within Vanguard's investment products.

Historical Performance: Historical performance data will vary over time.

Benchmark Comparison: The ETF's performance closely tracks the S&P Mid-Cap 400 Value Index, but differences can arise due to expenses and tracking error.

Expense Ratio: 0.15

Average Trading Volume

IVOV generally has a healthy average trading volume, indicating good liquidity.

Bid-Ask Spread

The bid-ask spread for IVOV is typically tight, reflecting its liquidity and efficient trading.

Market Environment Factors

Economic growth, interest rates, inflation, and sector-specific trends influence IVOV's performance. Value stocks tend to perform well during periods of economic recovery and rising interest rates.

Growth Trajectory

The growth trajectory of IVOV is linked to the overall performance of mid-cap value stocks and investor demand for this asset class. It is also influenced by sector allocations within the S&P Mid-Cap 400 Value Index.

Competitive Edge

IVOV's competitive advantages include its low expense ratio, the strength of the Vanguard brand, and its adherence to a well-defined and widely recognized index. The ETF's passive management style contributes to its cost-effectiveness. This allows it to provide a low-cost option for exposure to mid-cap value companies. Vanguard's large AUM and economies of scale further reinforce its competitive position.

Volatility

IVOV's volatility is comparable to that of the broader mid-cap value market. It may exhibit higher volatility than large-cap value ETFs.

Market Risk

The primary market risk is the potential for declines in the value of the underlying mid-cap value stocks due to economic downturns, industry-specific challenges, or company-specific factors. Exposure to specific sectors can also influence the risk profile.

Ideal Investor Profile

The ideal investor is one seeking exposure to mid-cap value stocks for diversification or long-term growth. Investors seeking value-oriented investments can consider it for steady growth.

Market Risk

IVOV is suitable for long-term investors seeking a low-cost, passively managed investment in mid-cap value stocks.

The Vanguard S&P Mid-Cap 400 Value Index Fund ETF Shares (IVOV) offers investors a low-cost way to gain exposure to the mid-cap value segment of the U.S. equity market. By tracking the S&P Mid-Cap 400 Value Index, the ETF provides diversified exposure to companies exhibiting value characteristics. IVOV is a suitable option for long-term investors who are looking for a passive approach to investing in mid-cap value stocks. Its low expense ratio and the reliability of the Vanguard brand make it an appealing choice for cost-conscious investors.

Data Sources:

• Vanguard's official website
• FactSet
• Morningstar
• etf.com
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions and fund performance can change over time. Consult with a qualified financial advisor before making any investment decisions.