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Vanguard Mid Cap Growth Etf
Vanguard Mid-Cap Growth ETF (VOT) is a publicly traded exchange-traded fund that tracks the performance of the CRSP US Mid Cap Growth Index. The fund is designed to provide investors with exposure to a diversified portfolio of mid-cap companies that have the potential for long-term growth. Here are some key things to know about VOT:
1.Inception Date: VOT was launched on January 26, 2x26, by Vanguard, one of the largest asset managers in the world.
2.Investment Strategy: The fund's investment strategy is designed to track the performance of the CRSP US Mid Cap Growth Index, which includes companies with market capitalizations between $2 billion and $30 billion. VOT invests in virtually all of the companies in the Index, aiming to provide investors with a diversifired portfolio.
3.Low Costs: Vanguard is known for its low-cost investing approach. VOT's expense ratio is 0.18%, which is significantly lower than many actively managed mutual funds.
4.index rebalancing: The CRSP US Mid Cap Growth Index is rebalanced semi-annually, ensuring that the fund remains aligned with its investment objective.
5.Dividend Yield: As of December 31, 2022, VOT's 12-month dividend yield was2.50%.
6.Performance: VOT has generally outperformed the S&P 500 Index over the long term. For example, as of December 31, 2022, VOT had a 10-year annualized return of 13.08%, while the S&P 500 Index returned 10.73%
7.Holdings: As of December 31, 2022, VOT held 250 stocks, with the largest positions in companies such as Visa, Mastercard, Microsoft, Alphabet (Google), and Facebook. The fund's top ten holdings accounted for around 45% of its total assets.
8.Growth Potential: The fund's focus on mid-cap growth companies exposes investors to businesses with significant growth potential. While there are no assurances that any particular company will continue to grow its earnings and share price, mid-cap companies have historically offered a balance between stability and growth.
9.Liquidity: With an average daily trading volume of over 334,000 shares as of March 2023, VOT offers sufficient liquidity for investors.
10.Tax Efficiency: As an ETF, VOT is generally tax-efficient compared to actively managed mutual funds. Investors can buy and sell VOT throughout the trading day, and the fund's low turnover rate minimizes the distribution of capital gains.
11.Management: The fund's management team, led by Gerard C. O'Reilly, has a long tenure and investment experience.
Before making any investment decisions, it is essential to thoroughly analyze VOT's holdings, sector weightings, and investment strategy to confirm alignment with your investment objectives and risk tolerance. It is always recommendable to seek professional financial advice prior to making investment decisions.