The SPDR Portfolio S&P 400 Mid Cap ETF offers a low-cost option for investors seeking mid-cap exposure
Mid-cap companies, which have market caps between $2 billion and $10 billion, often show better growth potential than larger firms while being less risky than smaller ones. This balance makes them appealing for many investors.
When it comes to costs, SPMD stands out with an annual operating expense of just 0.03%. That’s pretty low, and it can make a big difference in returns over time. Plus, it offers a 12-month dividend yield of 1.40%.
The ETF is heavily invested in the Industrials sector, which makes up about 21.60% of its portfolio. Financials and Consumer Discretionary are also significant players. Notably, Williams Sonoma, Illumina, and Emcor Group are among its top holdings.
SPMD aims to track the S&P 1000 Index, and it’s done well, gaining about 1.26% this year and 17.51% over the past year. It’s traded between $47.16 and $59.56 in the last 52 weeks, showing some solid performance.
With around 403 holdings, it diversifies risk effectively. It carries a Zacks ETF Rank of 3, which means it’s a decent option for those looking at mid-cap blend investments. If you’re curious, there are other ETFs like the Vanguard Mid-Cap ETF and iShares Core S&P Mid-Cap ETF that you might want to check out too.
In short, SPMD is a great choice for long-term investors. Its low costs and transparency make it popular among both retail and institutional investors. If you want to dive deeper into ETFs, Zacks ETF Center is a good place to start.
