VO - VO: Mid-Caps Look Better Than Large-Caps And So Does This Fund

2024-04-09 13:52:07 ET

Summary

• Vanguard Mid-Cap Index Fund ETF Shares is a good investment option for the next phase of the market cycle, offering more resilience than small-caps.
• The VO ETF is a passively managed fund with a low expense ratio of 0.04% and a 12-month dividend yield of 1.50%.
• The fund's diversified portfolio of mid-cap stocks provides balanced exposure to various sectors, with a focus on Industrials, Information Technology, and Consumer Discretionary.

Large-cap stocks have been where all the outperformance has been pushing to new highs, while small-caps, for example, are still below their respective 2021 peaks on average. We all know the problems around so-called "zombie companies" in the Russell 2000 Index (RTY), but what about playing mid-caps where there is more ability to withstand higher rates? I think mid-caps are a good place in the marketplace to focus on in the next phase of the cycle, which is why the Vanguard Mid-Cap Index Fund ETF Shares ( VO ) is worth a look....

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