Better Buy: Vanguard Mid-Cap ETF vs iShares Core S&P Mid-Cap ETF
Exchange-traded funds (ETFs), by their very nature, are diversified investment vehicles because they include a mix of stocks within an index. But in an individual's portfolio, it's important to diversify investments further with funds that represent different asset classes, as well as funds that track various segments within an asset class, like stocks.
Mid-cap ETFs, which track mid-sized companies, are an important diversifier as they are generally not as volatile as small caps but often have higher growth potential than large-caps. Let's take a look at the two most popular ETFs within the mid-cap space. Which is the better buy?
The Vanguard Mid-Cap ETF (NYSEMKT: VO) is the second largest mid-cap ETF with about $50 billion in assets under management. It tracks the CRSP US Mid Cap Index, which measures the performance of about 365 mid-sized companies. It includes companies that fall between the top 70% to 85% of investable market capitalization, so it measures the larger end of the mid-cap spectrum with a median market cap of about $25 billion.
Source Fool.com
