Vanguard Mid-Cap Index Fund ETF Shares Guide (VO): What Is It All About?

Overview

Vanguard Mid-Cap Index Fund ETF Shares (VO) offers Australian investors exposure to a diversified portfolio of U.S. mid-sized companies. The supplied profile reports 282 holdings, a 0.03% expense ratio and a 1.444% dividend yield. Reported returns were 10.474% year to date and 9.802% over one year, while longer-term results varied across the three-, five- and ten-year periods. As VO trades in U.S. dollars, Australian-dollar outcomes may also be affected by currency movements.

Category

VO offers diversified exposure to mid-sized U.S. companies across industries, rather than targeting a single sector or investment theme. The portfolio’s mix includes industrial, technology, financial, healthcare, energy and consumer businesses, giving investors access to a broad slice of the U.S. mid-cap market.

Mid-cap shares occupy a space between the biggest established companies and smaller businesses. That can provide exposure to firms with different growth profiles and business cycles, but their share prices can remain sensitive to economic conditions and changes in investor sentiment. VO’s reported portfolio is predominantly U.S. equity, with sector exposure led by industrials and technology.

Key facts

Ticker

VO

Exchange

US

ISIN

US9229086296

Provider

Vanguard

Domicile

United States

Currency

USD

Inception date

2004-01-26

Use of income

NA

UCITS

No

Holdings count

282

Costs

TER

0.03%

Net expense ratio

0.03%

AUM

106.1B

The reported expense ratio is 0.03%. This ongoing fund cost is separate from brokerage, trading costs and any currency-conversion costs an Australian investor may incur.

Performance

YTD

10.5%

1 year

9.8%

3 years

18.1%

5 years

7.7%

10 years

11.5%

Dividend yield

1.44%

Top 10 concentration

9.5%

Holdings

1. Vertiv Holdings Co1.18%

   Ticker

   VRT

   Sector

   Industrials

   Country

   United States

2. Western Digital Corporation1.08%

   Ticker

   WDC

   Sector

   Technology

   Country

   United States

3. Seagate Technology PLC1.06%

   Ticker

   STX

   Sector

   Technology

   Country

   United States

4. Quanta Services Inc1.06%

   Ticker

   PWR

   Sector

   Industrials

   Country

   United States

5. Howmet Aerospace Inc1.06%

   Ticker

   HWM

   Sector

   Industrials

   Country

   United States

6. Cummins Inc0.96%

   Ticker

   CMI

   Sector

   Industrials

   Country

   United States

7. Datadog Inc0.82%

   Ticker

   DDOG

   Sector

   Technology

   Country

   United States

8. Bloom Energy Corp0.82%

   Ticker

   BE

   Sector

   Industrials

   Country

   United States

9. Constellation Energy Corp0.75%

   Ticker

   CEG

   Sector

   Utilities

   Country

   United States

10. Robinhood Markets Inc0.74%

    Ticker

    HOOD

    Sector

    Financial Services

    Country

    United States

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

The portfolio spans a wide range of U.S. companies, with 282 holdings and a top-10 concentration of 9.506%. Industrials make up 18.122% of sector exposure and technology 17.642%, followed by financial services at 13.808%. Its largest listed holding is Vertiv Holdings Co at 1.175%; other leading positions include Western Digital, Seagate Technology, Quanta Services and Howmet Aerospace. The broad spread means no single top holding dominates, while sector allocations still influence performance.

Regions

• North America95.6%

• Asia Emerging0.6%

• Europe Developed0.4%

• Latin America0.2%

• Japan0.0%

• Australasia0.0%

• Asia Developed0.0%

• United Kingdom0.0%

• Europe Emerging0.0%

• Africa/Middle East0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Asset allocation

• Stock US97.8%

• Stock non-US1.6%

• Cash0.3%

• Other0.2%

• Bond0.0%

• NotClassified0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Sectors

• Industrials18.1%

• Technology17.6%

• Financial Services13.8%

• Consumer Cyclicals9.0%

• Energy8.5%

• Healthcare8.4%

• Utilities7.5%

• Real Estate5.2%

• Consumer Defensive4.9%

• Basic Materials3.8%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Related ETFs

VO is a broad U.S. mid-cap fund. When comparing it with other mid-cap ETFs, investors can consider each fund’s index approach, portfolio composition, fees and currency exposure. IJH and SPMD are examples of other funds in this general area, not recommendations.

Risks

Who it may suit

VO may interest investors researching diversified exposure to mid-sized U.S. companies rather than a portfolio focused only on the largest U.S. businesses. Australian investors should also consider the fund’s U.S.-dollar exposure, share-market risk and fit with their broader portfolio.

Key risks

VO is an equity fund, so its value can fall as well as rise with the U.S. share market. Mid-sized companies may be more sensitive to economic slowdowns, financing conditions and shifts in market sentiment than larger businesses. The portfolio’s sector mix can also affect returns, and Australian investors face currency movements between the U.S. dollar and Australian dollar. Past returns and the reported dividend yield do not guarantee future results.

FAQ