Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect mid-size companies to grow larger as our global economy eventually regains its footing, the Vanguard Mid-Cap Value ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Vanguard ETF's expense ratio -- its annual fee -- is a very low 0.12%.
This ETF has performed reasonably well, but it's also somewhat young, with about five years on the books. It outperformed the S&P 500 (INDEX: ^GSPC) over that period, on average, with better outperformance in the past three years. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.
With a turnover rate of 37%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several of this ETF's components made strong contributions to its performance over the past year. Mattel
Other companies didn't add as much to the ETF's returns last year, but could have an effect in the years to come. Frontier Communications
Health Care REIT
The big picture
Mid caps are compelling because they've proven themselves to some degree, growing from a small cap into a bigger business. Yet they still have plenty of room to grow, ideally into a large cap. A well-chosen ETF can grant you instant diversification across any industry or group of companies -- and make investing in and profiting from it that much easier.