How to Invest in Vanguard Mid-Cap ETF (VO)

What is the Vanguard Mid-Cap ETF (VO)?

The Vanguard Mid-Cap ETF is managed by The Vanguard Group, a large asset management firm owned by investors in its funds. Mid-cap stocks are stocks of medium-sized companies, usually with market capitalizations between $2 billion and $10 billion. These are often stocks that are less risky than small- and micro-cap stocks but still have growth potential.

This ETF seeks to track the CRSP US Mid Cap Index. This index measures the investment returns of mid-cap stocks and broadly represents the range of mid-cap companies contained in the U.S. equity market.

The index is designed to deliver low turnover. The Vanguard Mid-Cap ETF relies on a passively managed, full-replication approach to match the performance of the index. Because the ETF invests in a balanced portfolio of stocks, it is designed to distribute its exposure relatively evenly. The ETF also remains fully invested.

How to buy the Vanguard Mid-Cap ETF (VO)

The process for buying this Vanguard ETF isn't much different from buying a stock, another ETF, or a mutual fund. Let's take a look at the process.

1. Open your brokerage app: Log into your brokerage account where you handle your investments.
2. Search for the ETF: Enter the ticker or ETF name into the search bar to bring up the ETF's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should I invest in the Vanguard Mid-Cap ETF (VO)?

Mid-cap stocks can offer greater opportunities for portfolio growth than more mature companies, with less volatility than smaller, earlier-stage businesses, outperforming both small- and large-cap stocks over the long term.

The Vanguard Mid-Cap ETF provides instant diversification and exposure to a wide range of mid-cap businesses across the U.S. stock universe in a range of core sectors. It is considered a gauge of overall U.S. mid-cap stock returns, targeting companies that fall between the top 70% to 85% of investable market capitalization.

Investors with a prolonged buy-and-hold horizon who want to put cash into numerous stock market sectors and some of the best known mid-cap companies within those sectors may find that a diversified fund like the Vanguard Mid-Cap ETF looks like a great choice.

For investors searching for above-average and index-beating returns or higher growth profiles than mid-cap stocks tend to offer, it may be better to initiate a smaller position or look elsewhere.

Does Vanguard Mid-Cap ETF (VO) pay a dividend?

This Vanguard ETF pays a dividend that yields approximately 1.54% in late 2025. The ETF's dividend is paid on a quarterly basis and is line with the dividend yield for the average stock trading on the S&P 500.

What is Vanguard Mid-Cap ETF (VO)'s expense ratio?

This ETF has an expense ratio of 0.04%. The Vanguard Group is known for its reasonable expense ratios, and this ETF's expense ratio is considerably less than the market average of approximately 0.5%. The annual fee charged by the firm for a $10,000 investment in this ETF would come to around $4.

Historical performance of Vanguard Mid-Cap ETF (VO)

Let's take a look at how the ETF has delivered over the trailing one-, three-, five-, and 10-year periods compared to its benchmark index.

The bottom line on Vanguard Mid-Cap ETF (VO)

Overall, the Vanguard Mid-Cap ETF could be an excellent choice for long-term investors who want exposure to mid-cap stocks across virtually every top industry and the diversification that an ETF offers. It has a track record of delivering on its objective of matching the returns of the index it tracks, and offers one of the lowest expense ratios you'll find among ETFs.

FAQs