MDY vs. VOE: What’s The Difference?

The SPDR S&P MIDCAP 400 ETF Trust (MDY) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) are both among the Top 100 ETFs. MDY is a SPDR State Street Global Advisors Mid-Cap Blend fund and VOE is a Vanguard Mid-Cap Value fund. So, what’s the difference between MDY and VOE? And which fund is better?

The expense ratio of MDY is 0.16 percentage points higher than VOE’s (0.23% vs. 0.07%). MDY also has a higher exposure to the industrials sector and a higher standard deviation. Overall, MDY has provided higher returns than VOE over the past 11 years.

In this article, we’ll compare MDY vs. VOE. We’ll look at fund composition and performance, as well as at their holdings and portfolio growth. Moreover, I’ll also discuss MDY’s and VOE’s annual returns, industry exposure, and risk metrics and examine how these affect their overall returns.

Summary

MDY VOE
Name SPDR S&P MIDCAP 400 ETF Trust Vanguard Mid-Cap Value Index Fund ETF Shares
Category Mid-Cap Blend Mid-Cap Value
Issuer SPDR State Street Global Advisors Vanguard
AUM 21.31B 26.78B
Avg. Return 13.29% 12.52%
Div. Yield 0.94% 1.87%
Expense Ratio 0.23% 0.07%

The SPDR S&P MIDCAP 400 ETF Trust (MDY) is a Mid-Cap Blend fund that is issued by SPDR State Street Global Advisors. It currently has 21.31B total assets under management and has yielded an average annual return of 13.29% over the past 10 years. The fund has a dividend yield of 0.94% with an expense ratio of 0.23%.

The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) is a Mid-Cap Value fund that is issued by Vanguard. It currently has 26.78B total assets under management and has yielded an average annual return of 12.52% over the past 10 years. The fund has a dividend yield of 1.87% with an expense ratio of 0.07%.

MDY’s dividend yield is 0.93% lower than that of VOE (0.94% vs. 1.87%). Also, MDY yielded on average 0.76% more per year over the past decade (13.29% vs. 12.52%). The expense ratio of MDY is 0.16 percentage points higher than VOE’s (0.23% vs. 0.07%).

Fund Composition

Industry Exposure

MDY vs. VOE - Industry Exposure

MDY VOE
Technology 14.74% 9.85%
Industrials 17.88% 9.4%
Energy 2.52% 5.69%
Communication Services 1.63% 5.27%
Utilities 2.84% 10.93%
Healthcare 11.17% 7.04%
Consumer Defensive 4.2% 4.85%
Real Estate 9.66% 11.48%
Financial Services 15.2% 18.26%
Consumer Cyclical 14.89% 11.8%
Basic Materials 5.27% 5.44%

The SPDR S&P MIDCAP 400 ETF Trust (MDY) has the most exposure to the Industrials sector at 17.88%. This is followed by Financial Services and Consumer Cyclical at 15.2% and 14.89% respectively. Energy (2.52%), Utilities (2.84%), and Consumer Defensive (4.2%) only make up 9.56% of the fund’s total assets.

MDY’s mid-section with moderate exposure is comprised of Basic Materials, Real Estate, Healthcare, Technology, and Consumer Cyclical stocks at 5.27%, 9.66%, 11.17%, 14.74%, and 14.89%.

The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has the most exposure to the Financial Services sector at 18.26%. This is followed by Consumer Cyclical and Real Estate at 11.8% and 11.48% respectively. Communication Services (5.27%), Basic Materials (5.44%), and Energy (5.69%) only make up 16.40% of the fund’s total assets.

VOE’s mid-section with moderate exposure is comprised of Healthcare, Industrials, Technology, Utilities, and Real Estate stocks at 7.04%, 9.4%, 9.85%, 10.93%, and 11.48%.

MDY is 8.48% more exposed to the Industrials sector than VOE (17.88% vs 9.4%). MDY’s exposure to Financial Services and Consumer Cyclical stocks is 3.06% lower and 3.09% higher respectively (15.2% vs. 18.26% and 14.89% vs. 11.8%). In total, Energy, Utilities, and Consumer Defensive also make up 11.91% less of the fund’s holdings compared to VOE (9.56% vs. 21.47%).

Holdings

MDY - Holdings

MDY Holdings Weight
Bio-Techne Corp 0.75%
Molina Healthcare Inc 0.63%
Cognex Corp 0.63%
Fair Isaac Corp 0.62%
XPO Logistics Inc 0.61%
SolarEdge Technologies Inc 0.61%
Signature Bank 0.6%
Graco Inc 0.55%
Camden Property Trust 0.55%
FactSet Research Systems Inc 0.54%

MDY’s Top Holdings are Bio-Techne Corp, Molina Healthcare Inc, Cognex Corp, Fair Isaac Corp, and XPO Logistics Inc at 0.75%, 0.63%, 0.63%, 0.62%, and 0.61%.

SolarEdge Technologies Inc (0.61%), Signature Bank (0.6%), and Graco Inc (0.55%) have a slightly smaller but still significant weight. Camden Property Trust and FactSet Research Systems Inc are also represented in the MDY’s holdings at 0.55% and 0.54%.

VOE - Holdings

VOE Holdings Weight
Carrier Global Corp Ordinary Shares 1.28%
International Flavors & Fragrances Inc 1.13%
Motorola Solutions Inc 1.12%
Discover Financial Services 1.09%
Welltower Inc 1.05%
Corteva Inc 0.99%
Valero Energy Corp 0.97%
Corning Inc 0.95%
Willis Towers Watson PLC 0.9%
D.R. Horton Inc 0.89%

VOE’s Top Holdings are Carrier Global Corp Ordinary Shares, International Flavors & Fragrances Inc, Motorola Solutions Inc, Discover Financial Services, and Welltower Inc at 1.28%, 1.13%, 1.12%, 1.09%, and 1.05%.

Corteva Inc (0.99%), Valero Energy Corp (0.97%), and Corning Inc (0.95%) have a slightly smaller but still significant weight. Willis Towers Watson PLC and D.R. Horton Inc are also represented in the VOE’s holdings at 0.9% and 0.89%.

Risk Analysis

MDY VOE
Mean Return 1.08 1.05
R-squared 86.66 88.76
Std. Deviation 16.83 15.98
Alpha -4.1 -3.77
Beta 1.15 1.11
Sharpe Ratio 0.73 0.75
Treynor Ratio 9.97 10.19

The SPDR S&P MIDCAP 400 ETF Trust (MDY) has a Treynor Ratio of 9.97 with a Mean Return of 1.08 and a Alpha of -4.1. Its R-squared is 86.66 while MDY’s Standard Deviation is 16.83. Furthermore, the fund has a Sharpe Ratio of 0.73 and a Beta of 1.15.

The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has a R-squared of 88.76 with a Alpha of -3.77 and a Sharpe Ratio of 0.75. Its Mean Return is 1.05 while VOE’s Beta is 1.11. Furthermore, the fund has a Treynor Ratio of 10.19 and a Standard Deviation of 15.98.

MDY’s Mean Return is 0.03 points higher than that of VOE and its R-squared is 2.10 points lower. With a Standard Deviation of 16.83, MDY is slightly more volatile than VOE. The Alpha and Beta of MDY are 0.33 points lower and 0.04 points higher than VOE’s Alpha and Beta.

Performance

Annual Returns

MDY vs. VOE - Annual Returns

Year MDY VOE
2020 13.51% 2.5%
2019 25.86% 27.98%
2018 -11.28% -12.41%
2017 15.89% 17.05%
2016 20.33% 15.26%
2015 -2.4% -1.8%
2014 9.42% 13.98%
2013 33.08% 37.65%
2012 17.58% 16.04%
2011 -1.99% -0.32%
2010 26.17% 21.83%

MDY had its best year in 2013 with an annual return of 33.08%. MDY’s worst year over the past decade yielded -11.28% and occurred in 2018. In most years the SPDR S&P MIDCAP 400 ETF Trust provided moderate returns such as in 2020, 2017, and 2012 where annual returns amounted to 13.51%, 15.89%, and 17.58% respectively.

The year 2013 was the strongest year for VOE, returning 37.65% on an annual basis. The poorest year for VOE in the last ten years was 2018, with a yield of -12.41%. Most years the Vanguard Mid-Cap Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 13.98%, 15.26%, and 16.04% respectively.

Portfolio Growth

MDY vs. VOE - Portfolio Growth

Fund Initial Balance Final Balance CAGR
MDY $10,000 $36,524 13.29%
VOE $10,000 $33,655 12.52%

A $10,000 investment in MDY would have resulted in a final balance of $36,524. This is a profit of $26,524 over 11 years and amounts to a compound annual growth rate (CAGR) of 13.29%.

With a $10,000 investment in VOE, the end total would have been $33,655. This equates to a $23,655 profit over 11 years and a compound annual growth rate (CAGR) of 12.52%.

MDY’s CAGR is 0.76 percentage points higher than that of VOE and as a result, would have yielded $2,869 more on a $10,000 investment. Thus, MDY outperformed VOE by 0.76% annually.


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