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VOO vs. MDY: What’s The Difference?

The Vanguard S&P 500 ETF (VOO) and the SPDR S&P MIDCAP 400 ETF Trust (MDY) are both among the Top 100 ETFs. VOO is a Vanguard Large Blend fund and MDY is a SPDR State Street Global Advisors Mid-Cap Blend fund. So, what’s the difference between VOO and MDY? And which fund is better?

The expense ratio of VOO is 0.20 percentage points lower than MDY’s (0.03% vs. 0.23%). VOO also has a higher exposure to the technology sector and a lower standard deviation. Overall, VOO has provided higher returns than MDY over the past ten years.

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

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Summary

VOOMDY
NameVanguard S&P 500 ETFSPDR S&P MIDCAP 400 ETF Trust
CategoryLarge BlendMid-Cap Blend
IssuerVanguardSPDR State Street Global Advisors
AUM753.41B21.31B
Avg. Return14.45%13.29%
Div. Yield1.34%0.94%
Expense Ratio0.03%0.23%

The Vanguard S&P 500 ETF (VOO) is a Large Blend fund that is issued by Vanguard. It currently has 753.41B total assets under management and has yielded an average annual return of 14.45% over the past 10 years. The fund has a dividend yield of 1.34% with an expense ratio of 0.03%.

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%.

VOO’s dividend yield is 0.40% higher than that of MDY (1.34% vs. 0.94%). Also, VOO yielded on average 1.16% more per year over the past decade (14.45% vs. 13.29%). The expense ratio of VOO is 0.20 percentage points lower than MDY’s (0.03% vs. 0.23%).

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Fund Composition

Industry Exposure

VOO vs. MDY - Industry Exposure

VOOMDY
Technology24.24%14.74%
Industrials8.86%17.88%
Energy2.84%2.52%
Communication Services11.14%1.63%
Utilities2.43%2.84%
Healthcare13.1%11.17%
Consumer Defensive6.32%4.2%
Real Estate2.58%9.66%
Financial Services14.2%15.2%
Consumer Cyclical12.01%14.89%
Basic Materials2.27%5.27%

The Vanguard S&P 500 ETF (VOO) has the most exposure to the Technology sector at 24.24%. This is followed by Financial Services and Healthcare at 14.2% and 13.1% respectively. Utilities (2.43%), Real Estate (2.58%), and Energy (2.84%) only make up 7.85% of the fund’s total assets.

VOO’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 6.32%, 8.86%, 11.14%, 12.01%, and 13.1%.

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%.

VOO is 9.50% more exposed to the Technology sector than MDY (24.24% vs 14.74%). VOO’s exposure to Financial Services and Healthcare stocks is 1.00% lower and 1.93% higher respectively (14.2% vs. 15.2% and 13.1% vs. 11.17%). In total, Utilities, Real Estate, and Energy also make up 7.17% less of the fund’s holdings compared to MDY (7.85% vs. 15.02%).

Holdings

VOO - Holdings

VOO HoldingsWeight
Apple Inc5.92%
Microsoft Corp5.62%
Amazon.com Inc4.06%
Facebook Inc Class A2.29%
Alphabet Inc Class A2.02%
Alphabet Inc Class C1.97%
Tesla Inc1.44%
Berkshire Hathaway Inc Class B1.44%
NVIDIA Corp1.37%
JPMorgan Chase & Co1.3%

VOO’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.92%, 5.62%, 4.06%, 2.29%, and 2.02%.

Alphabet Inc Class C (1.97%), Tesla Inc (1.44%), and Berkshire Hathaway Inc Class B (1.44%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VOO’s holdings at 1.37% and 1.3%.

MDY - Holdings

MDY HoldingsWeight
Bio-Techne Corp0.75%
Molina Healthcare Inc0.63%
Cognex Corp0.63%
Fair Isaac Corp0.62%
XPO Logistics Inc0.61%
SolarEdge Technologies Inc0.61%
Signature Bank0.6%
Graco Inc0.55%
Camden Property Trust0.55%
FactSet Research Systems Inc0.54%

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%.

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Performance

Annual Returns

VOO vs. MDY - Annual Returns

YearVOOMDY
202018.35%13.51%
201931.46%25.86%
2018-4.42%-11.28%
201721.78%15.89%
201611.93%20.33%
20151.35%-2.4%
201413.63%9.42%
201332.33%33.08%
201215.98%17.58%
20112.09%-1.99%
20100.0%26.17%

VOO had its best year in 2013 with an annual return of 32.33%. VOO’s worst year over the past decade yielded -4.42% and occurred in 2018. In most years the Vanguard S&P 500 ETF provided moderate returns such as in 2016, 2014, and 2012 where annual returns amounted to 11.93%, 13.63%, and 15.98% respectively.

The year 2013 was the strongest year for MDY, returning 33.08% on an annual basis. The poorest year for MDY in the last ten years was 2018, with a yield of -11.28%. Most years the SPDR S&P MIDCAP 400 ETF Trust has given investors modest returns, such as in 2020, 2017, and 2012, when gains were 13.51%, 15.89%, and 17.58% respectively.

Portfolio Growth

VOO vs. MDY - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
VOO$10,000$36,57514.45%
MDY$10,000$28,94813.29%

A $10,000 investment in VOO would have resulted in a final balance of $36,575. This is a profit of $26,575 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.45%.

With a $10,000 investment in MDY, the end total would have been $28,948. This equates to a $18,948 profit over 10 years and a compound annual growth rate (CAGR) of 13.29%.

VOO’s CAGR is 1.16 percentage points higher than that of MDY and as a result, would have yielded $7,627 more on a $10,000 investment. Thus, VOO outperformed MDY by 1.16% annually.


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