The Vanguard Extended Market Index Fund ETF Shares (VXF) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) are both among the Top 100 ETFs. VXF is a Vanguard Mid-Cap Growth fund and VOE is a Vanguard Mid-Cap Value fund. So, what’s the difference between VXF and VOE? And which fund is better?
The expense ratio of VXF is 0.01 percentage points lower than VOE’s (0.06% vs. 0.07%). VXF also has a higher exposure to the technology sector and a higher standard deviation. Overall, VXF has provided higher returns than VOE over the past 11 years.
In this article, we’ll compare VXF vs. VOE. We’ll look at industry exposure and portfolio growth, as well as at their risk metrics and fund composition. Moreover, I’ll also discuss VXF’s and VOE’s annual returns, performance, and holdings and examine how these affect their overall returns.
Summary
| VXF | VOE | |
| Name | Vanguard Extended Market Index Fund ETF Shares | Vanguard Mid-Cap Value Index Fund ETF Shares |
| Category | Mid-Cap Growth | Mid-Cap Value |
| Issuer | Vanguard | Vanguard |
| AUM | 114.53B | 26.78B |
| Avg. Return | 15.47% | 12.52% |
| Div. Yield | 1.19% | 1.87% |
| Expense Ratio | 0.06% | 0.07% |
The Vanguard Extended Market Index Fund ETF Shares (VXF) is a Mid-Cap Growth fund that is issued by Vanguard. It currently has 114.53B total assets under management and has yielded an average annual return of 15.47% over the past 10 years. The fund has a dividend yield of 1.19% with an expense ratio of 0.06%.
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%.
VXF’s dividend yield is 0.68% lower than that of VOE (1.19% vs. 1.87%). Also, VXF yielded on average 2.95% more per year over the past decade (15.47% vs. 12.52%). The expense ratio of VXF is 0.01 percentage points lower than VOE’s (0.06% vs. 0.07%).
Fund Composition
Industry Exposure
| VXF | VOE | |
| Technology | 23.61% | 9.85% |
| Industrials | 11.31% | 9.4% |
| Energy | 2.46% | 5.69% |
| Communication Services | 7.29% | 5.27% |
| Utilities | 1.65% | 10.93% |
| Healthcare | 15.25% | 7.04% |
| Consumer Defensive | 3.09% | 4.85% |
| Real Estate | 8.16% | 11.48% |
| Financial Services | 12.56% | 18.26% |
| Consumer Cyclical | 11.35% | 11.8% |
| Basic Materials | 3.26% | 5.44% |
The Vanguard Extended Market Index Fund ETF Shares (VXF) has the most exposure to the Technology sector at 23.61%. This is followed by Healthcare and Financial Services at 15.25% and 12.56% respectively. Energy (2.46%), Consumer Defensive (3.09%), and Basic Materials (3.26%) only make up 8.81% of the fund’s total assets.
VXF’s mid-section with moderate exposure is comprised of Communication Services, Real Estate, Industrials, Consumer Cyclical, and Financial Services stocks at 7.29%, 8.16%, 11.31%, 11.35%, and 12.56%.
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%.
VXF is 13.76% more exposed to the Technology sector than VOE (23.61% vs 9.85%). VXF’s exposure to Healthcare and Financial Services stocks is 8.21% higher and 5.70% lower respectively (15.25% vs. 7.04% and 12.56% vs. 18.26%). In total, Energy, Consumer Defensive, and Basic Materials also make up 7.17% less of the fund’s holdings compared to VOE (8.81% vs. 15.98%).
Holdings
| VXF Holdings | Weight |
| Square Inc A | 1.2% |
| Zoom Video Communications Inc | 1.04% |
| Uber Technologies Inc | 0.93% |
| Moderna Inc | 0.9% |
| Blackstone Group Inc | 0.83% |
| Snap Inc Class A | 0.8% |
| Twilio Inc A | 0.73% |
| DocuSign Inc | 0.68% |
| CrowdStrike Holdings Inc Class A | 0.63% |
| Marvell Technology Inc | 0.6% |
VXF’s Top Holdings are Square Inc A, Zoom Video Communications Inc, Uber Technologies Inc, Moderna Inc, and Blackstone Group Inc at 1.2%, 1.04%, 0.93%, 0.9%, and 0.83%.
Snap Inc Class A (0.8%), Twilio Inc A (0.73%), and DocuSign Inc (0.68%) have a slightly smaller but still significant weight. CrowdStrike Holdings Inc Class A and Marvell Technology Inc are also represented in the VXF’s holdings at 0.63% and 0.6%.
| 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
| VXF | VOE | |
| Mean Return | 1.24 | 1.05 |
| R-squared | 85.73 | 88.76 |
| Std. Deviation | 18.04 | 15.98 |
| Alpha | -3.26 | -3.77 |
| Beta | 1.23 | 1.11 |
| Sharpe Ratio | 0.79 | 0.75 |
| Treynor Ratio | 10.92 | 10.19 |
The Vanguard Extended Market Index Fund ETF Shares (VXF) has a R-squared of 85.73 with a Mean Return of 1.24 and a Standard Deviation of 18.04. Its Treynor Ratio is 10.92 while VXF’s Beta is 1.23. Furthermore, the fund has a Sharpe Ratio of 0.79 and a Alpha of -3.26.
The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has a Standard Deviation of 15.98 with a Treynor Ratio of 10.19 and a Alpha of -3.77. Its Mean Return is 1.05 while VOE’s Sharpe Ratio is 0.75. Furthermore, the fund has a R-squared of 88.76 and a Beta of 1.11.
VXF’s Mean Return is 0.19 points higher than that of VOE and its R-squared is 3.03 points lower. With a Standard Deviation of 18.04, VXF is slightly more volatile than VOE. The Alpha and Beta of VXF are 0.51 points higher and 0.12 points higher than VOE’s Alpha and Beta.
Performance
Annual Returns
| Year | VXF | VOE |
| 2020 | 32.19% | 2.5% |
| 2019 | 28.04% | 27.98% |
| 2018 | -9.37% | -12.41% |
| 2017 | 18.1% | 17.05% |
| 2016 | 16.16% | 15.26% |
| 2015 | -3.26% | -1.8% |
| 2014 | 7.55% | 13.98% |
| 2013 | 38.37% | 37.65% |
| 2012 | 18.48% | 16.04% |
| 2011 | -3.61% | -0.32% |
| 2010 | 27.55% | 21.83% |
VXF had its best year in 2013 with an annual return of 38.37%. VXF’s worst year over the past decade yielded -9.37% and occurred in 2018. In most years the Vanguard Extended Market Index Fund ETF Shares provided moderate returns such as in 2016, 2017, and 2012 where annual returns amounted to 16.16%, 18.1%, and 18.48% 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
| Fund | Initial Balance | Final Balance | CAGR |
| VXF | $10,000 | $44,130 | 15.47% |
| VOE | $10,000 | $33,655 | 12.52% |
A $10,000 investment in VXF would have resulted in a final balance of $44,130. This is a profit of $34,130 over 11 years and amounts to a compound annual growth rate (CAGR) of 15.47%.
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%.
VXF’s CAGR is 2.95 percentage points higher than that of VOE and as a result, would have yielded $10,475 more on a $10,000 investment. Thus, VXF outperformed VOE by 2.95% annually.
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