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

Vanguard Mid-Cap ETF (VO -0.3%) is a top exchange-traded fund (ETF) by assets under management. The ETF had $177 billion in assets under management as of early 2025. The fund’s massive size, the diversification of its holdings, low cost, and focus have made it a popular choice with investors of all ages and trading styles.

This guide will teach you everything you need to know about the Vanguard Mid-Cap ETF, and how to invest in ETFs.

What is it?

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

The Vanguard Mid-Cap ETF is an ETF 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. The CRSP US Mid Cap Index 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

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.

Holdings

Holdings of the Vanguard Mid-Cap ETF (VO)

This ETF tracks the performance of mid-cap U.S. stocks. It’s a passively managed fund that aims to replicate the CRSP US Mid Cap Index, which measures the performance of mid-cap stocks in the U.S. equities market. It holds 316 stocks, with a median market capitalization of $34.8 billion for the stocks held in the fund. As of early 2025, the top 10 holdings of this ETF included:

1. Palantir Technologies (PLTR -0.39%): 1.53%
2. Amphenol (APH -0.33%): 0.98%
3. Welltower (WELL 0.14%): 0.95%
4. Motorola Solutions (NYSE:MSI ): 0.94%
5. Constellation Energy (CEG -0.65%): 0.91%
6. Cintas (CTAS -1.09%): 0.87%
7. Apollo Global Management (APO -0.87%): 0.78%
8. Arthur J. Gallagher & Co (AJG 0.73%): 0.77%
9. TransDigm Group (TDG 2.15%): 0.75%
10. Carrier Global (CARR -1.59%): 0.75%

The Vanguard Mid-Cap ETF is extremely well diversified across various sectors. The ETF’s weighted exposures as of early 2025 were:

• Industrials: 19.93%
• Technology: 13.93%
• Financials: 13.51%
• Consumer discretionary: 13.13%
• Healthcare: 8.59%
• Utilities: 8.25%
• Real estate: 7.63%
• Consumer staples: 5.95%
• Energy: 5.53%
• Basic materials: 2.62%
• Telecommunications: 0.94%

As you can see from the list above, the ETF’s top sector concentrations are industrials, technology, and financials. These and other top weightings in the fund’s portfolio will have the broadest impact on its performance.

Should I invest?

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

Making any investment is a personal decision. If you’re considering the Vanguard Mid-Cap ETF, you need to make sure it aligns with your goals, values, and risk tolerance level. There are numerous reasons some long-term investors might want to consider a position in this particular ETF.

Mid-cap stocks can offer investors greater opportunities for portfolio growth than more mature companies, while maintaining a lower rate of volatility than smaller, earlier-stage businesses. 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 core sectors ranging from technology to healthcare to utilities to real estate.

Mid-cap stocks can often outperform both small- and large-cap stocks over the long term. Because the Vanguard Mid-Cap ETF focuses on closely tracking the CRSP US Mid Cap Index return, it is considered a gauge of overall U.S. mid-cap stock returns. It targets companies that fall between the top 70% – 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 returns, 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.

Dividend

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

This Vanguard ETF pays a dividend that yields approximately 1.55% in early 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.

Expense ratio

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

Historical performance of Vanguard Mid-Cap ETF (VO)

This mid-cap ETF is supposed to closely mirror the performance of the CRSP US Mid Cap Index. Let’s take a look at how the ETF has delivered on that objective over the trailing one-, three-, five-, and 10-year periods:

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The bottom line

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.

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