The SPDR S&P 400 Mid Cap Growth ETF (MDYG) was launched on 11/08/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Growth segment of the US equity market.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $2.91 billion, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market.
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.83%.
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund’s holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector–about 26.80% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Williams Sonoma Inc (WSM) accounts for about 1.57% of total assets, followed by Emcor Group Inc (EME) and Pure Storage Inc Class A (PSTG).
The top 10 holdings account for about 12.53% of total assets under management.
MDYG seeks to match the performance of the S&P MidCap 400 Growth Index before fees and expenses. The S&P MidCap 400 Growth Index measures the performance of the mid-capitalization growth sector in the U.S. equity market.
The ETF has added about 4.18% so far this year and it’s up approximately 20.81% in the last one year (as of 01/21/2025). In the past 52-week period, it has traded between $75.41 and $94.90.