If you're interested in broad exposure to the Mid Cap Value segment of the US equity market, look no further than the WisdomTree U.S. MidCap ETF (EZM), a passively managed exchange traded fund launched on February 23, 2007.
The fund is sponsored by Wisdomtree. It has amassed assets over $927.42 million, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.
Why Mid Cap Value
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.38%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.24%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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 18.1% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Viatris Inc (VTRS) accounts for about 1.27% of total assets, followed by Cf Industries Holdings Inc (CF) and Apa Corp (APA).
The top 10 holdings account for about 8.13% of total assets under management.
Performance and Risk
EZM seeks to match the performance of the WisdomTree U.S. MidCap Earnings Index before fees and expenses. The WisdomTree U.S. MidCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the mid-capitalization segment of the U.S. Stock Market.
The ETF has added about 12.78% so far this year and was up about 26.27% in the last one year (as of 06/16/2026). In the past 52-week period, it has traded between $60.31 and $75.30.
The ETF has a beta of 1.00 and standard deviation of 18.22% for the trailing three-year period, making it a medium risk choice in the space. With about 511 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. MidCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, EZM is a sufficient option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $15.71 billion in assets, Vanguard Mid-Cap Value Index Fund ETF Shares has $23.16 billion. IWS has an expense ratio of 0.23% and VOE charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. MidCap ETF (EZM): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).