Should State Street SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) Be on Your Investing Radar?

Launched on November 8, 2005, the State Street SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.The fund is sponsored by State Street Investment Management. It has amassed assets over $15.07 billion, making it one of the larger ETFs attempting to match the Mid Cap Blend segment of the US equity market.Why Mid Cap BlendWith 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.Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics. CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.03%, making it the least expensive products in the space.It has a 12-month trailing dividend yield of 1.37%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector -- about 23.7% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, Comfort Systems Usa Inc (FIX) accounts for about 0.94% of total assets, followed by Pure Storage Inc Class A (PSTG) and Ciena Corp (CIEN).The top 10 holdings account for about 7.21% of total assets under management.Performance and RiskSPMD seeks to match the performance of the S&P 1000 Index before fees and expenses. The S&P MidCap 400 Index combines the S&P MidCap 400 and the S&P SmallCap 600 to form an investable benchmark for the mid to small cap segment of the U.S. equity market.The ETF has added roughly 6.83% so far this year and is down about 0.72% in the last one year (as of 11/28/2025). In the past 52-week period, it has traded between $44.89 and $59.14.The ETF has a beta of 1.08 and standard deviation of 18.24% for the trailing three-year period. With about 405 holdings, it effectively diversifies company-specific risk.AlternativesState Street SPDR Portfolio S&P 400 Mid Cap 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, SPMD is a reasonable option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $89.06 billion in assets, iShares Core S&P Mid-Cap ETF has $101.32 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report State Street SPDR Portfolio S&P 400 Mid Cap ETF (SPMD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks