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

Looking for broad exposure to the Mid Cap Growth segment of the US equity market? You should consider the State Street SPDR S&P 400 Mid Cap Growth ETF (MDYG), a passively managed exchange traded fund launched on November 8, 2005.The fund is sponsored by State Street Investment Management. It has amassed assets over $2.51 billion, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market.Why Mid Cap GrowthMid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus they have a nice balance of growth potential and stability.While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments. CostsSince 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 0.15%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 0.71%.Sector Exposure and Top HoldingsIt 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 30.1% of the portfolio. Information Technology and Healthcare round out the top three.Looking at individual holdings, Ciena Corp (CIEN) accounts for about 1.88% of total assets, followed by Coherent Corp (COHR) and Lumentum Holdings Inc (LITE).The top 10 holdings account for about 13.7% of total assets under management.Performance and RiskMDYG 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 roughly 5.02% so far this year and was up about 9.52% in the last one year (as of 02/04/2026). In the past 52-week period, it has traded between $70.44 and $99.02.The ETF has a beta of 1.09 and standard deviation of 18.08% for the trailing three-year period, making it a medium risk choice in the space. With about 238 holdings, it effectively diversifies company-specific risk.AlternativesState Street SPDR S&P 400 Mid Cap Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, MDYG is a great option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well. The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $17.43 billion in assets, iShares Russell Mid-Cap Growth ETF has $19.65 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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.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 S&P 400 Mid Cap Growth ETF (MDYG): 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