Should WisdomTree U.S. MidCap ETF (EZM) Be on Your Investing Radar?

The WisdomTree U.S. MidCap ETF (EZM) was launched on February 23, 2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Value segment of the US equity market.The fund is sponsored by Wisdomtree. It has amassed assets over $850.80 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 ValueMid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus, companies that fall under this category provide a stable and growth-heavy investment.Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets. CostsExpense 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 0.38%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.33%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Energy sector -- about -999900% of the portfolio. Industrials and Materials round out the top three.Looking at individual holdings, Us Dollar accounts for about 65.85% of total assets, followed by Dreyfus Trsy Oblig Cash Mgmt Cl Ins and Aptiv Holdings Ltd (APTV).The top 10 holdings account for about 106.63% of total assets under management.Performance and RiskEZM 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 gained about 7.14% so far this year and was up about 8.42% in the last one year (as of 10/07/2025). In the past 52-week period, it has traded between $51.81 and $68.19.The ETF has a beta of 1.09 and standard deviation of 19.97% for the trailing three-year period, making it a medium risk choice in the space. With about 545 holdings, it effectively diversifies company-specific risk.AlternativesWisdomTree 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 reasonable 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 ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $14.21 billion in assets, Vanguard Mid-Cap Value ETF has $19.27 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.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 WisdomTree U.S. MidCap ETF (EZM): 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