What exactly does the mid-cap value category represent in this comparison?

The mid-cap value category refers to companies with medium market capitalisations that are considered undervalued relative to their fundamentals. IWS (Fund A) and VOE (Fund B) both target this specific segment, aiming to capitalise on price inefficiencies. While they share the same general objective, their execution differs due to unique holdings and expense structures. This category sits between small and large-cap investments, offering a blend of growth potential and established operational stability.

How is net assets different from the price of a share for an ETF?

Net assets, or assets under management, represent the total market value of all holdings within the fund. IWS holds $15.1 billion and VOE holds $24.0 billion, reflecting the total size of the vehicle. This differs from the share price, which is the cost to buy one unit on the stock exchange. Net assets indicate the fund's scale and liquidity, but do not directly influence the per-share trading price. Larger net assets often support more efficient trading.

Why is the expense ratio considered a critical factor for mid-cap value investors?

The expense ratio is the annual fee charged to manage the fund. VOE charges 0.05%, significantly lower than IWS's 0.23%. This 0.18 percentage point difference compounds over time, meaning lower fees can lead to higher net returns assuming similar market performance. For value strategies, which may have periods of underperformance, minimising costs is a primary method to improve long-term outcomes. IWS provides a longer history since July 2001, yet VOE offers a much more cost-efficient structure since August 2006.

What does the dividend yield tell an investor about these specific funds?

The dividend yield indicates the income return relative to the share price. VOE currently has a yield of 1.84%, higher than IWS's 1.34%. A higher yield can provide more cash flow, but it does not guarantee better performance as yields fluctuate with price changes. Both funds reinvest or distribute dividends based on the holdings' payments. For mid-cap value, a higher yield often reflects mature companies returning capital, but investors must consider whether the yield aligns with their total return goals.

How do the top holdings of IWS and VOE differ regarding concentration risk?

While both funds hold PSX and MPC, the weighting differs. VOE's top position MPC is 1.81%, while IWS's is 0.61%, suggesting VOE may have a more concentrated approach in energy and industrial sectors. IWS's top holdings are more evenly distributed across various sectors like Healthcare and Consumer Staples. Sector weight data is not available for both funds, limiting transparency on total exposure. Investors must recognise that higher concentration can increase volatility tied to specific sectors like energy.

What is the significance of the 0.18 percentage point difference in fees?

A 0.18 percentage point difference (IWS 0.23% vs VOE 0.05%) may appear small initially but impacts long-term growth. Over 20 years, this cost difference compounds, potentially lowering the final account balance significantly if returns are equal. IWS is more expensive to hold annually, but it offers longer track record history starting in 2001. VOE's lower cost structure since 2006 provides a financial edge for cost-conscious investors in the mid-cap value segment.

What does it mean that IWS tracks the 'Russell Mid-Cap Value' index?

Tracking a specific index like the Russell Mid-Cap Value means the fund is a passive vehicle replicating that benchmark. IWS follows the index's constituents, holding all stocks within it. VOE tracks its own Mid-Cap Value benchmark, leading to potential differences in holdings and weights. This comparison helps investors understand whether they prefer a broad, index-based passive strategy or the potentially different composition of a Vanguard index. Both funds maintain their respective structures to mirror mid-cap value characteristics.

Why might liquidity matter when choosing between IWS and VOE?

Liquidity refers to how easily you can buy or sell shares without affecting the price. VOE has larger net assets of $24.0 billion compared to IWS's $15.1 billion. Typically, a larger fund size supports higher trading volume and tighter bid-ask spreads. However, both are large institutions and are likely liquid enough for most retail investors. IWS's 15.1 billion and VOE's 24.0 billion both indicate established products with significant market activity, ensuring reliable execution for standard trades.

What does the phrase 'sector weight data is not available' imply for analysis?

When sector weight data is 'not available', the source data does not explicitly list the breakdown for the ETFs. While we can infer from top holdings like energy (MPC, PSX, VLO) and tech (HPE), exact percentages for the whole portfolio are missing. This limits the ability to compare the exact sector allocation differences between IWS and VOE. Investors must rely on the fund provider's specific website for the most granular, up-to-date sector breakdown to manage concentration risk.

Can the overlap of top holdings like PSX and MPC be a strategy indicator?

Overlap in top holdings indicates that both IWS and VOE have exposure to companies like Phillips 66 (PSX) and Marathon Petroleum (MPC). Since the mid-cap value universe overlaps, these stocks appear in both funds. However, the weights differ, with VOE allocating more significantly to these. This overlap suggests the funds will react similarly to movements in these specific stocks, but overall returns will vary based on the broader portfolio and the cost structure.

Should beginners prioritise the inception date when comparing ETFs like IWS and VOE?

The inception date (IWS: July 2001, VOE: August 2006) shows track record length. While IWS has a longer history, 2001, and VOE has a shorter history of 2006, both have significant operating experience through various market cycles. Beginners often overvalue track record; however, the structural changes in the funds are more critical. For IWS and VOE, the longer history of IWS is a minor factor compared to the fee structure and portfolio composition, though IWS's longevity offers more data for historical analysis.

IWS vs VOE

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare IWS (iShares Russell Mid-Cap Value ETF) and VOE (Vanguard Mid-Cap Value ETF) to examine fees, holdings, dividends, and how each fund tracks the mid-cap value market. IWS has a 0.23% expense ratio, while VOE charges 0.05%. Both funds hold overlapping positions like PSX, HPE, WBD, and MPC. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IWS

Metric

VOE

0.23%

Expense Ratio

0.05%

1.34%

Dividend Yield

1.84%

$15.07B

Net Assets

$24.03B

723

Holdings

176

Jul 17, 2001

Inception Date

Aug 17, 2006

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Index Tracked

–

Mid-Cap Value

Fund Category

Mid-Cap Value

VOE costs about $18.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IWS	VOE
PSXPhillips 66	1.02%	1.64%
HPEHewlett Packard Enterprise Company	0.80%	1.15%
WBDWarner Bros. Discovery, Inc.	0.66%	1.13%
MPCMarathon Petroleum Corporation	0.61%	1.81%

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VO vs VOE

Compare VO and VOE mid-cap ETFs. Review expense ratios, holdings, dividends, and tracking. VO has 0.03% fees and 1.33% yield; VOE has 0.05% fees and 1.84% yield

Investment Analysis

IWS

Pros

IWS provides exposure to mid-cap value stocks with a moderate expense ratio of 0.23%.
The fund has a long operating history, having launched in July 2001.
It maintains significant net assets of $15.1 billion, supporting liquidity and stability.

Considerations

Its dividend yield of 1.34% is lower than the comparable Vanguard fund.
The expense ratio of 0.23% is higher than the 0.05% charged by VOE.
Sector weight data is not available, limiting transparency on specific industry exposures.

VOE

Pros

VOE charges a low expense ratio of 0.05%, reducing ongoing costs for investors.
The fund offers a higher dividend yield of 1.84% compared to iShares' IWS.
With $24.0 billion in net assets, VOE provides strong liquidity and scale.

Considerations

It has a shorter operating history, having launched in August 2006.
Sector weight data is not available, making specific industry breakdowns unclear.
Top holdings include high concentration in energy and industrial stocks, which may increase sector-specific risk.

About IWS and VOE

IWS (IWS)

The iShares Russell Mid-Cap Value ETF (IWS) is an investment fund designed to track the performance of mid-cap value stocks in the US market. It holds shares of 723 companies with market capitalisations between large-cap and small-cap firms, focusing on businesses that appear undervalued relative to their fundamentals. With a competitive expense ratio of 0.23% and a dividend yield of 1.34%, this ETF offers diversified exposure to the mid-cap sector. Launched in July 2001 and managing USD 15.07 billion in net assets, it provides investors with a cost-effective way to potentially benefit from the growth characteristics of mid-sized companies. However, please note that values can fall as well as rise, and returns are not guaranteed.

VOE (VOE)

The Vanguard Mid-Cap Value ETF (VOE) is an exchange-traded fund designed to provide broad exposure to the U.S. mid-capitalisation value equity market. Launched in August 2006, the fund aims to track the performance of an index focused on mid-sized companies that appear undervalued relative to their fundamentals. With net assets of USD 24.03 billion, VOE offers a large, established pool for investors seeking diversification within this specific style and size segment of the market. It holds approximately 176 companies, providing a concentrated yet diversified approach to mid-cap value investing. The fund is known for its low cost, featuring an expense ratio of just 0.05%, which helps to maximise potential returns by keeping fees minimal. While it has a dividend yield of 1.84%, it is important to remember that dividends can fluctuate. As with any investment, the value of shares can go down as well as up, so returns are not guaranteed.

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IWS vs VOE

Fund Snapshot

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VO vs VOE

Investment Analysis

IWS

Pros

Considerations

VOE

Pros

Considerations

About IWS and VOE

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Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What exactly does the mid-cap value category represent in this comparison?

How is net assets different from the price of a share for an ETF?

Why is the expense ratio considered a critical factor for mid-cap value investors?

What does the dividend yield tell an investor about these specific funds?

How do the top holdings of IWS and VOE differ regarding concentration risk?

What is the significance of the 0.18 percentage point difference in fees?

What does it mean that IWS tracks the 'Russell Mid-Cap Value' index?

Why might liquidity matter when choosing between IWS and VOE?

What does the phrase 'sector weight data is not available' imply for analysis?

Can the overlap of top holdings like PSX and MPC be a strategy indicator?

Should beginners prioritise the inception date when comparing ETFs like IWS and VOE?

Fund Snapshot

About IWS and VOE

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VO vs VOE