What do 'expense ratio' and 'dividend yield' mean when comparing two ETFs?

The expense ratio is an annual fee charged by the fund, expressed as a percentage of assets, which reduces returns. The dividend yield shows the annual income paid out by the fund's holdings as a percentage of its share price. For instance, VO has a 0.03% expense ratio and a 1.33% dividend yield, while VOE has a 0.05% expense ratio and a 1.84% yield. Lower fees and higher yields can influence long-term performance and income potential.

How do the expense ratios of VO and VOE compare over time?

VO's expense ratio is 0.03%, while VOE's is 0.05%, creating a 0.02% difference. Although this may seem small, fees compound over time. For example, on a $10,000 investment, this difference equals $2 annually. Over ten years, assuming no growth, that could total $20 in savings by choosing the lower-fee fund. When comparing long-term investments, it's useful to consider how even minor differences in fees may impact overall returns.

How do mid-cap blend and mid-cap value indices differ in tracking?

VO tracks a mid-cap blend index, offering exposure to a mix of growth and value stocks within the mid-cap segment. VOE, on the other hand, tracks a mid-cap value index, which specifically targets companies deemed undervalued relative to their fundamentals. Blend funds provide diversified mid-cap exposure across various market segments, while value funds concentrate on firms with lower valuations.

What is the overlap between the top 10 holdings of VO and VOE?

There are four shared companies in the top 10 holdings of both funds: Marathon Petroleum (MPC), Valero Energy (VLO), Phillips 66 (PSX), and SLB. These companies appear in both ETFs, though their weightings differ. In VO, MPC accounts for 1.04% of the portfolio, while in VOE, it represents 1.81%. These overlaps indicate a degree of similarity in the energy and industrial sectors represented by the funds.

What does 'index tracking methodology' refer to, and is it available for these funds?

Index tracking methodology describes how an ETF replicates its benchmark index, whether through full replication, sampling, or derivatives. For VO and VOE, this methodology is not available in the provided data. Investors might review fund prospectuses for this information, as understanding it can influence confidence in tracking accuracy and potential divergence from index returns.

Does a higher dividend yield necessarily mean better income?

Not always. A higher yield, like VOE's 1.84% compared to VO's 1.33%, indicates more income currently, but yields fluctuate with dividend payments and share prices. A value ETF might offer higher yields by targeting companies with steady dividends or lower growth prospects. While income potential increases, total return may vary, as higher yields do not guarantee superior performance or sustained distributions.

What sector exposure can be expected from mid-cap funds, and is it available for these ETFs?

Typical sector exposure for mid-cap ETFs includes industries like Consumer Discretionary, Industrials, Health Care, and Information Technology. However, sector weight breakdowns are unavailable in the provided data for both VO and VOE. While the funds hold companies like MPC and PSX in the Energy sector, broader sector allocations would require additional fund documentation.

How do the sizes of VO and VOE affect investors?

VO has $108.0 billion in net assets, while VOE holds $24.0 billion. A larger fund like VO may offer better liquidity and potentially lower trading costs. However, a $24 billion fund like VOE is still substantial and generally provides adequate liquidity for most investors.

What are the inception dates of VO and VOE, and how does that relate to their maturity?

VO was launched on January 26, 2004, while VOE began trading on August 17, 2006. VO has a longer track record, offering more historical performance data. VOE, though newer, still has nearly two decades of data, which many investors consider sufficient to assess consistency and volatility in mid-cap value investing.

What should a beginner understand about comparing blend vs value strategies?

Blend strategies, like VO, aim to capture a mix of growth and value stocks, seeking balanced performance across market conditions. Value strategies, like VOE, focus on undervalued companies, often with stronger dividend yields but potentially slower growth. The choice between them typically reflects an investor's risk tolerance and preference for current income versus diversified growth potential.

VO vs VOE

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

Compare Vanguard Mid-Cap ETF (VO) with Vanguard Mid-Cap Value ETF (VOE). This page examines fees, holdings, dividends and how each fund tracks its market. VO has a 0.03% expense ratio and 1.33% yield, while VOE has a 0.05% expense ratio and 1.84% yield. Both track mid-cap equities. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

Metric

VOE

0.03%

Expense Ratio

0.05%

1.33%

Dividend Yield

1.84%

$107.97B

Net Assets

$24.03B

288

Holdings

176

Jan 26, 2004

Inception Date

Aug 17, 2006

–

Index Tracked

–

Mid-Cap Blend

Fund Category

Mid-Cap Value

VO costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	VO	VOE
MPCMarathon Petroleum Corporation	1.04%	1.81%
VLOValero Energy Corporation	1.02%	1.77%
PSXPhillips 66	0.94%	1.64%
SLBSLB N.V.	0.86%	1.49%

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IWS vs VOE

Compare IWS and VOE fees, yields, and holdings. IWS charges 0.23%, VOE 0.05%. Both track mid-cap value indices with overlapping top holdings like PSX.

Investment Analysis

VO

Pros

VO offers a low expense ratio of 0.03% for broad mid-cap blend exposure.
VO provides substantial liquidity with net assets of $108.0 billion.
VO has a long inception history of Jan 26, 2004.

Considerations

VO has a lower dividend yield of 1.33% compared to its value counterpart.
VO's index tracking methodology is not available in the provided data.
VO lacks specific sector weight breakdowns in the current dataset.

VOE

Pros

VOE provides a higher dividend yield of 1.84% suitable for income-focused investors.
VOE maintains a competitive expense ratio of 0.05% for mid-cap value.
VOE offers targeted exposure to mid-cap value stocks since Aug 17, 2006.

Considerations

VOE has smaller net assets of $24.0 billion than the blend fund.
VOE's index tracking methodology is not available in the provided data.
VOE lacks specific sector weight breakdowns in the current dataset.

About VO and VOE

VO (VO)

The Vanguard Mid-Cap ETF (VO) offers investors broad exposure to the US mid-cap market through a low-cost, diversified approach. With net assets of approximately USD 107.97 billion and 288 holdings, this fund aims to track the performance of the mid-cap segment, balancing growth potential with stability. Investors appreciate its blend strategy, which combines value and growth characteristics within mid-sized companies. The fund features an expense ratio of 0.03%, making it an attractive option for cost-conscious investors. Its dividend yield stands at 1.33%, providing some income potential alongside capital growth opportunities. Inception date is January 26, 2004, reflecting a long-standing track record. Please note that values can rise and fall, and returns are not guaranteed. This fund may suit those seeking diversified mid-cap exposure but requires careful consideration of individual investment goals and risk tolerance.

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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VO vs VOE

Fund Snapshot