Should Vanguard Extended Market ETF (VXF) Be on Your Investing Radar?
Nasdaq If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the Vanguard Extended Market ETF (VXF), a passively managed exchange traded fund launched on 12/27/2001.
The fund is sponsored by Vanguard. It has amassed assets over $14.09 billion, making it one of the larger ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.