Vanguard Mid-Cap ETF (VO): Complete Beginner's Guide
Vanguard Mid-Cap ETF (VO) is a us mid-cap ETF from Vanguard with an expense ratio of 0.04% and $65.0B in assets under management. Our Beginner Suitability Score: 8.5/10 (Great for Beginners). 5-year annualized return: 11.00%.
Last updated: April 2026
Vanguard • US Mid-Cap
Expense Ratio
0.04%
AUM
$65.0B
Dividend Yield
1.50%
Inception
2004
Beginner Score
8.5/10
What is Vanguard Mid-Cap ETF?
VO tracks the CRSP US Mid Cap Index, giving investors access to medium-sized U.S. companies that sit between large-cap stability and small-cap growth potential. These mid-cap companies are often past their riskiest early stages yet still have significant room to grow. The fund offers a well-diversified basket of mid-sized firms across every major sector of the economy.
VO is managed by Vanguard and has been available since 2004. With $65.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.04%, which means for every $10,000 you invest, you pay approximately $4 per year in management fees.
VO at a Glance — Key Metrics
| Expense Ratio | 0.04% |
| Total Holdings | 325 |
| P/E Ratio | 22.5 |
| Beta | 1.05 |
| Dividend Yield | 1.50% |
| AUM | $65.0B |
| Inception Year | 2004 |
| Issuer | Vanguard |
Top 10 Holdings in VO
VO holds 325 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | IDEXX Laboratories | IDXX | 1.20% |
| 2 | Microchip Technology | MCHP | 1.10% |
| 3 | Amphenol | APH | 1.10% |
| 4 | Arthur J. Gallagher | AJG | 1.00% |
| 5 | Copart | CPRT | 1.00% |
| 6 | Mettler-Toledo | MTD | 0.90% |
| 7 | Fastenal | FAST | 0.90% |
| 8 | CDW Corporation | CDW | 0.80% |
| 9 | Old Dominion Freight | ODFL | 0.80% |
| 10 | West Pharmaceutical | WST | 0.80% |
VO's top holding is IDEXX Laboratories (IDXX) at 1.20%, followed by Microchip Technology (MCHP) at 1.10% and Amphenol (APH) at 1.10%. The top 10 holdings account for 9.60% of the fund's 325 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | IDEXX Laboratories | IDXX | 1.20% |
| 2 | Microchip Technology | MCHP | 1.10% |
| 3 | Amphenol | APH | 1.10% |
| 4 | Arthur J. Gallagher | AJG | 1.00% |
| 5 | Copart | CPRT | 1.00% |
| 6 | Mettler-Toledo | MTD | 0.90% |
| 7 | Fastenal | FAST | 0.90% |
| 8 | CDW Corporation | CDW | 0.80% |
| 9 | Old Dominion Freight | ODFL | 0.80% |
| 10 | West Pharmaceutical | WST | 0.80% |
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VO Performance History
Here's how VO has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.80%
1 Year
14.00%
3 Year
8.00%
5 Year
11.00%
10 Year
10.00%
VO has returned 11.00% annualized over 5 years and 10.00% over 10 years. YTD return is 2.80%.
View data table
| Period | Return |
|---|---|
| YTD | 2.80% |
| 1 Year | 14.00% |
| 3 Year | 8.00% |
| 5 Year | 11.00% |
| 10 Year | 10.00% |
Beginner Suitability Score: 8.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
VO scores 8.5/10 because it has very low fees, can be more volatile than the broader market, offers broad diversification across 325 holdings, and has been available since 2004, giving it a proven track record.
How to Buy VO — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "VO" — Use the search bar in your brokerage platform to find Vanguard Mid-Cap ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
VO Sector Allocation
Here's how VO distributes its investments across different sectors of the economy:
VO's largest sector allocation is Industrials at 19.0%, followed by Technology at 17.0% and Consumer Discretionary at 14.0%.
View data table
| Sector | Weight |
|---|---|
| Industrials | 19.0% |
| Technology | 17.0% |
| Consumer Discretionary | 14.0% |
| Financials | 13.0% |
| Healthcare | 11.0% |
| Real Estate | 8.0% |
| Utilities | 6.0% |
| Materials | 5.0% |
| Energy | 4.0% |
| Consumer Staples | 3.0% |
Dollar Cost Averaging Into VO
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With VO's expense ratio of 0.04%, a $10,000 investment would lose approximately $344 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
VO's expense ratio of 0.04% costs $344 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,266.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,666 | $27 |
| 10 | $21,589 | $21,509 | $80 |
| 15 | $31,722 | $31,546 | $176 |
| 20 | $46,610 | $46,266 | $344 |
Pros and Cons of VO
Pros
- ✓Sweet spot between large-cap stability and small-cap growth potential
- ✓Very low expense ratio makes it one of the cheapest mid-cap options
- ✓Excellent sector diversification reduces concentration risk
- ✓Mid-cap stocks historically offer attractive risk-adjusted returns over full market cycles
Cons
- ✗More volatile than large-cap funds during market selloffs
- ✗Less media coverage and analyst attention than large-cap stocks can mean slower price discovery
- ✗Holdings rotate frequently as companies grow into large-cap or shrink into small-cap
VO vs Similar ETFs
See how VO stacks up against similar funds:
Frequently Asked Questions
Is VO a good ETF for beginners?▾
VO has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of VO?▾
VO has an expense ratio of 0.04%. This means for every $10,000 you invest, you pay approximately $4 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in VO?▾
You can invest in VO with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does VO pay dividends?▾
Yes, VO pays dividends with a current yield of approximately 1.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in VO?▾
The top holdings in VO include IDEXX Laboratories (1.20%), Microchip Technology (1.10%), Amphenol (1.10%), and more. The fund holds 325 total positions, providing broad diversification across many companies.
What sectors does VO invest in?▾
VO's largest sector allocations are Industrials (19.00%), Technology (17.00%), Consumer Discretionary (14.00%). This sector distribution shows a focus on industrials stocks.
How much do VO's fees cost over time?▾
With an expense ratio of 0.04%, a $10,000 investment in VO would lose approximately $344 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.