IVOV Profile
The Vanguard S&P Mid-Cap 400 Value Index Fund is engineered to provide investors with exposure to U.S. mid-cap value stocks through an indexing approach. The fund aims to track the performance of the S&P MidCap 400 Value Index, which represents value-oriented companies within the S&P MidCap 400 Index. The index focuses on mid-sized companies that are deemed undervalued relative to their intrinsic worth, as determined by criteria set by the index sponsor, S&P Dow Jones Indices.
The fund utilizes a replication strategy to mirror the performance of the S&P MidCap 400 Value Index as closely as possible. To achieve this, the fund invests all or nearly all of its assets in the stocks that are included in the index, maintaining each stock in roughly the same proportion as its weighting within the index. This method ensures that the funds performance reflects that of the target index, providing a precise representation of the mid-cap value segment of the U.S. equity market.
The S&P MidCap 400 Value Index includes mid-sized companies that are identified as having lower valuations relative to their financial metrics, such as price-to-earnings ratios or book-to-value ratios. These companies are generally characterized by stable earnings, strong fundamentals, and lower growth expectations compared to growth stocks. By focusing on value stocks, the fund offers investors an opportunity to benefit from potential market inefficiencies and undervalued opportunities within the mid-cap sector.
Managed by Vanguard, a prominent investment management firm with a reputation for excellence in index investing, the fund leverages Vanguards expertise in low-cost, efficient investment management. Vanguards commitment to minimizing costs and delivering accurate index tracking ensures that investors can gain exposure to mid-cap value stocks with high precision and low expense. This fund is ideal for investors seeking to diversify their portfolios with value-oriented mid-cap stocks while adhering to a disciplined and passive investment approach.
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