What Is the EZM ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A US mid-cap smart beta ETF that uses an earnings-based weighting method. It builds a portfolio centered on companies with solid fundamentals.
SubscribeWhat Is This ETF?
This ETF follows a strategy of selecting and investing in profitable companies within the US mid-cap sector. It tracks the WisdomTree U.S. MidCap Earnings Index and sets each position's weight based on the company's net income.
It suits mid-cap investors who value corporate earnings and fundamentals over a simple market-cap-weighted approach.
Launched by WisdomTree in 2006, it is a passively managed ETF that tracks an index.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | WisdomTree U.S. MidCap Earnings Index |
| Management Style | Passive (earnings-weighted) |
| Rebalancing Frequency | Once a year |
| Dividend Frequency | Quarterly |
| Expense Ratio | 0.38% |
Instead of market capitalization, weights are determined by each company's cumulative net income. This reduces the weight of overvalued stocks and allows the fund to hold more high-quality mid-cap stocks that are undervalued relative to their earnings.
- Earnings-based fundamental weighting strategy
- Combines characteristics of both growth and value stocks
Size and Costs
Assets under management (AUM) stand at $944.4M, and the expense ratio is 0.38% per year.
Unlike VIG and SCHD in the table, which focus on large-cap dividend stocks, EZM applies earnings-based weights across the mid-cap sector, offering a differentiated exposure.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAmid an earnings-driven mid-cap market, the fund has maintained a steady growth trend centered on companies that generate solid profits. Even in a market dominated by large caps, it has shown the resilience typical of mid-cap stocks.
Investment demand centered on earnings and fundamentals continues to flow in, and one notable feature is the observed shift of capital toward mid-cap stocks with clear earnings improvement during economic recoveries.
Pros and Cons
Its rational earnings-based weighting is a strength, but a higher expense ratio than market-cap-weighted indexes and the volatility typical of mid-cap stocks are factors to consider.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
In the table, VIG, SCHD, and VYM are dividend-focused large-cap alternatives, while DFAC offers broad core equity exposure. If you prefer a market-cap-weighted approach in the mid-cap sector, you can consider IJH, VO, or IWR, and if you want a more value-oriented mid-cap investment, IWS is also worth considering. If you want to focus on growth, IWP is also a good option.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SCHD | Schwab US Dividend Equity ETF | $35.78 | +0.5% | $120.5B | 0.06% | 2.94% | +34.1% |
 VIG | Vanguard Dividend Appreciation FTF | $247.76 | -0.6% | $116.5B | 0.04% | 1.47% | +13.8% |
 VYM | Vanguard High Dividend Yield Indx ETF | $163.74 | -0.7% | $83.8B | 0.04% | 2.25% | +16.3% |
 DFAC | U.S. Core Equity 2 Portfolio-ETF Class Shares | $44.89 | -1.3% | $49.9B | 0.18% | 0.88% | +15.4% |
 RDVY | First Trust Rising Dividend Achievers ETF | $79.17 | -1.0% | $25.7B | 0.47% | 0.86% | +17.2% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 VTRS | Viatris Inc | 0.03% | $19.03 | -0.9% | $21.9B | - | 2.65% |
 CF | CF Industries Holdings Inc | 0.02% | $123.30 | +4.4% | $18.7B | 9.2 | 1.76% |
 APA | APA Corp | 0.01% | $52.82 | +2.5% | $18.5B | 11.2 | 1.91% |
 OVV | Ovintiv Inc | 0.01% | $72.62 | +1.5% | $20.0B | 20.3 | 1.66% |
 RNR | RenaissanceRe Holdings Ltd | 0.02% | $339.32 | +0.2% | $13.7B | 9.8 | 0.48% |
 SNX | TD Synnex Corp | 0.01% | $236.62 | -7.2% | $18.9B | 14.4 | 0.81% |
 AES | AES Corp | 0.01% | $14.83 | -1.5% | $10.6B | 5.5 | 4.79% |
Investor Checkpoints
These are the key points to check before investing in EZM. It is important to fully consider how earnings weighting works and the volatility of the mid-cap market, and to reflect them in your asset allocation strategy.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the fee level that comes with a smart beta strategy | Maintained |
| 📊 Mid-Cap Exposure | Check the distribution of mid-cap weights within the portfolio | Mid-cap focused |
| 📈 Earnings-Based Weighting | Understand the mechanism that adjusts weights by profit measures | Based on earnings |
| 📉 Market Environment | Review periods when mid caps are favored over large caps | Ongoing monitoring |
Mid-cap stocks can be less liquid than large caps and may suffer larger declines during volatile markets. Keep in mind that an earnings-based strategy does not always outperform a market-cap-weighted approach.
This is a smart beta product suited to investors who want to systematically invest in US mid-cap stocks with strong fundamentals. From a long-term perspective, it is useful for building a portfolio that aims for earnings-based excess returns.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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