MDYG ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A mid-cap growth ETF that tracks the S&P MidCap 400 Growth Index. Its passive management keeps the cost burden low.
SubscribeWhat Is This ETF?
This is a passive ETF that tracks the S&P MidCap 400 Growth Index. It holds US mid-cap growth stocks that meet criteria for sales growth, earnings momentum, and price momentum, weighted by market capitalization.
It suits investors who want to diversify their portfolios with mid-cap growth stocks in addition to large-cap growth ETFs.
It is a passively managed (index-tracking) ETF launched by State Street (SSGA) in 2005.
How Do You Invest?
| Item | Details |
|---|---|
| Tracked Index | S&P MidCap 400 Growth Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Once a year (based on index reconstitution) |
| Dividend Frequency | Quarterly |
| Expense Ratio | 0.15% |
From the constituents of the S&P MidCap 400, the fund selects stocks with high scores on three factors, namely sales growth, earnings change, and price momentum, and holds them on a market-cap-weighted basis. Because it concentrates on mid-cap stocks with clear growth characteristics, its portfolio composition differs from that of broad growth ETFs centered on large caps.
- Pure mid-cap growth exposure with low large-cap concentration
- Growth selection based on a composite of sales, earnings, and momentum factors
Size and Costs
Assets under management (AUM) stand at $2.8B, and the expense ratio is 0.15% per year.
Compared with MDY from the same family (the full S&P MidCap 400), an added growth factor filter cuts the number of holdings to roughly half and raises the concentration in growth stocks.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeUS mid-cap growth stocks tend to react sensitively to the interest rate environment and the economic cycle. When rates are stable or falling, growth stock valuations recover and the stocks tend to show relatively strong performance. Conversely, during periods of rising rates, pullbacks can be larger than for large caps.
Mid-cap growth ETFs attract smaller fund inflows than index ETFs centered on large caps, but demand for portfolio diversification remains steady. In the early stage of an economic recovery, money tends to shift toward small and mid-cap growth stocks, so these ETFs are sometimes used as a tool for positioning within the market cycle.
Pros and Cons
Its strength is concentrated exposure to mid-cap growth stocks, while the main risks are higher volatility than large caps and relatively thinner liquidity.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
The VUG, IWF, and IVW shown in the table are broad growth ETFs that track large-cap growth stocks, and their market-cap range differs from that of MDYG. SCHG and SPYG are also large-cap focused, so their overlap in holdings is small and they serve as diversification complements. Investors who want exposure to the whole mid-cap segment can also consider MDY or IVOO, which track the S&P MidCap 400 directly without a growth filter, while MDYV covers the mid-cap value side.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VUG | Vanguard Morningstar Growth ETF | $85.06 | -3.0% | $227.5B | 0.03% | 0.41% | +2.8% |
 IWF | iShares Russell 1000 Growth ETF | $117.61 | -2.9% | $123.9B | 0.18% | 0.37% | -2.8% |
 IVW | iShares S&P 500 Growth ETF | $134.46 | -2.7% | $76.8B | 0.18% | 0.36% | +8.1% |
 SCHG | Schwab U.S. Large-Cap Growth ETF | $34.32 | -2.5% | $63.3B | 0.04% | 0.41% | +3.4% |
 SPYG | State Street SPDR Portfolio S&P 500 Growth ETF | $116.42 | -2.6% | $55.5B | 0.04% | 0.5% | +8.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 MYMK | State Street My2031 Municipal Bond ETF | 0.06% | $24.67 | +0.1% | $0.0M | - | 2.61% |
| FTI | TechnipFMC plc | 0.02% | $68.77 | +2.7% | $27.0B | 21.7 | 0.37% |
| TWLO | Twilio Inc | 0.02% | $205.03 | -15.2% | $31.5B | 25.8 | - |
 CASY | Casey's General Stores Inc | 0.02% | $680.19 | +0.4% | $25.1B | 32.8 | 0.38% |
 CRS | Carpenter Technology Corp | 0.02% | $283.08 | -5.2% | $14.0B | 24.9 | 0.29% |
 UTHR | United Therapeutics Corp | 0.02% | $598.72 | +0.9% | $25.7B | 21.4 | - |
 CW | Curtiss-Wright Corp | 0.03% | $476.01 | -4.2% | $17.6B | 32.8 | 0.21% |
| FLEX | Flex Ltd | 0.01% | $86.48 | -7.1% | $32.0B | 31.2 | - |
Investor Checkpoints
Review the items below before investing in MDYG. Given the nature of mid-cap growth stocks, it is important to compare volatility, interest rate sensitivity, and liquidity with large-cap ETFs in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the impact of cumulative costs over a long holding period | Low level |
| 💧 Liquidity | Check daily trading value and bid-ask spread | Lower than large-cap ETFs |
| 📊 Growth Factor | Holdings that meet the sales, earnings, and momentum criteria | Quarterly monitoring recommended |
| 💱 Exchange Rate | Impact on returns converted to Korean won | Not currency hedged |
When rates rise, growth stock valuations can see sizable adjustments, and given the nature of mid caps, liquidity can dry up quickly during sharp market declines. Investors should take into account in advance that volatility is higher than for large-cap growth ETFs.
It is a suitable choice for investors who want concentrated exposure to mid-cap growth stocks but wish to avoid a large-cap tilt. Holding it alongside a large-cap growth ETF can be expected to deliver a portfolio diversification effect.
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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