EZM’s unique focus on earnings has obviously paid off: the fund has gained roughly 194% over the trailing five-year period, and over 70% within the last three years. Its expense ratio is 0.38 percent.
WisdomTree MidCap Dividend Fund (DON)
Like EZM, DON also uses an alternative weighting methodology to target mid-cap stocks, but it does so with a focus on dividends. The fund’s underlying index is dividend-weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year.
Over the trailing five-year period, DON has gained nearly 194%, and over the last three years, the fund is up over 67%.
It shares the same 0.38 percent expense ratio as EZM.
Guggenheim S&P Midcap 400 Pure Value ETF (RFV)
Yet another Guggenheim “pure” style ETF, RFV seeks to offer investors exposure to mid-cap companies that have the strongest value characteristics. The fund’s portfolio consists of about 95 individual holdings, the majority of which are actually small-cap stocks. Currently, financial equities comprise 20% of RFV’s total assets. Industrials, technology, consumer cyclical, and healthcare sectors are also given meaningful exposure.
In the last five years, RFV has gained just over 193%. Over the trailing three-year period, the fund is up 64%. The expense ratio is 0.38 percent.
The Bottom Line
While all of the funds on this list are very simple products, they have all managed to post stellar returns in recent years. Investors should realize that plain vanilla ETFs can offer great returns while providing greater diversity and lower risk than other high-flying, hyper-targeted funds.
Daniela Pylypczak writes for ETFdb, which offers a comprehensive and original ETF database and analytical consulting services for advisors and investors, as well as a free newsletter. Learn more about their services by visiting ETFdb.com. Disclosure: the author had no positions in the securities named in this article at the time of writing.