The Vanguard Mid-Cap Index Fund Admiral Shares mutual fund (VIMAX) is an index fund that seeks to mirror the performance of the CRSP U.S. Mid-Cap Index, an unmanaged benchmark representing medium-size American firms. It began trading in November 2001, and as of October 2020, the mutual fund was yielding 1.47% It holds a four-star rating and a gold medal by Morningstar Investment Research. Its net expense ratio is .05%; its management fee is .04%. The Admiral share class is Vanguard’s version of an institutional share class, in which larger clients and accounts are charged lower fees in exchange for higher minimum account balances.

Donald Butler has managed the fund since its inception. Michael Johnson joined him as portfolio manager in 2016.

Performance

As of October 2020, Vanguard Mid-Cap Index Fund Admiral Shares is up 5.47% year to date (YTD). The mutual fund has generated strong returns of 7.98% over the past three years; 10.33% over the past five years; 11.97% over the past 10 years; and 9.71% since its inception – almost precisely in line with its benchmark index.

Portfolio Allocation

As of October 2018, 99.49% of the mutual fund was allocated to stocks; the rest was in bonds and cash. The top five sectors by allocation weight were technology (19%), consumer discretionary (15.60%), industrials (13.3%), healthcare (12%), and financial services (11.10%).

Top 10 Holdings

The Vanguard Mid-Cap Index Fund Admiral Shares had a total of 347 positions within its portfolio, and it has an annual turnover ratio of 15.2%. the median market cap of its companies is $19.7 billion (on the larger end of the mid-cap range). The top 10 holdings, which comprise 7.50% of the total assets, are DexCom, Digital Realty Trust, Lululemon Athletica, DocuSign, Veeva Systems, Match Group, SBA COmmunications Corp., Chipotle Mexcian Grill, Twilio, and Centene Corp.

Edwards Lifesciences Corp EW 0.83%
Autodesk Inc ADSK 0.78%
Fiserv Inc FISV 0.76%
Concho Resources Inc CXO 0.70%
Roper Technologies Inc ROP 0.70%
Worldpay Inc Class A WP 0.70%
Align Technology Inc ALGN 0.68%
Amphenol Corp Class A APH 0.64%
Centene Corp CNC 0.64%
ONEOK Inc OKE 0.64%

The Bottom Line

Historically, mid-cap stocks have been more volatile in price than the large-cap stocks that dominate the overall market, and they often perform quite differently. Since 2016, they've been on a roll, and the 2017 corporate tax cut may have helped them. Throughout its lifespan, the Vanguard Mid-Cap Index Fund Admiral Shares has provided investors with outstanding returns and still remains one of the top mutual funds for long-term exposure in medium-size companies.

Overall, mid-cap stocks have not outperformed their larger counterparts, as of October 2020. While the S&P 400 hopes to continue building on its positive YTD gains, the Vanguard Mid-Cap Index Fund Admiral Shares have lagged the overall mid-cap index and the manager hopes to shorten the spread.