Is WisdomTree U.S. MidCap ETF (EZM) currently considered a top-performing ETF?

Overview of the WisdomTree U.S. MidCap ETF (EZM)

The WisdomTree U.S. MidCap ETF (EZM) is a smart beta exchange-traded fund that was introduced on February 23, 2007. This ETF is designed to offer investors access to the mid-cap value segment of the market.

Understanding Smart Beta ETFs

Traditionally, the ETF market has been dominated by funds that track market capitalization-weighted indexes, which aim to mirror the performance of the overall market or specific sectors. These types of indexes are popular among investors who believe in market efficiency, as they provide a cost-effective, straightforward, and transparent way to capture market returns.

On the other hand, some investors seek to outperform the market by using alternative strategies. Smart beta ETFs follow indexes that are not based on market capitalization but instead use different criteria—such as company fundamentals or a blend of factors—to select stocks with the potential for better risk-adjusted returns.

Smart beta strategies range from simple equal-weighted approaches to more complex methodologies based on fundamentals, volatility, or momentum. However, not every smart beta strategy has consistently delivered superior results.

Fund Details and Benchmark

WisdomTree sponsors the EZM fund, which manages over $871 million in assets, placing it among the mid-sized ETFs in the mid-cap value category. The ETF aims to replicate the performance of the WisdomTree U.S. MidCap Earnings Index, before fees and expenses.

This index is fundamentally weighted and tracks the performance of U.S. mid-cap companies that generate earnings, focusing on the mid-cap segment of the stock market.

Fees and Expenses

Expense ratios are a key consideration for ETF investors, as lower costs can lead to better long-term outcomes. EZM has an annual operating expense of 0.38%, which is comparable to similar funds in its category. The ETF also offers a 12-month trailing dividend yield of 1.31%.

Sector Allocation and Leading Holdings

ETFs like EZM are known for their transparency, typically disclosing their holdings daily and providing diversified exposure to reduce the risk associated with individual stocks. For EZM, the largest sector allocation is Industrials at 18.7%, followed by Financials and Consumer Discretionary.

Among its individual holdings, Viatris Inc (VTRS) represents about 1.32% of the fund’s assets, with Aes Corp/the (AES) and Cf Industries Holdings Inc (CF) also among the top positions. The top ten holdings collectively make up roughly 7.31% of the fund’s total assets.

Performance and Risk Profile

Year-to-date, EZM has gained approximately 5.84%, and over the past year (as of February 26, 2026), it has returned about 14.24%. During the last 52 weeks, the ETF’s price has ranged from $51.81 to $71.83.

With a beta of 1.06 and a three-year standard deviation of 19.04%, EZM is considered a moderate-risk investment within its category. The fund holds around 512 stocks, providing broad diversification and helping to mitigate company-specific risks.

Other ETF Options

While the WisdomTree U.S. MidCap ETF is a solid choice for those targeting the mid-cap value space, investors may also want to explore alternatives. For example, the iShares Russell Mid-Cap Value ETF (IWS) tracks the Russell MidCap Value Index and manages $15.21 billion in assets, while the Vanguard Mid-Cap Value ETF (VOE) tracks the CRSP U.S. Mid Cap Value Index and has $22.07 billion in assets. IWS has an expense ratio of 0.23%, and VOE charges just 0.05%.

Those seeking lower fees and reduced risk might consider traditional market cap-weighted ETFs that aim to match the returns of the mid-cap value segment.

Conclusion

To further explore this ETF and others, use screening tools to find products that align with your investment goals and stay updated with the latest trends in ETF investing by reading expert articles.