Vanguard Mid-Cap ETF's Market Role and Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2026
0mins
Source: Yahoo Finance
- Asset Size and Expense Ratio: Vanguard Mid-Cap ETF (VO) manages $94 billion in assets with a low expense ratio of 0.04%, tracking over 300 U.S. companies with market caps between $2 billion and $20 billion, effectively filling the gap in mid-cap market exposure and offering diversified investment options.
- Historical Return Comparison: Over the past decade, VO returned 195% compared to SPDR S&P 500 ETF (SPY)'s 257%, and while VO has underperformed during the AI-driven mega-cap rally, its higher economic sensitivity (beta of 1.49) provides investors with a risk management advantage.
- Investment Strategy and Yield: By holding hundreds of mature, profitable mid-cap companies, VO offers a distribution yield of approximately 1.5%, and although its yield is relatively modest, its growth potential and ability to smooth market volatility make it an effective addition to investment portfolios.
- Market Allocation Recommendation: Investors are advised to allocate 10% to 15% of their equity portfolios to VO, corresponding to $30,000 to $45,000 within a standard $300,000 equity portfolio, to achieve explicit exposure to the mid-cap market, despite its underperformance relative to large caps over the past decade, its structural diversification benefits remain significant.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy WSM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on WSM
Wall Street analysts forecast WSM stock price to fall
13 Analyst Rating
6 Buy
7 Hold
0 Sell
Moderate Buy
Current: 205.600
Low
175.00
Averages
203.67
High
230.00
Current: 205.600
Low
175.00
Averages
203.67
High
230.00
About WSM
Williams-Sonoma, Inc. is an omnichannel specialty retailer of products for the home. Its products, representing distinct merchandise strategies, such as Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow are marketed through e-commerce Websites, retail stores and direct-mail catalogs. These brands are also part of The Key Rewards, its loyalty and credit card program that offers members benefits across the Williams-Sonoma family of brands. Williams Sonoma products offer everything for cooking, dining and entertaining, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture and a vast library of cookbooks. It operates in the United States, Puerto Rico, Canada, Australia and the United Kingdom, offers international shipping to customers worldwide, and has unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico, South Korea and India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
WSM Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $190.00 put option is $28.00, and if an investor sells this contract, they commit to buying the stock at $190.00, effectively lowering their cost basis to $162.00, which is approximately a 2% discount from the current price of $193.11, making it attractive for those interested in WSM.
- Yield Potential Analysis: Should the put option expire worthless, the premium would yield a 14.74% return on the cash commitment, or an annualized return of 13.76%, referred to as YieldBoost, highlighting the potential attractiveness of this investment strategy.
- Call Option Returns: The $200.00 call option has a current bid of $32.00, and if an investor buys WSM shares at $193.11 and sells this call, they could achieve a total return of 20.14% if the stock is called away at the June 2027 expiration, showcasing the potential profitability of this strategy.
- Risk Assessment: Current data indicates a 43% chance that the $200.00 call option may expire worthless, in which case the investor retains both the stock and the premium collected, further enhancing the safety and return potential of the investment.
See More
Williams-Sonoma Reports Strong Q1 Growth with 4.8% Comp Increase
- Revenue and Growth: Williams-Sonoma reported $1.81 billion in revenue for Q1 2026, reflecting a 4.8% year-over-year increase, demonstrating strong execution across its brand portfolio despite external uncertainties.
- Shareholder Returns: The company returned $373 million to investors through share buybacks and dividends, showcasing its commitment to shareholder returns while bolstering market confidence.
- B2B Performance: The B2B division achieved a record 13.7% growth in Q1, highlighting the company's strong position in the trade and contract markets, which is expected to further drive future performance.
- Gross Margin Challenges: Despite strong Q1 results, gross margin declined by 30 basis points primarily due to rising tariffs and fuel costs, reflecting the pressures the company faces in cost management.
See More
Williams-Sonoma Q1 2027 Earnings Call Highlights
- Revenue Growth: Williams-Sonoma reported Q1 2027 net revenues of $1.81 billion, reflecting a 4.8% year-over-year increase, indicating strong performance in both retail and DTC channels despite a slight decline in the overall home furnishings market, showcasing the company's ability to gain market share.
- Profitability Improvement: The company achieved operating income of $292 million with an operating margin of 16.2%, exceeding expectations, despite pressures from tariffs and fuel costs, demonstrating success in cost control and supply chain efficiencies.
- Capital Return Strategy: In Q1, Williams-Sonoma returned $288 million to investors through share buybacks and paid $85 million in dividends, a 15% year-over-year increase, indicating the company's commitment to creating shareholder value while maintaining profitability.
- Cautious Future Outlook: Despite a strong Q1 performance, management reiterated FY2026 guidance, expecting same-store sales growth between 2% and 6%, emphasizing uncertainty in the external environment, particularly regarding tariff and interest rate fluctuations that could impact future performance.
See More
Williams-Sonoma WSM Q1 2026 Earnings Transcript
See More
Williams-Sonoma Reports Strong Q1 Earnings Despite Market Pressures
- Significant Sales Growth: Williams-Sonoma reported Q1 revenue of $1.805 billion, reflecting a 4.3% year-over-year increase that surpassed market expectations, demonstrating strong performance in the home goods sector despite cyclical market fluctuations.
- Net Income Increase: The company's net income rose by 12.8% to $231.4 million, translating to earnings per share of $1.93, exceeding expectations by $0.11, which highlights enhanced profitability even as gross margins faced compression due to lower merchandise margins.
- Cautious Future Outlook: Williams-Sonoma anticipates revenue growth between 2.7% and 6.7% for FY26, projecting revenues between $8.02 billion and $8.33 billion, reflecting a cautious stance amid rising energy costs and tariff impacts.
- Management Changes: Jennifer Kellor has been promoted to president of Pottery Barn, succeeding outgoing president Monica Bhargava, a leadership change that may influence brand strategy and further drive the company's performance in a competitive market.
See More
Williams-Sonoma Reiterates 2026 Revenue Growth Guidance
- Revenue Growth Outlook: Williams-Sonoma expects net revenue growth for fiscal 2026 to be between 2.7% and 6.7%, with comparable brand revenue growth projected at 2% to 6%, indicating the company's confidence and stability in future market conditions.
- Long-Term Growth Vision: The company aims for mid-to-high single-digit annual net revenue growth over the long term, with operating margins expected to remain in the mid-to-high teens, showcasing its sustained competitiveness in the luxury home furnishings market.
- Stock Performance: In Thursday's pre-market trading, Williams-Sonoma's stock was priced at $186.00, up $5.76 or 3.24% from the previous trading day, reflecting a positive market reaction to its earnings report.
- Increased Market Confidence: The reaffirmed growth guidance combined with the stock price increase suggests heightened investor confidence in Williams-Sonoma's future performance, potentially attracting more attention to the luxury goods market.
See More
WSM Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $190.00 put option is $28.00, and if an investor sells this contract, they commit to buying the stock at $190.00, effectively lowering their cost basis to $162.00, which is approximately a 2% discount from the current price of $193.11, making it attractive for those interested in WSM.
- Yield Potential Analysis: Should the put option expire worthless, the premium would yield a 14.74% return on the cash commitment, or an annualized return of 13.76%, referred to as YieldBoost, highlighting the potential attractiveness of this investment strategy.
- Call Option Returns: The $200.00 call option has a current bid of $32.00, and if an investor buys WSM shares at $193.11 and sells this call, they could achieve a total return of 20.14% if the stock is called away at the June 2027 expiration, showcasing the potential profitability of this strategy.
- Risk Assessment: Current data indicates a 43% chance that the $200.00 call option may expire worthless, in which case the investor retains both the stock and the premium collected, further enhancing the safety and return potential of the investment.
See More
Williams-Sonoma Reports Strong Q1 Growth with 4.8% Comp Increase
- Revenue and Growth: Williams-Sonoma reported $1.81 billion in revenue for Q1 2026, reflecting a 4.8% year-over-year increase, demonstrating strong execution across its brand portfolio despite external uncertainties.
- Shareholder Returns: The company returned $373 million to investors through share buybacks and dividends, showcasing its commitment to shareholder returns while bolstering market confidence.
- B2B Performance: The B2B division achieved a record 13.7% growth in Q1, highlighting the company's strong position in the trade and contract markets, which is expected to further drive future performance.
- Gross Margin Challenges: Despite strong Q1 results, gross margin declined by 30 basis points primarily due to rising tariffs and fuel costs, reflecting the pressures the company faces in cost management.
See More
Williams-Sonoma Q1 2027 Earnings Call Highlights
- Revenue Growth: Williams-Sonoma reported Q1 2027 net revenues of $1.81 billion, reflecting a 4.8% year-over-year increase, indicating strong performance in both retail and DTC channels despite a slight decline in the overall home furnishings market, showcasing the company's ability to gain market share.
- Profitability Improvement: The company achieved operating income of $292 million with an operating margin of 16.2%, exceeding expectations, despite pressures from tariffs and fuel costs, demonstrating success in cost control and supply chain efficiencies.
- Capital Return Strategy: In Q1, Williams-Sonoma returned $288 million to investors through share buybacks and paid $85 million in dividends, a 15% year-over-year increase, indicating the company's commitment to creating shareholder value while maintaining profitability.
- Cautious Future Outlook: Despite a strong Q1 performance, management reiterated FY2026 guidance, expecting same-store sales growth between 2% and 6%, emphasizing uncertainty in the external environment, particularly regarding tariff and interest rate fluctuations that could impact future performance.
See More
Williams-Sonoma WSM Q1 2026 Earnings Transcript
See More
Williams-Sonoma Reports Strong Q1 Earnings Despite Market Pressures
- Significant Sales Growth: Williams-Sonoma reported Q1 revenue of $1.805 billion, reflecting a 4.3% year-over-year increase that surpassed market expectations, demonstrating strong performance in the home goods sector despite cyclical market fluctuations.
- Net Income Increase: The company's net income rose by 12.8% to $231.4 million, translating to earnings per share of $1.93, exceeding expectations by $0.11, which highlights enhanced profitability even as gross margins faced compression due to lower merchandise margins.
- Cautious Future Outlook: Williams-Sonoma anticipates revenue growth between 2.7% and 6.7% for FY26, projecting revenues between $8.02 billion and $8.33 billion, reflecting a cautious stance amid rising energy costs and tariff impacts.
- Management Changes: Jennifer Kellor has been promoted to president of Pottery Barn, succeeding outgoing president Monica Bhargava, a leadership change that may influence brand strategy and further drive the company's performance in a competitive market.
See More
Williams-Sonoma Reiterates 2026 Revenue Growth Guidance
- Revenue Growth Outlook: Williams-Sonoma expects net revenue growth for fiscal 2026 to be between 2.7% and 6.7%, with comparable brand revenue growth projected at 2% to 6%, indicating the company's confidence and stability in future market conditions.
- Long-Term Growth Vision: The company aims for mid-to-high single-digit annual net revenue growth over the long term, with operating margins expected to remain in the mid-to-high teens, showcasing its sustained competitiveness in the luxury home furnishings market.
- Stock Performance: In Thursday's pre-market trading, Williams-Sonoma's stock was priced at $186.00, up $5.76 or 3.24% from the previous trading day, reflecting a positive market reaction to its earnings report.
- Increased Market Confidence: The reaffirmed growth guidance combined with the stock price increase suggests heightened investor confidence in Williams-Sonoma's future performance, potentially attracting more attention to the luxury goods market.
See More
