ETF Evaluator: Virtus KAR Mid-Cap ETF () Follow This ETF

Virtus KAR Mid-Cap ETF Overview

Virtus KAR Mid-Cap ETF (KMID) is an actively managed U.S. Equity Mid-Cap Growth exchange-traded fund (ETF). Virtus launched the ETF in 2024.

The investment seeks long-term capital appreciation. The fund advisor pursues long-term capital appreciation in the medium capitalization sector while seeking less market risk than the Russell Midcap® Index. The fund advisor invests in medium market capitalization companies believed by Kayne Anderson Rudnick Investment Management, LLC, the fund’s sub-adviser, to be undervalued relative to their future growth potential. The fund is non-diversified.

About Virtus KAR Mid-Cap ETF (KMID)

There are 3 members of the management team with an average tenure of 1.39 years: Craig Stone (2024), Chris Wright (2026) and Jon Christensen (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.

Virtus KAR Mid-Cap ETF has 27 securities in its portfolio. The top 10 holdings constitute 49.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Virtus KAR Mid-Cap ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Virtus KAR Mid-Cap ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 95.7% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Virtus KAR Mid-Cap ETF has 4.4% of the portfolio in cash.

Assets Under Management

The fund has $45 million in total assets, which is below the $1 billion average for the Mid-Cap Growth category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

KMID Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Virtus KAR Mid-Cap ETF expense ratio is high compared to funds in the Mid-Cap Growth category. Virtus KAR Mid-Cap ETF has an expense ratio of 0.80%, which is 52% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Virtus KAR Mid-Cap ETF has a portfolio turnover rate of 10%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 166% for the Mid-Cap Growth category.

Recently, in the month of July 2026, Virtus KAR Mid-Cap ETF returned -0.5%, which earned it a grade of A, as the Mid-Cap Growth category had an average return of -6.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Virtus KAR Mid-Cap ETF has a trailing yield of 0.11%, which is below the 0.41% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Virtus KAR Mid-Cap ETF Grades

Year to date, the ETF has returned 2.7%, 6.8 percentage points worse than the category, which translates into a grade of D. The fund has returned 1.8% over the past year (grade of F).

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