ETF Education Report: VIRTUS KAR MID-CAP ETF (KMID)

What this ETF is trying to do

The VIRTUS KAR MID-CAP ETF (ticker: KMID) is an exchange-traded fund that focuses on mid-cap companies. Mid-cap companies are typically medium-sized businesses. This ETF holds a variety of different stocks to provide exposure to this part of the market.

What the numbers show

As of August 11, 2026, the current share price is $25.52. We can look at how the price has changed over time using two different measurements:

• Price Return: This measures only the change in the share price. The one-year price return was approximately 4.69%. The year-to-date (YTD) price return was approximately 4.68%.

• Total Return: This is a broader measure that includes both price changes and distributions. The one-year total return was approximately 4.81%, and the YTD total return was approximately 4.74%.

To see how the price moved, we can look at an estimated price from roughly one year ago, which was approximately $24.38. For example, if you had invested $10,000 in this ETF one year ago, your investment's value would have grown to approximately $10,469 based on the share-price change alone, before considering any distributions.

Income and distribution explanation

This ETF pays out cash distributions. The distribution yield is approximately 0.11%. This number describes the cash payments relative to the current ETF price. Over the last 12 months, there were 2 distributions. These payments are described as irregular or less frequent. It is important to remember that a distribution yield is not the same as total return.

NAV erosion explanation

"NAV" stands for Net Asset Value, which is the actual value of the assets held by the fund. "NAV erosion" happens when the value of those underlying assets drops significantly.

For this ETF, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag present. This suggests that the fund's value has not shown signs of the heavy price deterioration that leads to high erosion risk.

Top Holdings

The following are the Top Holdings in this ETF (note that this list is partial):

• AMETEK INC (6.38%)

• TELEDYNE TECHNOLOGIES INC (5.89%)

• WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP (5.42%)

• MONOLITHIC POWER SYSTEMS INC (5.11%)

• ROSS STORES INC (4.99%)

• WEST PHARMACEUTICAL SERVICES INC (4.90%)

• CASH (4.25%)

• ALLEGION PLC (4.20%)

• VERISK ANALYTICS INC (4.14%)

• HEICO CORP CLASS A (4.13%)

Please note that holdings can change over time.

Pros

• The ETF has shown positive price returns and total returns over the last year.

• The erosion-risk measurements suggest a stable profile rather than a high risk of value loss.

Cons

• The distribution frequency is irregular, meaning payments do not happen on a set schedule.

• The distribution yield is relatively low at 0.11%.

Beginner takeaway

When looking at ETFs, it is helpful to distinguish between price return (how much the share price moved) and total return (which includes cash distributions). While some investors look for high yields, a very high yield can sometimes be misleading if the share price is falling at the same time. In this case, KMID has shown both positive price movement and stable erosion-risk levels.