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Asset Category: U.S. Mid Cap Growth
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Long-Term Performance: 10.21% CAGR
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Correlation to U.S. Markets: 0.95
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S&P 500 Performance (US Large Cap Blend): 10.45% CAGR
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Back test timeframe: January 1972 – June 2023
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Oldest ETF back tested: iShares S&P Mid-Cap 400 Growth ETF (IJK)
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Long-Term Performance: 7.73% CAGR
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Correlation to U.S. Markets: 0.94
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S&P 500 Performance: 7.03% CAGR
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Back test timeframe: August 2000 – June 2023
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Number of ETFs available in this asset class: 35
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Number of ETFs in this asset class that are 10-years old or older: 10
U.S. Mid Cap Growth vs U.S. Large Cap Blend: January 1972 – June 2023
IJK vs SPY: August 2000 – June 2023
IJK vs SPY: July 28, 2000 – June 30, 2023
The Deep Value ETF Accumulator rankings for the 10 oldest U.S. Mid Cap Growth ETFs:
The 5 top ranked U.S. Mid Cap Growth ETFs head-to-head comparisons:
XMMO vs IMCG vs IWP vs IJK vs FAD: June 2007 – June 2023
XMMO vs IMCG vs IWP vs IJK vs FAD: May 10, 2007 – June 30, 2023
Stated objectives of 5 top ranked U.S. Mid Cap Growth ETFs:
XMMO – The Invesco S&P MidCap Momentum ETF (Fund) is based on the S&P Midcap 400 Momentum Index (Index). The Fund will invest at least 90% of its total assets in the component securities that comprise the Index. The Index is composed of securities with 80 securities in the S&P Midcap 400® Index having the highest “momentum scores,” which are computed by measuring the upward price movements of each security as compared to other eligible stocks within the S&P Midcap 400® Index. The Fund and the Index are rebalanced and reconstituted semi-annually.
IMCG – The iShares Morningstar Mid-Cap Growth ETF seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit growth characteristics. Exposure to mid-sized U.S. companies whose earnings are expected to grow at an above-average rate relative to the market. Targeted access to a specific category of mid-cap domestic stocks. Use to tilt your portfolio towards growth stocks.
IWP – The iShares Russell Mid-Cap Growth ETF seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit growth characteristics. Exposure to mid-sized U.S. companies whose earnings are expected to grow at an above-average rate relative to the market. Targeted access to a specific category of mid-cap domestic stocks. Use to tilt your portfolio towards growth stocks.
IJK – The iShares S&P Mid-Cap 400 Growth ETF seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit growth characteristics. Exposure to U.S. mid-cap stocks of companies whose earnings are expected to grow at an above-average rate relative to the market. Low cost and tax efficient. Use as a complement to a portfolio’s core holdings.
FAD – The First Trust Multi Cap Growth AlphaDEX® Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the Nasdaq AlphaDEX® Multi Cap Growth Index. Index Description According to the Index Provider: The Index is an “enhanced” index created and administered by Nasdaq, Inc. (“Nasdaq”) which employs the AlphaDEX® stock selection methodology to select stocks that meet certain criteria from the three indices – Nasdaq US 500 Large Cap Index, Nasdaq US 600 Mid Cap Index and Nasdaq US 700 Small Cap Index. Nasdaq constructs the Index by ranking the eligible stocks within each index on growth factors including 3-, 6- and 12- month price appreciation, sales to price and one year sales growth, and separately on value factors including book value to price, cash flow to price and return on assets. All stocks are ranked on the sum of ranks for the growth factors and, separately, all stocks are ranked on the sum of ranks for the value factors. A stock must have data for all growth and/or value factors to receive a rank for that style. Each stock receives either its growth or value score as its selection score based on its style designation as determined by Nasdaq. Only those stocks designated as value stocks are eligible for the portfolio. The top 187 stocks from the Nasdaq US 500 Large Cap Growth Index, 225 stocks from the Nasdaq US 600 Mid Cap Growth Index and 262 stocks from the Nasdaq US 700 Small Cap Growth Index based on the selection score determined in the previous step comprise the “selected stocks”. The selected stocks are divided into quintiles based on their rankings within their size class and the top ranked quintiles receive a higher weight within the index. The index is comprised of the selected stocks in the following weights: the stocks selected from the Nasdaq US 500 Large Cap Growth Index comprise 50%, the stocks selected from the Nasdaq US 600 Mid Cap Growth Index comprise 30%, and the stocks selected from the Nasdaq US 700 Small Cap Growth Index comprise 20%. The Index is reconstituted and rebalanced quarterly.
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Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on U.S. Mid Cap Growth ETFs:
4 Best U.S. Mid Cap Growth ETFs to Own Long-Term 1.5
Disclosure: We currently own shares of IMCG and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to Google AdSense.