Investors looking to bet on the ongoing U.S. economic recovery should focus on companies that generate significant percentages of their sales within the confines of U.S. borders.
Thing is, many S&P 500 companies don’t do that. In fact, several sectors in the large-cap equity benchmark depend on international markets for more than half their revenue. That diminishes their leverage to a domestic rebound. However, mid cap stocks often deliver exposure to a rebound in U.S. economic activity and that’s one reason the WisdomTree U.S. MidCap Dividend Fund (NYSEARCA: DON) is higher by 24.79% year-to-date, an advantage more than 1,100 basis points over the S&P 500.
“Among the 331 members of the S&P MidCap 400 that break out foreign and domestic sales, 60% of revenue is from the U.S., compared with a little more than half for the much bigger companies that make up the S&P 500,” reports Bailey Lipschultz for Bloomberg.
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