Tag: MID-CAP

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Are you missing out on mid-caps? Six reasons not to!

Mid-cap stocks are the middle child of the stock market. Stuck in that awkward adolescence phase, they’re not as cool as big brother (the S&P 500) but also not as cute as little sister (small-caps).

But do they also deserve to be ignored? (j/k, love you, little brother!) Research by S&P Dow Jones Indices found that from 2003 to 2018 the number of mid-cap mutual funds decreased while the number of large and small-cap funds increased. Yet mid-cap stocks had the best performance over that very time frame!

Mid-cap stocks are shares of companies with market capitalizations between $2-$10 billion, though definitions vary. These companies are large enough to be familiar but small enough for continued growth. From 1972 to 2020, mid-cap stocks beat large- and small-cap stocks by 1.45% and 0.30%, respectively. Mid-caps make up only 10% of the total US stock market. Therefore, to capture their superior returns you must tilt your portfolio.

Investors have historically gone the opposite direction by over-weighting small- and large-cap stocks while avoiding mid-caps. Failing to capitalize on the mid-cap segment of the stock market means you’re likely leaving returns on the table for me to scoop up! 😉

Continue reading at Keep Investing $imple $tupid right here: https://keepinvestingsimplestupid.com/are-you-missing-out-on-mid-caps-six-reasons-not-to/?unapproved=580&moderation-hash=b06ed9e2ba27fc2a3653b517a76bc461#comment-580

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Rethink Any Assumptions About International Small And Mid Caps $PDN $DGS $SCZ

Rethink Any Assumptions About International Small And Mid Caps $PDN $DGS $SCZ

Summary

  • Higher quality at a lower price is not a combination that can usually be found anywhere.
  • Investors in US equities face a dichotomy when it comes to market cap asset classes.
  • While US investors recognize the potential growth and diversification benefits US SMIDs offer – with 13.3% of their portfolios in them – they seem to have overlooked international SMIDs.

Continue reading at Seeking Alpha right here: https://seekingalpha.com/article/4378071-rethink-assumptions-international-small-and-mid-caps

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Best Long-Term Performance U.S. Mid Cap Growth ETFs 1.2

Does the U.S. Mid Cap Growth asset class have a history of good long-term returns?

U.S. Mid Cap Growth vs U.S. Large Cap Blend (S&P 500): January 1972 – August 2019

Source: https://www.portfoliovisualizer.com/

The oldest available U.S. Mid Cap Growth ETF is the iShares S&P Mid-Cap 400 Growth ETF (IJK). It’s inception date was July 24, 2000. Since inception, IJK has outperformed an S&P 500 index fund by 1.76% CAGR.

IJK vs S&P 500 index fund: August 2000 – July 2019

Source: https://www.portfoliovisualizer.com/

Continue reading “Best Long-Term Performance U.S. Mid Cap Growth ETFs 1.2”

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Best Long-Term Performance U.S. Mid Cap Blend ETFs 1.2

  • The U.S. Mid Cap Blend asset class has been one of the most profitable equity asset classes for over 46 years, outperforming the S&P 500 by 1.62% CAGR.
  • The oldest available Mid Cap Blend ETF has outperformed an S&P 500 index fund by 1.72% CAGR over the last 23 years
  • There are currently 41 ETFs available in the Mid Cap Blend Morningstar category. Sixteen of these ETFs have been available for 10 years or longer
  • Nine of these older ETFs have outperformed an S&P 500 index fund since their inception dates
  • Most ETFs in this asset class offer massive diversification in size of companies, broad sector exposure, and include both value & growth stocks
  • The middle of the stock market might just be the best place to invest

U.S. Mid Cap Blend vs U.S. Large Cap Blend (aka S&P 500): January 1972 – December 2018

Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance U.S. Mid Cap Blend ETFs 1.2”

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Best Long-Term Performance U.S. Mid Cap Growth ETFs 1.1

  • The U.S. Mid Cap Growth asset class has produced 10.39% CAGR over the last 46 years.
  • The oldest U.S. Mid Cap Growth ETF has outperformed an S&P 500 index fund by 2.25% CAGR over the last 18 years.
  • There are currently 28 ETFs in the Morningstar Category called Mid Cap Growth. 11 of these funds are 10 years old or older.

U.S. Mid Cap Growth vs U.S. Large Cap Blend: January 1972 through August 2018

Source: https://www.portfoliovisualizer.com/

Continue reading “Best Long-Term Performance U.S. Mid Cap Growth ETFs 1.1”

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Best Long-Term Performance U.S. Mid Cap Value ETFs 1.1

Summary:

  • U.S. Mid Cap Value Equities are an underutilized asset class
  • U.S. Mid Cap Value Equities have compounded at a rate of 13.2% since 1972, while large cap blend equities have compounded at 10.3% during the same time-frame.
  • The oldest U.S. Mid Cap Value ETF compounded at 10.7% since August 2000, while an S&P 500 index fund compounded at 5.8% during that time.

The U.S. Mid Cap Value asset class is an underappreciated and underutilized part of most people’s equity portfolios. This is understandable since investors can cover this section of the market with a myriad of other choices. If investors choose to invest in a Mid Cap Blend fund, about 50% of that fund will include mid cap value stocks. Investors could also choose a small and/or large cap value ETF and about 10% of those funds will be mid cap value companies. Additionally, investors can choose a U.S. Total Market Index fund and about 5% of that fund will be Mid Cap Value companies. All those funds are fine investments, but the U.S. Mid Cap Value index has had such a wonderful long-term track record that it would be wise to consider adding an ETF in this asset class to your equity portfolio.

U.S. Mid Cap Value vs U.S. Large Cap Blend (S&P 500): January 1972 through July 2018

Source: https://www.portfoliovisualizer.com/

Continue reading “Best Long-Term Performance U.S. Mid Cap Value ETFs 1.1”

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Best Long-Term Performance U.S. Mid Cap Blend ETFs 1.1

  • Possibly the best performing broadly diversified equity asset class in the world…
  • U.S. Mid Cap Blend stocks have outperformed the S&P 500 by 1.75% CAGR (compounded annual growth rate) over the last 46 years
  • The oldest U.S. Mid Cap Blend ETF has outperformed the S&P 500 BY 2.03% CAGR over the last 22 years
  • Most ETFs in this asset class offer massive diversification in size of companies, sector exposure and value & growth
  • The middle of the market is where the action is

Large Cap Blend vs Mid Cap Blend vs Small Cap Blend: 1972 thru 2018

Source: Portfolio Visualizer

Continue reading “Best Long-Term Performance U.S. Mid Cap Blend ETFs 1.1”

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Best And Worst Of Q4 2017: Mid-Cap Value ETFs And Mutual Funds (DON)

If you’re looking for a great Mid-Cap Value fund please be sure to read this article by David Trainer at Seeking Alpha:  Best And Worst Of Q4 2017: Mid-Cap Value ETFs And Mutual Funds. David does an excellent job of doing deep dive analysis on both ETFs and mutual funds. The Deep Value ETF Accumulator invests in the WisdomTree U.S. MidCap Dividend Fund (DON : $DON), which David references in this article.

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A Guide To Finding the Right Mid-Cap ETF

…There are also many unique ETFs that introduce additional factor criteria to the mid-cap group as well.  One example is the WisdomTree U.S. MidCap Dividend Fund (DON). This ETF has $2.8 billion dedicated to nearly 400 U.S. dividend paying stocks.  Companies within DON are ranked and weighted according to their aggregate cash payouts, which gives the largest share of assets to the companies paying the biggest dividends.  The fund charges an expense ratio of 0.38% and income is paid monthly to shareholders…

Read the full article Nasdaq.com right here: A Guide To Finding the Right Mid-Cap ETF