The Goldilocks ETF: Mid-cap Growth (IWP)

We talk a lot about large-cap versus small-cap exchange traded funds (ETFs) maybe because it’s more interesting to look at the extremes. However, caught in the middle of the large-cap versus small-cap debate are mid caps. The iShares Russell Mid-cap Growth Index (IWP) is one of many mid-cap ETFs available for investors. Currently, IWP is up 11.8% year-to-date.

Companies within IWP aren’t too big, but they aren’t too small. Some examples include, Hilton Hotels (HLT), Coach (COH) and J.C. Penney (JCP). All of these holdings have had some form of good news that could have attributed to the ETF’s performance. Hilton Hotels shareholders approved the company’s $20.1 billion sale to The Blackstone Group this week, according to Alex Veiga for the Associated Press. Last week, the president of Coach offered options for 200,000 shares of common stock, according to a Securities and Exchange Commission (SEC) filing. In addition, similar to many other retailers, J.C. Penney’s stocks climbed upon news of the interest rate cuts, reports Andria Cheng for MarketWatch.

For full disclosure, some of Tom Lydon’s clients own IJK, another mid-cap growth ETF.