The Forgotten “Mid-Cap Category” ETF

November 27, 2007 at 12:00 pm by Tom Lydon      Bookmark and Share

159344270 Mid-cap exchange traded funds (ETFs) seem to get lost somewhere in between small and large-caps. Mid-cap companies have market caps of $2 billion to $10 billion, and are typically less volatile than small-caps, yet faster-growing than large caps, reports Carl Delfeld for ETFXRAY. Their larger size and predictable earnings can offer more stability than counterparts.

An ETF to access this middle market target is Vanguard Mid-Cap ETF (VO). It tracks the MSCI U.S. Mid-Cap 450 Index and contains both growth and value in a basket of 400 stocks.The ETF weights in financials, consumer discretionary, and information technology sectors, and has an expense ratio of 0.13%. It is up 0.6% year-to-date.

Other mid-cap ETFs and their year-to-date performance include:

  • iShares S&P MidCap 400 Index Fund (IJH) up 1.9%
  • iShares Russell Midcap Index Fund (IWR) 0.0%
  • iShares Morningstar Mid Core Index Fund (JKG) down 2.3%
  • SPDR DJ Wilshire Mid Cap ETF (EMM) up 1.6%
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