June 03, 2008 at 12:00 pm by Tom Lydon
What type of stocks and exchange traded funds (ETFs) are not too large and not too small, and doing mostly just right in 2008? The mid-caps.
Between the three cap sizes, mid-sized companies have been the most profitable area year-to-date. Their stocks are up 3.4% during the first five months of this year. Gary Gordon for ETF Expert says that in comparison, the largest companies in the S&P 500 collectively are down 4.6% for the year.
Small-caps are struggling as well, but not quite as much as large-caps. The iShares Russell 2000 Index Fund (IWM) is down 2.0% year-to-date.
Even better for the mid-caps is that they’ve rebounded the most off their January and March lows. And while Gordon doesn’t suggest the mid-caps are always safer on volatile days, lately they have been rising more on bullish days and falling less on the bearish ones.
In the last three months, value mid-caps are up 10.2%; growth is up 11.7% and blends are up 11%.
Among the mid-caps available to choose from:
- iShares Russell Mid-Cap Index Fund (IWR)
- Vanguard Mid-Cap (VO)
- WisdomTree Mid-Cap Dividend Fund (DON)
- Mid-Cap SPDRS (MDY)
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