Like middle children, it’s easy for mid-cap exchange traded funds (ETFs) to get lost in the shuffle between the larger and smaller corporations. But mid-caps have a role, too, and shouldn’t be neglected.
Mid-cap ETFs generally are intended to add diversification to a broader large-cap portfolio. On the spectrum of risk, mid-caps lie between small-caps and large-caps. [Mid-Cap ETFs: Take Your Pick.]
The simplest way to assess mid-cap’s prospects is by gauging its sector exposure relative to other asset classes, reports Will McClatchy for ETF Zone.
Mid-caps often find themselves as ideal for acquisition by larger corporations, giving shareholders the opportunity for some reward. That means that when you’re considering an investment in a mid-cap, the question is whether the stock has the potential to grow into a large-cap. [Why Mid-Cap Shares Have the Spotlight.]
If you’re looking to mid-cap ETFs, however, you’ve saved yourself some homework by letting the ETF providers do the legwork of selecting high-quality mid-cap corporations.
For more stories about mid-caps, visit our mid-cap category. To view all of the options in mid-cap ETFs and sort by performance, yield, assets and more, visit the ETF Analyzer. Some of the funds we noticed in there include:
- Vanguard Mid-Cap ETF (NYSEArca: VO): up 7% in the last month
- iShares S&P MidCap 400 (NYSEArca: IJH): up 7.2% in the last month
- iShares Russell Midcap ETF (NYSEArca: IWR): up 7.1% in the last month
- WisdomTree MidCap Dividend (NYSEArca: DON): up 6.5% in the last month
Tisha Guerrero contributed to this article.