Among the exchange traded funds (ETFs) that focus on a particular company size and investing style, mid-cap growth seems to be leaving the others in the dust lately.
In the last three months, mid-cap growth has risen 10.2%. In the same time period, large-cap growth is up 7.2% and small-cap is up 6.2%. Gary Gordon for ETF Expert reports that one might find it tricky to locate any other size/style ETFs that are above their 200-day moving averages.
Some of these funds have been bolstered by strong performance from their top holdings:
- iShares S&P MidCap 400 Growth Index (IJK): Top holding is Intuitive Surgical, Inc. (ISRG), at 2.5%; up 2.9% in last three months. The fund is up 10.2% in the same time period.
- iShares Morningstar Mid Cap Growth (JKH): Top holding is ISRG at 1.4%; the fund is up 9.1% in the last three months.
- Vanguard MidCap Growth (VOT): up 8.9% in the last three months.
- Rydex MidCap 400 Pure Growth (RFG): Top holding at 2.1% is Encore Acquisition (EAC), which is up 50.3% in the last three months. The fund is up 9.3% in the last three months.
- PowerShares Dynamic Mid Cap Growth Portfolio (PWJ): Top holding at 3.7% is FMC Technologies Inc. (FTI), which is up 29.4% in the last three months. The fund is up 7.1% in the last three months.
Gordon says investors who believes the U.S. market is going to recover in a big way from the current mess may like a mid-cap growth fund. Since all of these are at or above their trend lines (200-day moving average), take a look and see what works best for your portfolio.
For full disclosure, some of Tom Lydon’s clients own shares of IJK.
Read the disclosure, Tom Lydon is a board member of Rydex Funds.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.