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)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.