Diversified ETFs are a great way to buy the total U.S. stock market. However, mid-cap and small-cap ETFs provide a way to focus on particular market segments .
“Mid caps are considered too big and safe for those seeking volatile small cap exposures, while they are often considered too risky and uncertain for those who want the stability of mega caps,” Zacks Equity Research wrote.
Mid-cap stocks and ETFs are in a better position to mitigate risk since they have more room for growth and capital appreciation than large-caps, according to the report.