While mega-caps may show slower growth, the asset category also come with lower volatility. Specifically, the Russell 50 Top Mega Cap Index has a standard deviation of 13.8% over the past 10 years, compared to a 19.5% deviation in small-cap stocks.
“This may be because mega-cap companies tend to be better diversified and are more likely to enjoy sustainable competitive advantages than smaller companies,” Rawson added.
Guggenheim Russell Top 50 Mega Cap ETF
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Max Chen contributed to this article.