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

For more information on the markets, visit our current affairs category.

Max Chen contributed to this article.

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