Easily one of the primary selling points of exchange traded funds continues to be low fees. ETF expenses continue falling as issuers fight for investors’ assets and investors are benefiting as a result. Lower fees are making scores of asset classes cheaper for investors to access while potentially improving long-term returns.
Count mid-cap ETFs among the group of ETFs that have gotten cheaper over time. That group includes the iShares Core S&P Mid-Cap ETF (NYSEArca: IJH) , which charges just 0.07% per year, or $7 on a $10,000 investment. That makes IJH one of the least expensive mid-cap ETFs on the market today.
Mid-cap companies are slightly more diversified than their small-cap peers, which allows many mid-sized companies to generate more consistent revenue and cash flow and provide more stable stock prices. Additionally, they are not so big that their size would slow down growth.
The mid-caps segment has also outperformed their large-cap peers, but with lower volatility than small caps. Moreover, the returns of mid-cap stocks have also beaten those of small-cap stocks during the trailing three-, five-, and 10-year periods, with lower volatility.