5 Alternative Ways for ETF Investors to Approach Mid-Caps

The ProShares S&P MidCap 400 Dividend Aristocrats ETF (BATS: REGL) provides access to quality dividend growers in the mid-cap category. REGL tracks a mid-cap Dividend Aristocrats Index, which requires 15 consecutive years of increased dividends for inclusion.

The Oppenheimer Mid Cap Revenue ETF (NYSEArca: RWK) selects components from the broad basket of S&P MidCap 400 stocks but reweights holdings based on each company’s revenue, producing a portfolio that could potentially provide a better representation of companies’ economic contribution to the benchmark index. When comparing RWK to the benchmark S&P MidCap 400, the revenue-weighted ETF takes a greater tilt toward small-capitalization stocks and leans toward the value category.

The John Hancock Multifactor Mid Cap ETF (NYSEArca: JHMM) follows a rules-based selection process that is seen as a multi-factor approach, combining a number of factors in a single portfolio. Securities are adjusted by relative price and profitability. The underlying indices may overweight stocks with lower relative prices and underweight names with higher relative prices. The indices can also adjust for profitability by overweighting stocks with higher profitability and underweighting those with lower profitability. The underlying index also implements market-capitalization adjustments where it increases the weights of smaller companies within the eligible universe and decreases the weights of larger names.

For more information on middle capitalization stocks, visit our mid-cap category.