“Going back to 1991, when the S&P MidCap 400 was launched, it has delivered on average 3.2% extra of annualized return but at a cost of higher 1.4% annualized risk, based on daily data from Jan. 2, 1991 – Nov. 30, 2018,” said S&P Dow Jones.

The mid-cap category has also outperformed their larger 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.

“This November, the S&P 400 gained 2.9% versus the 1.8% from the S&P 500 and the 1.4% from the S&P SmallCap 600.  In mid-caps, 9 of 11 sectors were positive, while 8 of 11 large-cap sectors gained and 6 of 11 small-cap sectors gained,” according to S&P Dow Jones.

Last month, energy was the worst-performing mid-cap sector, but that sector is the third-smallest sector weight in MDY at just 4.74%.

For more information on mid-caps, visit our mid-cap category.