When it comes to capturing small-cap growth and avoiding large-caps downturns, mid-caps provide investors with a happy median. One way to get core mid-cap exposure is via the iShares Core S&P Mid-Cap ETF (IJH).

“The market’s best mid-cap stocks – companies between roughly $2 billion and $10 billion in market value – are fertile ground for investors who want to have their cake and eat it too,” a Kiplinger’s article explained as it listed mid-cap stocks to target for 2021. “Mid-caps, often referred to as “Goldilocks” stocks, offer a 1-2 punch of financial stability you don’t get from small caps, but also greater growth potential than many large caps.”

IJH seeks to track the investment results of the S&P MidCap 400, which measures the performance of the mid-capitalization sector of the U.S. equity market. The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index.

Furthermore, IJH may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the underlying index, but which the advisor believes will help the fund track the underlying index.

IJH gives investors:

  1. Exposure to U.S. mid-cap stocks
  2. Low cost and tax efficiency
  3. A core portfolio strategy for long-term growth

IJH Chart

A Value-Added Option in Midcaps

With the pandemic still on investors’ minds amid rising cases around the globe accompanied by government-mandated lockdowns, additional market precaution might be a necessity for some who don’t have a high tolerance for risk. With value one factor to consider, ETF investors can check out the iShares Russell Mid-Cap Value ETF (IWS).

IWS seeks to track the investment results of the Russell Midcap Value Index, which measures the performance of the mid-capitalization value sector of the U.S. equity market. The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index.

IWS YTD Performance

It may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the underlying index, but which the advisor believes will help the fund track the underlying index.

For more news and information, visit the Equity ETF Channel.