The iShares Core S&P Mid-Cap ETF (IJH) may be an oldie, but it’s also a goodie.
“iShares Core S&P Mid-Cap ETF is one of the dinosaurs in the developing passive fund management industry; large in size, old in age – this product has been a prominent part of the ETF landscape for around 20 years. Its long-living duration has over that period attracted roughly $50B in investor capital,” Jacob Kilby writes for SeekingAlpha.
“The fund has multiple advantages – competitive pricing, tight bid-ask spreads for effective entry and exit, a liquid market and readily available access to information on the underlying securities and fund composition,” he added.
Breaking Down the iShares IJH ETF
IJH provides investors with the immediate risk exposure to middle capitalization US equities, many which have neglected or pushed off into the shadows of the larger, more publicized, high growth industries responsible for most of the gains delivered on major indices during extended bull market cycles.
However, Kilby argued that changes in the investing, regulatory, and economic environment could mean that US mid-cap companies are be well-positioned to benefit from an ongoing rotation out of mega-cap technology, as traders hunt for more attractively priced market segments.
ETFs are also an excellent passive, diversified investment vehicle to capture this investment theme. Investors can look to a single ETF to access the rebirth of mid-sized US companies in a reformed economy, without having to go through extensive research to meticulously pick and choose individual tickers or possess advanced equity valuation knowledge.
“The iShares Core S&P Mid-Cap ETF is an exciting prospect – especially in changing times where a more focused mega-tech theme appears to be somewhat running out of steam. With an economy in tatters and a new administration cognizant of the importance of smaller and medium-size business in the overall fabric of an economy, this time-served ETF positions itself well for an abnormal growth period defined by a rotation away from what has historically been the most crowded trade in the past 20 years. Boasting a range of competitive traits – low costs, high liquidity, good access to information, an options market, this fund remains one of the most compelling investment themes I have covered to date,” Kilby added.
For more news, information, and strategy, visit the Equity ETF Channel.