Mid-cap ETFs, or exchange-traded funds, are investment vehicles that track a basket of mid-sized companies. These companies typically have a market capitalization between $2 billion and $10 billion. Mid-cap stocks offer investors the potential for higher returns compared to large-cap companies while also being less volatile than small-cap stocks. If you’re looking to diversify your portfolio and invest in mid-sized companies, here are 15 top mid-cap ETFs worth considering.
1. iShares Core S&P Mid-Cap ETF (IJH): This fund tracks the performance of the S&P MidCap 400 Index and provides exposure to a broad range of industries within the mid-cap segment.
2. Schwab U.S. Mid-Cap ETF (SCHM): With low expense ratios, this ETF is designed to provide diversified exposure to mid-sized U.S. equities.
3. Vanguard Mid-Cap ETF (VO): Offering exposure to both growth and value stocks, this fund seeks to track the performance of the CRSP US Mid Cap Index.
4. SPDR S&P 400 Mid Cap Growth ETF (MDYG): This ETF focuses on mid-cap stocks with high growth potential by tracking the S&P MidCap 400 Growth Index.
5. iShares Russell Mid-Cap Growth ETF (IWP): By tracking the Russell Midcap Growth Index, this fund offers investors access to fast-growing mid-sized U.S. companies.
6. Invesco S&P MidCap Momentum ETF (XMMO): This unique fund selects its holdings based on momentum factors within the S&P 400 Index, providing exposure to mid-cap stocks with strong recent performance.
7. First Trust Capital Strength ETF (FTCS): With an emphasis on quality and stability, this fund tracks an index composed of large- and mid-cap U.S.-listed securities considered financially stable by their balance sheet fundamentals.
8. iShares Russell Mid-Cap Value ETF (IWS): This ETF seeks to track the performance of the Russell Midcap Value Index and provides exposure to mid-cap stocks with value-oriented characteristics.
9. SPDR S&P 400 Mid Cap Value ETF (MDYV): Focusing on undervalued mid-cap stocks, this fund tracks the performance of the S&P MidCap 400 Value Index.
10. iShares Morningstar Mid-Cap Growth ETF (JKH): By tracking the Morningstar Mid Growth Index, this fund provides exposure to mid-sized companies that are expected to experience above-average growth.
11. Schwab U.S. Dividend Equity ETF (SCHD): Although not exclusively focused on mid-caps, this dividend-focused ETF includes a significant allocation to mid-sized dividend-paying companies.
12. Invesco S&P 500 Equal Weight Technology ETF (RYT): While not strictly a mid-cap fund, RYT offers equal-weighted exposure to technology stocks in the S&P 500 index, which often includes many prominent mid-sized tech companies.
13. WisdomTree U.S. SmallCap Quality Dividend Growth Fund (DGRS): Although primarily targeting small-cap stocks, this fund also allocates a portion of its assets toward high-quality mid-cap companies with solid dividend growth potential.
14. VictoryShares USAA MSCI USA Small Cap Momentum ETF (USVM): Combining momentum factors and small- and medium-sized company exposure, this fund may appeal to investors seeking growth opportunities within both segments of the market.
15. iShares Russell Mid-Cap ETF (IWR): As one of the largest and most established options in the segment, IWR aims to provide investment results corresponding to the performance of the Russell Midcap Index.
When investing in these or any other funds, it’s important for investors to consider their risk tolerance, investment objectives, and time horizon before making decisions about asset allocation within their portfolios. Mid-cap ETFs offer a diversified approach to investing in mid-sized companies, but as with any investment, it’s crucial to do thorough research and consult with a financial advisor if needed.
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