Home>Video>A Solid, Low-Cost Choice for Mid-Cap Investors

A Solid, Low-Cost Choice for Mid-Cap Investors

Tue, 11 Apr 2017

Gold-rated iShares Core S&P Mid-Cap provides exposure to a slice of the market that has historically outperformed on a risk-adjusted basis.

+

Video Transcript

Ben Johnson: Mid-cap stocks have been in the sweet spot with respect to their risk-adjusted performance since 1926. Although they have historically had a higher return than large caps, they have also had a higher volatility and a higher beta, or more procyclical movement with the market. But the higher return has compensated investors for taking this increased risk. While small caps had even higher returns, mid-caps have had a slightly better ratio of return to risk. For this reason, many investors choose to give an overweighting to mid-cap stocks. Yet, there is no guarantee their past outperformance will persist.

IShares Core S&P Mid-Cap ETF (IJH) offers diversified exposure to U.S. mid-cap stocks. A low fee and a soundly constructed and reasonably representative benchmark give this ETF a great position to continue its long streak of producing superior risk-adjusted returns relative to its category peers over the long haul and underpin its Morningstar Analyst Rating of Gold.

  1. Related Videos
  2. Related Articles
  1. A Value-Oriented Mid -Cap ETF to Consider

    Bronze-rated WisdomTree MidCap Earnings ETF's tilt toward cheaper stocks should give it an edge over the long run.

  2. Arnott: Why Cap-Weighted Indexing Is Flawed

    A capitalization-weighted index explicitly links the weight of a holding to its price, so the more expensive a stock gets, the bigger its weight in your portfolio, says Research Affiliates' Rob Arnott.

  3. Going for Growth in U.S. Equities

    Investors' real-return expectations are too high for foreign stocks and too low for U.S. stocks , especially for small- and mid - cap names, says Richard Bernstein, CEO of Richard Bernstein Advisors.

  4. Low Volatility vs High Dividend: Which One Is Better?

    Morningstar ETF Invest Conference panelists discuss the similarities, differences, and appeal of these two strategies in today's low-growth, low-return, and high-volatility market.

  5. Have ETF Investors Gotten What They've Paid For ?

    Morningstar research uses active share to help determine whether investors are getting a good bang for their buck.

  6. A Portfolio Checkup in 6 Steps

    In this special midyear presentation, Morningstar's Christine Benz demonstrates how to gauge the viability of your current plan, evaluate positioning, troubleshoot risk factors, and much more.

  7. Roth: Ante Has Been Raised Across the Market

    Investors need to be disciplined and selective in the search for underappreciated growth opportunities, says John Roth, a manager on three Fidelity Morningstar Medalist funds.

  8. A Reliable--and Recently Reopened--Mid -Cap Fund

    Gold-rated FMI Common Stock's valuation-centric process has rewarded patient investors.

©2017 Morningstar Advisor. All right reserved.