This ETF Offers High Quality Mid-Cap Stocks at a Bargain
Don’t ignore the middle.
Mid-cap stocks are special. These companies typically grow their earnings at a faster clip compared with large companies but are on firmer financial footing compared with small companies. This often makes them attractive acquisition targets. These factors, among others, have helped mid-cap stocks outperform both their larger and smaller brethren over the long term. From Jan. 31, 1995, through Dec. 19, 2019, the S&P MidCap 400 Index outperformed the S&P 500 and the S&P SmallCap 600 indexes by 195 and 76 basis points annualized, respectively.
IShares Core S&P Mid-Cap ETF (IJH) is an outstanding way to invest in U.S. mid-cap stocks. As one of the cheapest and most broadly diversified market-cap-weighted funds in the mid-blend Morningstar Category, it earns a Morningstar Analyst Rating of Gold.
Venkata Sai Uppaluri does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.