Diversify With One of These Mid-Cap Equity Funds
These blend, value, and growth options can serve a valuable role in a diversified portfolio.
Linda Abu Mushrefova: Mid-cap equity exposure is a great way to diversify a portfolio. Managers looking for stocks in the mid-cap space can identify companies that have grown large enough to exit the small-cap arena, suggesting that they are more established and often less risky than their small-cap counterparts, but still have runway for growth and can evolve into a large-cap name. Currently, the Russell Mid Cap Index benchmark has an average market cap of roughly $14 billion versus the Russell 2000 Index’s, a small-cap benchmark, $2 billion average, and the Russell 1000 Index’s, a large-cap bogy, $95 billion.
For mid-cap blend exposure, we like Gold-rated FMI Common Stock. A stable 10-person management team adopts a collaborative, high-conviction approach that has rewarded investors through strong stock-picking since CIO and longest-tenured manager Patrick English joined the squad in October 1997.
Linda Abu Mushrefova, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.