Mid-cap ETFs are one-stop shops for this class of stocks. Mid-cap ETFs are a great way to own companies that are growing quickly and have good financial stability without having to analyze individual stocks and pick the winners. The mid-caps include plenty of companies that you haven’t heard of as well as quite a few that you may use in your daily life. The best of the mid-cap stocks will continue to grow larger, ultimately becoming large-caps and multiplying your initial investments many times over. Midcaps can be an excellent diversifier from other core and large-cap ETFs. It offers a portfolio of companies with higher growth potential and the opportunity to participate in strong price appreciation. Mid-cap companies may be more flexible to adapt to changing economic and competitive environments.
What is the Best Mid-Cap ETF?
- XMHQ: Invesco S&P MidCap Quality ETF
- IVOV: Vanguard S&P Mid-Cap 400 Value Index Fund
- VO: Vanguard Mid Cap Index Fund
- XMMO: Invesco S&P MidCap Momentum ETF
- IVOG: Vanguard S&P Mid-Cap 400 Growth Index Fund
- RWK: Invesco S&P MidCap 400 Revenue ETF
- RFV: Invesco S&P MidCap 400 Pure Value ETF
- IMCG: iShares Morningstar Mid-Cap Growth ETF
- VOE: Vanguard Mid-Cap Value Index Fund
- FLQM: Franklin U.S. Mid Cap Multifactor Index ETF
| ETF | IMCG | FLQM | XMMO | XMHQ | RWK | RFV | IVOG | IVOV | VO | VOE |
| Inception | 2004-06-28 | 2017-04-26 | 2005-03-03 | 2006-12-01 | 2005-03-03 | 2006-03-01 | 2010-09-07 | 2010-09-07 | 2004-01-26 | 2006-08-17 |
| MER | 0.06% | 0.30% | 0.34% | 0.33% | 0.39% | 0.35% | 0.15% | 0.15% | 0.04% | 0.07% |
| AUM | $1,663,626,733 | $290,730,000 | $1,013,900,000 | $1,750,300,000 | $197,700,000 | $333,800,000 | $767,300,000 | $789,300,000 | $55,300,000,000 | $15,500,000,000 |
| P/E | 27.45 | 15.81 | 16.04 | 13.50 | 10.92 | 9.68 | 16.1 | 13.4 | 19.3 | 16.0 |
| P/B | 4.57 | 3.55 | 3.66 | 3.33 | 1.83 | 1.20 | 2.9 | 1.7 | 2.8 | 2.0 |
| Yield | 1.00% | 2.10% | 1.03% | 1.00% | 1.05% | 1.28% | 1.27% | 1.87% | 1.66% | 2.42% |
| Distributions | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Annually | Annually | Quarterly | Quarterly |
| 1Y | 5.75% | 4.43% | 3.58% | 12.39% | 6.54% | 7.69% | 17.40% | 15.42% | 16.04% | 9.83% |
| 3Y | 0.19% | 8.60% | 5.35% | 10.79% | 14.28% | 17.21% | 4.07% | 11.79% | 5.51% | 9.19% |
| 5Y | 11.53% | 10.63% | 11.93% | 13.23% | 11.69% | 11.59% | 11.77% | 12.79% | 12.73% | 11.31% |
| 10Y | 10.63% | N/A | 12.11% | 10.57% | 9.51% | 9.38% | 8.87% | 9.01% | 9.42% | 8.49% |
10. Invesco S&P MidCap 400 Revenue ETF
The Invesco S&P MidCap 400 Revenue ETF (Fund) is based on the S&P MidCap 400 Revenue-Weighted Index (Index). The Fund will invest at least 90% of its total assets in securities of mid-capitalization companies in the Index. The Index is constructed using a rules-based approach that re-weights securities of the S&P MidCap 400 Index according to the revenue earned by the companies, with a maximum 5% per company weighting. The Fund and Index are rebalanced quarterly.
9. Franklin U.S. Mid Cap Multifactor Index ETF
Franklin U.S. Mid Cap Multifactor Index ETF (FLQM) tracks a multi-factor index that aims to reduce market volatility and deliver a smoother investor experience over the long term.
- Seeks to provide investment results that closely correspond, before fees and expenses, to the performance of its corresponding underlying index, LibertyQ U.S. Mid Cap Equity Index
- Pursues low downside capture and strong risk-adjusted returns over the long term
- The index methodology employs a rules-based, custom multi-factor approach providing exposure to four well known factors: 50% Quality, 30% Value, 10% Momentum and 10% Low Volatility
8. Vanguard Mid-Cap Value Index Fund
Seeks to track the performance of the CRSP US Mid Cap Value Index, which measures the investment return of mid-capitalization value stocks.
- Provides a convenient way to match the performance of a diversified group of midsize value companies.
- Follows a passively managed, full-replication approach
7. iShares Morningstar Mid-Cap Growth ETF
iShares Morningstar Mid-Cap Growth ETF (IMCG) seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit growth characteristics.
- Exposure to mid-sized U.S. companies whose earnings are expected to grow at an above-average rate relative to the market
- Targeted access to a specific category of mid-cap domestic stocks
- Use to tilt your portfolio towards growth stocks
6. Invesco S&P MidCap 400 Pure Value ETF
The Invesco S&P MidCap 400 Pure Value ETF (Fund) is based on the S&P MidCap 400 Pure Value Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index measures the performance of securities that exhibit strong value characteristics in the S&P MidCap 400 Index. Value is measured by the following risk factors: book value-to-price ratio, earnings-to-price ratio and sales-to-price ratio. The Fund and the Index are rebalanced annually.
5. Vanguard S&P Mid-Cap 400 Growth Index Fund
Invests in stocks in the S&P MidCap 400 Growth Index, composed of the growth companies in the S&P 400.
- Focuses on closely tracking the index’s return, which is considered a gauge of overall U.S. mid-cap growth stock returns.
- Offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds.
- More appropriate for long-term goals where your money’s growth is essential
4. Invesco S&P MidCap Momentum ETF
Invesco S&P MidCap Momentum ETF (XMMO) is based on the S&P Midcap 400 Momentum Index (Index). The Fund will invest at least 90% of its total assets in the component securities that comprise the Index. The Index is composed of securities with 80 securities in the S&P Midcap 400 Index having the highest “momentum scores,” which are computed by measuring the upward price movements of each security as compared to other eligible stocks within the S&P Midcap 400 Index. The Fund and the Index are rebalanced and reconstituted semi-annually.
3. Vanguard Mid Cap Index Fund
Vanguard Mid-Cap Index Fund ETF Shares (VO) seeks to track the performance of the CRSP US Mid Cap Index, which measures the investment return of mid-capitalization stocks.
- Provides a convenient way to match the performance of a diversified group of medium-size companies.
- Follows a passively managed, full-replication approach
2. Vanguard S&P Mid-Cap 400 Value Index Fund
Invests in stocks in the S&P MidCap 400 Value Index, composed of the value companies in the S&P 400.
- Focuses on closely tracking the index’s return, which is considered a gauge of overall U.S. mid-cap value stock returns.
- Offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds.
- More appropriate for long-term goals where your money’s growth is essential.
1. Invesco S&P MidCap Quality ETF
Invesco S&P MidCap Quality ETF (XMHQ) is based on the S&P MidCap 400 Quality Index. The Fund will invest at least 90% of its total assets in the component securities that comprise the Index. The Index is a modified market capitalization-weighted index that holds approximately 80 securities in the S&P Midcap 400 Index that have the highest quality scores, which are computed based on a composite of three proprietary factors. The Fund and the Index are rebalanced semi-annually.
Are Mid-Cap ETFs Worth It?
Mid-cap ETFs are an attractive way to invest in solid performers that have both growth and stability – and to do so without the risks of buying into individual stocks. While an ETF can help diversify the risk of buying a few individual stocks, it won’t eliminate all the risk of investing.
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| Advice | InvestCAN | InvestRESP | InvestUSA | RetireCAN | RetireMGN |
| $500.00 CAD $400.00 USD | $99.99 CAD | $79.99 USD | $99.99 CAD | $17.99 CAD $12.99 USD |
