SPMD - SPMD: The Sweet Spot In The Middle

2024-07-20 11:43:06 ET

Summary

• Mid-cap stocks are often overlooked but offer growth potential and stability, making them a good option for large-cap allocators.
• The SPDR® Portfolio S&P 400 Mid Cap ETF tracks the S&P MidCap 400 Index, offering diversified exposure to mid-cap stocks.
• The fund's sector composition is different from large-caps, with a focus on Industrials, Financials, and Consumer Discretionary, making it cyclical in nature.

I often talk about small-cap stocks and the “concentration bubble” in large-caps, but just because I don’t often reference mid-caps doesn’t mean they should be ignored. I actually like mid-caps here and think it’s the natural place for large-cap allocators to rotate into first before taking on more aggressive small-cap exposure. If you’re bullish on mid-cap stocks, you may want to consider the SPDR® Portfolio S&P 400 Mid Cap ETF (SPMD). This is a passive exchange-traded fund run by State Street Global Advisors that seeks to track the performance of the S&P MidCap 400 Index. The S&P MidCap 400 is often cited as the benchmark for US mid-capitalization stocks, in contrast with the large-capitalization stocks benchmarked by the S&P 500....

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