2024-05-30 08:24:38 ET
Summary
- SPDR S&P 400 Mid Cap Growth ETF has performed well since 2022, but still underperformed its large-cap growth peer due to low exposure to technology stocks.
- MDYG's exposure to technology stocks is limited, which has been a drag on its performance compared to its large-cap peer.
- The fund may continue to underperform in the upcoming year due to its inferior long-term earnings growth rate.
ETF Overview
SPDR S&P 400 Mid Cap Growth ETF ( MDYG ) invests in a portfolio of U.S. mid-cap growth stocks. The fund has done quite well since 2022, but its performance still trailed its large-cap growth peer fund. This underperformance was primarily due to its low exposure to technology stocks. Hence, MDYG’s consensus long-term earnings growth rate is inferior than its large-cap growth peer. The fund may also experience a greater magnitude of pullback than its large-cap peer in a bear market. Therefore, investors may want to seek alternatives instead....
Read the full article on Seeking Alpha
For further details see:
MDYG: Not Better Than Its Large-Cap Growth Peer Fund