top ETFs in mid cap category

Ultimate guide to top 3 ETFs in mid cap category

In the earlier article, we talked about the top 3 ETFs in the small-cap category. This article will look into the top three ETFs in mid cap category

Before getting into the list of the top 3 ETFs in the Mid cap segment, let’s understand what Mid cap is.

What exactly is midcap? 

Mid-cap companies haven’t attained the large-cap status, but they have a more substantial track record than small-cap businesses.  

Their shares provide a perfect balance between the risks and benefits of their smaller and larger counterparts. 

The market capitalization of a mid-cap company typically runs between $2 billion and $10 billion. As the name suggests, a mid-cap corporation sits halfway among large-cap (or big-cap) and small-cap businesses. 

These businesses usually have a well-established business model and a strong presence in their respective industries, and they may see significant development as their market share expands.  

Large-cap businesses are eager for mergers and acquisitions. However, past large-cap corporations that have shrunk in size and dominance are present in the mid-cap category. 

Mid-cap stocks are low at risk, have low volatility, and have a lesser growth trajectory than small-cap stocks, but they are riskier, exhibit more turbulence, and have higher potential gains than large-cap firms. 

For mid-cap equities, there are two key benchmarks
  1. The Russell Midcap Index is a subset of the broader Russell 1000 Index – it monitors roughly twice as many companies more than 800. 
  1. The S&P Mid-Cap 400 Index measures the performance of 400 mid-sized corporations in the United States with market capitalizations ranging from $2 billion to $8 billion. 

The top 3 recommendations in the mid-cap category ETFs 

Rank ETF 
1 Invesco Russell 1000 Dynamic Multifactor ETF 
2 JPMorgan BetaBuilders U.S. Mid Cap Equity ETF 
3 iShares Morningstar Mid-Cap Growth ETF 

Invesco Russell 1000 Dynamic Multifactor ETF 

The Russell 1000 Index’s component securities’ rankings are given by OMFL based on their value, size, momentum, quality, and low volatility. 

Oppenheimer uses a rules-based system based on fundamental economic statistics and global risk appetite to assess the current market cycle’s state: growth, downturn, contraction, or recovery.  

The fund adjusts its exposure to favor the elements that perform best in the current market. The aggregate factor score, adjusted by market cap, weights holdings.  

By applying this dynamic overlay, OMFL takes advantage of the cyclical nature of factor performance. For this added benefit, the fund has low price. 

The MSCI ESG Fund Rating for Invesco Russell 1000 Dynamic Multifactor ETF is AA, with 7.67 out of 10. The MSCI ESG Fund Rating assesses a portfolio’s long-term resistance to risks and opportunities posed by environmental, social, and governance variables 

Performance 

Performance [as of 14/03/22]1 year3 years5 years10 years
OMFL1.79%17.46%
Russell 1000 Invesco Dynamic Multifactor Index2.08%18.04%

The fund invests entirely in the USA. 

OMFL Top 10 Holdings 

OMFL Top 10 Holdings , three ETFs in mid cap category

Source: etf.com

OMFL details 

BrandInvesco
Expense Ratio0.29%
YTD Return-12.76%
AUM$1.73B
Number of Holdings171
Avg. Spread ($)$0.03
Average Daily $ Volume$8.28M

JPMorgan BetaBuilders U.S. Mid Cap Equity ETF

BBMC is a passively managed fund that tracks an index that tracks mid-cap firms across multiple sectors in the US stock market.  

Although extensive and small-cap firms may be included, the index generally analyses firms between 85th and 95th percentile rank in market capitalization of the US investible universe.  

Common shares, preference shares, and REITs are examples of equity securities. BBMC, part of the ‘BetaBuilders’ suite, provides plain-vanilla exposure to mid-cap stocks, which can be utilized as a core investment or complement BBUS and BBSC, respectively, covering the whole market and small-cap parts of the US equity market.  

The fund will invest up to 20% in the future to track the index more closely. The index’s rebalancing is done every three months. The MSCI ESG Fund Rating of A for JPMorgan BetaBuilders U.S. Mid Cap Equity ETF is a 6.01 out of 10.  

The MSCI ESG Fund Rating assesses a portfolio’s long-term resistance to risks and opportunities posed by environmental, social, and governance variables. 

Performance 

Performance [as of 14/03/22]1 month3 monthsYTD
BBMC-5.53%-10.14%-13.71%
MSCI USA Mid Cap Index-4.96%-9.73%-12.84%

The fund invests only in the USA. 

BBMC Top 10 Holdings 

three ETFs in mid cap category, BBMC Top 10 Holdings

Source: etf.com

BBMC details 

BrandJPMorgan
Expense Ratio0.07%
YTD Return-13.71%
AUM$1.49B
Number of Holdings638
Avg. Spread ($)$0.10
Average Daily $ Volume$957.72K

iShares Morningstar Mid-Cap Growth ETF 

IMCG is a growth-oriented, passively managed fund that invests in US midcap equities. Morningstar’s index technique, which incorporates fundamental variables, is used to choose stocks.  

This technique defines the selected growth companies as having an above-average historical and anticipated income, revenues, equity, and operating cash growth.  

The underlying index is recreated twice a year and quarterly rebalanced. Before March 19, 2021, the fund used the JKH ticker to track the Morningstar US Mid Growth Index. The MSCI ESG Fund Rating for the iShares Morningstar Mid-Cap Growth ETF is AA, with 7.27 out of ten.  

MSCI ESG Fund Rating assesses a portfolio’s long-term resistance to risks and opportunities posed by environmental, social, and governance variables. 

Performance 

Performance [as of 14/03/22]1 year3 years5 years10 years
IMCG-6.11%15.48%15.81%13.25%
MSCI USA Mid Cap Growth Index-8.62%14.87%13.46%12.67%

The fund invests only in the USA. 

IMCG Top 10 Holdings 

three ETFs in mid cap category

Source: etf.com

IMCG details 

BrandiShares
Expense Ratio0.06%
YTD Return-19.47%
AUM$1.13B
Number of Holdings359
Avg. Spread ($)$0.08
Average Daily $ Volume$10.40M

One should look out at these ETFs before investing in the mid-cap category in the USA.

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