FYI: Investors are using index-based funds to build asset allocation strategies rather than solely relying on active mutual funds, but the focus has primarily been on the stability of large caps and the growth potential of small caps. CFRA agrees with a recent SSGA report that midcap securities remain under the radar with most investors.
According to Matt Bartolini, author of the "What You Miss by Overlooking Mid Caps" third-quarter 2019 report, and head of SPDR Americas Research, midcaps offer stability and balance sheet strength similar to large caps and growth potential similar to small caps.
For example, companies in the S&P Mid Cap 400 Index have had a similar return on assets, based on median levels since the 2008-2009 financial crisis, but lower total debt to assets than companies in the S&P 500 Index. Meanwhile, since 2000, mid-cap companies have generated average earnings-per-share growth comparable to small caps in the Russell 2000 index—though with lower volatility.
Regards,
Ted
https://www.etf.com/sections/features-and-news/dont-overlook-markets-middle
