U.S. mid-cap growth ETFs invest in stocks that generally fall between $1 billion and $8 billion in market capitalization that are projected to grow faster than others of the same size. Stocks in this market occupy a large percentage of the overall U.S. equity market, making them a staple in any well diversified portfolio.
Among other assets in the U.S. Style Return Table (seen below), U.S. mid-cap growth ETFs, represented by the Russell Mid Cap Growth ETF (IWP), have outperformed. At 4/27/2011, the trend score for the Russell Mid Cap Growth ETF stood at 12.57%, near the top of the overall table.
U.S. Equity Style Return 4/29/2011
|Assets Class||Symbols||04/27 |
|Russell Smallcap Growth||IWO||14.01%||13.06%||^|
|Russell Midcap Growth||IWP||12.57%||11.91%||^|
|Russell Smallcap Index||IWM||11.05%||9.92%||^|
|Russell Midcap Indedx||IWR||10.9%||10.15%||^|
|Russell Midcap Value||IWS||9.84%||9.03%||^|
|Russell Largecap Growth||IWF||9.25%||8.24%||^|
|Russell Smallcap Value||IWN||8.56%||7.26%||^|
|Russell Largecap Index||IWB||8.52%||7.38%||^|
|Russell Largecap Value||IWD||8.15%||6.96%||^|
The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).
Click to enlarge graphics
U.S. mid-cap growth ETFs have performed well in the past year with iShares S&P Mid Cap 400 Growth (IJK) leading the way, returning 27.41%. Other high performers in the sector include the Vanguard Mid Cap Growth ETF (VOT) and the iShares Russell Mid Cap Growth ETF (IWP), with one-year yields of 27.05% and 24.39% respectively. When looking at three and five-year returns the iShares S&P Mid Cap 400 Growth ETF has been the strongest in the class.
U.S. Mid Cap Growth 04/29/2011
|Description||Symbol||1 Yr||3 Yr||5 Yr||Avg. Volume(K)||1 Yr Sharpe|
|iShares S&P MidCap 400 Growth||IJK||27.41%||9.44%||7.4%||313||140.86%|
|iShares Russell Midcap Growth||IWP||24.39%||5.74%||4.93%||585||127.49%|
|Vanguard Mid-Cap Growth ETF||VOT||27.05%||4.87%||NA||144||140.37%|
While some speculate that the mid-cap equity market is due for a retraction, companies in the class have continually shown strong performance, leading to higher prices for the ETFs tracking the market.
Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical. I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.