Whether You Favor Value or Growth, Consider These Two Mid-Cap ETFs

A State Street Global Advisors (SSGA) report noted the resiliency of mid-cap equities, particularly during market downturns, which defies conventional wisdom that large-cap equities can best mute the effects of a heavy sell-off. 

Source: Whether You Favor Value or Growth, Consider These Two Mid-Cap ETFs

“Amid the ongoing COVID-19 crisis, market swings caused by the pandemic have created an opportunity for investors to reposition their portfolios,” SSGA said. “Conventional wisdom states that large-cap stocks hold up best in market downturns and small-cap stocks lead in a recovery, but our research may surprise you.”

“Our analysis found that during periods of systemic risk since the mid-1990s, contrary to conventional wisdom, large caps did not fall the least and small caps did not lead recoveries,” SSGA added. “Instead, mid caps historically fared the best and showcased resiliency during these times.”

As such, there’s a value component to be had in mid-caps during downturns as well as a growth component in times of economic recovery. That said, Invesco offers two ETF options whether an investor is a proponent of value, growth, or both.

Value or Growth Mid-Cap Options

For staunch supporters of value, ETF investors can go with the Invesco S&P MidCap 400 Pure Value ETF (RFV). The fund seeks to track the investment results of the S&P MidCap 400® Pure Value Index, which is composed of a subset of securities from the S&P MidCap 400® Index that exhibit strong value characteristics.

“This ETF is one of several options available to investors looking to access mid cap U.S. stocks exhibiting value characteristics, such as high dividend yields and low pricing multiples,” an ETF Database analysis noted. “As such, RFV may be a useful tool for those looking to implement a tactical tilt towards a sector of the U.S. equity market that may perform relatively well in certain economic environments.”

For a growth-focused option, there’s the Invesco S&P MidCap 400 Pure Growth ETF (RFG), which seeks to track the investment results of the S&P MidCap 400® Pure Growth Index. The underlying index is composed of a subset of securities from the S&P MidCap 400® Index that exhibit strong growth characteristics.

“This ETF is one of several options available to investors looking to access mid cap U.S. stocks exhibiting growth characteristics, such as low dividend yields and high pricing multiples,” an ETF Database analysis said. “As such, RFG may be a useful tool for those looking to implement a tactical tilt towards a sector of the U.S. equity market that may perform relatively well in certain economic environments.”

For more news, information, and strategy, visit the Innovative ETFs Channel.

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