After a year in which uncertainty became the only constant, we seem finally to be moving onto firmer ground, and equities have rallied on the back of dissipating uncertainty. Following the rally, investors may want to explore overlooked areas that have received less attention this year such as mid-caps.
The S&P 400 Index market cap is equivalent to that of the FTSE All-Share Index1, yet investors traditionally have ignored this segment to focus on the S&P 500, even though the S&P 400 has significantly outperformed its more favoured sister index over the long term1. With more of a cyclical and domestic bias, higher exposure to industrials and fewer tech stocks1, mid caps might be the sibling to watch.
Rebecca Chesworth, Senior Equity Strategist at SPDR ETFs joined Tim Edwards, Managing Director of Index Investment Strategy at S&P Dow Jones Indices to discuss why now could be a good time for rectifying an underweight mid-cap position.
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