Reported 12 months ago
The article discusses the idea of investing in a mid-cap exchange-traded index fund like the SPDR Portfolio S&P 400 Mid Cap ETF or Vanguard S&P Mid-Cap 400 ETF instead of just buying and holding an S&P 500 index fund. It explains how investing in mid-cap companies, with market capitalizations between $2 billion and $10 billion, can potentially lead to stronger returns due to their growth potential. The article emphasizes the benefits of diversifying a portfolio and highlights the historical outperformance of the S&P 400 over the S&P 500, attributing it to the growth of smaller companies in the mid-cap segment.
Source: YAHOO