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April 01, 2007 at 04:00 AM
Could this be the year that mid-caps outperform? After lagging in 2006, mid-cap stocks are on the rise.
As of mid-February, the Mid-Cap SPDR (Amex:MDY) was up 5.47 percent since the beginning of 2007. By contrast, the iShares Russell 2000 small-cap ETF (Amex: IWM) was up 3.09 percent and the large-cap SPDR (Amex: SPY) was up 2.31 percent — in other words, performance for mid-cap stocks (generally defined as companies with a market capitalization in the $2 billion to $10 billion range) is outpacing both large and small-cap stock indexes.
The ETF universe offers multiple roads to obtaining mid-cap exposure. Along with the Mid-Cap SPDR, State Street Global Advisors offers the SPDR DJ Wilshire Mid-Cap ETF (Amex:EMM), which follows a Dow Jones index of 500 mid-size companies and has an expense ratio of 0.25 percent.
