Mid-sized companies with between $1.5 billion and $27 billion of market capitalization represent one of the most attractive segments of the equity market.
Over the past 20 years, mid- cap stocks have consistently delivered better risk-adjusted returns than both large- and small- cap equities.1 Mid- cap companies may offer investors greater growth potential than larger, more mature businesses with less risk and volatility than smaller cap companies.
Yet U.S. equity investors remain underexposed to mid -cap stocks. Though mid-caps make up 27% of the U.S. equity market, they represent only 14% of U.S. mutual fund assets.2
Investors seeking greater long-term growth potential than large- cap equities may offer, with less volatility than small caps exhibit, should consider increasing their allocation to mid -cap stocks.
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The Russell Midcap® Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell 2000® index measures the performance of the small-cap segment of the U.S. equity universe.
Investments in securities of growth companies may be volatile. Mid-sized company stock is typically more volatile than that of larger company stock. It may take a substantial period of time to realize a gain on an investment in a mid-sized company, if any gain is realized at all. Diversification does not guarantee profit or protect against loss.