U.S. Mid-Cap Blend Equity

U.S. mid-cap blend mutual funds and ETFs invest in a mix of... U.S. mid-cap blend mutual funds and ETFs invest in a mix of mid-cap value and growth stocks. Mid-cap stocks usually have a market capitalization between US$1-8 billion. Value stocks tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks. Growth companies are those firms that are projected to grow at a faster rate than the stock market average, based on measures such as book value, revenue, and earnings per share. Growth companies tend to trade at higher valuations (price-earnings ratios, for example), than so-called value stocks. This is because they are typically valued more for their potential years from now, rather than their current revenue or earnings. Meanwhile, some U.S. mid-cap blend mutual funds and ETFs only invest in mid-sized companies, while others own a range of small, mid, and large cap stocks that overall have a mid-cap profile. They can invest in a range of sectors, but often have significant holdings in consumer discretionary/consumer staples, energy, healthcare, and financial services. U.S. mid-cap blend mutual funds and ETFs that have a greater concentration in value stocks will tend to exhibit less volatility than a fund solely focused on growth stocks. By contrast, funds and ETFs with a greater concentration in growth stocks will tend to exhibit more volatility but offer investors the chance for higher returns. Last Updated: 05/17/2024 View more View less

U.S. mid-cap blend mutual funds and ETFs invest in a mix of mid-cap value and growth stocks. Mid-cap stocks usually have a market capitalization between US$1-8 billion. Value stocks... U.S. mid-cap blend mutual funds and ETFs invest in a mix of mid-cap value and growth stocks. Mid-cap stocks usually have a market capitalization between US$1-8 billion. Value stocks tend to trade at lower valuations (price-earnings ratios, for example), than growth stocks. Growth companies are those firms that are projected to grow at a faster rate than the stock market average, based on measures such as book value, revenue, and earnings per share. Growth companies tend to trade at higher valuations (price-earnings ratios, for example), than so-called value stocks. This is because they are typically valued more for their potential years from now, rather than their current revenue or earnings. Meanwhile, some U.S. mid-cap blend mutual funds and ETFs only invest in mid-sized companies, while others own a range of small, mid, and large cap stocks that overall have a mid-cap profile. They can invest in a range of sectors, but often have significant holdings in consumer discretionary/consumer staples, energy, healthcare, and financial services. U.S. mid-cap blend mutual funds and ETFs that have a greater concentration in value stocks will tend to exhibit less volatility than a fund solely focused on growth stocks. By contrast, funds and ETFs with a greater concentration in growth stocks will tend to exhibit more volatility but offer investors the chance for higher returns. Last Updated: 05/17/2024 View more View less