U.S. Mid-Cap Growth Equity

U.S. mid-cap growth equity funds and ETFs tend to invest in mid-sized... U.S. mid-cap growth equity funds and ETFs tend to invest in mid-sized companies, although some portfolios invest in stocks of all sizes, thus leading to a mid-cap profile for the overall fund. Mid-cap growth portfolios target U.S. mid-cap stocks that are projected to grow faster than their peer group, therefore commanding comparatively higher valuations. The U.S. mid-cap range for market capitalization typically falls between $1 billion and $8 billion and represents around 20% of the total capitalization of the U.S. equity market. Growth is defined based on corporate growth (high growth rates for earnings, sales, book value, and cash flow) and high equity valuations (high price to earnings ratio, for example). U.S. mid-cap growth equity funds and ETFs can be good investments if they manage to meet or exceed forecasted revenue and earnings growth. On the other hand, funds and ETFs with holdings that fail to meet estimated future revenue or earnings targets may significantly decline in value. U.S. mid-cap growth equity funds and ETFs often have significant exposure to the information technology, consumer discretionary, and healthcare sectors. U.S. mid-cap growth equity funds and ETFs are purchased by investors primarily for their capital gains potential. While some do offer dividend payouts, these yields tend to be low. They are usually appropriate for moderately aggressive investors willing to take on more risk in search of higher returns. Last Updated: 12/09/2024 View more View less

U.S. mid-cap growth equity funds and ETFs tend to invest in mid-sized companies, although some portfolios invest in stocks of all sizes, thus leading to a mid-cap profile for the overall fund. Mid-cap... U.S. mid-cap growth equity funds and ETFs tend to invest in mid-sized companies, although some portfolios invest in stocks of all sizes, thus leading to a mid-cap profile for the overall fund. Mid-cap growth portfolios target U.S. mid-cap stocks that are projected to grow faster than their peer group, therefore commanding comparatively higher valuations. The U.S. mid-cap range for market capitalization typically falls between $1 billion and $8 billion and represents around 20% of the total capitalization of the U.S. equity market. Growth is defined based on corporate growth (high growth rates for earnings, sales, book value, and cash flow) and high equity valuations (high price to earnings ratio, for example). U.S. mid-cap growth equity funds and ETFs can be good investments if they manage to meet or exceed forecasted revenue and earnings growth. On the other hand, funds and ETFs with holdings that fail to meet estimated future revenue or earnings targets may significantly decline in value. U.S. mid-cap growth equity funds and ETFs often have significant exposure to the information technology, consumer discretionary, and healthcare sectors. U.S. mid-cap growth equity funds and ETFs are purchased by investors primarily for their capital gains potential. While some do offer dividend payouts, these yields tend to be low. They are usually appropriate for moderately aggressive investors willing to take on more risk in search of higher returns. Last Updated: 12/09/2024 View more View less