Mid-cap stocks could boost your portfolio

Mid-cap stocks, like middle children, don’t always get the attention they deserve. But, that has failed to hold back several top stocks in this overlooked category.
What are mid-cap stocks?
Mid-cap stocks fall between large-cap stocks and small-cap stocks, but their size varies from stock market to… Read More

Small companies have appeal but also risk

Smaller companies can generate higher returns than their larger counterparts, but they are often riskier and less liquid, and may underperform for long periods.

Small stocks are also more volatile in times of unsettled or falling markets.

Still, if you focus on the best-quality small companies— or… Read More

Pass on this ETF

ISHARES S&P/TSX SMALL CAP ETF $16 (Toronto symbol XCS; TSINetwork ETF Rating: Aggressive; Market cap: $121.1 million) invests in smaller listed Canadian companies.

The ETF holds 197 stocks, with the top 10 comprising only 13% of its assets. This gives it the appearance of a well-diversified… Read More

Small-cap ETFs aim for growth

Smaller firms can sometimes generate higher returns than their larger counterparts, but they are often riskier, less liquid, and may underperform for long periods. One way to offset some of the risk is to focus on ETFs that hold top-quality small-capitalization companies.

Here we look… Read More

Pat: What is your view on buying the Canadian Vector Equity Fund? I believe it’s tilted towards value stocks and small cap stocks. Its MER is higher than an ETF, but maybe the value and small-company approach over long periods of time will add value. What are your thoughts on going with this mutual fund or a small-cap ETF such as the iShares S&P/TSX SmallCap Index ETF?

A: On a broad level, funds that specialize in small-cap stocks are always more volatile. However, some small caps do offer above-average potential—like those we recommend in Stock Pickers Digest.
Incidentally, we think it’s a mistake to generalize about small cap stocks. Some small caps are… Read More