Diversify with these mid-cap ETFs

Article Excerpt

For most investors, we still think large-cap companies, or the ETFs that hold them, should form the core of their stock portfolios. However, while a lot of investors look to add a few small companies with high growth potential, many overlook medium-sized companies, or “mid caps”—regardless of their profitability and prospects. The best of these can provide good investment opportunities (see page 79). Here are three ETFs that provide exposure to medium- sized companies. ISHARES S&P/TSX COMPLETION INDEX ETF $26 (Toronto symbol XMD; TSINetwork ETF Rating: Aggressive; Market cap: $208.1 million) invests in stocks of the S&P/TSX Composite Index that are excluded from the S&P/TSX 60 Index (it tracks the composite’s 60 largest companies by market value). The ETF weights each of the stocks it holds by market cap. The portfolio is rebalanced on a quarterly basis. Financials (22%) make up the largest industry segment, followed by Industrials (17%), Basic materials (16%), Oil and Gas (14%), Consumer Services (7.2%), Utilities (6%) and Consumer Goods (6%). The…

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