Don’t overlook the power of mid-cap stocks

Article Excerpt

Medium-sized companies are a bit like the proverbial middle child—they tend not to get as much attention from investors as the smallest or the biggest. But this creates opportunities for investors who are prepared to add the best of those stocks—or the ETFs that hold them—to their portfolios. High-quality mid-cap stocks can offer your the stability and balance sheet strength of large caps, while at the same time they give investors growth potential similar to small caps. What are mid-cap stocks? Mid-cap stocks are typically defined as those having a market capitalization of between $2 billion and $10 billion. But definitions vary and it also matters which stock exchange or market you are looking at. The Center for Research in Securities Prices ranks all publicly listed stocks from largest to smallest. Then it select the stocks that make up a total of 70% of the market’s capitalization as the large caps; the next 15% are considered mid-caps and the bottom 15% are the small caps. Based…

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