Best Mid-Cap ETFs of July 2024

3 minute read

By Sophia Martinez

Many investors tend to overlook mid-cap stocks, as they are neither as financially stable as large-cap stocks nor growing as quickly as small-caps. However, mid-cap stocks strike a balance, offering a blend of solid growth and financial stability. If you prefer not to invest in individual stocks, you can gain exposure to mid-cap stocks through an ETF.

A mid-cap ETF is an exchange-traded fund that invests in mid-sized companies, where the total value of the company’s stock ranges from a few billion dollars to around $20 billion. Mid-cap ETFs offer a way to own companies that are growing quickly and have solid financial stability without having to analyze and pick individual stocks.

Mid-cap stocks include a mix of lesser-known companies and familiar names that you might use daily. The best mid-cap stocks will continue to grow, eventually becoming large-caps and multiplying your initial investments.

Investors are drawn to mid-cap companies for several reasons:

While these positives are compelling, if you don’t want to do the legwork of research and analysis, a great way to begin is by buying a mid-cap ETF. (And here are the best small-cap ETFs and best large-cap ETFs based on their overall returns.)

The top funds are selected based on the following criteria:

This passively managed ETF tracks the S&P MidCap 400 Quality Index, featuring 80 high-quality stocks from the S&P MidCap 400 Index.

Invesco S&P MidCap Momentum ETF (XMMO)

This passively managed ETF tracks the S&P MidCap 400 Momentum Index, consisting of 80 stocks from the S&P MidCap 400 Index with the highest momentum scores.

This ETF follows the S&P MidCap 400 Revenue-Weighted Index, reweighting stocks from the S&P MidCap 400 Index based on the company’s revenue.

This passively managed ETF tracks the S&P MidCap 400 GARP Index, which stands for Growth at a Reasonable Price. The index includes stocks that excel in consistent growth, reasonable valuation, strong earnings power, and solid financials.

This passively managed ETF is based on the S&P MidCap 400 Pure Value Index, which includes stocks in the S&P MidCap 400 Index that score well for value characteristics, such as low price-to-book value, low price-earnings ratio, and low price-sales ratio.

This fund tracks the LibertyQ U.S. Mid Cap Equity Index, which selects stocks based on quality, value, momentum, and low volatility. The goal is to invest in stocks with low downside risk that can offer attractive long-term risk-adjusted returns.

This passively managed fund follows the S&P MidCap 400 High Momentum Value Index, which comprises 80 stocks from the S&P MidCap 400 Index with the highest combined scores for value and momentum factors.

Investing in mid-cap ETFs offers a balanced approach to accessing companies with growth potential and stability, mitigating the risks associated with individual stock purchases while not entirely eliminating investment risks.

Contributor

Sophia Martinez is a passionate writer with a keen eye for uncovering emerging trends and thought-provoking discussions. With a background in journalism and digital media, she has spent years crafting compelling content that informs and engages readers. Her expertise spans a variety of topics, from culture and technology to business and social movements, always delivering insightful perspectives with clarity and depth. When she's not writing, Tessa enjoys exploring new coffee shops, reading historical fiction, and hiking scenic trails in search of inspiration.