SP 400 Midcap: A Comprehensive Guide to Investing in Mid-Sized American Companies

The S&P 400 MidCap Index (SP 400 Midcap) is a stock market index that tracks the performance of the 400 largest mid-cap companies in the United States. Mid-cap companies are generally defined as those with market capitalizations between $2 billion and $10 billion.

Importance of the SP 400 Midcap

The SP 400 Midcap is an important index for several reasons:

• Diversification: Mid-cap stocks offer a way to diversify your portfolio beyond large-cap and small-cap stocks.
• Growth potential: Mid-cap companies often have higher growth potential than large-cap companies.
• Value: Mid-cap stocks can often be undervalued relative to large-cap stocks.

Composition of the SP 400 Midcap

The SP 400 Midcap is composed of companies from a variety of industries, including:

• Industrials (20.8%)
• Financials (19.6%)
• Technology (18.1%)
• Healthcare (17.2%)
• Consumer discretionary (11.7%)

The largest companies in the index include:

• NextEra Energy (NEE)
• T. Rowe Price Group (TROW)
• Intuit (INTU)
• EOG Resources (EOG)
• Stryker Corporation (SYK)

Performance of the SP 400 Midcap

The SP 400 Midcap has outperformed the S&P 500 Index, which tracks the performance of the 500 largest companies in the United States, over the past 10 years.

SP 400 Midcap | S&P 500 Index
---|---|
10-Year Average Annual Return: 12.44% | 11.76%
10-Year Cumulative Return: 234.90% | 223.32%

Investing in the SP 400 Midcap

There are a number of ways to invest in the SP 400 Midcap, including:

• Index funds: Index funds are mutual funds or exchange-traded funds (ETFs) that track the performance of a particular index, such as the SP 400 Midcap.
• ETFs: ETFs are traded on exchanges like stocks and offer a convenient way to invest in a basket of stocks.
• Mutual funds: Mutual funds are managed by professional investors and offer a variety of investment options, including funds that invest in the SP 400 Midcap.

Conclusion

The SP 400 Midcap is an important index that tracks the performance of mid-sized American companies. Mid-cap stocks offer a number of benefits, including diversification, growth potential, and value. There are a number of ways to invest in the SP 400 Midcap, including index funds, ETFs, and mutual funds.

Additional Information

Investing in Mid-Cap Stocks

• Investopedia: Mid-Cap Stocks
• The Balance: How to Invest in Mid-Cap Stocks
• Motley Fool: 3 Reasons to Consider Mid-Cap Stocks

SP 400 Midcap Index

• S&P Global: S&P 400 MidCap Index
• Yahoo Finance: S&P 400 MidCap Index
• Morningstar: S&P 400 MidCap Index

Mid-Cap Stock ETFs

• Vanguard Mid-Cap ETF (VO)
• iShares Core S&P Mid-Cap ETF (IJH)
• SPDR S&P MidCap 400 ETF Trust (MDY)