Mid-Cap ETFs Looking Good Amid Market Uncertainties

This story originally appeared on Zacks

Wall Street has surprised with rallies despite rising Delta variant cases. Investors are however on the edge considering certain factors that might impact the current investing environment. Factors like surging Delta variant cases and the Federal Reserve meeting where it might announce plans to taper bond purchases are also raising worries. U.S. consumers also seem worried about the sustainability of economic recovery from the pandemic-led slump, rising Delta variant threat and increasing inflation levels.

Intensifying investors’ concerns further, September is historically considered the worst-performing month for Wall Street. Analysts expect a market correction in September. According to the LPL Financial data published in a Yahoo Finance article, the S&P 500 has fallen about 1%, on average, in September since 1950. Certain recent economic data releases also turned out to be very disappointing. The U.S. economy added only 235,000 jobs in August 2021 (the lowest in seven months).

Meanwhile, the FDA granting the first full U.S. approval to Pfizer (PFE)/BioNTech’s (BNTX) coronavirus vaccine, Comirnaty (BNT162b), has also boosted investors’ confidence. The full FDA approval is expected to increase the confidence for imposing vaccine mandates. Also, the unvaccinated population is now more likely to opt for vaccinations.

Considering the mixed sentiments, mid-cap funds are gaining increased attention as they provide both growth and stability in comparison to the small-cap and large-cap counterparts. As such, investors seeking to capitalize on the strong fundamentals but worried about uncertainty should consider mid-cap ETFs. Here, we have presented five popular mid-cap ETFs like Vanguard Mid-Cap ETF VO, SPDR S&P MIDCAP 400 ETF Trust MDY, iShares Russell Mid-Cap Value ETF IWS, Vanguard Mid-Cap Growth ETF VOT and Schwab U.S. Mid-Cap ETF SCHM.

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SPDR S&P MidCap 400 ETF (MDY): ETF Research Reports
Schwab U.S. MidCap ETF (SCHM): ETF Research Reports
iShares Russell MidCap Value ETF (IWS): ETF Research Reports
Vanguard MidCap Growth ETF (VOT): ETF Research Reports
Vanguard MidCap ETF (VO): ETF Research Reports
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Zacks Investment Research

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