Large-Cap Anxiety? Leverage Midcap Marvels With This ETF
Traders worried about large-cap stocks hitting peak valuations may want to step into the midcap arena. Long- and short-term traders can also take advantage of future upside if the market environment shifts in favor of these companies.
MIDU: Low Concentration And A Cyclical Tilt To Help Amid Robust US Growth
The Direxion Daily Mid Cap Bull 3X Shares ETF seeks to deliver 300% (3x) the return of the S&P MidCap 400 index. The S&P MidCap 400 index has a circa 65% allocation to cyclical sectors, most notably Industrials, a key benefit amid expectations for 2.7% US GDP growth by the IMF. The S&P MidCap 400 trades at a trailing earnings yield of almost 5% and does not suffer from an elevated concentration in just a few names.
As Rate-Cutting Cycle Begins, Consider Trading Midcaps
With large-caps getting most of 2024's attention, traders may be overlooking one area that could offer opportunities. In the Fed's rate-cutting cycle, traders may also want to pay attention to midcaps.
