The Investment Case for Betting Big on Midcaps ETFs
When first heading into 2025, many market experts bet on equities paving the way for growth strategies through the year. This narrative has not particularly changed, per se.
Midcap ETFs Can Offer Multifaceted Benefits
Given the market's current growth narrative, investors may want to consider broadening out their equity exposure beyond traditional large caps. In particular, midcaps could provide a particularly interesting investment opportunity.
CVMC: Calvert's ESG Mid-Cap Core ETF Has Room For Improvement
CVMC is comprised of 600+ Russell Midcap Index securities that align with the Calvert Principles For Responsible Investment. Its expense ratio is 0.15% and CVMC has $68 million in assets. Backfilling CVMC's returns with its no load mutual fund cousin, I found that its historical risk and returns were virtually identical to its benchmark, represented by IWR. However, IWR is an unambitious benchmark to match. By essentially reweighting stocks and keeping sector allocations similar, CVMC brings with it common issues that plague cap-weighted mid-cap funds.
Explore Equity Investing Opportunities Outside of Mega Caps
It's certainly no secret that the mega-cap tech giants in the Magnificent Seven saw stellar returns this year. Investors that focused their exposure in the Magnificent Seven mega caps this year have undoubtedly enjoyed the results.
Latest GDP Numbers Support CVMC's Core ETF Strategy
More good news has come out in favor of strong U.S. economic fundamentals. The latest report from the Bureau of Economic Analysis shows that second-quarter GDP growth accelerated by 30% for the quarter.
Why Responsible Mid Cap ETFs Make Sense Right Now
After over half a year of uncertainty, confidence is finally mounting in favor of the Federal Reserve cutting interest rates in September. In fact, a slim majority of economists polled by Reuters are even betting on the Fed cutting rates three times this year, during the September, November, and December meetings.
