Eyeing a move into SMIDcaps this year? With many investors already holding significant large-cap allocations in their portfolios, SMIDcap firms could offer diversification as well as upside.
Large-caps have played a key role in the S&P 500 and investors' portfolios this year, perhaps even more so than in most years. However, with large-cap tech, especially driving performance, concentration risk lingers.
T. Rowe Price Small-Mid Cap ETF is an actively managed, multifactor ETF focused on long-term capital growth, launched in June 2023. The TMSL ETF is well-diversified, primarily invested in U.S. companies, with a focus on industrials and financials. TMSL has outperformed a mid-cap benchmark and several mid-cap factor ETFs since inception.
Small and mid-cap firms have gathered significant interest amid the Fed's rate cut cycle. With multiple cuts already in the books, those firms have responded.
Investors, by now, have a hefty allocation to tech firms in the bustling world of AI investing. The firms that entered the year as the “Magnificent Seven” have perhaps been reduced to six or even five names.
The discourse surrounding rate cuts has come back around once again. Where the potential for rate cuts dropped as 2023 became 2024, the rate cut signals from the Fed are sparking once again.
Recently, investors were reminded that mega-cap equities aren't always risk-proof. While NVIDIA's stock has rebounded a bit since the sell-off on June 24, investors may be looking for alternative means for seeking long-term growth.
Looking for ETF options for the rest of 2024? The midpoint of the year presents investors with the opportunity to reset and think about their portfolios.