Why You’re Missing Out on Midcap Stocks

Originally published April 23, 2024

Everyone knows that middle siblings tend to get overlooked, but is that happening to midcap stocks, too? Large-cap stocks like the past year’s “Magnificent Seven” dominate headlines, while stock pickers and analysts sift through countless small-cap firms to find the next big star. That leaves midcap stocks out in the cold somewhat, missing out on the benefits they offer.

See more: 3 Active ETFs for Midcap Investing’s Moment

Take this graph from American Century Investments. The Russell Midcap Index, since its 1978 inception, has outperformed both the Russell Top 200 and the Russell 2000. While that doesn’t guarantee future performance, it’s the kind of data that may surprise investors.

Midcap stocks would have generated more wealth than large and small caps

American Century Investments graph on midcap stocks performance.