MidCap SPDRs (ETF) (AMEX:MDY)

Midcaps beat the S&P 500 boys over the long haul.

Election 2010.

A good midcap blend- for someone who wants to diversify but doesn't have time to scour the earth for less well known midcaps and do an earnings, chart, evaluation for each.

ETF Junkie

Believe the mid-caps will do well as the economy recovers.

Did some comparing of this against IWS. IWS did well in 2006, but if you pick just about any random period between the beginning of 2007 to today, MDY comes out on top.

I like it. ;)

MDY - midcaps just outperform the market generally
Great way to get some easy cheap diversification with a slightly better return than the market.

Mixture of stocks and provern managers

Midcap Spidrs bulllish

Midcaps are down as of late. Good time to get in.

A good place to put money for the long haul in the current finiacial climate.

Historically, mid-caps have outperformed large caps over long periods of time. Currently, MDY's valuatiuon (in terms of P/E) is just under that of the S&P 500. No one knows what the near term will bring, but over time shis should be a solid part of a portfolio.

Mid-Caps outperform small caps in the long run, so here goes, my recommendation for a Mid-Cap Index ETF.

Outlook for the U.S economy looks very cautious having a slow pace of growth compared to the previous year and major indices having a correction in the recent past. Inflation is expected to subside gradually and growth to pick up in the later half of 2007. Moreover the weakening U.S dollar and capital spending on material equipment would favor the utilities and industrial sector. Consumer Discretionary, Financial and Information Technology account for 19.14%, 17% and 14% of the funds holding.

MidCap SPDRs has the longest track record for any mid cap ETF with about $9.5 billion in net assets. However it has a problem with its structure being organized as a unit investment trust where by it has to hold dividends as cash till making quarterly distributions to share holders. It stand like a giant in term of volumes with more than four times the trading volumes compared to its nearest competitor but has failed to keeps its expenses low. Despite having good liquidity its expense ratio of 0.25% is huge when compared to Vanguard’s 0.13%.

The allocation of funds to the health care and energy are the bright areas to cash on in 2007. Recent decision of the OPEC members to keep the oil production at current levels supports rising oil prices though does not favor the materials sector. Rising aging population would help growth in the managed health care. Expectations of increase in approval of new molecular entities favor the pharmaceutical sector, which has been paying high dividends and enjoying high profit margins. There has been consistency in the past returns of the fund and looks all set to beat the market once more comfortably.

Historically mid caps outperform large caps by a wide margin....except recently. That should change.

Midcap has more room for growth.