The mid-cap segment of the market comprises the companies that find themselves in the middle of the business cycle. More specifically, these companies tend to have market capitalizations between $2 billion and $10 billion, and they have grown beyond the typical types of risk that are associated with their smaller-cap counter parts.
From an investor’s standpoint, the companies within this segment tend to be underfollowed despite relatively strong performance compared to other segments. In this article, we look at the sector composition of the mid-cap market by analyzing key benchmarks and exchange-traded funds (ETFs) that are used to track the performance of this group. After reading this article, investors will be able to better understand the nuance between the different levels of sector exposure and how these details could affect the long-term returns.