Discover the potential of a mid-cap allocation in an equity portfolio
Many investors believe that owning a portfolio of large- and small-cap stocks provides sufficient exposure across the market-cap spectrum. However, adding a mid-cap allocation to the mix may improve portfolio performance and mitigate risk over time.
See for yourself. Use this interactive tool to compare the return and risk (standard deviation1) of a baseline portfolio of large- and small-cap stocks vs. a portfolio including mid-cap stocks when invested in major market benchmarks (Russell or S&P indexes) during different time periods over the last 20 years.
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More on Mid-Caps
Review the latest articles, podcasts, and video insights about mid-cap and SMID-cap investing.
Why Mid-Caps Matter
Virtus Differentiated Mid-Cap Solutions
Investors seeking mid-cap exposure can choose from dedicated mid-cap funds or separately managed accounts that invest in small- and mid-cap (“SMID-cap”) stocks, which provide exposure to both equity classes. Virtus offers mid-cap solutions from four-time-tested managers. Explore our product offerings to learn more.
Investors should carefully consider the investment objectives, risks, charges and expenses of any Virtus Mutual Fund before investing. The prospectus and summary prospectus contains this and other information about the fund. Please contact your financial representative, call 1-800-243-4361 to obtain a current prospectus and/or summary prospectus. You should read the prospectus and/or summary prospectus carefully before you invest or send money.
Data Source: Morningstar
1 Standard deviation calculation for periods of three years or longer is available with this tool. Calculated returns are cumulative. Calculated standard deviation is annualized.
Past performance is not a guarantee of future results. The indexes are unmanaged, returns do not reflect any fees, expenses, or sales charges, and they are not available for direct investment.
Allocations are for illustrative purposes only and are not representative of any Virtus strategy. Portfolios do not reflect rebalancing.
Important Risk Considerations
Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small, medium, or large-sized companies may enhance that risk. Small-cap stocks tend to be more volatile (and therefore riskier) than mid- and large-cap stocks. Mid-cap stocks tend to be more volatile than large-cap stocks but less volatile than small-cap stocks. Large-cap stocks tend to be less volatile than mid- and small-cap stocks. Industry/Sector/Asset Class Concentration: A portfolio that focuses its investments in a particular industry, sector, or asset class will be more sensitive to conditions that affect that industry, sector, or asset class than a non-concentrated fund. Diversification: There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio, or that diversification among different asset classes reduces risk.
Market Capitalization, or market cap, is calculated by multiplying a company's outstanding shares by its stock price. As generally defined, the market cap range for small caps is $300 million to $2 billion, $2 billion to $10 billion for mid-caps (and up to as much as $50 billion), and $10 billion to $200 billion for large caps.
Standard deviation measures the variability of returns around the average return for an investment portfolio. Higher standard deviation suggests greater risk.
Russell 1000® Index: A market capitalization-weighted index of the 1,000 largest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies.
Russell Midcap® Index: A market capitalization-weighted index of medium-capitalization stocks of U.S. companies. The index is calculated on a total return basis with dividends reinvested.
Russell 2000® Index: A market capitalization-weighted index of the 2,000 smallest companies in the Russell universe, which comprises the 3,000 largest U.S. companies. The index is calculated on a total return basis with dividends reinvested.
S&P 500® Index: A free-float market-capitalization weighted index of 500 of the largest U.S. companies that measures the performance of the large-cap segment of the market. The index is calculated on a total return basis with dividends reinvested.
S&P MidCap 400® Index: A free-float market-capitalization weighted index of 400 mid-cap U.S. companies that measures the performance of the mid-cap segment of the market. The index is calculated on a total return basis with dividends reinvested.
S&P SmallCap 600® Index: A free-float market-capitalization weighted index of 600 small-cap U.S. companies that measures the performance of the small-cap segment of the market. The index is calculated on a total return basis with dividends reinvested.