The best ETFs for USA Mid Cap Stocks

How do I invest in USA Mid Cap stocks?

It is well known that companies with smaller market capitalizations generate higher returns over the long term. However, they also come with higher risks that investors should efficiently manage. Investing in mid cap stocks presents a good compromise for investors seeking higher returns with moderate risks.

There are essentially three indices available to invest with ETFs in USA mid cap companies. This Investment Guide for USA mid cap stocks will help you navigate between the peculiarities of the Russell MidCap, MSCI USA Mid Cap, S&P MidCap 400 and ETFs tracking them. It will allow you to find the most suitable mid cap USA ETFs for you by ranking them according to your preferences.

0.20% p.a. - 0.35% p.a.
annual total expense ratio (TER) of USA mid cap ETFs
on USA mid cap stocks, which is tracked by ETFs
on USA mid cap stocks
The best indices for USA mid cap ETFs

The best USA Mid Cap ETF by 1-year fund return as of 30/11/16

All USA mid cap ETFs ranked by fund return

 

The largest USA Mid Cap ETF by fund size in CHF

All USA mid cap ETFs ranked by fund size

 

The cheapest USA Mid Cap ETF by total expense ratio

All USA mid cap ETFs ranked by total expense ratio

 
 

Indices on USA Mid Cap Stocks compared

Methodologies of the compared indices

MSCI USA Mid Cap Russell Mid Cap S&P MidCap 400
Number of ETFs 1 ETF 1 ETF 1 ETF
Number of constituents 322
(31/10/16)
Appr. 800 400
Investment universe MSCI USA Index: 617 (31/10/16) Russell 1000® Index: appr. 1,000 largest US companies representing appr. 92% of the US market S&P 1500® Composite Index: appr. 1,500 companies representing appr. 91% of the available US market cap
Index rebalancing Quarterly Annually (new IPOs additions quarterly) Quarterly
Selection criteria Companies of the MSCI USA Index ranked by size covering appr. 15% of the free float-adjusted market cap in the US after large caps covering first 70% are subtracted Companies of the Russell 1000® Index ranked 201 to 1,000 by total market cap Companies of the S&P 1500® Composite Index with unadjusted market cap of 1.4 billion to 5.9 billion USD
Index weighting Market cap
(free float)
Total market cap Market cap
(free float)

Source: justETF Research; As of 30/09/2014

 

MSCI USA Mid Cap Index

The MSCI USA Mid Cap Index measures the performance of the mid cap segments of the US market. The index covers approximately 15% of the free float-adjusted market capitalization of the US market after the largest cap stocks representing appr. 70% of the market. The index is based on free float market capitalization.

 

Methodology of the MSCI USA Mid Cap Factsheet Methodology

  • Approximately 322 mid cap stocks from the United States
  • Index rebalancing takes place quarterly
  • Investable index has minimum size, free float, liquidity and length of trading criteria
  • Stock selection is based on free float market cap
  • Selection criteria: 15% of the MSCI USA index after large caps covering first 70% by free float market cap are subtracted
  • Index weighted by free float market cap
 

Russell Mid Cap Index

The Russell Midcap Index measures the performance of the mid cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap Index represents approximately 31% of the total market capitalization of the Russell 1000® companies.

 

Methodology of the Russell Mid Cap Factsheet Methodology

  • 800 mid cap stocks from the United States
  • Index rebalancing takes place annually, except for the additions due to new IPO, which take place quarterly
  • Underlying investable index has requirements for inclusion such as minimum market cap, closing price, free float, location of trading of the majority of a company's shares
  • Stock selection is based on total market cap
  • Companies ranked 201 to 1000 by total market cap in the underlying Russell 1000® Index are included
  • Index weighted by total market cap
 

S&P MidCap 400 Index

The S&P MidCap 400 Index includes 400 mid cap US stocks from the underlying S&P 1500® Composite Index. Companies with an unadjusted market cap of 1.4 billion to 5.9 billion USD are included in the index.

 

Methodology of the S&P MidCap 400 Factsheet Methodology

  • 400 mid cap stocks from the United States
  • Index rebalancing takes place quarterly
  • Index is a subset of S&P 1500® Composite Index covering more than 7% of available US market cap
  • Index has minimum liquidity, free float and financial viability (positive earnings in the last year and quarter) inclusion criteria
  • Selection criteria: companies with unadjusted market cap of 1.4 billion to 5.9 billion USD are included
  • Index weighted by free float market cap
 

USA Mid Cap ETFs in comparison

The most important factors at a glance

When choosing a USA mid cap ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all USA mid cap ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all USA mid cap ETFs in detail
Compare all USA mid cap ETFs in a chart

Provider
ISIN
  Fund size
in m CHF
TER
in %
Use of profits Fund domicile Replication method
SPDR S&P 400 US Mid Cap UCITS ETFIE00B4YBJ215 643 0.30% p.a. Accumulating Ireland Full replication
db x-trackers Russell Midcap UCITS ETF (DR) 1CIE00BJZ2DC62 128 0.35% p.a. Accumulating Ireland Optimized sampling
ComStage MSCI USA Mid Cap TRN UCITS ETFLU0392495965 37 0.35% p.a. Accumulating Luxembourg Unfunded swap
iShares Edge MSCI USA Size Factor UCITS ETFIE00BD1F4K20 19 0.20% p.a. Accumulating Ireland Optimized sampling

Source: justETF.com; As of 09/12/16

 

Return comparison of all Mid Cap ETFs on US equities

The table shows the returns of all USA mid cap ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

ETF   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
SPDR S&P 400 US Mid Cap UCITS ETF 11.03% 7.66% 11.83% 10.90% 44.46%
db x-trackers Russell Midcap UCITS ETF (DR) 1C 8.04% 5.41% 9.13% 7.15% -
ComStage MSCI USA Mid Cap TRN UCITS ETF 8.20% 6.15% 9.71% 6.55% 40.93%
iShares Edge MSCI USA Size Factor UCITS ETF 8.35% - - - -
ETF   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
SPDR S&P 400 US Mid Cap UCITS ETF 19.91% -2.30% 21.47% 29.14% -
db x-trackers Russell Midcap UCITS ETF (DR) 1C 14.11% - - - -
ComStage MSCI USA Mid Cap TRN UCITS ETF 13.49% -2.38% 26.03% 31.51% 11.10%
iShares Edge MSCI USA Size Factor UCITS ETF - - - - -

Source: justETF.com; As of 30/11/16; Calculations in CHF including dividends