The best ETFs for European Mid Cap Stocks

How do I invest in European Mid Cap stocks?

Medium-sized companies are the backbone of the European economy. 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 four indices available to invest with ETFs in European mid cap companies. This Investment Guide for European mid cap stocks will help you navigate between the peculiarities of the EURO STOXX® Mid, MSCI EMU Mid Cap, MSCI Europe Mid Cap, STOXX® Europe Mid 200 and ETFs tracking them. It will allow you to find the most suitable ETFs for you by ranking them according to your preferences.

0.25% p.a. - 0.49% p.a.
annual total expense ratio (TER) of European mid cap ETFs
on European mid cap stocks, which is tracked by ETFs
on European mid cap stocks
The best indices for European mid cap ETFs

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

All European mid cap ETFs ranked by fund return

 

The largest European Mid Cap ETF by fund size in GBP

All European mid cap ETFs ranked by fund size

 

The cheapest European Mid Cap ETF by total expense ratio

All European mid cap ETFs ranked by total expense ratio

 
 

Indices on European Mid Cap Stocks compared

Methodologies of the compared indices

EURO STOXX® Mid MSCI EMU Mid Cap MSCI Europe Mid Cap STOXX® Europe Mid 200
Number of ETFs 1 ETF 1 ETF 1 ETF 2 ETFs
Number of constituents Appr. 95 117
(31/10/16)
242
(31/10/16)
200
Investment universe EURO STOXX® Index: appr. 300 companies from Eurozone MSCI EMU (European Monetary Union) Index: 241 (31/10/16) companies from Eurozone MSCI Europe Index: 446 (31/10/16) companies from Europe STOXX® Europe 600 Index: 600 companies from 18 European countries
Index rebalancing Quarterly Quarterly Quarterly Quarterly
Selection criteria Companies in the medium third of the underlying EURO STOXX® Index Companies ranked by size covering appr. 15% of the free float-adjusted market cap of the MSCI EMU Index after large caps covering first 70% are subtracted Companies ranked by size covering appr. 15% of the free float-adjusted market cap of the MSCI Europe Index after large caps covering first 70% are subtracted Stocks from STOXX® Europe 600 Index ranked from 201 to 400 by their free float market cap
Index weighting Market cap
(free float)
Market cap
(free float)
Market cap
(free float)
Market cap
(free float)

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

 

EURO STOXX® Mid Index

The EURO STOXX® Mid Index comprises medium sized companies from the underlying EURO STOXX® Index. EURO STOXX® Index is a subset of STOXX® Europe 600 Index. It includes appr. 300 companies from the Eurozone countries. Mid caps are determined as the medium 33% companies in the underlying index ranked by their market capitalization. The stocks passing the selection screen are ranked in the index by the free float market cap.

 

Methodology of the EURO STOXX® Mid Methodology

  • Appr. 95 mid cap stocks from Eurozone
  • Stock selection is based on the size of companies – the middle third of the EURO STOXX® Index is selected
  • Index rebalancing takes place quarterly
  • Index weighted by free float market capitalization
  • Weight per constituent is capped at 20%
 

MSCI EMU Mid Cap Index

The MSCI EMU Mid Cap Index captures mid cap stocks across the 10 developed countries in the Eurozone. With appr. 117 constituents, the index represents appr. 15% of the free float-adjusted market capitalization of the MSCI EMU Index after the large cap stocks are subtraced. The index is based on free float market capitalization.

 

Methodology of the MSCI EMU Mid Cap Factsheet Methodology

  • Appr. 117 (31/10/16) mid cap stocks from Eurozone
  • Only companies from developed EMU countries
  • Index rebalancing takes place quarterly
  • Investable index has minimum size, free float, liquidity and age of trading criteria
  • Stock selection is based on free float market cap
  • Selection criteria: Companies ranked by size covering appr. 15% of the free float-adjusted market cap of the MSCI EMU Index after large caps covering first 70% are subtracted
  • Index weighted by free float market cap
 

MSCI Europe Mid Cap Index

The MSCI Europe Mid Cap Index includes mid cap stocks from 15 developed countries in Europe. With appr. 242 constituents, the index represents appr. 15% of the free float-adjusted market capitalization of the MSCI Europe Index after the large cap stocks are subtracted. The index is based on free float market capitalization.

 

Methodology of the MSCI Europe Mid Cap Factsheet Methodology

  • Appr. 242 (31/10/16) mid cap stocks from the developed European countries
  • 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: Companies ranked by size covering 15% of the free float-adjusted market cap of the MSCI Europe after large caps covering first 70% are subtracted
  • Index weighted by free float market cap
 

STOXX® Europe Mid 200 Index

The STOXX® Europe Mid 200 Index includes medium sized companies from the underlying STOXX® Europe 600 Index which consists of 600 companies from 18 European countries. STOXX® Europe Mid 200 includes the medium 200 stocks ranked by free float market capitalization.

 

Methodology of the STOXX® Europe Mid 200 Factsheet Methodology

  • 200 stocks mid cap from STOXX® Europe 600 Index
  • The index contains only stocks from European countries
  • Index rebalancing on quarterly basis
  • Stock selection is based on their free float market cap
  • Selection criteria: stocks ranked from 201 to 400 by their free float market cap in STOXX® Europe 600 Index are selected
  • Index weighted by free float market capitalization
  • Weight per constituents is capped at 20%
 

European Mid Cap ETFs in comparison

The most important factors at a glance

When choosing a European 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 European mid cap ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.

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

Provider
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares EURO STOXX Mid UCITS ETFIE00B02KXL92 291 0.40% p.a. Distributing Ireland Optimized sampling
iShares MSCI EMU Mid Cap UCITS ETFIE00BCLWRD08 102 0.49% p.a. Accumulating Ireland Full replication
db x-trackers MSCI Europe Mid Cap Index UCITS ETF (DR) 1CLU0322253732 26 0.40% p.a. Accumulating Luxembourg Full replication
iShares Edge MSCI Europe Size Factor UCITS ETFIE00BQN1KC32 7 0.25% p.a. Accumulating Ireland Optimized sampling

Source: justETF.com; As of 02/12/16

 

Return comparison of all Mid Cap ETFs on European equities

The table shows the returns of all European 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 %
iShares EURO STOXX Mid UCITS ETF -5.55% 1.79% 15.11% 15.51% 26.69%
iShares MSCI EMU Mid Cap UCITS ETF -5.63% 0.26% 13.88% 14.60% 23.74%
iShares Edge MSCI Europe Size Factor UCITS ETF -3.73% 0.00% 11.24% 12.59% -
db x-trackers MSCI Europe Mid Cap Index UCITS ETF (DR) 1C -3.58% -0.49% 9.93% 11.87% 25.68%
ETF   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
iShares Edge MSCI Europe Size Factor UCITS ETF 15.67% - - - -
iShares EURO STOXX Mid UCITS ETF 15.51% 11.47% -1.70% 31.39% 18.60%
iShares MSCI EMU Mid Cap UCITS ETF 14.46% 10.29% -3.17% - -
db x-trackers MSCI Europe Mid Cap Index UCITS ETF (DR) 1C 12.37% 8.36% 1.41% 26.34% 16.88%

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