SPMD: The Sweet Spot In The Middle

seekingalpha07-20

Mid-cap stocks are often overlooked but offer growth potential and stability, making them a good option for large-cap allocators.The SPDR® Portfolio S&P 400 Mid Cap ETF tracks the S&P MidCap 400 Index...

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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSPMD: The Sweet Spot In The Middle\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-20 23:43 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4705300-spmd-sweet-spot-in-middle><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Mid-cap stocks are often overlooked but offer growth potential and stability, making them a good option for large-cap allocators.The SPDR® Portfolio S&P 400 Mid Cap ETF tracks the S&P MidCap 400 Index...</p>\n\n<a href=\"https://seekingalpha.com/article/4705300-spmd-sweet-spot-in-middle\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://seekingalpha.com/article/4705300-spmd-sweet-spot-in-middle","article_id":"2452429361","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/758280395/image_758280395.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2452429361","pubTimestamp":1721490186,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Carlisle Companies is a diversified manufacturing company with operations across a variety of industries, including construction materials, interconnect technologies, and fluid transfer products. Williams-Sonoma is a high-end retailer of home furnishings and gourmet cooking products. Pure Storage is a leading data storage company. Lennox International Inc. is a leading US manufacturer of heating, ventilation, air-conditioning and refrigeration  systems. And EMCOR Group is a leading provider of mechanical and electrical construction services to the commercial, industrial and institutional market. Sector Composition and Weightings The sector composition is interesting and clearly very different from what you see with large-caps. Industrials are the largest allocation, with Financials second and Consumer Discretionary third. Tech is a bit under 10%, which I’m a fan of given how extended I believe the tech sector is here at this point in the cycle.   ssga.com Keep in mind that this","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","BK4588":"碎股","VO":"Vanguard Mid-Cap ETF","BK4550":"红杉资本持仓","SPMD":"SPDR Portfolio S&P 400 Mid Cap ETF","FDN":"First Trust Dow Jones Internet I"},"translate_title":"SPMD：中间的最佳点","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SPMD":1,"VO":1,"FDN":0.79},"content_text":"Mid-cap stocks are often overlooked but offer growth potential and stability, making them a good option for large-cap allocators.The SPDR® Portfolio S&P 400 Mid Cap ETF tracks the S&P MidCap 400 Index, offering diversified exposure to mid-cap stocks.The fund's sector composition is different from large-caps, with a focus on Industrials, Financials, and Consumer Discretionary, making it cyclical in nature.   Colin Anderson Productions pty ltd I often talk about small-cap stocks and the “concentration bubble” in large-caps, but just because I don’t often reference mid-caps doesn’t mean they should be ignored. I actually like mid-caps here and think it’s the natural place for large-cap allocators to rotate into first before taking on more aggressive small-cap exposure. If you’re bullish on mid-cap stocks, you may want to consider the SPDR® Portfolio S&P 400 Mid Cap ETF (NYSEARCA:SPMD). This is a passive exchange-traded fund run by State Street Global Advisors that seeks to track the performance of the S&P MidCap 400 Index. The S&P MidCap 400 is often cited as the benchmark for US mid-capitalization stocks, in contrast with the large-capitalization stocks benchmarked by the S&P 500. Since the fund is basically tracking the industry standard benchmark for mid-caps, how does that part of the marketplace stand up? First we should define what mid-caps are. Mid-cap companies are normally defined as having $2 billion-$10 billion in market-cap. These stocks tend to offer more growth potential than many large-cap companies, which are often more mature and established but may not have a lot of upside left. At the same time, mid-caps are more stable and less volatile than small-cap companies, calming some of the potential risk inherent in small businesses. A Look At The Holdings The fund has 401 positions, with no stock making up more than 0.73% of the fund. This is very well diversified overall - something quite appealing in my view.   ssga.com What do some of these companies do? Carlisle Companies is a diversified manufacturing company with operations across a variety of industries, including construction materials, interconnect technologies, and fluid transfer products. Williams-Sonoma is a high-end retailer of home furnishings and gourmet cooking products. Pure Storage is a leading data storage company. Lennox International Inc. is a leading US manufacturer of heating, ventilation, air-conditioning and refrigeration (HVAC) systems. And EMCOR Group is a leading provider of mechanical and electrical construction services to the commercial, industrial and institutional market. Sector Composition and Weightings The sector composition is interesting and clearly very different from what you see with large-caps. Industrials are the largest allocation, with Financials second and Consumer Discretionary third. Tech is a bit under 10%, which I’m a fan of given how extended I believe the tech sector is here at this point in the cycle.   ssga.com Keep in mind that this sector mix does imply the fund is cyclical in nature. Any kind of an economic slowdown either domestically or globally could disproportionately hurt the fund given the top 3 sectors which are very sensitive to growth changing. Peer Comparison SPMD is among the most popular mid-cap ETF offerings in the market, but it’s not the only option. One fund worth comparing this against is the Vanguard Mid-Cap ETF (VO), which also targets the same part of the marketplace market-cap wise. When we look at the price ratio of SPMD to VO, we find that the two funds have largely gone sideways relative to each other. No clear edge on one over the other, at least from a performance perspective.   stockcharts.com Pros and Cons Similar to any investment vehicle, there are several advantages and disadvantages associated with SPMD that investors should analyze prior to committing capital. On the plus side is diversification. Investors receive exposure to over 400 mid-cap stocks in one investment, minimizing the risks of investing in individual companies or sectors at once. Mid-cap companies often grow faster than large-cap companies. They tend to have more room to grow into their larger rivals, and they can find themselves better positioned to capture growth. On the downside? Mid-cap stocks can still be volatile. They won’t be as volatile as small-caps, but these stocks would get hurt if we enter an economic slowdown given the top 3 sectors being cyclical. This is a distinct risk. Finally, if I’m wrong about the Tech sector, this likely would lag the S&P 500 given that sector isn’t as highly weighted in the portfolio overall. Conclusion  I like the fund overall. It’s simple and basically tracks the industry standard S&P 400 index for mid-cap exposure. The sector mix is different than large-cap averages, there isn’t any concentration in the top 10 names, and it’s largely been an unloved part of the marketplace. If you’re bullish on mid-caps, this is an easy way to get quick core exposure.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2452429361"}