What is the S&P MidCap 400?
The S&P MidCap 400 is a stock market index that gives investors a benchmark for mid-sized companies in the United States valued at between USD 1.6 billion and USD 6.8 billion. Together with the large-cap S&P 500 and the S&P SmallCap 600, the index constitutes the S&P Composite 1500.
Where have you heard about the S&P Midcap 400?
Your broker can give you information about the differing risk profiles of investing in small, medium and large-sized companies. The S&P MidCap 400 index offers investors exposure to the medium-sized sector in the US. There are a number of easily tradeable Exchange Traded Funds (ETFs) which track the index.
What you need to know about the S&P Midcap 400.
The S&P MidCap 400 index measures the performance of 400 medium-sized companies in the US. This sector offers a unique risk and return profile. Mid-sized firms are generally more dynamic than larger firms and offer a better chance of continued growth. As the same time, they have already successfully negotiated the challenges that small companies face, such as raising capital.
As of August 2017, the three largest sectors represented in the index were Information Technology, Financials and Industrials. You can easily invest in the index through futures and options or ETFs such as the iShares S&P U.S. Mid-Cap Index.