Small & Mid-Cap Stocks

BeSpoke Investment Group pointed out on their blog last week how small & mid-cap stocks are doing versus the S&P 500. According to BeSpoke:

"Both the S&P Midcap 400 and Smallcap 600 made new bull market highs {last} week, while the largecap S&P 500 remains below its November closing high. Smallcaps and midcaps have both begun to distance themselves from their largecap brethren in terms of performance as the end of the year approaches. As shown below, the Midcap 400 is up 21.56% so far in 2010, while the Smallcap 600 is up slightly less at 20.19%. The S&P 500 is up just 9.34%. As shown in the two smaller charts below the big chart, the spreads between the YTD performance of the Smallcap 600 and Midcap 400 versus the S&P 500 are at their highest levels of the year."

Comment: I've always been a big fan of the mid-cap sector. It tends to be less volatile than smaller stocks and the companies that comprise these indices usually are survivors with lots of growth ahead. Of course our primary way to invest in these is through ETFs. We'll look at a couple of these charts in the days ahead before the end of the year.

Link: Small & Mid-caps pull away.

*Long ETFs related to the S&P 500, mid-cap index and small-cap index in client and personal accounts.

One final comment. I love the research that BeSpoke Investment Group does. It is fact based and the service is at a reasonable price. Take a look at what they do here. I am a subsciber and have not been compensated by them in any manner to recommend their service.