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Post by Norbert on Mar 20, 2024 7:15:53 GMT
It's simplistic, but here's a backtest comparing three index fund ETF portfolios since 2001: 1) 100% SPY 2) 50% SPY + 50% IWM (small caps) 3) 50% SPY + 50% IWR (mid caps) This speaks in favor of holding mid caps, but I have no idea what's driving the results; therefore limited confidence that a mid cap advantage will extend into the future.
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Post by fishingrod on Mar 20, 2024 9:36:01 GMT
It's simplistic, but here's a backtest comparing three index fund ETF portfolios since 2001: 1) 100% SPY 2) 50% SPY + 50% IWM (small caps) 3) 50% SPY + 50% IWR (mid caps) View AttachmentThis speaks in favor of holding mid caps, but I have no idea what's driving the results; therefore limited confidence that a mid cap advantage will extend into the future. The out performance of midcaps happened from 2000-2002 when mids lost less than the sp500. That out performance carried through until 7/2007. Then from 7/2007 both were almost identical, switching places multiple times until 3/2023 when the SP500 took off. Since 3/2023 the SP has more than doubled the performance of mids, SP32.5% to MID16%
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Post by johntaylor on Apr 27, 2024 15:02:03 GMT
YTD, my large cap growth is running about 10 percent versus mid cap growth 3 percent
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Post by retiredat48 on Apr 27, 2024 16:48:37 GMT
YTD, my large cap growth is running about 10 percent versus mid cap growth 3 percent Ditto, for most investors. Doesn't change my focus on small and mid caps going forward as the "place-to-be" for next five years. But the market action will tell me whether or not to keep buying same...new recovery highs means adding more. R48
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Post by mozart522 on Apr 29, 2024 22:18:14 GMT
YTD, my large cap growth is running about 10 percent versus mid cap growth 3 percent Ditto, for most investors. Doesn't change my focus on small and mid caps going forward as the "place-to-be" for next five years. But the market action will tell me whether or not to keep buying same...new recovery highs means adding more. R48 I am holding two mid cap funds currently: VFMO a momentum mid-cap growth with 10.4% YTD, and COWZ a mid-cap value fund with 7.3% ytd. I don't hold any small cap and probably never will. When they stink, they really stink.
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Post by retiredat48 on Apr 30, 2024 16:29:42 GMT
mozart522,...Seems VFMO holds some pretty large companies, for a mid-cap fund! R48
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Post by mozart522 on Apr 30, 2024 19:10:31 GMT
mozart522 ,...Seems VFMO holds some pretty large companies, for a mid-cap fund! R48 I would expect that from a momentum fund. It is mid-cap because the average capitalization puts it in M*s mid-cap range. I wouldn't want a momentum fund that sold as soon as the momentum took the stock to large cap. So no, it is not a pure mid-cap index.
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Post by retiredat48 on Apr 30, 2024 20:07:36 GMT
mozart522 ,...Seems VFMO holds some pretty large companies, for a mid-cap fund! R48 I would expect that from a momentum fund. It is mid-cap because the average capitalization puts it in M*s mid-cap range. I wouldn't want a momentum fund that sold as soon as the momentum took the stock to large cap. So no, it is not a pure mid-cap index. mozart522 ,...I prefer mid caps and small caps (like VFMO) that by prospectus and rules, have a lot of leeway in continuing to hold companies that have grown into larger sizes! R48
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Post by Mustang on Apr 30, 2024 21:47:57 GMT
According to Morningstar the weighted average of the stock portion of my portfolio is approximately 19% mid/small caps. While I think that may be a bit much the three professional fund managers (ABALX, VWENX, and VWIAX) don't seem to. I've set up our variable annuity to be 10% mid cap. Over the long term mid/small caps increase returns. If I remember correctly, Bengen (of the original 4% Rule study) increased the maximum safe withdrawal from 4.15% to 4.5% by adding mid- and small-caps to his original work.
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