AMD Stock – Burned by the Stock Market? Consider These 3 ETFs Instead | Smart Change: Personal Finance
The ProShares Dividend Aristocrat ETF brings a much more important attribute to the table for war-weary investors, though. That is, while it may only match 91% of the broad market’s bullishness, the fund only falls 79% as far as the market does when it’s in sell-off mode. It’s a testament to the quality of the ETF’s constituents.
iShares S&P Mid-Cap ETF
Finally, add the iShares Core S&P Mid-Cap ETF (NYSEMKT: IJH) to your list of exchange-traded funds that are more comfortable to own than individual stocks.
The mid-cap ETF is fully capable of taking a tumble, for the record. In fact, it’s typically more volatile than the S&P 500 large-cap index, on the way up as well as on the way down. If big pullbacks aren’t your thing, this one could still be tough to own. There’s a two-faceted (and related) reason to still own exposure to mid-cap stocks, though, that makes it worth it for most investors.
The first of these facets is, given enough time, mid-caps tend to outperform large-caps. That’s because these companies tend to be mid-caps while at their growth sweet spot, when they’re past their wobbly start-up years but before they become a major, self-sustaining corporation. The S&P 400 Mid Cap Index (SNPINDEX: ^MID) has roughly doubled the S&P 500’s performance since the early 90s.