Mid-Cap ETF Definition

Mid-Cap ETF Definition

Learn the definition of mid-cap ETF and other ETF terminology from the etf.com glossary.

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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

Learn more about Mid-Cap ETF

A Mid-Cap ETF, within the realm of ETFs, positions itself as a strategic intermediary, specializing in the realm of mid-sized companies, typically between $2 billion and $10 billion in market capitialization. Falling between large-cap and small-cap categories, these ETFs offer investors exposure to entities with moderate market capitalizations. The appeal lies in the balance between growth potential and risk, providing a diversified approach to navigating market dynamics. Mid-cap ETFs are often considered a sweet spot for investors seeking a blend of the stability associated with large-cap companies and the growth opportunities offered by smaller, more dynamic entities, making them a compelling choice within the spectrum of equity investments.

Related Terms

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.