Mastering Mid Caps

Growth potential and management experience.

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Are you missing out?

Often underutilized in today’s investment portfolios, mid-cap companies have offered more attractive rates of return, cash flow and earnings growth than their small and large counterparts over time.

Underutilized Asset Class

Many investors are missing out on this “sweet spot” of the market.

Russell Midcap Index = 26% of the Russell 3000 Index
Morningstar Midcap Categories = 11% of U.S. Equity Mutual Fund Assets

Source: FTSE Russell and Strategic Insight Simfund as of 06/30/2019. Equity mutual fund assets represent open end mutual funds, domestic mid-cap categories vs. all domestic equity categories. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell 3000 Index measures tracks the performance of the 3,000 largest U.S.-traded stocks which represent about 98% of all U.S incorporated equity securities. It is not possible to invest directly in an index.

Growth Potential

Mid caps have also accounted for 43% of all M&As since 2014.

Source: Data from 2014-2018, Bloomberg. The S&P SmallCap 600 Index, S&P MidCap 400 Index and S&P 100 Index measure the small-sized companies, mid-sized companies, large-sized companies of the U.S. equity market, respectively. It is not possible to invest directly in an index. Number of deals represents number of companies involved in each index. Percentage of deals may not add up to 100% due to rounding.

This space represents all that is really innovative in our economy.

Kim Scott, CFA
Ivy Investments Portfolio Manager
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Better Returns, Less Risk

Over rolling 10-year time periods since 1979...

Absolute returns: percent of time mid caps outperformed Risk-adjusted returns: percent fo time mid caps outperformed

Source: Morningstar Direct. For all rolling periods since 1979 and rolling one-month increments through 06/30/2019. Small caps, mid caps, and large caps are represented by the Russell 2000 Index, Russell Midcap Index and Russell Top 200 Index, respectively. It is not possible to invest directly in an index. Absolute return is the return an asset achieves over a given period of time. Risk-adjusted return defines an investment's return by measuring how much risk is involved in producing that return, which is generally expressed as a number or rating. Risk-adjusted returns are applied to individual securities, investment funds and portfolios. The Sharpe Ratio is being used for the purposes of calculating the risk-adjusted return. The Sharpe Ratio describes how much excess return an investor receives for the extra volatility he/she endures for holding a riskier asset. The ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk.

Experienced Management

The Ivy team offers a combined 50+ years of industry experience and a 20-year track record managing mid-cap strategies.

We seek mid-cap ideas that possess the growth potential of small caps and capital structure of large caps.

Nathan Brown, CFA
Ivy Investments Portfolio Manager
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Explore our mid-cap strategies

Ivy Mid Cap Growth Fund &
Ivy Mid Cap Income Opportunities Fund

Ready to make some mid-cap moves?

Call us today at 1-877-923-3355 or fill out the form below to receive a comparison of the fund(s) indicated.