We have seen some end-of-the quarter profit taking in Large and Mid-Cap equities, at least evidenced by the flows in ETFs. In contrast, we’re seeing noticeable inflows into Small-Cap Equities via IWM (NYSE:IWM) (iShares Russell 2000), Expense Ratio 0.20%.
Today, we would like to point out the $700 million and $400 million respectively that has vacated MDY (NYSE:MDY) (SPDR S&P Midcap 400, Expense Ratio 0.25%) and IJH (NYSE:IJH) (iShares Core S&P Mid-Cap, Expense Ratio 0.07%).
IJH has over $38 billion in assets under management, while MDY is the second largest Mid-Cap ETF behind it with $19.5 billion. So while recent redemptions are certainly not gigantic in size, they’re still notable nonetheless given the year-to-date underperformance MidCaps have displayed versus the Large-Cap S&P 500 (trailing by nearly 300 basis points YTD).
Both funds are market-capitalization weighted of course, but well diversified in that the top weighted holding in IJH (WWAV) only consumes 0.59% of the portfolio. Other top holdings are as follows: RMD (NYSE:RMD) (0.58%), SNPS (NASDAQ:SNPS) (0.58%), RJF (NYSE:RJF) (0.58%), and CDK (NASDAQ:CDK) (0.57%).
We have mentioned XMLV (NYSE:XMLV) (PowerShares S&P MidCap Low Volatility Portfolio, Expense Ratio 0.25%, $60 million in inflows YTD) as having potential in this space as well, and it appears that it has not gone unnoticed as the fund now has a notable $954 million in AUM.
The iShares Core S&P Mid Cap ETF was trading at $168.23 per share on Monday afternoon, down $0.43 (-0.25%). Year-to-date, IJH has gained 1.75%, versus a 4.55% rise in the benchmark S&P 500 index during the same period.
IJH currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 25 ETFs in the Mid Cap Blend ETFs category.