Investors know that, in efficient markets, getting a high return means taking a high risk. Of course, some risks are higher than others. If investors can get a high return in one asset class and take another risk that's lower than expected relative to that return, then that asset class is probably worth considering for a portfolio.
Mid-cap stocks may be just such an asset class, according to a study by Charlottesville, Va.-based Chase Investment Counsel. Over a 10-, 20- and 30-year period ending last year, mid-caps (generally defined as issues with market capitalizations of $1 billion to $15 billion) have outperformed both large-caps and small-caps on an absolute basis.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access