We frequently discuss allocations that focus on large caps, small caps and all sorts of different factor exposures. Considering the persistence of their outperformance, we don't tend to hear enough about mid-caps.
To define that persistence of outperformance, we looked at rolling periods of average annual returns.
Was There Any Consistency of Leadership Across Large Caps, Mid-Caps or Small Caps?
For definitions of indexes in the chart, visit our glossary.
What Is a Mid-Cap, Anyway?
There are no universally accepted definitions for large caps, mid-caps or small caps. WisdomTree's view is that stocks with market capitalizations below $2 billion constitute small caps, while stocks between $2 billion and $10 billion constitute mid-caps and stocks above $10 billion constitute large caps. We recently published a similar analysis for small-cap indexes.
How Different Are Commonly Followed U.S. Mid-Cap Indexes?
