I told you last week that mid-sized companies have delivered the best returns (better than large companies, better than small companies) without additional risk over the past 45 years. A logical follow-up is, “How do I get more mid-sized companies into my portfolio?”
I believe that mid-sized companies have outperformed in part because they fly under most investment analysts’ radar. As for opportunities to take advantage of this in your portfolio, I wouldn’t say Vanguard has exactly overlooked this space, but our options are limited.
As is also true with Vanguard’s aggressive funds, there is no strong active manager to partner with, so my top pick among Vanguard’s mid-cap growth options is an index fund. But let’s review all the offerings so you can judge yourself.