American Century Mid Cap Growth Impact ETF

MID

Market cap $13.3M

S&P Dow Jones Indices' decision not to change the list of components this month has investors looking ahead to the rest of the year.

MID is an actively managed mid-cap growth ETF with a loose ESG mandate and a concentrated portfolio of 40 stocks. While MID boasts strong growth metrics, it has underperformed its benchmark and several peer ETFs since inception.

Considering how inflationary concerns continue to rattle the minds of investors, one would assume healthcare stocks could see a resurgence.  Traditionally, that sector has been viewed as a potential bastion against inflationary pressures.

If 2025 has an already narrative to watch, it's the rise of small and mid-cap firms. Large caps delivered in 2024, performing well on the back of just a handful of tech firms.

Thanks to an improving U.S. economy and reassuring earnings released so far, market sentiments remain strong, overriding worries over the presidential election, uncertainty regarding the magnitude and timing of Fed rate cuts, and volatility in the oil patch due to geopolitical tensions. Stimulus measures in China also supported the rally as this quelled global growth worries a bit.

Is now the time for midcap investing? The signs are starting to appear.

Companies situated in the middle of the market capitalization range could be on the cusp of breaking out. In midcap companies, investors could get exposure to the market's next big thing.

For the greater part of the year, large-cap stocks have been in pole position for most of the 2023 rally. But investors who want to add a dose of growth while maintaining large-cap stability may want to give midcap equities a closer look.