As investors scramble to react to market fluctuations in 2025, one trend remains surprisingly overlooked: mid-cap stocks. While large-cap stocks have outperformed mid-caps over the past decade, historical trends show that mid-cap stocks have delivered superior long-term returns.
Over the past 25 years, the S&P MidCap 400 has achieved a total return of 985%, significantly surpassing the S&P 500’s 563% return.
“Investors tend to chase large-cap stocks for stability or small caps for aggressive growth, but mid-cap stocks strike the perfect balance,” explained the founder of one AI company that focuses on stock screening. “They’re big enough to be stable but still have room to grow—yet, many investors are still missing this opportunity.”
Why are investors ignoring mid cap stocks?
Despite their strong performance, mid-cap stocks receive significantly less media coverage than large caps, leading investors to overlook them. Many assume that mid cap stocks carry the same risks as small caps, but research suggests otherwise.
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