One of the members of my Telegram investment group began his journey by investing in VWRD, which is the Vanguard FTSE All-World UCITS ETF focused on distributing USD. He later transitioned to investing in QQQ, the Invesco QQQ Trust. This shift led him to realize that his investments were primarily concentrated on large-cap stocks, those with larger market capitalizations. Not long after, he learned about small-cap stocks and added exposure to them through the AVUV, or Avantis US Small Cap Value ETF. Recently, he stumbled upon the idea of mid-cap stocks – those that lie somewhere in between large and small-cap stocks. He’s now wondering whether it’s worthwhile to include mid-cap stocks in his portfolio and, if so, whether he should focus on factors like quality, momentum, or value. Here’s my take on these considerations.
Consider the Larger Market Dynamics First
It’s easy to get caught up in the decisions of whether to choose index-tracking investments or to lean into value, momentum, or high profitability strategies…
