As illustrated, the S&P 400 Midcap Index rebounded in 2012 from a down year in 2011, rising about 17.88%. The annualized return of the Index from 1992-2012 was about 11.28%, the 5-year annualized return through 2012 was about 5.15%, the 10-year annualized return through 2012 were about 10.53%, and the 15-year annualized return were about 9.14%. The total return (including reinvested dividends) between December 31, 1991 and December 31, 2012 was about 842.87%.
I am a fan of midcap stocks and recommend that any long-term investor seriously consider investing money in midcap stocks, such as those tracking the S&P 400 Midcap Index (e.g., the Midcap SPDR ETF (symbol: MDY) tracks the S&P 400 Midcap Index). Midcaps tend to provide higher returns over time than large cap stocks, such as those comprising the S&P 500 Index, although such stocks are generally more volatile over shorter time periods.
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** I have posted an updated chart for the period between 1992-2022.
2 comments:
Jim, thanks for the interesting data. One question though; if you run a chart for say MDY on Yahoo Finance for the year of 2012 it shows about 15% return vs. the nearly 18% you listed. I am trying to figure the difference. -DREW
You need to account for the dividends paid by the index, which are not reflected in the chart for MDY. MDY ended 2012 at $185.71 and ended 2011 at $159.49. So on the price alone, MDY increased 16.44% in 2012. However, Yahoo Finance shows that on a dividend-adjusted basis, MDY rose from $156.69 to $184.61 at the end of 2012, a gain of about 17.82%. The difference between the total return of MDY and the total return of the S&P 400 Index is due to index tracking errors and/or the expense ratio of MDY.
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