So far in August, with the S&P 500 (SPY) up 2.31% through 8/24, Utilities are down almost 4%. Similarly, Telecom Services are off 2%, and Consumer Staples have declined 0.33%.
While we didn't exactly storm through the "roof" last week, the S&P 500 did post new highs for the bull market that began in 2009. Surprisingly, while the index is up in price by more than 12% in 2012, higher-beta Small-Caps and Mid-Caps are lagging the market. Typically, one would expect them to be doing BETTER in a rallying market. The Russell 2000 iShares (IWM) are up about 9%, while the SPDR Mid-Cap (MDY) is up about 10%.
Two weeks ago, I suggested that buying Small-Caps, like IWM, was what made sense for those who had "sold in May" and found themselves out of alignment with their long-term asset allocations. Today, I want to demonstrate how the S&P 400 Mid-Cap index ETFs, like SPDR , iShares (IJH) or Vanguard (IVOO), should beat the S&P 500 if this rally continues.
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