Three Mid-Cap ETFs To Love

Poor mid-caps. Stuck in that oft-ignored region of $2 billion to $10 billion market caps, it's easy to over look these stocks and ETFs in certain market environments. For example, in the early stages of a bull market when risk appetite is returning, small-caps get their number called. Then when investors want to peel that risk profile back, they head to large-caps. Neither of those scenarios are a knock on mid-caps though. After all, these are the types of companies that have the alluring combination of not being as speculative as small-caps without being known to the world, which can slow the returns of some large-caps. Of course, one could commit hours, if not days to finding the perfect mid-cap stock, but the savvy investors will let ETFs do the legwork for them. Consider this trio for your mid-cap hunting adventures. 1) PoweShares Dynamic Mid Cap Portfolio PJG: First off, note that this ETF will becom the PowerShares Fundamental Pure Mid Core Portfolio and change the index it tracks on June 16 and that its fees will be cut to 0.29% from 0.39% on the same day. With 150 stocks, PJG offers great sector diversity as five sectors (information technology, financials, industrials, healthcare and consumer discretionary) get double-digit weights. Familiar names include Discover Financial DFS, Dr. Pepper Snapple DPS and Limited Brands LTD. 2) SPDR Dow Jones Mid Cap ETF EMM: Another one with great sector balance as information technology, financials, industrials and consumer discretionary all get double-digit weights here. EMM's expense ratio is small (just 0.25%), but it's lineup is huge with nearly 500 stocks, meaning the two largest holdings, Walter Energy WLT and Green Mountain Coffee Roasters GMCR account for less than 1% of the ETF's weight COMBINED. 3) WisdomTree MidCap Dividend Fund DON: The Godfather of mid-cap ETFs? Maybe, maybe not, but DON does offer dividend exposure and that's always a good thing. With an expense ratio of 0.38%, DON holds over 340 stocks that include Oneok OKE and Pitney Bowes PBI. One knock on DON is that financials dominate this ETF with a sector weight of over 37%.