Mid Cap Fund?

[vdc]

what mutual funds do you all own in the Mid Cap area, as the TSP does not offer one? i'm asking this because i don't have any mid cap funds and would like to add one to my portfolio to complete my asset allocation.

thanks
eds

[eccougar]

Take a look at:
Muhlenkamp MUHLX, Fidelity smal cap value FCPVX, Third Avenue TASCX.
A great International small and midcap is Fidelity FSCOX, new fund started in mid 2005 and is up over 30% since inception and 7% ytd in 2006.

[eccougar]

Hennessy HFTFX was the top rated midcap for 2005.

[vdc]

i'm looking for domestic midcp. the funds you recommended are small cap and international.

[EW_ret]

Muhlenkamp (MUHLX), Vanguard Strategic Equity (VSEQX), and Vanguard Capital Opportunity (VHCOX). I have these in my taxable accounts (MUHLX and VHCOX) and Traditional IRA (VSEQX). Vanguard Capital Opportunity is closed to new investors. Muhlenkamp is mid-cap blend/value fund, Vanguard Capital Opportunity in mid-cap growth, and Vanguard Strategic Equity in mid-cap blend. These mid-cap funds are four star (MUHLX and VSEQX) or five star (VHCOX), as rated by Morningstar.

[Birchtree]

vdc,

Market predictions aside, a good midcap fund can be a welcome long-term addition to many portfolios precisely because of their middle-class status. Midcap stocks tend to be more stable than small caps, but they're still capable of more rapid growth than large caps.

A few to look at: Third Avenue Value (TAVFX) - expense ratio of 1.12%, the Vangyard Mid Capitalization Index ( VIMSX) - expense ratio of 0.22%, the Fidelity Value (FDVLX) - expense ratio of 0.95%

Dennis
ps-over the past three years midcaps gained 17.4% in average annualized returns, significantly out performing large caps'10.9% and running close behind small caps' 18.8%. IMHO the emergence of midcaps is part of a larger trend of investors moving up the market-cap ladder. Investors have started to turn away from small caps and will eventually favor large caps once again. Until then and in the meantime midcaps reign supreme.

[FUTURESTRADER]

what mutual funds do you all own in the Mid Cap area, as the TSP does not offer one? i'm asking this because i don't have any mid cap funds and would like to add one to my portfolio to complete my asset allocation.

thanks
eds


V,

you do realize that the S fund is really a midcap/smallcap fund, being 4500 of the wilshire 5000, the 500 of s&p 500 makin up the remainder of the W5000?

[vdc]

i appreciate the replies everyone has given.

i did know the the S fund had a little midcaps in it but was not sure if it was enough in the midcap area for my target allocation. right now, the S fund is 20% of my overall portfolio.

i had been considering VIMSX (Vanguard Midcap Index) for a while. I will continue to do more research on it, however, it seems like the best choice out there for me right now. i really wanted to get into the TRowe Price midcap funds but both are closed to new investors.

VIMSX would work out great as this investment would be for a taxable account. however, i'm not very fond of the investment minimum of $3K.

do you guys feel that investing in the S fund does not warrant investing in a seperate midcap fund outside the TSP?


thanks again

[FUTURESTRADER]

V,

depending on your age, tax situation, and a few other factors, it is more advantageous for some to take the matching in the TSP, then max out a roth IRA, then back to the TSP. I would suggest the S does capture enough midcaps, as 'midcaps' go, though in the roth you could diversify into a sector midcap, like an energy for example, which became an obvious play fairly early last year for the remainder of the year, and still looks promising.

[Wheels]

V,

you do realize that the S fund is really a midcap/smallcap fund, being 4500 of the wilshire 5000, the 500 of s&p 500 makin up the remainder of the W5000?

Correct, except I believe the Wilshire 4500 is made up of EVERY U.S. stock that is not in the S/P 500, so it now totals over 5000 stocks.

Dave
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[rokid]

do you guys feel that investing in the S fund does not warrant investing in a seperate midcap fund outside the TSP? thanks again

If you invest in the C & S Funds, you'll get large caps, mid caps, and small caps based on their market capitalization. However, if you want to overweight mid caps, you'll have to go to a mid cap fund.

You might want overweight mid caps if you believe they will out perform large caps and small caps. Alternatively, they might be good diversifiers. I doubt it, but I haven't checked it out.

Personally, I'd go with the C & S funds based on market capitalization, i.e. 79/21%.

[Ichiro]

Currently, I have my $$$ invested in the TW Rowe Price Mid-Cap Value fund. It is a value fund and is quite conservative. I am investing on a monthly basis via electronic transfer and started investing in this fund about three year ago. It does quite well when the market is in a downward trend since they are invested in value stocks. the only problem is that it is no longer open to the public. I iwll probably never sell this fund along with my dividend reinvestment stocks for a long time. They are just a money making mutual funds without too much risk.