What has 400 players, is made up of companies generally worth $1 billion to $4 billion and has twice the clout it did a year ago? I’m referring of course to the S&P MidCap 400 index. The belle of the ball in terms of performance in the post-recession rally had a 150% bounce off the March 2009 bottom as well as 5000 basis points of outperformance vs. the S&P 500.
Standard & Poor’s analyst Todd Rosenbluth says that the S&P 500 earnings are forecast to grow around 15% in the first quarter, while the MidCap 400 earnings are expected to rise by 22%. This bodes well for both the iShares S&P MidCap 400 Index (NYSE:IJH), and the Vanguard S&P Mid-Cap 400 Index ETF (NYSE:IVOO).
See the full BREAKOUT interview below: