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A Reflation Shock: The Catalyst for Small and Mid Cap Value?


A Reflation Shock: The Catalyst for Small and Mid Cap Value?
It is an understatement to say that 2020 was tough for value investors.
Stocks in the Energy, Materials and yield-sensitive Financials sectors were left wanting last year. That meant pain for reflation-heavy small– and mid-cap stocks, owing to their sizable weights in those groups. Our small and mid cap dividend-oriented value index (in teal in figure 1) are particularly heavy in them
Figure 1: Sector Weights, Reflation Beneficiaries
For definitions of indexes in the chart, please visit our glossary.
Aside from the post-March bounce back in just about every asset class, disinflationary themes still dominated our Covid-19-focused world. ....

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Follow the Rules with Mid-Cap Allocations | Model Portfolio Channel


Teenagers can be a handful, but your U.S. mid-cap equity allocation doesn’t have to be.
On February 23, WisdomTree celebrated the 14th birthday of its U.S. core equity ETF family, and the WisdomTree U.S. MidCap Fund (EZM) got to blow out the candle.
Launched in 2007, EZM pioneered our rules-based, earnings-weighted methodology, an alternative to market capitalization-weighted strategies that track mid-cap Indexes like the S&P 400 or Russell Midcap Index.
While WisdomTree has always believed in the size premium for mid- and small-cap companies, we find that what you own is more important than owning them outright. That means it’s important to be selective in your pursuit of healthy, opportunistic mid-cap companies, and we think that EZM’s rules-based approach is designed to deliver exactly that. ....

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