Long Term Perspective

This series is relatively new to the S&P family. The index consists of 400 domestic stocks chosen for market size, liquidity, and industry group representation. It includes industrials, financials, utilities and transportation just like the S&P 500. The difference is that the market cap of these companies is smaller than for the 500 index. This index fell more modestly than its 500 counterpart in 2001, and actually posted a gain in 2000 when the 500 fell.

Short Term Perspective

The Midcap index incorporates a greater portion of its companies listed from the Nasdaq (26 percent) compared to the S&P 500 (13 percent). Nasdaq companies tend to be younger than those listed on the New York Stock Exchange (NYSE). This index faltered briefly in 1998 during the financial crisis and then in 2001. It started to recover before the S&P 500 index of larger capitalization stocks in late 2001 and early 2002. All stocks were hurt from April through November 2002.

The S&P Midcap index rose in October and November, just like the 500-index. In the past twelve months, this index has posted only five monthly gains.