CVMC ETF

More good news has come out in favor of strong U.S. economic fundamentals.  The latest report from the Bureau of Economic Analysis shows that second-quarter GDP growth accelerated by 30% for the quarter.

After over half a year of uncertainty, confidence is finally mounting in favor of the Federal Reserve cutting interest rates in September. In fact, a slim majority of economists polled by Reuters are even betting on the Fed cutting rates three times this year, during the September, November, and December meetings.

Mid-cap stocks are often overlooked relative to their larger and smaller peers. That status is amplified when introducing environmental, social, and governance (ESG) and sustainability principles into the equation.

Recently, small-cap stocks and related exchange traded funds are garnering ample attention for being unusually inexpensive relative to large-cap counterparts. Midcap equities and ETFs are also part of that conversation.

As measured by the widely observed S&P MidCap 400 Index, mid-cap stocks aren't doing much of anything this year. That index is up just 3% year-to-date, as of October 9, well off the pace set by the large-cap S&P 500.

Benchmarks focusing on smaller stocks, including mid-caps, are trailing the large-cap S&P 500 this year, but that should not be viewed as an invitation for investors to ignore non-large-cap fare. Oft-overlooked, mid-cap stocks are in the green on a year-to-date basis, as measured by the widely observed S&P MidCap 400 Index.

A small cohort of mega-cap growth stocks drove broader equity benchmarks higher in the first half of 2023. However, some experts believe that scenario will shift in the second half.

Time and again, people call mid-caps the forgotten corner of the equity market. Therefore, it stands to reason that many investors may not be aware that they can access this alluring asset class with environmental, social, and governance (ESG) benefits.

The spending forecasts for clean technology and renewable energy continue to be jaw-dropping. With that, the related investment implications are compelling.