Mid-cap equity ETFs are among our favorite ETF allocation ideas for 2023. In our view, mid-cap stocks are not only attractive from a valuation and momentum standpoint, but they have
also tended to provide compelling relative returns during—and often leading up to—past economic recessions. Time will tell whether a recession occurs this year, but for those preparing portfolio allocations for a potential economic downturn, we think the merits of mid-caps are often overlooked. We compare the performance of large-, mid-, and small-cap US stocks leading up to and during recessions since 1970. We then highlight two of our favorite mid-cap ETF ideas.

Click Here to continue reading.