Midcap Growth Stock Rally Carries These 3 ETFs Higher

Midcap growth stocks have rebounded so far this year after a fairly lackluster 2014, as ETF performance shows.

Both iShares S&P Midcap Growth (ARCA:IJK) and Vanguard Midcap Growth (ARCA:VOT) are trading near all-time highs. So is Guggenheim S&P Midcap 400 Pure Growth (ARCA:RFG), which is up 4.5% year to date.

RFG, with $ 694.8 million in assets, holds 88 stocks. The ETF’s top 20 holdings include Akorn (), Skyworks (NASDAQ:SWKS) and Trinity Industries (NYSE:TRN). The exchange traded fund’s expense ratio is 0.35%.

RFG weights holdings by their growth characteristics. As such, it delivers a “purer” growth-oriented portfolio that shuts out midcap blend stocks. But this makes the fund more volatile than many peers, according to Morningstar Inc. analysts.

RFG is rebalanced only once a year. “This fund can experience some style drift,” the analysts caution.

With $ 2.97 billion in assets, VOT holds 185 stocks. It offers exposure to the faster-growing half of the midcap sector and is market-cap weighted. IJK follows a similar method.

Both ETFs are cheaper and more liquid than RFG.

RFG lost 0.45% in 2014 while IJK gained 7.3% and VOT rose 13.5%. But all three advanced approximately an average annual 17% over the past five years.

Midcap growth stocks have rebounded so far this year after a fairly lackluster 2014, as ETF performance shows.

Both iShares S&P Midcap Growth (ARCA:IJK) and Vanguard Midcap Growth (ARCA:VOT) are trading near all-time highs. So is Guggenheim S&P Midcap 400 Pure Growth (ARCA:RFG), which is up 4.5% year to date.

RFG, with $ 694.8 million in assets, holds 88 stocks. The ETF’s top 20 holdings include Akorn (), Skyworks (NASDAQ:SWKS) and Trinity Industries (NYSE:TRN). The exchange traded fund’s expense ratio is 0.35%.

RFG weights holdings by their growth characteristics. As such, it delivers a “purer” growth-oriented portfolio that shuts out midcap blend stocks. But this makes the fund more volatile than many peers, according to Morningstar Inc. analysts.

RFG is rebalanced only once a year. “This fund can experience some style drift,” the analysts caution.

With $ 2.97 billion in assets, VOT holds 185 stocks. It offers exposure to the faster-growing half of the midcap sector and is market-cap weighted. IJK follows a similar method.

Both ETFs are cheaper and more liquid than RFG.

RFG lost 0.45% in 2014 while IJK gained 7.3% and VOT rose 13.5%. But all three advanced approximately an average annual 17% over the past five years.

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