Even though the technology sector has seen better days, it’s still an opportunity for investors to capitalize on value-oriented companies with the potential for long-term growth. This is especially the case for disruptive tech companies situated between large- and small-caps.
Mid-cap companies can help provide the growth opportunities that small-cap companies can bring, but also bring in the stability of their larger-cap brethren. It’s a middle ground for investors looking for amplified returns and stability.
That stability component certainly helps in today’s market environment given the turbulence that the major stock market indexes have been experiencing lately thanks to inflation fears. That fear is morphing itself into recession fears as of late as the impact of rising rates could potentially hamper economic growth.
Nonetheless, the best thing investors can do is simply stay invested, especially with disruptive technology despite the recent weakness. Long-term growth opportunities exist in disruptive tech as companies look to evolve in a challenging economic environment — the innovation never stops, regardless of what’s going on in the economy.
“Despite these risks, we see many reasons for optimism,” an Investors’ Corner article noted. “We are confident in several long-term secular growth themes that are driving the digital transformation of the economy. We believe companies will continue to invest if they see digital transformation as an imperative to remaining competitive.”
An Active Mid-Cap Opportunity
Investors who are still wary about the market environment can always get tactical by using active management. An actively managed portfolio can give control to managers who can adjust positions as the market environment changes.
This can be available via an exchange traded fund (ETF) or more specifically, the American Century Mid Cap Growth Impact ETF (MID ). Overall, the fund seeks to invest in mid-cap companies that generate, or could generate social and environmental impact alongside of financial return.
MID fund facts per the product website:
- Identifies mid-cap stocks that managers believe will increase in value over time.
- Identifies companies that, according to the United Nations Sustainable Development Goals (SDG), generate, or could generate, ESG impact alongside of financial return.
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