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. These strong numbers come in part from consumer spending remaining resilient.
However, this strong GDP data isn’t the only thing in the report worth celebrating. In the report, revised GDP stats show that the U.S. economy grew faster in 2021, 2022, and parts of 2023 than experts initially understood. All in all, this report highlights the fundamental strength of U.S. companies and can allay some worries that the economy could be heading into a recession.
Why Core Midcap Exposure Makes Sense
With economic growth on the forefront, now is a good time to build up core equity exposure. The Calvert US Mid-Cap Core Responsible Index ETF (CVMC ) can provide a stable core strategy with the benefit of midcap growth.
CVMC invests in a wide range of midcap companies across the United States. Calvert builds its portfolio around companies that have responsible management and business models.
Investing in companies that support environmental sustainability can be highly beneficial for investors. These Calvert-screened companies can promote more resource-efficient and transparent business practices. As such, companies within CVMC can be better positioned to provide positive results for the fund over the long term.
Currently, the ETF holds assets in a wide variety of sectors, including information technology, industrials, healthcare, and financials. A wide sector berth can be highly beneficial for a long-term core fund, especially in the midst of a rate-cutting cycle.
Choosing to add more midcap exposure to a portfolio makes a great deal of sense right now. Midcaps can offer a nice balance between risk mitigation and growth potential. And with rising concerns of concentration risk in large-cap funds, CVMC can provide a different option for a stable core equity fund.
Even though midcap ETFs may be getting overlooked at the moment, CVMC is offering compelling long-term results. As of Sept. 25, 2024, the fund’s NAV has risen over 25% in the last 12 months.
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