In recent years, the outsized performance of the Mag 7 stocks may have resulted in portfolios that are not as diversified as investors think.
Franklin Templeton proposes diversifying investments into mid-cap stocks to alleviate this risk. Using S&P MidCap 400 Index as an example of this opportunity, the whitepaper highlights how mid-caps can offer exposure to quality companies in a wide range of sectors, including cyclical areas like industrials and financials.
This detailed resource from Franklin Templeton covers how incorporating mid-cap stocks can be used by those seeking to complement large cap growth stocks and improve risk-adjusted returns.
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