Are mid-caps making a comeback? Here’s the ETF you should prefer

French small- and mid-caps have been outperforming for several months now, turning heads after several years of significant underperformance. The Cac Mid & Small index thus strengthened in six months by 14.5% compared to only 7.6% for the Cac 40 and by 4.1% in the last month compared to a symbolic 0.5% for the Cac 40. Better, it resists the ongoing consolidation well, flat for one week (-0.1%) compared to a 1.7% decline in the flagship index. This movement could continue. For example, Eurozone SMEs are the only equity asset class overweighted by Oddo BHF.

To benefit from this return to favour, we recommend the readily available Amundi Cac Mid 60 ETF (Isin Code: FR0011041334). With five stars from Quantalys, it is ranked in the first quarter of French mid-cap funds for the year-to-date as well as for three, eight and ten years. Spie, GTT, Bolloré, Elis, Amundi, Eurazeo, Dassault Aviation, La Française des Jeux, Nexans and Ipsen make up the top ten positions of the fund focused on industrials (23% of the portfolio), media (13%), financials (11%) and energy (10%).

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