Mid cap companies often represent the best of both worlds: the innovation and agility of small caps with the financial maturity of large caps. Yet traditional mid cap benchmarks focus primarily on size—ignoring company fundamentals that can signal long-term potential.

The MarketGrader U.S. Mid Cap Core Index takes a different approach, targeting the highest-quality mid-sized companies in America using a disciplined, fundamentals-first process.

A Rules-Based Approach to Mid Cap Opportunity

Built on our GARP + Quality methodology, this index systematically identifies mid cap companies with superior financial profiles—companies that combine sustainable growth, profitability, reasonable valuations, and sound capital allocation.

Index Construction

• Universe: U.S. companies in the mid cap segment (approx. middle 15% of total market cap)
  
• Screening: Exclude all stocks with MarketGrader grades below 50/100
  
• Selection: Top 100 mid cap companies based on MarketGrader’s composite score
  
• Rebalancing: Conducted semiannually (March and September)
  

Why Mid Caps? Why MarketGrader?

Mid caps are historically underrepresented in both active and passive portfolios—but they’ve consistently delivered attractive risk-adjusted returns. By applying a rigorous selection process, this index seeks to harness the “sweet spot” of the market without sacrificing quality or discipline.

Conclusion
For investors looking to move beyond broad mid cap exposure and toward a smarter core allocation, the MarketGrader U.S. Mid Cap Core Index offers a differentiated path to long-term capital growth.