IJH: Mid-Caps Historically Cheap, Sport Long-Term Outperformance

  • The S&P 500 has outperformed mid and small-cap indexes, making mid-caps attractively valued with P/E multiples in the mid-teens. I maintain a buy rating on iShares Core S&P Mid-Cap ETF despite its recent underperformance, citing its strong long-term valuation and profitability. IJH's portfolio is heavily weighted towards cyclicals, with a compelling P/E ratio under 16x and a PEG ratio of 1.33x.