Smaller Than Blue Chips, Safer Than New Chips

Small-cap stocks have gotten great fanfare lately, and with good reason. As measured by the NASDAQ composite index, they are already up 44% this year, compared with a 15% rise in the Dow Jones industrial average. But halfway between blue chips and new chips lies a stock group whose day in the sun may just be dawning. Since June, when Standard & Poor's introduced the S&P MidCap 400 index, investors have a performance benchmark for a stock universe that could combine the best of both worlds. (S&P is a subsidiary of McGraw-Hill, which owns BUSINESS WEEK.)

To continue reading this article you must be a Bloomberg Professional Service Subscriber.